Perella Weinberg 2025 Q3 Earnings Misses Targets with 70.3% Net Income Drop

Perella Weinberg (PWP) reported Q3 2025 earnings on November 7, 2025, with results falling short of expectations. The firm’s revenue declined 40.8% to $164.65 million, missing analyst estimates of $179.83 million. Earnings per share (EPS) dropped 69% to $0.09, below the $0.15 consensus. Management lowered full-year 2025 guidance to a low single-digit revenue increase, citing market challenges and strategic investments.

Revenue

The firm’s Q3 revenue of $164.65 million marked a 40.8% year-over-year decline, reflecting reduced M&A activity and a prior-year outlier. Year-to-date revenue reached $532 million, with record engagement levels and a 50% YoY rise in European business. Despite these positives, the CEO acknowledged the quarter as “non-record” compared to 2024.

Earnings/Net Income

Net income fell to $8.56 million in Q3 2025, a 70.3% drop from $28.84 million in Q3 2024. EPS of $0.09 underperformed the $0.29 reported in the prior-year period. The sharp decline underscores the impact of weaker transaction volumes and a challenging market environment, though the firm maintained a 67% adjusted compensation margin. The earnings shortfall, combined with revenue misses, signals significant underperformance relative to expectations.

Post-Earnings Price Action Review

Following the earnings report, Perella Weinberg’s stock price exhibited mixed short-term performance. Shares climbed 3.21% during the latest trading day but declined 3.53% over the subsequent full trading week, ending with an 8.76% month-to-date drop. The volatile reaction reflects investor uncertainty about the firm’s near-term prospects, despite management’s optimism about long-term strategic moves like the Devon Park acquisition. The stock’s decline post-earnings highlights market skepticism about the firm’s ability to reverse its revenue and earnings trends in the near term.

CEO Commentary

Andrew Bednar, CEO, emphasized the firm’s focus on high-value transactions and strategic growth. Q3 revenues of $165 million and year-to-date revenue of $532 million, while below prior-year records, reflect strong engagement levels and a 50% YoY increase in European business. The acquisition of Devon Park, closed on October 1, added new capabilities in secondary markets, which the CEO called a “game changer” given the $200 billion expected in continuation vehicles this year. He also highlighted the addition of 25 senior bankers, representing 18% of the partner base, as a key driver of future revenue growth.

Guidance

The firm revised its full-year 2025 revenue guidance downward to a low single-digit increase, citing ongoing market challenges. CFO Alex Gottschalk noted expense discipline, with adjusted non-compensation expenses at $37 million for Q3 and a 5% year-to-date increase to $122 million. While Devon Park’s contribution is expected to accelerate in 2026, the firm remains focused on scaling its platform and leveraging new talent to drive long-term growth.

Additional News

Perella Weinberg declared a quarterly dividend of $0.07 per share, payable December 15, with a 1.6% yield and a 17.8% payout ratio. The firm also announced the acquisition of Devon Park, which expanded its secondary market capabilities and client base. Additionally, the company added 25 senior bankers across sectors and regions, signaling a strategic push to strengthen its M&A and restructuring practices. Institutional investors have been actively adjusting their holdings, reflecting mixed sentiment about the firm’s near-term prospects amid broader market uncertainties.