Poet Technologies Plunges 11.15% on Mixed Q3 Results: Profitability Woes Overshadow Operational Gains

The share price fell to its lowest level since June 2025 today, with an intraday decline of 9.31%.

Poet Technologies (POET) reported a 11.15% drop over two days, driven by mixed signals from its Q3 2025 results. While the firm secured $5.6 million in initial production orders and unveiled a 1.6T optical receiver in partnership with Semtech, its unaudited financials revealed a $9.4 million net loss and rising R&D expenses. The stock’s decline followed the release of these results, which highlighted a sharp contrast between operational milestones and ongoing profitability challenges. Management cited the recent $250 million equity raise as a step toward scaling manufacturing and R&D, but investors appear skeptical about near-term execution risks, including production delays and competition in the AI interconnect market.

Analysts point to the company’s strategic pivot toward high-volume AI networking and telecom applications as a long-term growth lever, though near-term financials remain a drag. The partnership with NTT Innovative Devices to expand into mobile AI infrastructure and collaborations with Sivers Semiconductors to develop chip-to-chip communication solutions underscore Poet’s technical ambitions. However, the minimal product revenue—$298,434 in Q3 2025—compared to substantial losses and non-cash charges, including $2.4 million from derivative warrants, has raised concerns about capital efficiency. With a forward-looking revenue ramp expected through 2026, the stock’s volatility reflects a tug-of-war between innovation potential and the need for consistent profitability to justify its recent equity infusion.