Shares of RxSight, Inc. (NASDAQ: RXST) plunged 35.65% in Wednesday's trading session 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.