Why Did Bitcoin Depot Plunge 10.07% Despite Earnings Beat?

On May 19, 2025, Bitcoin Depot experienced a significant drop of 10.07% in pre-market trading, marking a notable decline in its stock performance.

Bitcoin Depot recently released its quarterly results, which surpassed market expectations. The company reported revenue of US$164 million, exceeding estimates by 8.3%, and earnings per share (EPS) of US$0.20, which was 116% higher than anticipated. This positive performance has led analysts to revise their forecasts for the company's future earnings and revenue growth.

Following the earnings report, analysts have upgraded their earnings per share estimates for Bitcoin Depot, indicating increased optimism about the company's prospects. The consensus price target for the stock has also risen by 13% to US$5.38, reflecting the improved earnings outlook. However, while the company's revenue growth is expected to accelerate, analysts still forecast it to grow at a slower pace than the broader industry.

Despite the positive earnings surprise, investors should remain cautious. The company's historical performance and the broader industry trends suggest that while Bitcoin Depot has shown resilience, it may still face challenges in achieving sustained growth. The range of analyst estimates for the stock's valuation also indicates varying opinions on the company's future prospects, with the most bullish estimate at US$7.00 per share and the most bearish at US$4.00.