Zynex, Inc. (NASDAQ: ZYXI) Q2 2025 Earnings | 08/01/2025

18 days ago

30:17

Inside Ticker

AI Summary

Summary of Zynex, Inc. Q2 2025 Earnings Call

Key Financial & Operational Highlights

Revenue Decline: Q2 revenue fell to $22.3M (vs. $49.9M in Q2 2024), primarily due to:
- TRICARE payment suspension (ongoing, no resolution timeline).
- Salesforce reductions & shipping policy adjustments.
Net Loss: $20.7M (includes $10.3M non-cash tax allowance charge).
Cost-Cutting Measures:
- $40M annualized savings from layoffs (14% workforce reduction in June, ~90 corporate roles eliminated).
- Sales & marketing expenses down 45% ($12.8M vs. prior year).
Cash Position: $17.5M (reduced cash burn; convertible debt of $60M due May 2026—refinancing efforts underway).

Business Unit Updates

Pain Management Division:
- TRICARE Impact: Continued servicing patients but revenue halted; shifting focus to diversified payers & cost efficiency.
- Salesforce Restructuring:
  - Reduced headcount, prioritized high-performing reps.
  - Revamped compensation to align with patient outcomes & compliance.
- Goal: Return to positive cash flow by end of 2025.
Patient Monitoring Division (NICO Pulse Oximeter):
- FDA Submission (May 2025):
  - Addressing LED pulse oximeter inaccuracies (skin pigmentation bias, low oxygen readings).
  - Laser-based tech validated in Duke study—potential to disrupt $1B co-oximetry market.
- Next Steps:
  - FDA feedback expected August 2025; clearance projected by December 2025.
  - Plans to expand into hospital monitoring ($3.5B global market).

Leadership & Strategic Shifts

New CEO: Steven Dyson (ex-Apex MedTech PE) starts August 18—focus on payer mix optimization & growth.
CFO Transition: Dan Moorhead resigning; replacement search ongoing.
Guidance Suspended: Pending CEO onboarding and financial review.

Q&A Highlights

NICO FDA Timeline: Confident in December 2025 clearance; prepared for FDA questions on clinical claims.
TRICARE Uncertainty: No resolution timeline; patient referrals slowing due to salesforce cuts.
Expense Outlook: Further 15–20% reduction in sales/marketing and 10–12% in G&A for Q3.

About this video

Zynex, Inc. reported a challenging second quarter for 2025, as net revenue fell sharply year-over-year to $22.3 million, down from $49.9 million in Q2 2024 and below consensus expectations. The company posted a net loss of $20 million, or $(0.66) per share, versus net income of $1.2 million in the same period last year. Gross profit decreased to $15.2 million—68% of revenue compared to 80% a year ago—reflecting deteriorating operating leverage and margin compression. The company missed estimates on both revenue and earnings, with an EPS loss of $0.32 also lagging analyst forecasts. Key products like NexWave and NeuroMove remained central to Zynex’s portfolio, but operational and demand headwinds contributed to a substantial deterioration in quarterly results. In response to the performance and market trends, Zynex’s management is expanding its focus on monitoring solutions such as the CM-1500 and CM-1600 devices, aiming to support future growth and portfolio diversification. However, ongoing financial underperformance has fueled investor caution and triggered a pronounced sell-off in ZYXI shares following the results release. The company has not issued an updated financial outlook for the remainder of 2025, and analysts remain wary, projecting ongoing operational challenges in the near term. About Inside Ticker: For more expert analysis and real-time updates on Zynex, Inc. (NASDAQ: ZYXI) and other market movers, follow Inside Ticker and visit http://www.insideticker.com/ for in-depth reports, financial insights, and the latest news on leading companies. #Zynex #ZYXI #Q22025 #Earnings #FinancialResults #RevenueDecline #NetLoss #GrossMargin #MedicalTechnology #PainManagement #MonitoringSolutions #NeuroMove #NexWave #PortfolioExpansion #Investors #InsideTicker #2025Outlook

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