Blackstone Mortgage Trust (NYSE: BXMT) saw its shares plummet 5.06% in pre-market trading on Friday, despite reporting improved first-quarter 2025 results. The company's latest earnings report, released early Friday, showed a significantly narrowed net loss and a smaller loss per share compared to the same period last year.

According to the earnings release, Blackstone Mortgage Trust reported a net loss of $357,000 for Q1 2025, a substantial improvement from the previous year. The loss per share decreased to $0.002, down from $0.71 in the first quarter of 2024. While these figures demonstrate progress in the company's financial performance, they apparently failed to meet market expectations, triggering the sharp pre-market decline.

Investors' concerns may be further fueled by the mention of three warning signs identified for Blackstone Mortgage Trust, with two of them described as particularly worrying. Although the specific nature of these warning signs was not disclosed in the earnings report, their presence could be contributing to the negative sentiment surrounding the stock. Additionally, while the company's revenue is forecast to grow at an impressive 52% per annum over the next three years, outpacing the 16% growth projected for the US Mortgage REITs industry, this positive outlook seems insufficient to offset current investor worries.