Shares of Navient (NAVI) plummeted 5.73% in pre-market trading on Wednesday following the release of its second-quarter 2025 financial results, which fell short of analysts' expectations. The student loan servicer reported disappointing earnings and lowered its full-year guidance, prompting investor concerns about the company's near-term prospects.

Navient's second-quarter core earnings came in at $0.20 per diluted share, significantly below the FactSet consensus estimate of $0.27 and down from $0.29 in the same period last year. The company's revenue for the quarter ended June 30 was $156 million, a substantial decrease from $247 million a year earlier, though it managed to surpass the analyst expectations of $141.71 million.

In light of the weaker-than-expected performance, Navient has adjusted its 2025 core earnings per share guidance to a range of $0.95 to $1.05, down from its previous forecast of $1.00 to $1.20. This downward revision has likely contributed to the negative market reaction. Despite reporting loan origination growth, with over $1 billion in originations so far this year, investors seem to be focusing on the earnings miss and reduced outlook, leading to the sharp decline in Navient's stock price.