Talen Energy (NASDAQ: TLN) shares tumbled 5.32% in pre-market trading on Thursday following the release of its first-quarter 2025 financial results, which fell significantly short of analyst expectations. The independent power producer reported a surprising net loss and a substantial decline in revenues, catching investors off guard.

According to the earnings report, Talen Energy posted a net loss of $2.94 per share for Q1 2025, a stark contrast to the FactSet consensus estimate of $1.09 earnings per share. This represents a dramatic reversal from the same period last year when the company reported earnings of $4.84 per share. The quarterly operating revenues came in at $390 million, missing the analyst consensus estimate of $493.64 million by 21%. This also marks a 23.38% decrease compared to the $509 million in sales reported in the same quarter of the previous year.

Despite the disappointing quarterly results, Talen Energy affirmed and narrowed its guidance for the full year 2025. The company now expects adjusted EBITDA to be in the range of $975 million to $1,125 million. Additionally, Talen Energy stated that its outlook for 2026 remains unchanged. Investors and analysts will likely be closely watching the company's performance in the coming quarters to see if it can recover from this setback and meet its annual targets.