Zynex Reports Third Quarter 2025 Financial Results

ENGLEWOOD, Colo., Nov. 17, 2025 /PRNewswire/ -- Zynex, Inc. (NASDAQ: ZYXI), an innovative medical technology company specializing in the manufacture and sale of non-invasive medical devices for pain management, and rehabilitation, today reported its financial and operational results for the third quarter ended September 30, 2025.

Management Commentary and Recent Events

"Since joining the Company in August, the new management team has worked tirelessly to address the business and compliance challenges at Zynex while creating a new future for all our company," said Steven Dyson, Chief Executive Officer of Zynex.  "We have been focused on a three-part strategy: renewing our commitment to compliance and integrity, addressing the company's current liquidity challenges, and improving revenue and cash flow performance.  While the Third Quarter of 2025 was more of a continuation of first-half performance, we have seen progress with our strategy and we remain committed to rebuild and return the company to growth in the future."

Zynex has engaged Province, LLC, an internationally recognized financial advisory firm, to assist on evaluating a range of strategic alternatives, including potential capital raising opportunities and recapitalization and restructuring strategies. In addition, Paul Aronzon has joined our Board of Directors and has been appointed as Chair of a Special Committee of the Zynex Board of Directors to oversee the assessment of the above-referenced strategic alternatives.  This Committee will work closely with management, Province and counsel to assess and implement the strategic alternatives, as appropriate.

In order to preserve cash as the Company is evaluating strategic alternatives, Zynex has elected to enter the contractual thirty (30) day grace period and  will not make a $1.5 million interest payment, due November 17, 2025, on the Company's $60 million of Convertible Notes maturing in May 2026.  The Company is in discussions with Convertible Note holders regarding potential restructuring opportunities with an ad hoc group of holders of the Convertible Notes, represented by Brown Rudnick LLP. 

"We are taking decisive steps to ensure Zynex is well-positioned going forward," said Steven Dyson. "The engagement of Province and the formation of the Special Committee reflect our commitment to exploring all avenues to create a new future for Zynex."

The Company has not yet identified a strategic transaction and there can be no assurance any such transaction will result from the Special Committee's evaluation of strategic alternatives, or the timing, terms and conditions of any such transaction.

Third Quarter 2025 Financial Results

Net revenue was $13.4 million for the three months ended September 30, 2025, compared to $50.0 million in the prior year quarter. The declines in net revenue for the three months ended September 30, 2025 compared to the prior year period are primarily related to the Company's Tricare payment suspension, along with a $2.8 million reduction in revenue related to payments received from Tricare during the suspension period. Through the third quarter of 2025, changes to certain payers' claim submission and review practices have resulted in denials and payment delays, which has negatively impacted revenue. Additionally, workforce reductions in the first and second quarters of 2025 have negatively impacted device orders and corresponding supplies, new patients onboarding and order completion, contributing to the overall decline in net revenue during the three months ended September 30, 2025.

Gross profit in the quarter ended September 30, 2025, was $8.1 million, or 60% of revenue, as compared to $39.8 million or 80% of revenue, in the third quarter of 2024. Gross profit was lower due to the decrease in revenue, decreased revenue related to the Tricare revenue adjustment which had no corresponding decrease to cost of revenue, and less volume in our production facility to absorb fixed costs.

Sales and marketing expense for the three months ended September 30, 2025, decreased 54% to $9.5 million from $20.7 million for the same period in 2024, primarily due to decreased headcount in the sales force.

General and administrative expenses for the three months ended September 30, 2025, were $11.8 million, versus $15.3 million in the prior year period.

Net loss for the three months ended September 30, 2025, totaled ($42.9) million, or ($1.42) per basic and diluted share. In addition to our decline in revenue net loss was also negatively impacted by a non-cash asset impairment charge of $30.7 million during the quarter ended September 30, 2025, primarily related to goodwill, definite-lived intangible assets and certain fixed assets associated with Zynex Monitoring Solutions, Inc.

For the quarter ended September 30, 2024, net income was $2.3 million, or $0.07 per basic and diluted share.

Adjusted EBITDA loss for the three months ended September 30, 2025, was ($12.3) million, as compared to Adjusted EBITDA of $5.1 million in the quarter ended September 30, 2024.

Cash flow from operations for the three and nine months ended September 30, 2025, was ($6.3) million and ($23.0) million, respectively. As of September 30, 2025, the Company had cash and cash equivalents of $13.3 million.

Earnings Call Details

Date: Tuesday, November 18, 2025
Time: 9:00 AM Eastern Time (7:00 AM Mountain Time)
U.S. & Canada dial-in number: 800-836-8184
International number: 646-357-8785
Webcast: Q3 2025 Webcast Link

Non-GAAP Financial Measures

Zynex reports its financial results in accordance with accounting principles generally accepted in the U.S. (GAAP). In addition, the Company is providing in this news release financial information in the form of Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, other income/expense, stock compensation, restructuring, and impairment charges). Management believes this non-GAAP financial measure is useful to investors and lenders in evaluating the overall financial health of the Company in that they allow for greater transparency of additional financial data routinely used by management to evaluate performance. Adjusted EBITDA can be useful for investors or lenders as an indicator of available earnings. Non-GAAP financial measures should not be considered in isolation from, or as an alternative to, the financial information prepared in accordance with GAAP.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to our results of operations and the plans, strategies and objectives for future operations; potential outcomes of the evaluation of the strategic alternatives; 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 results of our review of strategic alternatives, including the impact of any potential capital raise, recapitalization or restructuring; our ability to raise capital or otherwise improve our liquidity position and continue as a going concern; the outcome of the legal proceedings and regulatory investigations in which the Company is involved;  the need to obtain CE marking of new products; the acceptance of the Company's 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 amendments 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:
Vikram Bajaj, CFO
[email protected]

SOURCE Zynex, Inc.