What Happened?

Shares of financial advisory firm Perella Weinberg Partners (NASDAQ: PWP) fell 8% in the afternoon session after the company reported disappointing third-quarter 2025 financial results, with both revenue and earnings falling short of analyst expectations. 

The advisory firm's revenue was $164.6 million, a steep 40.8% drop from the same period last year, and missed analyst forecasts of $179.8 million. This significant decrease was likely driven by fewer completed merger and acquisition (M&A) deals. Additionally, the company's adjusted earnings per share of $0.13 fell below the consensus estimate of $0.15. The weak performance across both its top and bottom lines pointed to a challenging quarter for the firm.

The shares closed the day at $18.02, down 4.5% from previous close.

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What Is The Market Telling Us

Perella Weinberg’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock gained 5.8% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.

Perella Weinberg is down 23.5% since the beginning of the year, and at $18.02 per share, it is trading 31.8% below its 52-week high of $26.41 from January 2025.

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