Zynex Plunges to $73.3M Loss Amid Revenue Collapse, Liquidity Crisis

TL;DR

**ZYXIQ is circling the drain with a massive loss, plummeting revenue, and a looming debt wall, making it a high-risk bet for any investor.**

AI Summary

Zynex, Inc. (ZYXIQ) reported a significant decline in financial performance for the nine months ended September 30, 2025, with total net revenue plummeting to $62.2 million, a 57.5% decrease from $146.4 million in the same period of 2024. The company incurred a net loss of $73.3 million, a stark contrast to the net income of $3.6 million in the prior year. This downturn was primarily driven by a $30.7 million impairment charge related to its Zynex Monitoring Solutions (ZMS) subsidiary, which ceased independent operations, and a substantial reduction in revenue from its core medical devices and supplies segments. Device revenue fell to $29.9 million from $44.8 million, and supplies revenue dropped to $32.2 million from $101.6 million. The company also faces severe liquidity challenges, with cash and cash equivalents decreasing to $13.3 million from $39.6 million at December 31, 2024, and current liabilities soaring to $78.8 million, largely due to $59.3 million in current convertible senior notes. The ongoing Tricare payment suspension and an SEC investigation further compound its financial distress, leading management to express substantial doubt about its ability to continue as a going concern.

Why It Matters

This filing signals a critical juncture for Zynex, Inc., with its ability to continue operations in serious doubt. For investors, the massive net loss, 57.5% revenue decline, and the $59.3 million in current convertible senior notes maturing in May 2026 represent significant red flags and potential for substantial capital loss. Employees face ongoing uncertainty following multiple workforce reductions and the complete cessation of Zynex Monitoring Solutions' independent operations. Customers, particularly those relying on Tricare, may experience disruptions in service or product availability due to the payment suspension and the company's precarious financial state, while competitors in the pain management and medical device space may see opportunities to capture market share from Zynex's struggles.

Risk Assessment

Risk Level: high — The company reported a net loss of $73.3 million for the nine months ended September 30, 2025, a significant deterioration from a $3.6 million net income in the prior year. Cash and cash equivalents decreased by 66.5% from $39.6 million at December 31, 2024, to $13.3 million, while current liabilities surged to $78.8 million, including $59.3 million in current convertible senior notes maturing in May 2026. Management explicitly stated that existing cash resources are not sufficient to support planned operations for the next year, indicating substantial doubt about the company's ability to continue as a going concern.

Analyst Insight

Investors should immediately divest from Zynex (ZYXIQ) given the severe liquidity crisis, substantial net losses, and the explicit going concern warning from management. The company's reliance on a 'Restructuring' plan, coupled with an ongoing SEC investigation and Tricare payment suspension, presents an unacceptably high level of risk for continued investment.

Financial Highlights

debt To Equity

N/A

revenue

$62,228,000

operating Margin

N/A

total Assets

$45,322,000

total Debt

$86,694,000

net Income

$(73,300,000)

eps

$(1.42)

gross Margin

N/A

cash Position

$13,259,000

revenue Growth

-57.5%

Revenue Breakdown

Key Numbers

• $62.2 million — Total net revenue for nine months ended Sept 30, 2025 (a 57.5% decrease from $146.4 million in 2024)
• $(73.3) million — Net loss for nine months ended Sept 30, 2025 (compared to $3.6 million net income in 2024)
• $13.3 million — Cash and cash equivalents as of Sept 30, 2025 (a 66.5% decrease from $39.6 million at Dec 31, 2024)
• $59.3 million — Current portion of convertible senior notes (maturing on May 15, 2026, significantly impacting current liabilities)
• $30.7 million — Impairment charges (primarily related to the Zynex Monitoring Solutions business)
• 15% — Workforce reduction in Q1 2025 (to align operating expenses with current revenue levels)
• 14% — Further workforce reduction in Q2 2025 (affecting 86 corporate roles)
• $2.8 million — Revenue reduction related to Tricare payments (during the quarter ended September 30, 2025, due to repayment demands)
• 20-25% — Historical Tricare revenue contribution (prior to the payment suspension)
• $(1.42) — Basic net loss per share for Q3 2025 (compared to $0.07 basic net income per share in Q3 2024)

Key Players & Entities

• Zynex, Inc. (company) — registrant and parent company
• Zynex Medical, Inc. (company) — wholly-owned subsidiary conducting most operations
• Zynex Monitoring Solutions, Inc. (company) — wholly-owned subsidiary whose independent operations ceased
• Kestrel Labs, Inc. (company) — company acquired by Zynex in December 2021
• Securities and Exchange Commission (regulator) — conducting an investigation into Zynex
• Defense Health Agency (regulator) — temporarily suspending Tricare claims processing and payments to Zynex
• Province, LLC (company) — financial advisor retained by Zynex for restructuring
• TriWest Healthcare Alliance (company) — contractor for Tricare West Region
• Humana Military (company) — contractor for Tricare East Region
• $60.0 million (dollar_amount) — outstanding 2023 Convertible Senior Notes maturing May 15, 2026

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company has experienced a severe decline in revenue and incurred substantial losses, leading management to express substantial doubt about its ability to continue as a going concern. Cash and cash equivalents have fallen to $13.3 million, while current liabilities stand at $78.8 million, including $59.3 million in convertible senior notes due May 2026.
• ZMS Business Impairment [high — operational]: A significant $30.7 million impairment charge was recognized due to the cessation of independent operations of the Zynex Monitoring Solutions (ZMS) subsidiary, indicating a strategic failure or significant underperformance of this segment.
• Tricare Payment Suspension [high — regulatory]: The ongoing suspension of Tricare payments, coupled with repayment demands leading to a $2.8 million revenue reduction in Q3 2025, severely impacts cash flow. Tricare historically represented 20-25% of revenue.
• SEC Investigation [medium — legal]: The company is subject to an SEC investigation, which can lead to significant legal costs, penalties, and reputational damage, further exacerbating its financial distress.
• Revenue Decline in Core Segments [high — operational]: Both device revenue ($29.9M vs $44.8M) and supplies revenue ($32.2M vs $101.6M) for the nine months ended September 30, 2025, have seen substantial declines, indicating a broad-based weakening of the core business operations.
• Liquidity Crisis [high — financial]: Cash and cash equivalents have decreased by 66.5% to $13.3 million from $39.6 million at year-end 2024. This, combined with a sharp increase in current liabilities to $78.8 million, primarily due to $59.3 million in convertible notes, creates a critical liquidity crunch.
• Workforce Reductions [medium — operational]: The company has implemented two rounds of workforce reductions, totaling approximately 29% (15% in Q1 and 14% in Q2 2025), to cut costs. This indicates severe operational challenges and a need to drastically reduce expenses to match declining revenues.

Industry Context

The medical device and supplies industry is highly competitive and subject to stringent regulatory oversight. Companies often rely on innovation and market access to drive growth. Zynex operates in a niche focused on electrotherapy devices for pain management and patient monitoring, facing competition from larger players and specialized medical technology firms.

Regulatory Implications

The Tricare payment suspension and repayment demands highlight significant regulatory and payer-related risks. An ongoing SEC investigation introduces further compliance and legal scrutiny, potentially leading to fines or sanctions.

What Investors Should Do

1. Monitor liquidity closely
2. Assess turnaround viability
3. Evaluate SEC investigation outcome
4. Scrutinize Tricare resolution

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported total net revenue of $62.2 million, a 57.5% decrease year-over-year, and a net loss of $73.3 million.
• 2025-09-30: As of September 30, 2025 — Cash and cash equivalents stood at $13.3 million, a significant drop from $39.6 million at December 31, 2024. Current liabilities reached $78.8 million, including $59.3 million in convertible notes.
• 2025-05-15: Convertible Senior Notes Maturity — The $59.3 million in convertible senior notes are due to mature on May 15, 2026, posing a significant near-term liquidity challenge.
• 2025-Q3: Tricare Payment Demands — Resulted in a $2.8 million revenue reduction during the quarter, highlighting ongoing issues with a key payer.
• 2025-Q1: First Workforce Reduction — 15% of the workforce was reduced to align operating expenses with current revenue levels.
• 2025-Q2: Second Workforce Reduction — An additional 14% of corporate roles were eliminated, indicating continued cost-cutting measures due to financial distress.

Glossary

Impairment charges

A reduction in the carrying value of an asset when its fair value is less than its book value. This often occurs when a business segment is underperforming or ceases operations. (A $30.7 million impairment charge related to ZMS significantly impacted the company's net loss for the period.)

Going concern

A business's ability to continue operating for the foreseeable future without the threat of liquidation. If there is substantial doubt, it must be disclosed. (Management has expressed substantial doubt about Zynex's ability to continue as a going concern due to severe financial challenges.)

Convertible senior notes

Debt securities that can be converted into a predetermined amount of the issuer's equity at certain times during their life. (The company has $59.3 million in current convertible senior notes maturing in May 2026, which are a major component of its current liabilities.)

Treasury stock

Stock that a company has repurchased from the open market. It is recorded at cost and reduces total stockholders' equity. (Zynex holds a significant amount of treasury stock (11.6 million shares as of Sept 30, 2025), which reduces its reported equity.)

Stockholders' equity (deficit)

The residual interest in the assets of an entity after deducting all its liabilities. A deficit means liabilities exceed assets. (Zynex reports a stockholders' deficit of $41.4 million as of September 30, 2025, indicating negative net worth.)

Year-Over-Year Comparison

Compared to the prior year, Zynex has experienced a catastrophic decline in financial performance. Total net revenue for the nine months ended September 30, 2025, plummeted by 57.5% to $62.2 million from $146.4 million in 2024. This revenue collapse, coupled with a $30.7 million impairment charge, has shifted the company from a $3.6 million net income to a $73.3 million net loss. Liquidity has severely deteriorated, with cash reserves falling by 66.5% and current liabilities surging due to new debt obligations, creating significant going concern doubts not present in the prior period.

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share ZYXI NASDAQ Stock Market

Filing Documents

• zyxi-20250930x10q.htm (10-Q) — 1542KB
• zyxi-20250930xex10d1.htm (EX-10.1) — 430KB
• zyxi-20250930xex10d2.htm (EX-10.2) — 395KB
• zyxi-20250930xex10d3.htm (EX-10.3) — 161KB
• zyxi-20250930xex10d4.htm (EX-10.4) — 226KB
• zyxi-20250930xex31d1.htm (EX-31.1) — 14KB
• zyxi-20250930xex31d2.htm (EX-31.2) — 15KB
• zyxi-20250930xex32d1.htm (EX-32.1) — 7KB
• zyxi-20250930xex32d2.htm (EX-32.2) — 8KB
• zyxi-20250930xex10d1001.jpg (GRAPHIC) — 5KB
• zyxi-20250930xex10d1002.jpg (GRAPHIC) — 5KB
• zyxi-20250930xex10d2001.jpg (GRAPHIC) — 5KB
• zyxi-20250930xex10d2002.jpg (GRAPHIC) — 5KB
• zyxi-20250930xex10d3002.jpg (GRAPHIC) — 5KB
• zyxi-20250930xex10d4002.jpg (GRAPHIC) — 5KB
• 0001104659-25-113280.txt ( ) — 8718KB
• zyxi-20250930.xsd (EX-101.SCH) — 49KB
• zyxi-20250930_cal.xml (EX-101.CAL) — 52KB
• zyxi-20250930_def.xml (EX-101.DEF) — 209KB
• zyxi-20250930_lab.xml (EX-101.LAB) — 400KB
• zyxi-20250930_pre.xml (EX-101.PRE) — 363KB
• zyxi-20250930x10q_htm.xml (XML) — 1203KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION 3 Item 1.

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024 3 Unaudited Condensed Consolidated Statements of Income (Loss) for the three and nine months ended September 30, 2025 and 2024 4 Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 5 Unaudited Condensed Consolidated Statements of Stockholders' Equity (Deficit) for the three and nine months ended September 30, 2025 and 2024 6 Unaudited Notes to Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 32 Item 4.

Controls and Procedures

Controls and Procedures 33

—OTHER INFORMATION

PART II—OTHER INFORMATION 34 Item 1.

Legal Proceedings

Legal Proceedings 34 Item 1A.

Risk Factors

Risk Factors 35 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 3. Defaults Upon Senior Securities 39 Item 4. Mine Safety Disclosures 39 Item 5. Other Information 39 Item 6. Exhibits 40

SIGNATURES

SIGNATURES 42 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS ZYNEX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) September 30, 2025 December 31, (unaudited) 2024 ASSETS Current assets Cash and cash equivalents $ 13,259 $ 39,631 Accounts receivable, net 6,695 18,022 Inventory, net 11,991 13,919 Prepaid expenses and other 5,071 3,607 Total current assets 37,016 75,179 Property and equipment, net 1,287 3,084 Operating lease asset 5,788 9,820 Finance lease asset 921 1,141 Deposits 310 408 Intangible assets, net of accumulated amortization — 7,247 Goodwill — 20,401 Deferred income taxes — 4,799 Total assets $ 45,322 $ 122,079 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $ 12,523 $ 7,091 Operating lease liability 4,153 4,030 Finance lease liability 283 287 Current portion of convertible senior notes, less issuance costs 59,334 — Accrued payroll and related taxes 2,553 5,456 Total current liabilities 78,846 16,864 Convertible senior notes, less issuance costs — 58,567 Operating lease liability 7,208 10,151 Finance lease liability 640 789 Total liabilities 86,694 86,371 Commitments and contingencies (Note 16) Stockholders' equity (deficit) Preferred stock, $ 0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2025 and December 31, 2024 — — Common stock, $ 0.001 par value; 100,000,000 shares authorized; 42,439,614 issued and 30,336,201 outstanding as of September 30, 2025, 42,233,415 issued and 31,878,512 outstanding as of December 31, 2024 30 32 Additional paid-in capital 94,290 93,088 Treasury stock of 11,556,758 and 9,856,758 shares at September 30, 2025 and December 31, 2024, respectively, at cost ( 92,123 ) ( 87,186 ) Retained (deficit) earnings ( 43,569 ) 29,77

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