Shares of Liquidia Technologies Inc (LQDA) plunged 5.81% during intraday trading on Wednesday, reversing earlier premarket gains as investors digested the company's second-quarter financial results. The stock had initially risen in premarket trading after a strong revenue beat, but quickly reversed course and extended losses throughout the session.

The decline came despite Liquidia reporting Q2 net product sales of approximately $170.4 million for its hypertension drug YUTREPIA, which surpassed analyst expectations of $168.54 million. However, the company's quarterly net income of $74.72 million fell short of the $77.22 million consensus estimate compiled by LSEG. While earnings per share of $0.74 met some analyst estimates, it missed the FactSet estimate of $0.76. The slight profit miss, combined with the stock's remarkable year-to-date rally of more than 150%, prompted a wave of profit-taking among investors.

Liquidia had been riding a significant upward momentum following the successful launch of YUTREPIA in June 2025, with the stock more than doubling in value this year. The company reported its fourth consecutive quarter of increasing profitability, with adjusted EBITDA of $96.3 million, but the market's high expectations were already priced in, leaving little room for even a modest earnings shortfall.