Ten companies fell off the cliff on Wednesday, defying a broader market rally, mostly due to disappointing earnings performance and a lower growth outlook that dampened investor sentiment. Notably, the stocks nosedived by double digits during the trading session.
Meanwhile, the tech-heavy Nasdaq jumped by 1.21 percent, the S&P 500 rose by 0.73 percent, and the Dow Jones was up by 0.18 percent.
In this article, we name the 10 worst-performing stocks on Wednesday and detail the reasons behind their decline.
To compile the list, we focused on stocks with $2 billion in market capitalization and at least 5 million shares in trading volume.
A technical stock market chart. Photo by Energepic from Pexels
10. The GEO Group Inc. (NYSE:GEO)
The GEO Group slashed its share prices by 11.46 percent on Wednesday to close at $22.88 apiece as investors soured on the lower-than-expected earnings outlook for full-year 2025, shunning its impressive income performance in the second quarter of the year.
In an updated report, The GEO Group Inc. (NYSE:GEO) raised its 2025 revenue target to $2.56 billion, up from the $2.53 billion guidance previously. However, analysts had expected $2.58 billion.
Additionally, The GEO Group Inc. (NYSE:GEO) expects attributable net income to be in a range of $1.99 to $2.09 per diluted share, including a $228 million gain on the sale of its Lawton Facility. Adjusted EBITDA was pegged at $465 million to $490 million.
In the second quarter of the year, The GEO Group Inc. (NYSE:GEO) swung to an attributable net income of $29 million from a $32.5 million net loss in the same period last year. Revenues grew by 4.8 percent to $636 million from $608 million year-on-year.
In the first half, attributable net income ended at $48.7 million, reversing a net loss of $9.8 million in the same comparable period. Revenues inched up by 2.5 percent to $1.24 billion from $1.21 billion year-on-year.
9. The Mosaic Company (NYSE:MOS)
Shares of The Mosaic Company (NYSE:MOS) fell by 13.31 percent on Wednesday to end at $30.93 apiece as investors sold off positions after missing earnings estimates in the second quarter of the year.
In its updated report, the company posted adjusted earnings per share of 51 cents, markedly lower than the Zacks Consensus Estimate of 67 cents, as well as the 54 cents posted in the same period last year.
The Mosaic Company (NYSE:MOS) registered a $411 million net income in the second quarter of the year, reversing a $162 million net loss in the same period last year, primarily driven by higher average selling prices across all segments.
Net sales grew by 7 percent to $3 billion from $2.8 billion year-on-year, but were markedly lower than the $3.13 billion expected by analysts.
“Mosaic’s second quarter 2025 performance reflects extensive maintenance activity and several discrete items. The work we completed in the first six months of the year sets the stage for a strong second half, supported by improved operating performance, reduced turnaround activity, our excellent execution in Brazil, and compelling fertilizer market fundamentals,” said The Mosaic Company (NYSE:MOS) President and CEO Bruce Bodine.
8. NRG Energy, Inc. (NYSE:NRG)
NRG Energy dropped its share prices for a second day on Wednesday, slashing 13.61 percent to close at $148.56 after swinging to a net loss in the second quarter of the year.
In its updated report, NRG Energy, Inc. (NYSE:NRG) said it posted a net loss attributable to shareholders of $121 million in the second quarter of the year from a $721 million net income in the same period last year, primarily due to unrealized non-cash losses on mark-to-market economic hedges driven by declines in forward natural gas and northeast power prices, as well as an increase to reserves for legal matters in 2025.
Revenues, however, inched up by 1.5 percent to $6.7 billion from $6.6 billion year-on-year.
In the six-month period, net income attributable to shareholders ended at $612 million, marking a 50-percent decline from the $1.2 billion in the same comparable period. Revenues, on the other hand, grew by 9.3 percent to $15.3 billion from $14.1 billion.
For the full year 2025, NRG Energy, Inc. (NYSE:NRG) is gunning for a net income of $1.025 billion to $1.225 billion, as well as adjusted EBITDA of $3.725 billion to $3.975 billion.
7. Snap Inc. (NYSE:SNAP)
Shares of Snap fell by 17.15 percent on Wednesday to close at $7.78 apiece, as investor sentiment was dampened by a higher net loss in the second quarter of the year.
In its updated report, Snap Inc. (NYSE:SNAP) said net loss widened by 6 percent to $262 million from $248.6 million in the same period last year. Revenues grew by 9 percent to $1.345 billion from $1.236 billion year-on-year.
Despite the dismal quarter, the company narrowed its net loss by 27 percent in the first half of the year to $402 million from $553.7 million in the same period last year. Revenues increased by 11 percent to $2.7 billion from $2.4 billion.
Following the results, Snap Inc. (NYSE:SNAP) earned a lower price target of $10 from RBC Capital, as compared with the $12 previously. Still, the new figure marks a 28-percent upside from its latest closing price.
RBC Capital described the second quarter as a “tough Q2” for Snap Inc. (NYSE:SNAP), with planned ad platform development and surface expansion efforts not going according to plan.
Additionally, RBC Capital said that the underperformance would “continue to reinforce the bear case that SNAP cannot break out of being a smaller ad platform lacking the ability to durably grow its direct response business in-line with the market.”
6. Vertex Inc. (NASDAQ:VERX)
Vertex fell to a new 52-week low on Wednesday as investor sentiment was dented by its lower growth outlook for the full year 2025 amid ongoing challenges.
At intraday trading, Vertex Inc. (NASDAQ:VERX) shares dropped to their lowest price of $25.11, marking a 24-percent decline before paring losses to end the day just down by 18.05 percent at $27.10 apiece.
In its updated earnings report, Vertex Inc. (NASDAQ:VERX) said it now targets revenues between $750 million and $ 754 million, lower than the $760 million to $768 million as expected previously.
Adjusted EBITDA outlook was also reduced to $156 million to $160 million from the $161 million to $165 million projected previously.
“While underlying demand for our solutions remains strong, extended sales cycles and delayed customer decision-making impacted the timing of new contract signings in the latter part of the second quarter. This, in turn, impacts our full year 2025 expected revenue,” said Vertex Inc. (NASDAQ:VERX) CFO John Schwab.
5. Super Micro Computer, Inc. (NASDAQ:SMCI)
Super Micro Computer dropped its share prices by 18.29 percent on Wednesday to end at $46.79 apiece as investors sold off positions following a dismal earnings performance and a lower growth outlook due to the impact of President Donald Trump’s import tariffs.
In its earnings release, Super Micro Computer, Inc. (NASDAQ:SMCI) said net income in the fourth quarter of fiscal year 2025 dropped by 34 percent to $195 million from $297 million reported in the same period last year. Net sales, on the other hand, grew 7.66 percent to $5.76 billion from $5.35 billion year-on-year.
Net income for the full year ending June 2025 similarly declined by 9 percent to $1.05 billion from $1.15 billion year-on-year, while net sales increased by 46 percent to $21.97 billion from $14.99 billion.
In an investor call, Super Micro Computer, Inc. (NASDAQ:SMCI) CEO Charles Liang said that the company has already taken measures to reduce the impact of tariffs.
Meanwhile, CFO David Weigand said that Super Micro Computer, Inc. (NASDAQ:SMCI) is closely monitoring the tariff situation, especially with more updates expected next week.
“If we have any updates, we’ll share it with you, but we can only watch and react as every other business is,” he noted.
4. Upstart Holdings, Inc. (NASDAQ:UPST)
Upstart Holdings fell by 18.74 percent on Wednesday to close at $67.14 apiece as investors appeared to have already priced a strong earnings performance prior to the official release of its second quarter results, meriting a profit-taking.
In its updated report, Upstart Holdings, Inc. (NASDAQ:UPST) said it swung to a net income of $5.6 million from a $54.5 million net loss in the same period last year. Revenues more than doubled to $257.29 million from $127.6 million year-on-year.
In the first half, Upstart Holdings, Inc. (NASDAQ:UPST) posted a $3.16 million net income, reversing a $119.07 million net loss in the same period last year.
Total revenues jumped by 84 percent to $470.66 million from $255 million.
Following the results, Upstart Holdings, Inc. (NASDAQ:UPST) raised its full-year revenue guidance to $1.055 billion from $1.01 billion previously, as well as adjusted EBITDA to 20 percent versus 19 percent previously.
In the third quarter, the company is gunning for a total revenue of $280 million, with revenues from fees expected to be at $275 million, while the rest is expected to come from net interest income.
3. Six Flags Entertainment Corp. (NYSE:FUN)
Six Flags Entertainment saw its share prices decline by 20.78 percent on Wednesday to finish at $24.32 apiece as investors sold off positions after the company swung to net losses and news that its chief executive is stepping down from his post.
In an updated report, Six Flags Entertainment Corp. (NYSE:FUN) said it incurred an attributable net loss of $99.6 million, reversing a net income of $55.55 million in the same period last year. This was despite a 62.7-percent jump in net revenues to $930 million from the $571.6 million in the same comparable period.
The company also widened its attributable net loss by 309 percent in the first half of the year to $319 million from $77.9 million year-on-year, despite revenues increasing by 68 percent to $1.132 billion from $673 million.
Additionally, Six Flags Entertainment Corp. (NYSE:FUN) gave a more cautious stance on its outlook for the rest of the year, saying that it would reassess figures but “not updating or reaffirming” guidance this time.
On the same day, Six Flags Entertainment Corp. (NYSE:FUN) announced that its president and CEO, Richard Zimmerman, is set to step down by the end of the year.
2. Kemper Corporation (NYSE:KMPR)
Kemper Corp. dropped its share prices to hit a new all-time low on Wednesday after earning a rating downgrade from two investment firms.
During the session, Kemper Corporation (NYSE:KMPR) fell to its lowest price of $45.02 on Wednesday, or 26.8 percent, from its closing price of $61.49 on Tuesday. A slight buying, however, pared its losses to end the day just down by 21.26 percent at $48.42 apiece.
In its market note, Piper Sandler downgraded its rating for Kemper Corporation (NYSE:KMPR) to “underweight” from “overweight” previously, while markedly reducing its price target to $50 from $75. According to the analyst, the downgrade reflected its earnings outlook for the company, which seems to be peaking in 2025.
Meanwhile, Citizens JMP reduced its price target for Kemper Corporation (NYSE:KMPR) to $75 from $85 previously, while maintaining a “market outperform” rating.
In the second quarter of the year, Kemper Corp.’s (NYSE:KMPR) net income dropped by 3.7 percent to $72.6 million from $75.4 million in the same period last year. Revenues increased by 8 percent to $1.225 billion from $1.129 billion year-on-year, driven by a $148.2 million increase in specialty property and casualty insurance earned premiums.
1. Lantheus Holdings, Inc. (NASDAQ:LNTH)
Lantheus Holdings saw its share prices decline by 28.58 percent to hit a new 52-week low as investor sentiment was dampened by a tempered growth outlook for the rest of the year.
In intra-day trading, Lantheus Holdings, Inc. (NASDAQ:LNTH) hit its lowest price of $47.25, before a buying spree bolstered its share prices higher to finish the day down by 28.58 percent at $51.87 apiece.
This followed a lower full-year revenue guidance of $1.475 billion to $1.51 billion, as compared with the $1.55 billion to $1.585 billion in the same period last year.
Adjusted EPS was also targeted at $5.5 to $5.7, lower than the $6.6 to $6.7 as expected previously.
In the second quarter of the year, Lantheus Holdings, Inc. (NASDAQ:LNTH) grew its net income by 26.9 percent to $78.8 million from $62.1 million in the same period last year, while revenues dropped by 4 percent to $378 million from $394 million.
In the first half, net income declined by 21 percent to $151.7 million from $193 million, while revenues dipped by 1.7 percent to $750.8 million from $764 million.
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