Adtran Holdings, Inc. (NASDAQ: ADTN) shares tumbled 5.79% in pre-market trading on Thursday following the release of its first-quarter 2025 financial results, which presented a mixed picture and weak guidance for the upcoming quarter.

The networking equipment provider reported adjusted earnings per share of $0.03, which beat the analyst consensus estimate of -$0.03. However, the company's revenue of $247.74 million fell short of market expectations, missing the analyst consensus estimate of $255.07 million by 2.87%. Despite the revenue miss, this figure represents a 9.54% increase compared to the same period last year when the company reported sales of $226.17 million.

Investors appear to be concerned about Adtran's outlook for the second quarter. The company expects Q2 2025 revenue to be within a range of $247.5 million to $262.5 million, which suggests potential for flat or only modest growth compared to the first quarter. Additionally, Adtran projects a non-GAAP operating margin of 0% to 4% for Q2, indicating continued pressure on profitability.

While Adtran's CEO Tom Stanton highlighted the company's "strong performance" and "improved operating efficiency" in the earnings release, the market's negative reaction suggests that investors were looking for more robust growth and profitability signals. The company's ongoing efforts to navigate shifts in trade policy and capitalize on its globally diverse supply chain may take more time to yield significant results.