Zynex Reports Second Quarter 2025 Financial Results
Zynex (NASDAQ: ZYXI) reported challenging Q2 2025 financial results, with net revenue declining to $22.3 million from $49.9 million year-over-year. The company posted a net loss of ($20.0 million), or ($0.66) per share, compared to net income of $1.2 million in Q2 2024.
Two significant developments marked the quarter: the appointment of Steven Dyson as new CEO, bringing 25 years of medical technology experience, and the FDA submission of their NiCO laser pulse oximeter. The company implemented efficiency improvements targeting $40 million in annualized savings, primarily effective in Q3 and Q4. Due to leadership changes, Zynex has temporarily suspended revenue and profitability guidance.
Cash and cash equivalents stood at $17.5 million, with quarterly cash collections of $26.1 million. The company's gross profit margin decreased to 68% from 80% year-over-year, affected by the Tricare payment suspension and ongoing operational restructuring.
Zynex (NASDAQ: ZYXI) ha riportato risultati finanziari difficili nel secondo trimestre del 2025, con un fatturato netto in calo a 22,3 milioni di dollari rispetto ai 49,9 milioni di dollari dell'anno precedente. L'azienda ha registrato una perdita netta di (20,0 milioni di dollari), ovvero (0,66 dollari) per azione, rispetto a un utile netto di 1,2 milioni di dollari nel secondo trimestre del 2024.
Due eventi significativi hanno caratterizzato il trimestre: la nomina di Steven Dyson come nuovo CEO, con 25 anni di esperienza nel settore delle tecnologie mediche, e la presentazione alla FDA del loro ossimetro a impulsi laser NiCO. L'azienda ha implementato miglioramenti di efficienza con l'obiettivo di 40 milioni di dollari di risparmi annualizzati, principalmente previsti per il terzo e quarto trimestre. A causa dei cambiamenti nella leadership, Zynex ha temporaneamente sospeso le previsioni su ricavi e profitti.
La liquidità e le equivalenti ammontavano a 17,5 milioni di dollari, con incassi trimestrali pari a 26,1 milioni di dollari. Il margine lordo è sceso al 68% dal 80% dell'anno precedente, influenzato dalla sospensione dei pagamenti Tricare e dalla ristrutturazione operativa in corso.
Zynex (NASDAQ: ZYXI) reportó resultados financieros desafiantes en el segundo trimestre de 2025, con ingresos netos que cayeron a 22,3 millones de dólares desde 49,9 millones de dólares interanual. La compañía registró una pérdida neta de (20,0 millones de dólares), o (0,66 dólares) por acción, en comparación con una ganancia neta de 1,2 millones de dólares en el segundo trimestre de 2024.
Dos acontecimientos importantes marcaron el trimestre: el nombramiento de Steven Dyson como nuevo CEO, con 25 años de experiencia en tecnología médica, y la presentación ante la FDA de su oxímetro de pulso láser NiCO. La empresa implementó mejoras de eficiencia con el objetivo de 40 millones de dólares en ahorros anualizados, principalmente efectivos en el tercer y cuarto trimestre. Debido a cambios en la dirección, Zynex ha suspendido temporalmente sus previsiones de ingresos y rentabilidad.
El efectivo y equivalentes se situaron en 17,5 millones de dólares, con cobros trimestrales de 26,1 millones de dólares. El margen bruto disminuyó al 68% desde el 80% interanual, afectado por la suspensión de pagos de Tricare y la reestructuración operativa en curso.
Zynex (NASDAQ: ZYXI)는 2025년 2분기 재무 성과에서 어려움을 보고했으며, 순매출은 전년 동기 대비 2,230만 달러로 감소했습니다. 회사는 (2,000만 달러)의 순손실, 주당 손실 (0.66달러)를 기록했으며, 이는 2024년 2분기의 120만 달러 순이익과 대비됩니다.
이번 분기에는 두 가지 중요한 사건이 있었습니다: 25년 의료기술 경력을 가진 Steven Dyson 신임 CEO 임명과 FDA에 NiCO 레이저 펄스 산소측정기를 제출한 것입니다. 회사는 주로 3분기와 4분기에 적용될 연간 4,000만 달러 절감 목표의 효율성 개선을 시행했습니다. 리더십 변화로 인해 Zynex는 일시적으로 매출 및 수익성 가이던스를 중단했습니다.
현금 및 현금성 자산은 1,750만 달러였으며, 분기 현금 수금은 2,610만 달러였습니다. 총이익률은 Tricare 지불 중단과 진행 중인 운영 구조조정의 영향으로 전년 대비 80%에서 68%로 하락했습니다.
Zynex (NASDAQ : ZYXI) a annoncé des résultats financiers difficiles pour le deuxième trimestre 2025, avec un chiffre d'affaires net en baisse à 22,3 millions de dollars contre 49,9 millions de dollars en glissement annuel. La société a enregistré une perte nette de (20,0 millions de dollars), soit (0,66 dollar) par action, contre un bénéfice net de 1,2 million de dollars au deuxième trimestre 2024.
Deux événements majeurs ont marqué le trimestre : la nomination de Steven Dyson en tant que nouveau PDG, fort de 25 ans d'expérience dans la technologie médicale, et le dépôt auprès de la FDA de leur oxymètre de pouls laser NiCO. L'entreprise a mis en œuvre des améliorations d'efficacité visant à réaliser 40 millions de dollars d'économies annuelles, principalement effectives au troisième et quatrième trimestre. En raison des changements de direction, Zynex a temporairement suspendu ses prévisions de chiffre d'affaires et de rentabilité.
La trésorerie et les équivalents de trésorerie s'élevaient à 17,5 millions de dollars, avec des encaissements trimestriels de 26,1 millions de dollars. La marge brute a diminué à 68 % contre 80 % un an plus tôt, impactée par la suspension des paiements Tricare et la restructuration opérationnelle en cours.
Zynex (NASDAQ: ZYXI) meldete herausfordernde Finanzergebnisse für das zweite Quartal 2025, mit einem Nettoumsatzrückgang auf 22,3 Millionen US-Dollar gegenüber 49,9 Millionen US-Dollar im Vorjahreszeitraum. Das Unternehmen verzeichnete einen Nettoverlust von (20,0 Millionen US-Dollar) bzw. (0,66 US-Dollar) je Aktie, im Vergleich zu einem Nettogewinn von 1,2 Millionen US-Dollar im zweiten Quartal 2024.
Zwei bedeutende Entwicklungen prägten das Quartal: die Ernennung von Steven Dyson zum neuen CEO, der 25 Jahre Erfahrung im Bereich Medizintechnik mitbringt, sowie die FDA-Einreichung ihres NiCO Laser-Pulsoximeters. Das Unternehmen setzte Effizienzsteigerungen um, die auf 40 Millionen US-Dollar jährliche Einsparungen abzielen, hauptsächlich wirksam im dritten und vierten Quartal. Aufgrund von Führungswechseln hat Zynex seine Umsatz- und Gewinnprognosen vorübergehend ausgesetzt.
Barmittel und Zahlungsmitteläquivalente beliefen sich auf 17,5 Millionen US-Dollar, mit quartalsweisen Bareinnahmen von 26,1 Millionen US-Dollar. Die Bruttogewinnmarge sank von 80 % auf 68 %, beeinträchtigt durch die Aussetzung der Tricare-Zahlungen und die laufende operative Umstrukturierung.
- Implemented efficiency improvements targeting $40 million in annualized savings
- FDA submission of innovative NiCO laser pulse oximeter
- Appointed experienced CEO Steven Dyson with 25 years of medical technology expertise
- Reduced sales and marketing expenses by 45% year-over-year
- Maintained strong gross profit margin of 68% despite challenges
- Net revenue declined 55% to $22.3 million from $49.9 million year-over-year
- Posted net loss of ($20.0 million) compared to $1.2 million profit in Q2 2024
- Negative cash flow from operations of ($6.2 million) for the quarter
- Suspended revenue and profitability guidance due to leadership changes
- Tricare payment suspension continues to impact revenue and operations
Insights
Zynex reports significant quarterly loss with declining revenue, while implementing $40M cost-cutting measures and leadership changes to address challenges.
Zynex's Q2 2025 results reveal substantial financial challenges, with revenue plummeting
Gross margin deteriorated significantly to
The cash position looks concerning, with operations consuming
Management is implementing aggressive cost-cutting measures expected to save
A positive development is the FDA submission of their NiCO laser pulse oximeter, which could diversify revenue streams. However, the suspension of forward guidance amid leadership transitions creates additional uncertainty for investors trying to gauge the timeline and likelihood of a successful turnaround.
Management Commentary
"In the second quarter of 2025, we completed two transformational events. First, we appointed Steven Dyson as our new CEO. Steven brings over 25 years of experience in the medical technology sector, primarily through his leadership at Apax, a global private equity firm. Steven brings deep expertise and a proven track record in the medical sector. His leadership will be instrumental as we refocus our business strategy toward a more optimized payer mix and work to return Zynex to a strong growth trajectory," said Thomas Sandgaard, Founder and CEO of Zynex. "Second, we submitted our NiCO laser pulse oximeter to the FDA. This submission marks a historic milestone in the evolution of pulse oximetry and a major breakthrough in our mission to improve the quality of care and patient outcomes through our patient monitoring products."
"During the quarter we continued our efforts to refocus our sales force and operations to reflect the current landscape of insurance coverage and have made significant strides towards our goal of returning to positive cash-flow. We have implemented several efficiency improvements to internal operations, reallocating staff to more profitable business lines, reducing our cost of goods sold, and updating our organizational structure while driving the sales force to become more efficient and productive. These improvements will result in annualized savings of approximately
"We strongly believe in our commitment to help patients with the best products for pain relief without the side effects that are associated with opioids. We are confident that our efforts to reduce costs and redirecting our sales force will be pivotal to improved cash flow and create a foundation for continuing to grow into the huge demand for our products."
Second Quarter 2025 Financial Results
Net revenue was
Gross profit in the quarter ended June 30, 2025, was
Sales and marketing expense for the three months ended June 30, 2025, decreased
General and administrative expenses for the three months ended June 30, 2025, were
Net loss for the three months ended June 30, 2025, totaled
Adjusted EBITDA loss for the three months ended June 30, 2025, was
Cash collections were
Third Quarter 2025 Guidance
With the retirement of our current Chief Executive Officer and the announced departure of our Chief Financial Officer, the Company is temporarily suspending revenue and profitability guidance. Steven Dyson, the incoming Chief Executive Officer, will lead a review of the Company's forecasting procedures and will provide an update to investors on the potential resumption of guidance in the coming quarters.
Conference Call and Webcast Details
Date: Thursday, July 31, 2025
Time: 4:15 PM Eastern Time (2:15 PM Mountain Time)
International number: 646-357-8785
Webcast: Q2-2025 Webcast Link
Non-GAAP Financial Measures
Zynex reports its financial results in accordance with accounting principles generally accepted in the
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, as amended. our results of operations and the plans, strategies and objectives for future operations; the timing and scope of any potential stock repurchase; and other similar statements.
Words such as "anticipate," "believe," "continue," "could," "designed," "endeavor," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "project," "seek," "should," "target," "preliminary," "will," "would" and similar expressions are intended to identify forward-looking statements. The express or implied forward-looking statements included in this press release are only predictions and are subject to a number of risks, uncertainties and assumptions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. The Company makes no express or implied representation or warranty as to the completeness of forward-looking statements or, in the case of projections, as to their attainability or the accuracy and completeness of the assumptions from which they are derived. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the need to obtain CE marking of new products; the acceptance of new products as well as existing products by doctors and hospitals, larger competitors with greater financial resources; the need to keep pace with technological changes; our dependence on the reimbursement for our products from health insurance companies; the outcome of the Tricare payment suspension; our dependence on first party manufacturers to produce our products on time and to our specifications' implementation of our sales strategy including a strong direct sales force, market conditions; economic factors, such as interest rate fluctuations; and other risks described in our filings with the Securities and Exchange Commission.
These and other risks are described in our filings with the Securities and Exchange Commission including but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2024, as well as our quarterly reports on Form 10-Q and current reports on Form 8-K. Any forward-looking statements contained in this press release represent Zynex's views only as of today and should not be relied upon as representing its views as of any subsequent date. Zynex explicitly disclaims any obligation to update any forward-looking statements, except to the extent required by law.
About Zynex, Inc.
Zynex, founded in 1996, develops, manufactures, markets, and sells medical devices used for pain management and rehabilitation as well as non-invasive fluid, sepsis, and laser-based pulse oximetry monitoring systems for use in hospitals. For additional information, please visit: www.zynex.com.
Investor Relations Contact:
Dan Moorhead, CFO
ir@zynex.com
ZYNEX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS) (unaudited)
| ||||||
June 30, | December 31, | |||||
2025 | 2024 | |||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 17,543 | $ | 39,631 | ||
Accounts receivable, net | 10,345 | 18,022 | ||||
Inventory, net | 12,211 | 13,919 | ||||
Prepaid expenses and other | 5,501 | 3,607 | ||||
Total current assets | 45,600 | 75,179 | ||||
Property and equipment, net | 2,862 | 3,084 | ||||
Operating lease asset | 8,873 | 9,820 | ||||
Finance lease asset | 994 | 1,141 | ||||
Deposits | 408 | 408 | ||||
Intangible assets, net of accumulated amortization | 6,797 | 7,247 | ||||
Goodwill | 20,401 | 20,401 | ||||
Deferred income taxes | — | 4,799 | ||||
Total assets | $ | 85,935 | $ | 122,079 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities | ||||||
Accounts payable and accrued expenses | 7,349 | 7,091 | ||||
Operating lease liability | 4,217 | 4,030 | ||||
Finance lease liability | 290 | 287 | ||||
Current portion of convertible senior notes, less issuance costs | 59,074 | — | ||||
Accrued payroll and related taxes | 2,929 | 5,456 | ||||
Total current liabilities | 73,859 | 16,864 | ||||
Convertible senior notes, less issuance costs | — | 58,567 | ||||
Operating lease liability | 8,171 | 10,151 | ||||
Finance lease liability | 708 | 789 | ||||
Deferred tax liabilities, net | 1,936 | — | ||||
Total liabilities | 84,674 | 86,371 | ||||
Stockholders' equity | ||||||
Common stock | 30 | 32 | ||||
Additional paid-in capital | 94,009 | 93,088 | ||||
Treasury stock, at cost | (92,123) | (87,186) | ||||
Retained earnings | (655) | 29,774 | ||||
Total stockholders' equity | 1,261 | 35,708 | ||||
Total liabilities and stockholders' equity | $ | 85,935 | $ | 122,079 | ||
ZYNEX, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) (unaudited) | ||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
NET REVENUE | ||||||||||||
Devices | $ | 11,034 | $ | 15,920 | $ | 22,932 | $ | 29,945 | ||||
Supplies | 11,256 | 33,963 | 25,936 | 66,469 | ||||||||
Total net revenue | 22,290 | 49,883 | 48,868 | 96,414 | ||||||||
COSTS OF REVENUE AND OPERATING EXPENSES | ||||||||||||
Costs of revenue - devices and supplies | 7,055 | 9,971 | 15,424 | 19,269 | ||||||||
Sales and marketing | 12,811 | 23,226 | 29,751 | 46,606 | ||||||||
General and administrative | 12,707 | 14,460 | 27,073 | 27,788 | ||||||||
Total costs of revenue and operating expenses | 32,573 | 47,657 | 72,248 | 93,663 | ||||||||
Income (loss) from operations | (10,283) | 2,226 | (23,380) | 2,751 | ||||||||
Other income (expense) | ||||||||||||
Gain on disposal of assets | — | 19 | — | 19 | ||||||||
Interest expense, net | (834) | (630) | (1,537) | (1,142) | ||||||||
Other income (expense), net | (834) | (611) | (1,537) | (1,123) | ||||||||
Income (loss) from operations before income taxes | (11,117) | 1,615 | (24,917) | 1,628 | ||||||||
Income tax expense | 8,916 | 398 | 5,512 | 401 | ||||||||
Net income (loss) | $ | (20,033) | $ | 1,217 | $ | (30,429) | $ | 1,227 | ||||
Net income (loss) per share: | ||||||||||||
Basic | $ | (0.66) | $ | 0.04 | $ | (0.98) | $ | 0.04 | ||||
Diluted | $ | (0.66) | $ | 0.04 | $ | (0.98) | $ | 0.04 | ||||
Weighted average basic shares outstanding | 30,258 | 31,762 | 30,927 | 32,053 | ||||||||
Weighted average diluted shares outstanding | 30,258 | 32,204 | 30,927 | 32,516 | ||||||||
ZYNEX, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (AMOUNTS IN THOUSANDS) (unaudited) | ||||||
For the Six Months Ended June 30, | ||||||
2025 | 2024 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income (loss) | $ | (30,429) | $ | 1,227 | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Depreciation | 1,166 | 1,329 | ||||
Amortization | 963 | 928 | ||||
Stock-based compensation | 1,136 | 1,575 | ||||
Non-cash lease expense | (586) | (467) | ||||
Provision (benefit) for deferred income taxes | 6,735 | (195) | ||||
Gain on disposal of assets | — | (19) | ||||
Change in operating assets and liabilities: | ||||||
Accounts receivable | 7,677 | 3,244 | ||||
Prepaid and other assets | (1,493) | (805) | ||||
Accounts payable and other accrued expenses | (2,989) | (288) | ||||
Inventory | 1,118 | (3,327) | ||||
Deposits | (1) | — | ||||
Net cash provided by (used in) operating activities | (16,703) | 3,202 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchase of property and equipment | (197) | (290) | ||||
Net cash (used in) investing activities | (197) | (290) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Payments on finance lease obligations | (79) | (148) | ||||
Cash dividends paid | — | (3) | ||||
Purchase of treasury stock | (4,939) | (15,625) | ||||
Excise tax payments on net treasury stock purchases | — | (473) | ||||
Proceeds from the issuance of common stock on stock-based awards | 7 | 13 | ||||
Taxes withheld and paid on equity awards | (177) | (359) | ||||
Net cash (used in) financing activities | (5,188) | (16,595) | ||||
Net decrease in cash | (22,088) | (13,683) | ||||
Cash and cash equivalents at beginning of period | 39,631 | 44,579 | ||||
Cash and cash equivalents at end of period | $ | 17,543 | $ | 30,896 | ||
ZYNEX, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (AMOUNTS IN THOUSANDS) (unaudited) | |||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||
Adjusted EBITDA: | |||||||||||||
Net income | $ | (20,033) | $ | 1,217 | $ | (30,429) | $ | 1,227 | |||||
Depreciation and Amortization* | 498 | 465 | 1,007 | 891 | |||||||||
Stock-based compensation expense | 559 | 841 | 1,136 | 1,575 | |||||||||
Interest expense and other, net | 834 | 611 | 1,537 | 1,123 | |||||||||
Restructuring charges** | 327 | - | 554 | - | |||||||||
Income tax (benefit) expense | 8,916 | 398 | 5,512 | 401 | |||||||||
Adjusted EBITDA | $ | (8,899) | $ | 3,532 | $ | (20,683) | $ | 5,217 | |||||
% of Net Revenue | (40) | % | 7 | % | (42) | % | 3 | % | |||||
* Depreciation does not include amounts related to units on lease to third parties which are depreciated and included in cost of goods sold. |
** Severance of former corporate employees which were fully expensed in Q1 and Q2-2025. |
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SOURCE Zynex, Inc.
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