Shoals Technologies Group's stock plummeted 15.91% during intraday trading on Tuesday, as investors reacted negatively to the company's latest financial results and forward guidance.

The sharp decline followed the release of Shoals' fourth-quarter 2025 earnings, which revealed a significant miss on profitability despite a revenue beat. The company reported adjusted earnings per share of $0.10, falling 27.54% short of the analyst consensus estimate of $0.14. This earnings miss was primarily driven by a substantial contraction in gross profit margin, which dropped to 31.6% from 37.6% in the prior-year period due to increased material costs and $3.3 million in duties and tariffs.

Further pressuring the stock was the company's outlook for the first quarter of 2026. Shoals expects revenue in the range of $125 million to $135 million and adjusted EBITDA between $16 million and $21 million, indicating a potential sequential decline from the fourth quarter's performance. While the company maintained a record backlog and provided full-year revenue guidance that met or exceeded analyst expectations, the immediate profitability concerns and near-term headwinds outweighed these positive factors in today's trading session.