Shares of The Metals Company (NASDAQ: TMC) plummeted 5.54% in after-hours trading on Thursday following the release of its second-quarter 2025 financial results, which fell short of analyst expectations.

The deep-sea mining company reported a net loss of $74.3 million for Q2 2025, significantly wider than the $20.2 million loss recorded in the same period last year. The earnings per share (EPS) came in at -$0.20, missing the analyst consensus estimate of -$0.05 by a wide margin. This represents a 233.33% decrease compared to the -$0.06 per share loss reported in Q2 2024.

The expanded loss was primarily attributed to two factors: 1. A non-recurring charge of $33 million for the fair value of warrants issued to the Republic of Nauru 2. A $16.2 million charge due to an increase in the fair value of warrant liability, reflecting a significant rise in share price during the quarter

Despite the disappointing financial results, TMC highlighted some positive developments. The company received a notice of full compliance from the National Oceanic and Atmospheric Administration (NOAA) on its exploration applications, marking progress in its regulatory path. Additionally, TMC announced a strategic investment of $85.2 million from Korea Zinc, strengthening its financial position and market outlook.

TMC Chairman and CEO Gerard Barron remained optimistic, emphasizing the company's progress towards production. "We are targeting first production from NORI-D in Q4 2027, unlocking one of the largest and most strategic resources of critical metals in the world," Barron stated.

As of June 30, 2025, TMC reported a cash position of approximately $115.8 million, which the company believes is sufficient to meet its working capital and capital expenditure commitments for at least the next twelve months. However, investors seem to be focusing on the wider-than-expected losses, leading to the after-hours stock price decline.