Shares of The Metals Company (NASDAQ: TMC) tumbled 6.10% in after-hours trading on Thursday following the release of its second quarter 2025 financial results, which fell significantly short of analyst expectations.

The deep-sea mining company reported a net loss of $74.3 million for the quarter ended June 30, 2025, substantially wider than the $20.2 million loss reported in the same period last year. Earnings per share came in at -$0.20, missing the analyst consensus estimate of -$0.05 by a wide margin. The company's operating loss also increased to $22 million, up from $20.3 million in Q2 2024.

Several factors contributed to the expanded loss: 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 3. Higher general and administrative expenses of $11.5 million, up from $7.9 million in Q2 2024, due to increased share-based compensation and consulting costs Despite some positive developments highlighted in the earnings report, including a strategic investment from Korea Zinc and progress on regulatory approvals, investors seemed to focus on the disappointing financial performance. TMC Chairman and CEO Gerard Barron emphasized the company's long-term potential, citing a combined Net Present Value of $23.6 billion for its portfolio and targeting first production from its NORI-D project in Q4 2027. However, these future prospects were overshadowed by the immediate financial results.