Octave Intelligence shares fall 14% after weak guidance

Shares of Octave Intelligence fell 14% on Wednesday after the company issued weak guidance for the full year, reflecting broader investor concerns over its growth trajectory.

The London-based data analytics firm reduced its revenue and profit forecasts, citing softer-than-expected demand in key markets and delays in client onboarding. The revised outlook prompted a sharp selloff, with the stock closing at its lowest level in three months.

Octave Intelligence had previously projected steady expansion in its core segments, including financial services and healthcare analytics. However, management now anticipates a slower pace of revenue growth due to macroeconomic headwinds and intensified competition. The company’s adjusted earnings per share guidance was also lowered, signaling reduced profitability expectations.

Analysts at Jefferies downgraded the stock to "hold" from "buy," citing the lack of near-term catalysts and elevated valuation risks. "The guidance cut underscores the challenges in scaling operations amid a tougher revenue environment," the bank noted in a research note.

Investors reacted swiftly, with the shares shedding 14% to £3.20, wiping out over £20 million in market capitalization. The decline extended a year-to-date loss of nearly 20% for the stock, which has underperformed its peers in the data analytics sector.

Octave Intelligence did not immediately respond to requests for further comment on the revised guidance or strategic adjustments to address the slowdown.