Shares of RxSight, Inc. (NASDAQ: RXST) plummeted 36.28% in pre-market trading on Wednesday following the company's announcement of disappointing preliminary second-quarter results and a significant downward revision of its full-year 2025 guidance.

The ophthalmic medical device company reported expected Q2 2025 revenue of approximately $33.6 million, representing a 4% decrease compared to the same period last year and falling short of analysts' expectations of $39.8 million. The revenue decline was primarily driven by a sharp decrease in sales of Light Delivery Devices (LDDs), which fell 45% compared to Q1 2025 and 49% year-over-year.

Adding to investors' concerns, RxSight significantly cut its full-year 2025 revenue guidance. The company now expects revenue in the range of $120 million to $130 million, a substantial reduction from its previous forecast of $160 million to $175 million. This revised guidance implies a year-over-year decrease of 7% to 14%, a stark contrast to the growth investors were anticipating. In response to the lowered outlook, several analysts have downgraded their price targets for RxSight, with Piper Sandler reducing its target from $18 to $10.

Despite the overall revenue decline, RxSight reported a 13% year-over-year increase in Light Adjustable Lenses (LAL) sales. The company's CEO, Dr. Ron Kurtz, stated that they are evolving their commercial approach to focus more on supporting customer success within new and existing practices. By deepening engagement with clinical partners, RxSight aims to ensure they can fully realize the benefits of adjustability and achieve superior outcomes for their patients, ultimately driving further LAL adoption.