Shares of Kodiak AI (NASDAQ: KDK) plummeted 7.50% in after-hours trading on Wednesday following the release of the company's third-quarter 2025 financial results, which fell far short of analyst expectations.

The autonomous vehicle technology provider reported a quarterly loss of $3.89 per share, significantly wider than the analyst consensus estimate of a $0.16 loss. Revenue for the quarter came in at just $770,000, missing the Wall Street forecast of $486.67 million by a staggering 99.84%.

Despite reporting progress in deploying its driverless trucks and accumulating paid driverless operation hours, investors appeared to focus on the company's substantial losses and revenue shortfall. Kodiak AI's net loss for the quarter ballooned to $269.9 million, compared to a $19.1 million loss in the same period last year. The company attributed the increased losses partly to non-cash expenses related to changes in fair value of financial instruments and losses on issuance of securities.

While Kodiak AI highlighted operational achievements, such as deploying 10 fully driverless trucks and accumulating over 5,200 hours of paid driverless operations, the financial results suggest the company faces significant challenges in monetizing its technology at scale. The after-hours stock plunge reflects investor concerns about the company's path to profitability and its ability to meet market expectations in the highly competitive autonomous driving sector.