Shares of Perella Weinberg Partners (PWP) plummeted 7.37% in pre-market trading on Friday after the investment banking firm reported disappointing third-quarter results that fell short of analyst expectations.

The company's Q3 revenue came in at $164.6 million, down 41% from $278.2 million in the same period last year and significantly below the consensus estimate of $199.58 million. Adjusted earnings per share (EPS) for the quarter were $0.13, missing the analyst forecast of $0.21 and down from $0.34 in Q3 2024. The sharp decline in revenue was primarily attributed to fewer merger and acquisition (M&A) deal closings.

Perella Weinberg's CEO Andrew Bednar commented on the results, stating, "Our strategic investments this year -- adding 25 senior bankers and closing the Devon Park acquisition -- position us well in an increasingly active transaction environment and demonstrate our commitment to build scale." Despite these efforts, the company's financial performance for the quarter failed to meet market expectations, leading to the significant stock price drop.