TLN Drops 33.3% in 3 Months as Risks Test Its Cash Flow Story

Talen Energy (TLN) reported Q2 adjusted EPS of $0.16, missing estimates by 95%, with revenues up 18.6% YoY but below consensus. While adjusted free cash flow improved significantly to $212M from -$78M, the company faces headwinds from a $9.7B debt load, widening PPL pricing gaps (~$20/MWh), and execution risks on its 4GW data-center pipeline. The stock has declined 33.3% in 12 weeks as earnings estimate revisions turn negative.