By Christopher Kuo
Kodiak AI shares plunged in after-hours trading after the company said it raised $100 million by selling about 15 million shares at $6.50 in a private placement.
Shares of the autonomous vehicle company fell 37% in after-hours trading Thursday to $5.74. At the end of the regular trading session, Kodiak's stock closed had closed at $9.10 a share.
Kodiak said its private placement financing including participating from existing investors, including an affiliate of Ares Management, as well as several new investors.
"This financing will provide us with additional flexibility to execute on our operating plan and will support our next phase of growth," Chief Financial Officer Surajit Datta said. "We believe that the equity financing combined with our continued progress in scaling our business will enable us to make progress toward profitability and generating free cash flow over time."
The company on Thursday posted a first-quarter profit of $26.5 million, or 10 cents a share, compared with a loss of $128.2 million, or $2.16 a share, a year earlier. Analysts polled by FactSet expected a loss of 20 cents a share.
Revenue rose to $1.8 million from $1.5 million a year earlier. Analysts expected revenue of $1.6 million.
Kodiak AI said it is partnering with General Dynamics Land Systems to develop autonomous ground vehicles for defense. Kodiak will provide artificial intelligence-powered drivers for the vehicles, and the two companies will pursue upcoming U.S. Army and international opportunities.
Kodiak also said it is exploring deploying trucks equipped with its AI-powered autonomous drivers at West Fraser Timber's log hauling operations in Canada.
Write to Christopher Kuo at chris.kuo@wsj.com
(END) Dow Jones Newswires
May 07, 2026 18:30 ET (22:30 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.