Shares of Donnelley Financial Solutions, Inc. (DFIN) plummeted 12.29% in Thursday's trading session following the release of its second-quarter 2025 earnings report and disappointing third-quarter outlook. The financial services company reported mixed results, with adjusted earnings per share beating expectations but revenue falling short of estimates.

DFIN reported Q2 adjusted earnings per share of $1.49, surpassing the consensus estimate of $1.43. However, net sales for the quarter fell 10.1% year-over-year to $218.10 million, missing analyst expectations of $226.12 million. The decline in revenue was primarily attributed to lower capital markets transactional volumes. Despite the earnings beat, investors seemed more focused on the company's weak outlook for the third quarter.

For Q3 2025, DFIN expects net sales to be between $165 million and $175 million, with an adjusted EBITDA margin between 23% and 25%. The company also forecasts Q3 2025 capital markets transactional net sales of $35 million to $40 million. While DFIN expressed optimism about improving market conditions in Q3, the guidance appears to have fallen short of investor expectations, contributing to the significant sell-off. The announcement of a new $150 million stock repurchase program was not enough to offset concerns about the company's near-term prospects.