Zynex, Inc. (NASDAQ: ZYXI), an innovative medical technology company specializing in the manufacture and sale of non-invasive medical devices for pain management, rehabilitation, and patient monitoring,today reported its financial and operational results for the second quarter ended June 30, 2025.
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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 $40 million, most of which will take full effect in the third and fourth quarters of this year.”
“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 $22.3 million for the three months ended June 30, 2025, compared to $49.9 million in the prior year quarter. Net revenue was negatively affected by the Tricare payment suspension, continued changes to our shipment and billing procedures to improve patient experience, and the impact of restructuring and reductions in our sales force required for cost savings.
Gross profit in the quarter ended June 30, 2025, was $15.2 million, or 68% of revenue, as compared to $39.9 million or 80% of revenue, in the second quarter of 2024. Gross profit was lower due to lower revenue and continuing to support new and existing Tricare patients which yields cost of goods sold with no related revenue.
Sales and marketing expense for the three months ended June 30, 2025, decreased 45% to $12.8 million from $23.2 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 June 30, 2025, were $12.7 million, versus $14.5 million in the prior year period.
Net loss for the three months ended June 30, 2025, totaled ($20.0) million, or ($0.66) per basic and diluted share, including a non-cash adjustment of $10.3 million or ($0.34) per share related to placing an allowance on our deferred tax assets. For the quarter ended June 30, 2024, net income was $1.2 million, or $0.04 per basic and diluted share.
Adjusted EBITDA loss for the three months ended June 30, 2025, was ($8.9) million, as compared to Adjusted EBITDA of $3.5 million in the quarter ended June 30, 2024.
Cash collections were $26.1 million during the quarter and $56.8 million year-to-date. Cash flow from operations for the three and six months ended June 30, 2025, was ($6.2) million and ($16.7) million, respectively. The sequential quarterly reduction in the deficit of cash from operations was due to the impact of expense reductions. As of June 30, 2025, the Company had cash and cash equivalents of $17.5 million.
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) U.S. & Canada dial-in number: 800-836-8184 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 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, receivables adjustment and non-cash lease charges). Management believes these non-GAAP financial measures are 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. 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-lookingstatements 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. Becauseforward-lookingstatements 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 endedDecember 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.
AboutZynex, 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
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