Flowco Holdings Inc. (NYSE: FLOC) saw its stock price plummet 7.29% in Tuesday's pre-market trading session following the release of its first-quarter 2025 earnings report. The company, which provides production optimization and artificial lift solutions for the oil and gas industry, reported mixed results that left investors concerned about its revenue growth.

For the first quarter, Flowco reported revenues of $192.4 million, falling short of the FactSet consensus estimate of $198.3 million. This miss on the top line appears to be the primary driver behind the stock's sharp decline. However, the company did manage to beat earnings expectations, posting an adjusted earnings per share (EPS) of $0.45, significantly higher than the analyst consensus estimate of $0.32.

Despite the earnings beat, investors seem to be focusing on the revenue shortfall and potential headwinds in the industry. Flowco acknowledged the challenges in the current market environment, noting that many of its customers have announced plans to modestly reduce capital spending. However, the company remains optimistic about its positioning, particularly highlighting its High Pressure Gas Lift solution as a cost-effective alternative to competing technologies that may be negatively impacted by tariffs.