Guardian Pharmacy Services, Inc. (NYSE:GRDN) saw its stock price plummet 5.14% in Friday's trading session following the release of its full-year 2024 financial results. The company's earnings report revealed a surprising turn from profit to loss, catching investors off guard.

According to the earnings report, Guardian Pharmacy Services posted revenue of $1.23 billion for the full year 2024, representing a 17% increase from the previous year. However, the company swung to a net loss of $87.3 million, a stark contrast to the $23.9 million profit reported in fiscal year 2023. This translates to a loss of $1.41 per share, significantly missing analyst expectations by 48%.

The dramatic shift to a net loss appears to be primarily driven by rising costs. The company's cost of sales amounted to $984.0 million, accounting for 80% of total revenue. Additionally, general and administrative expenses reached $302.9 million, representing 91% of total expenses. These figures underscore the significant impact of operational costs on the company's bottom line. The market's negative reaction was further amplified by a reported NYSE order imbalance of 19,790 shares on the sell side, indicating strong selling pressure on the stock.