Akebia Therapeutics (AKBA) experienced a sharp 20.74% pre-market plunge on Thursday, despite reporting second-quarter 2025 financial results that largely beat analyst estimates. This significant downturn has left investors puzzled, given the seemingly positive nature of the earnings report.

The biopharmaceutical company reported Q2 earnings per share (EPS) of $0, surpassing the expected loss of $0.02 per share. Revenue for the quarter came in at $62.472 million, substantially exceeding the forecast of $47.2 million. Akebia also posted a net income of $247,000, a marked improvement from the anticipated loss of $4.67 million. Operating income stood at $14.089 million, with operating expenses totaling $38.464 million.

Despite these better-than-expected results, the stock's dramatic pre-market decline suggests that investors may be reacting to other factors not immediately apparent in the headline numbers. Possible explanations could include concerns about future guidance, sustainability of current performance, or specific details within the earnings report that have worried market participants. As the trading day progresses, investors will be keen to hear any additional commentary from the company or analysts to shed light on this paradoxical market reaction.