Shares of Microvast Holdings, Inc. (NASDAQ: MVST) plummeted 7.23% in Tuesday's trading session, extending losses from pre-market trading following the release of the company's disappointing third-quarter 2025 financial results. The electric vehicle battery maker reported mixed results that left investors concerned about its profitability despite strong revenue growth.

Microvast announced record Q3 revenue of $123.3 million, marking a 21.6% increase year-over-year and beating analyst estimates. The company also reported an improved gross margin of 37.6%, up from 33.2% in the same quarter last year. However, these positive developments were overshadowed by an unexpected net loss of $1.5 million, compared to a net profit of $13.2 million in Q3 2024. The company's adjusted earnings per share came in at $0.04, falling short of the $0.05 consensus estimate.

The market's negative reaction appears to be driven primarily by concerns about Microvast's ability to translate top-line growth into bottom-line results. The shift from profit to loss year-over-year, even with significant revenue growth, raised questions about the company's cost management and operational efficiency. While Microvast maintained its full-year 2025 revenue growth target of 18% to 25%, the earnings shortfall has clearly dampened investor sentiment, leading to the sharp decline in stock price during the trading session.