Revolve Group, LLC (RVLV) saw its stock price plummet 8.39% in after-hours trading on Tuesday, following the release of its first-quarter 2025 financial results. The sharp decline came as a surprise to many, given that the company largely exceeded analysts' expectations on several key metrics.

Revolve reported earnings per share (EPS) of $0.16, surpassing the IBES estimate of $0.14. The company's net income reached $11.406 million, also beating the expected $10.4 million. Additionally, Revolve's adjusted EBITDA came in at $19.299 million, significantly higher than the anticipated $15.5 million.

However, despite these positive results, Revolve's revenue slightly missed the mark. The company reported sales of $296.709 million, falling short of the $298 million IBES estimate. This revenue miss, albeit small, may have contributed to the negative market reaction. Furthermore, Revolve's gross margin stood at 52%, and while the company did not provide forward guidance in the released statements, investors might be concerned about future growth prospects in an increasingly competitive e-commerce landscape. The stark contrast between the company's solid earnings and the stock's after-hours performance suggests that market expectations were set even higher than the reported results or that other factors not immediately apparent in the financial figures are influencing investor sentiment.