POET Technologies Inc. shares plummeted 18.81% during intraday trading on Friday, as the company reported a swing to a first-quarter loss and announced a substantial dilutive financing round, triggering a sharp reversal from the previous session's explosive gains.

The photonic integration company reported a GAAP net loss of $12.3 million, or $0.08 per share, for Q1 2026, missing the analyst consensus estimate for a loss of $0.05 per share. This represented a significant reversal from net income of $6.3 million, or $0.08 per share, in the same period a year earlier. While revenue of $503,389 beat expectations and more than tripled year-over-year, the earnings miss and higher expenses weighed on investor sentiment.

Compounding the negative reaction, POET announced a registered direct offering to raise approximately $400 million by issuing 19 million shares and warrants to a single institutional investor at a combined price of $21 per share. The dilutive nature of this offering, coming after the stock's 43% surge the previous day on news of AI infrastructure partnerships, prompted significant profit-taking. The decline was further exacerbated by broader weakness in the technology and semiconductor sectors during the session.