It was a tough first quarter to 2025 for the S&P/ASX 200 Index (ASX: XJO). During the period, the benchmark index lost a disappointing 3.9% of its value.
While that was bad, spare a thought for the owners of the ASX 200 shares in this article.
They were the worst performers on the index during the three months with substantial declines. Here's what happened:
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Nuix Ltd (ASX: NXL)
The Nuix share price was the worst performer on the ASX 200 during the quarter with a 52% decline. Investors were selling the investigative analytics and intelligence software provider's shares due to broad weakness in the tech sector and disappointment over its performance in FY 2025. During the first half of FY 2025, the company reported an 8.3% increase in annualised contract value (ACV), but a 4.5% decline in underlying EBITDA to $27.1 million and a 115.4% decline in net profit after tax to a loss of $10.4 million. Management said: "Growth was expected to be weighted towards the second half of this fiscal year, with some pipeline deals having moved from anticipated completion in the first half to the second half. In addition, the increasing size and complexity of a number of contracts, together with the shift from component to platform, is contributing to longer procurement cycles for some customers."
Clarity Pharmaceuticals Ltd (ASX: CU6)
The Clarity Pharmaceuticals share price wasn't far behind with a decline of 51.8%. This pharmaceutical company's half year results appear to have weighed on sentiment. For the six months ended 31 December, Clarity posted a $23.6 million loss after tax. This is up from a $17.2 million loss a year earlier. Management notes that this reflects an increase in research and development expenditure, which was up $8.9 million to $28.6 million due to an increase in clinical trial activities.
Zip Co Ltd (ASX: ZIP)
The Zip share price had a tough three months and sank 46.1% over the period. This is despite the buy now pay later (BNPL) provider delivering a very strong half year result in February. This decline is likely to have been driven by a combination of profit taking from investors and the broad tech selloff.
Polynovo Ltd (ASX: PNV)
The Polynovo share price was out of form and crashed 44% lower during the first quarter. Investors were selling the medical device company's shares following the release of its half year results. Polynovo reported a 28.1% increase in sales to a record of $54.1 million and a 23.9% increase in net profit after tax to $3.3 million. However, it posted a $12.5 million operating cash outflow for the half, which appears to have disappointed the market. In addition, no guidance was provided for the full year. Also adding pressure was the recent news that its CEO, Swami Raote, stepped down with immediate effect. The leadership change followed confidential discussions between the board and Raote, which ultimately did not result in an agreement. Polynovo believes new leadership is necessary to continue its growth and strategic direction.
