Shares of Priority Technology Holdings Inc (PRTH) plunged 18.76% in pre-market trading on Tuesday, following the release of the company's first-quarter 2025 financial results. The significant drop came despite the company beating earnings estimates, as revenue fell short of expectations.

Priority Technology reported adjusted earnings of 22 cents per share for the quarter ended March 31, surpassing the mean expectation of 18 cents per share from five analysts. This represents a substantial improvement from the same quarter last year when the company reported earnings per share of -10 cents. However, revenue rose only 9.2% to $224.63 million, falling short of the $228.90 million analysts had expected.

Despite the mixed results, Priority Technology affirmed its full-year 2025 guidance. The company expects revenue in the range of $965 million to $1 billion, representing a growth of 10-14%. Adjusted EBITDA is projected to be between $220 million and $230 million, with growth of 8-13%. However, these projections did not seem to assuage investor concerns, as evidenced by the sharp stock decline. The market's reaction suggests that investors may have been looking for stronger revenue growth or more ambitious forward guidance, particularly given the company's recent stock performance, which had risen 11.1% in the previous quarter despite being down 35.6% year-to-date prior to this announcement.