Senseonics Holdings, Inc. (NYSE American: SENS) saw its stock price plummet 11.52% in pre-market trading on Tuesday, as investors reacted negatively to the company's announcement of a reverse stock split, despite reporting strong preliminary third-quarter revenue.

The medical technology company, specializing in implantable continuous glucose monitoring systems, reported preliminary unaudited Q3 revenue of approximately $8.1 million, representing a 91% increase compared to the same period last year. This growth was primarily driven by a 160% increase in new patient starts in the U.S. market, surpassing analysts' expectations of $7.8 million in revenue.

However, the positive revenue news was overshadowed by Senseonics' decision to implement a 1-for-20 reverse stock split, effective October 17, 2025. This move will reduce the number of outstanding common shares from about 816 million to approximately 41 million. While reverse stock splits are often implemented to maintain compliance with stock exchange listing requirements or to attract institutional investors, they can be perceived negatively by the market. The significant drop in Senseonics' stock price reflects investor uncertainty about the company's future prospects and financial stability, despite its recent growth in revenue and patient numbers.