Nuix Ltd (ASX: NXL), the investigative analytics and intelligence software provider, saw its shares plummet 5.50% in intraday trading on Thursday, continuing its downward trend from the first quarter of 2025. This latest drop comes as investors remain cautious about the company's performance and the broader tech sector weakness.

The significant decline follows a dismal first quarter for Nuix, which saw its stock price plunge by 52%, making it the worst performer on the ASX 200 index. The company's troubles stem from disappointing financial results in the first half of FY 2025, where it reported an 8.3% increase in annualised contract value (ACV) but a concerning 4.5% decline in underlying EBITDA to $27.1 million. More alarmingly, Nuix swung to a net loss after tax of $10.4 million, representing a staggering 115.4% decline from the previous year.

Management has attributed the poor performance to delayed pipeline deals and longer procurement cycles due to increasing contract size and complexity. As Nuix continues to face challenges in the shifting tech landscape, investors appear to be losing confidence in the company's ability to turn its fortunes around in the near term. The ongoing sell-off suggests that market participants remain skeptical about Nuix's growth prospects and are closely monitoring the company's ability to deliver on its second-half expectations.