Zynex Reports $20 Million Net Loss Amid Revenue Decline and Tricare Payment Suspension

Zynex, Inc. reported significant financial challenges in its latest quarterly filing, revealing a net loss of $20.0 million for the three months ended June 30, 2025, compared to a net income of $1.2 million during the same period in 2024. For the six months ended June 30, 2025, the company incurred a net loss of $30.4 million, a stark contrast to the net income of $1.2 million reported in the prior year. Total revenue for the second quarter was $22.3 million, down 55% from $49.9 million in the same quarter of 2024, while revenue for the first half of 2025 was $48.9 million, a 49% decrease from $96.4 million in 2024.

The decline in revenue is attributed primarily to a temporary payment suspension from Tricare, a significant government payer that historically accounted for 20-25% of Zynex's annual revenue. The suspension, which began in March 2025, was initiated due to allegations of misrepresentation regarding supplies and equipment billed to the program. This situation has led to a decrease in device orders, which fell by 20% and 12% for the three and six months ended June 30, 2025, respectively. The company has also reduced its workforce by approximately 15% to align with its current revenue levels, resulting in expected annual savings of about $35 million.

Operationally, Zynex has faced challenges in maintaining its customer base and product engagement. The company reported a significant drop in both device and supplies revenue, with device revenue decreasing by 31% to $11.0 million in the second quarter and supplies revenue plummeting by 67% to $11.3 million. The reduction in sales is compounded by a smaller patient base and lower collection rates, exacerbated by the ongoing Tricare payment issues.

Looking ahead, Zynex's ability to continue as a going concern is in question, as the company has incurred substantial losses and has a working capital deficit of $28.3 million as of June 30, 2025. The company has $17.5 million in cash and cash equivalents, which may not be sufficient to meet its obligations without additional financing or operational improvements. Zynex is currently exploring options to amend or refinance its $60 million convertible senior notes due in May 2026, but there is no assurance that it will be able to secure favorable terms. The company is also cooperating with ongoing investigations by the SEC related to potential violations of federal securities laws, which could further impact its financial stability and operational focus.