Shares of Amber International Holding (NASDAQ: AMBR) plummeted 5.87% in pre-market trading on Wednesday, despite the company reporting strong first-quarter 2025 results. The significant drop in stock price appears to be driven by the company's outlook, which may have fallen short of investor expectations.

Amber International, a provider of institutional crypto financial services, reported a substantial increase in revenue for Q1 2025, reaching $14.9 million compared to $1.0 million in the same period last year. The company also swung to profitability, posting adjusted earnings per share of $0.02, up from a loss of $0.01 per share in Q1 2024. However, these improvements were not enough to prevent the stock's sharp decline.

The market's negative reaction seems to stem from Amber International's forward-looking guidance. For the second quarter of 2025, the company projects revenue for its Amber Premium business to be between $15.5 million and $17.5 million. For the full year 2025, revenue is estimated to be in the range of $65.0 million to $75.0 million. While these figures represent growth, they may have fallen short of Wall Street's expectations, leading to the sell-off. Investors may also be concerned about the sustainability of the company's growth trajectory in the highly volatile crypto financial services sector.