Perella Weinberg Partners (PWP) saw its stock price plummet 7.37% in pre-market trading on Friday following the release of its third-quarter 2025 financial results, which fell short of analyst expectations. The global independent advisory firm reported a significant decline in both earnings and revenue, primarily attributed to a slowdown in mergers and acquisitions (M&A) activity.

For the third quarter ended September 30, 2025, Perella Weinberg Partners reported adjusted earnings of $0.13 per diluted share, missing the analyst consensus estimate of $0.21. This represents a substantial decrease from $0.34 per share in the same period last year. The company's revenue for the quarter came in at $164.6 million, falling well below the $199.58 million expected by analysts and marking a 41% decrease from the $278.2 million reported in the third quarter of 2024.

The sharp decline in revenue was primarily driven by fewer M&A closings, reflecting a challenging environment for deal-making. Despite the downturn, the company highlighted its strategic investments, including the addition of 25 senior bankers year-to-date and the recent acquisition of Devon Park Advisors. CEO Andrew Bednar emphasized that these moves position the firm well for an increasingly active transaction environment. The company maintained a strong balance sheet with $185.5 million in cash and no outstanding debt at the end of the quarter. In light of the results, Perella Weinberg Partners declared a quarterly dividend of $0.07 per share of Class A common stock.