RxSight, Inc. (NASDAQ: RXST) saw its stock price plunge 35.65% on Wednesday following the release of disappointing preliminary second-quarter results and a significant reduction in its full-year 2025 guidance. The ophthalmic medical device company's shares tumbled as investors reacted to the unexpected downturn in its financial performance.

According to the company's preliminary report, RxSight expects second-quarter 2025 revenue to be approximately $33.6 million, representing a 4% decrease compared to the same period last year and falling well short of analysts' expectations of $39.8 million. The revenue decline was primarily driven by a sharp 49% year-over-year drop in sales of Light Delivery Devices (LDDs), despite a 13% increase in Light Adjustable Lens (LAL) procedure volume.

Adding to investors' concerns, RxSight substantially revised its full-year 2025 guidance. The company now projects annual revenue in the range of $120 million to $130 million, a significant reduction from its previous forecast of $160 million to $175 million. This new outlook implies a potential year-over-year decrease of up to 14%, compared to 2024. While the company raised its gross margin guidance slightly to 72-74%, the dramatic cut in revenue expectations overshadowed this positive adjustment. In response to the news, several analysts, including Piper Sandler, lowered their price targets for RxSight stock, further contributing to the sharp sell-off.