Why C3.ai Fell 29% in the First Half of 2025

Company Performance - C3.ai's stock experienced a significant decline of 29% through the first half of the year, with a notable drop in February due to weakening business and consumer sentiment [2][5] - The company reported a revenue increase of 26% to $98.8 million, but continued to incur losses, with an adjusted loss per share of $0.12 and a GAAP net loss of $80.2 million, which increased from $72.6 million year-over-year [6][7] - Despite revenue growth, C3.ai's gross margins remained low at 62% in Q4, indicating challenges in scaling the business effectively [8] Financial Metrics - C3.ai's share-based compensation amounted to $174.4 million through the first three quarters of the year, representing nearly 75% of its revenue for that period [7] - In Q4, the company reported revenue of $108.7 million, with an adjusted loss of $0.16 per share and a GAAP net loss of $79.7 million, slightly up from $72.9 million [7] Future Outlook - While C3.ai has made progress in partnerships and customer acquisition, the current growth rate is insufficient to offset ongoing losses, and the company needs to build scale to achieve profitability [10] - The long-term potential of the stock is linked to its exposure to AI and growth prospects, but current downside risks and share dilution are significant concerns [10]