Shares of Orthofix Medical Inc. (OFIX) plummeted 17.87% in pre-market trading on Tuesday, despite the company reporting better-than-expected first-quarter revenue. The sharp decline comes as investors react to the medical device maker's wider quarterly loss and potentially disappointing full-year guidance.

Orthofix reported Q1 sales of $193.6 million, surpassing the IBES estimate of $191.1 million. The company's adjusted EBITDA for the quarter stood at $11.4 million, also beating the expected $9.44 million. However, these positive figures were overshadowed by a wider year-over-year loss, which seems to have spooked investors.

Adding to the bearish sentiment, Orthofix updated its full-year 2025 net sales guidance to a range between $808 million and $816 million. While the company maintained a solid gross margin of 62.8% for the quarter, the market's reaction suggests that the overall financial picture, particularly the widening loss, has raised concerns about Orthofix's profitability and growth trajectory in the competitive medical device sector.