Shares of Aveanna Healthcare Holdings Inc. (AVAH) plummeted 12.38% in pre-market trading on Thursday, despite the company reporting better-than-expected third-quarter results and raising its full-year guidance. The stark contrast between the positive financial news and the stock's performance has left investors puzzled.

Aveanna announced third-quarter revenue of $621.9 million, surpassing analyst estimates of $592.2 million. The company also reported a net income of $14.1 million, or $0.06 per share, marking a significant turnaround from the net loss reported in the same quarter last year. Adjusted EBITDA for Q3 2025 was $80.1 million, representing a 67.5% increase over the prior year period.

In light of the strong performance, Aveanna raised its full-year 2025 revenue guidance to over $2.375 billion, up from its previous forecast of over $2.3 billion. The company also increased its adjusted EBITDA guidance to more than $300 million, compared to the earlier projection of over $270 million. Despite these positive developments, investors seemed to react negatively to the news, sending the stock sharply lower before the market open. The disconnect between the company's reported results and the stock's performance suggests that market expectations may have been even higher or that other factors, not immediately apparent in the earnings release, are influencing investor sentiment.