Shares of Orthofix Medical (OFIX) plummeted 17.87% in pre-market trading on Tuesday after the company reported a wider first-quarter loss compared to the previous year, overshadowing its better-than-expected revenue performance.

The medical device company announced Q1 sales of $193.6 million, surpassing the IBES estimate of $191.1 million. Additionally, Orthofix reported an adjusted EBITDA of $11.4 million, which was higher than the expected $9.44 million. The company's gross margin for the quarter stood at 62.8%. Despite these positive figures, investors seemed to focus on the expanded loss, triggering a significant sell-off.

Looking ahead, Orthofix Medical provided guidance for the full year 2025, projecting net sales to range between $808 million and $816 million. This forward-looking statement, however, did little to assuage investor concerns in the face of the wider quarterly loss. The sharp decline in share price reflects the market's disappointment and uncertainty about the company's profitability trajectory, despite its ability to generate revenue growth.