Castle Biosciences, Inc. (CSTL) stock is experiencing a significant pre-market plunge of 6.13% on Tuesday following the release of its first-quarter 2025 earnings report. The company's results fell short of analysts' expectations, disappointing investors and triggering a sell-off in early trading.

For the quarter ended March 31, Castle Biosciences reported a quarterly adjusted loss of 20 cents per share, significantly wider than the mean expectation of a 7-cent loss per share from nine analysts. This result also marks a deterioration from the same quarter last year when the company reported a loss of 9 cents per share. Despite the earnings miss, revenue rose 20.6% to $87.99 million, surpassing analysts' expectations of $80.34 million.

The medical diagnostics company's reported EPS for the quarter showed a loss of 90 cents, resulting in a quarterly loss of $25.85 million. This performance comes amid a challenging year for Castle Biosciences, with its shares already down 27.4% year-to-date before this latest setback. Despite the negative earnings surprise, Wall Street maintains a bullish outlook on the stock, with a consensus "strong buy" rating and a median 12-month price target of $40.00.