Shares of Riskified Ltd. (RSKD) plummeted 5.06% in pre-market trading on Wednesday, following the release of the company's first-quarter 2025 financial results. Despite beating analyst expectations on both earnings per share and revenue, investors appeared concerned about the company's widening net loss and year-over-year decline in adjusted earnings.

Riskified, a provider of fraud management solutions for online merchants, reported adjusted earnings of 3 cents per share for the quarter ended March 31, surpassing the mean analyst expectation of 1 cent per share. However, this represents a decrease from the 4 cents per share reported in the same quarter last year. Revenue rose 7.8% to $82.39 million, beating the analyst consensus of $79.23 million.

Despite these beats, the company reported a net loss of $13.89 million for the quarter, with a reported loss per share of 9 cents. This widening loss seems to have overshadowed the positive aspects of the earnings report, leading to the sharp pre-market decline. Additionally, analysts have become increasingly pessimistic about Riskified's prospects, with the mean earnings estimate falling by approximately 81.8% over the past three months. The current average analyst rating on Riskified shares is "hold," with a median 12-month price target of $5.50.