Shift4 Payments, Inc. (NYSE: FOUR) saw its stock plummet 5.38% in pre-market trading on Wednesday, despite the company reporting strong Q1 2025 results and raising its full-year guidance. The payment technology provider's performance seemingly failed to meet investor expectations, leading to the sharp decline.

During the Q1 2025 earnings call, Shift4 reported a 35% year-over-year increase in payment volumes to $45 billion, while gross revenue less network fees grew 40% to $369 million. The company also saw a 38% rise in adjusted EBITDA to $169 million, with margins slightly above guidance at 46%. Despite these positive results, the company's subscription and other revenue experienced a sequential decline from Q4 2024, which may have contributed to investor concerns.

Shift4 raised its full-year 2025 guidance, projecting gross revenue less network fees between $1.66 billion and $1.73 billion, and adjusted EBITDA between $840 million and $865 million. The company's management expressed confidence in their ability to execute and deliver growth, citing stable volume trends across all end markets and ongoing international expansion efforts. However, the market's negative reaction suggests that investors may be concerned about the company's ability to maintain its growth trajectory in the face of potential macroeconomic challenges and increased competition in the payment processing industry.