Pony AI Inc.'s stock plummeted 8.47% during intraday trading on Thursday, as the market reacted negatively to the company's latest financial results and broader sector pressures.
The decline was primarily driven by the company's fourth-quarter 2025 earnings report, which revealed an adjusted loss of $0.12 per share. This result significantly missed the analyst consensus estimate of a $0.22 profit, disappointing investors who had anticipated profitability. Furthermore, quarterly revenue of $29.1 million represented an 18% year-over-year decline, and the company's gross margin contracted to 12.7% from 21.0% a year earlier, primarily due to an increasing revenue contribution from its Robotruck services segment.
Broader market headwinds also contributed to the sell-off, with technology stocks falling premarket amid escalating geopolitical tensions in the Middle East. This created a negative sentiment environment, particularly for Chinese ADRs, adding downward pressure on Pony AI's shares during the session.