Solaris Energy Infrastructure, Inc. (NYSE:SEI) saw its stock plummet 5.88% in Wednesday's pre-market trading session, despite reporting a significant 86% year-over-year increase in revenue for the first quarter of 2025. The sharp decline comes as investors digest the company's mixed financial results and potential risks.

According to the quarterly report, Solaris Energy Infrastructure posted revenue of $126.3 million, surpassing analyst estimates by 8.6%. However, the company's earnings per share (EPS) of $0.14 fell short of expectations, missing analyst estimates by 2.3%. This discrepancy between revenue growth and earnings performance appears to be a key factor in the stock's decline.

Adding to investor concerns, the company's profit margin decreased from 6.0% in Q1 2024 to 4.0% in Q1 2025, primarily due to higher expenses. Furthermore, a risk analysis has identified six warning signs for Solaris Energy Infrastructure, with three of them being significant. These factors, combined with the missed EPS target, seem to have overshadowed the strong revenue growth, leading to the sharp sell-off in pre-market trading.