Shares of Orthofix International NV (OFIX) plummeted 5.35% in pre-market trading on Tuesday following the release of the company's third-quarter 2025 financial results. Despite beating revenue expectations, the medical device maker's significant earnings miss appears to have spooked investors.

Orthofix reported a quarterly adjusted loss of $0.57 per share, falling short of analysts' expectations of a $0.41 loss per share. This disappointing figure represents a substantial decline from the $0.07 earnings per share reported in the same quarter last year. The company's bottom line was further marred by a net loss of $22.8 million for the quarter.

However, it wasn't all bad news for Orthofix. The company's Q3 sales rose 4.6% to $205.6 million, surpassing the Wall Street consensus estimate of $200 million. Additionally, adjusted EBITDA came in at $24.6 million, significantly beating the expected $20.1 million. Despite these positive aspects, the market's focus on the earnings miss appears to be driving the stock's sharp decline.

Looking ahead, Orthofix has updated its full-year 2025 guidance, narrowing its net sales outlook while maintaining the midpoint. The company also raised the low end of its adjusted EBITDA guidance, now expecting $84-86 million for the full year. However, this cautiously optimistic outlook seems insufficient to offset concerns about the company's profitability, as reflected in the pre-market stock plunge.