Shares of C3.ai, Inc. (AI) plummeted 5.72% on Tuesday, continuing a downward trend that has seen the stock lose 58% of its value since its December peak. The artificial intelligence software provider's latest decline comes amid growing concerns over its financial performance and the uncertain future of a key partnership.

Despite C3.ai's rapid revenue growth in recent years, investors are increasingly worried about the company's ability to achieve profitability. In the third quarter of fiscal 2025, C3.ai reported revenue of $99 million, representing a 26% year-over-year increase. However, this growth rate marks a slowdown from the previous quarter's 29% increase, potentially signaling a deceleration in the company's expansion.

More troubling for investors is C3.ai's persistent gap between revenue and expenses. The company's costs and expenses for Q3 totaled more than $516 million, far exceeding its revenue and resulting in a net loss of $209 million. This financial imbalance, coupled with negative free cash flow, has raised questions about the company's path to profitability. Adding to these concerns is the uncertainty surrounding C3.ai's partnership with oil giant Baker Hughes, which is up for renewal soon. The lack of clear indications about the continuation of this agreement has further dampened investor sentiment, contributing to the stock's recent decline.