About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

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, Zynex is pleased to announce the appointment of Paul Aronzon to its Board of Directors. Mr. Aronzon, age 70, has served as the managing member of PSA Consulting, LLC, a consulting firm, since 2019. Previously, Mr. Aronzon served as co-managing partne ...

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Core Insights - Zynex, Inc. has appointed Bret Wise to its Board of Directors, where he will also serve as Chair of the Audit Committee, indicating a strategic move towards enhancing governance and oversight [1][4]. Company Overview - Zynex, Inc. specializes in the manufacture and sale of non-invasive medical devices aimed at pain management, rehabilitation, and patient monitoring [1][9]. - The company was founded in 1996 and has developed a range of medical devices, including those for fluid, sepsis, and laser-based pulse oximetry monitoring systems for hospital use [9]. Leadership and Expertise - Bret Wise brings extensive operational and financial management experience from the medical device industry, having previously served as Chair and CEO of Dentsply International and Executive Chair of Dentsply Sirona [2][3]. - His past roles include Chief Financial Officer of two publicly traded companies and audit partner at KPMG, showcasing a strong background in financial oversight [3]. Strategic Direction - The appointment of Bret Wise is seen as a pivotal moment for Zynex, with a focus on refocusing the company's mission around patient and customer success, integrity, and compliance [2][4]. - The leadership believes that Mr. Wise's financial expertise will significantly enhance Zynex's commitment to high standards of financial oversight and transparency [4].

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Zynex, Inc. due to a class action complaint alleging breaches of fiduciary duties by the board of directors [1] Company Overview - Zynex, Inc. is facing scrutiny for allegedly inflating its stock price through false and misleading statements regarding its financial performance and operational practices [6] - The company reportedly engaged in a systemic "oversupplying scheme," shipping excessive quantities of supplies and billing insurers for inflated amounts [6] Financial Impact - The misconduct was revealed on March 11, 2025, when Zynex announced a significant revenue shortfall attributed to slower payments from insurers, particularly Tricare, which accounts for 20-25% of its annual revenue [6] - Following the announcement, Zynex's stock price dropped by $3.59 per share, or 51.3%, closing at $3.41 per share, resulting in a substantial loss of shareholder value [6]

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Core Viewpoint - Zynex, Inc. has appointed Steven Dyson as the new CEO and announced a new executive leadership team to enhance business performance and fulfill its mission in the medical technology sector [1][2][7]. Leadership Appointments - Steven Dyson has been appointed as CEO, effective June 30, 2025, and has since been working with the Board to finalize the executive team [2]. - Vikram Bajaj joins as Chief Financial Officer, bringing over 20 years of experience in finance and M&A within the med-tech sector, previously serving as CFO at Vyaire Medical and Kepro [3]. - John Bibb has been appointed as Chief Legal Officer, with over 20 years of experience in legal and compliance roles in the med-tech sector, including positions at Kinetic Concepts and Vyaire Medical [4]. - Ajay Gopal is the new EVP of Sales, recognized for his leadership in the healthcare and medical device sectors, with a history of transformative growth [5]. - Agnes Powell has been appointed as VP of Billing, with 20 years of experience in revenue cycle operations and compliance across various healthcare settings [6]. Executive Team Goals - The new executive team aims to improve business performance and uphold integrity in business practices, focusing on enhancing the quality of life for patients suffering from pain and illness [7]. - The Board expresses confidence in the new leadership team to drive Zynex towards greater success [7].

Core Viewpoint - The Portnoy Law Firm has initiated an investigation into Zynex, Inc. for possible securities fraud, potentially leading to a class action lawsuit for investors who suffered losses [1][3]. Company Overview - Zynex, Inc. is under scrutiny for allegedly inflating its stock price through false statements regarding its financial performance and operational practices [3]. - The company is accused of a systemic "oversupplying scheme," where excessive quantities of medical supplies were shipped to patients, leading to inflated billing to insurers [3]. Financial Impact - A significant revenue shortfall was disclosed in Zynex's fourth-quarter and full-year 2024 results, attributed to slower payments from certain payers, including a temporary suspension of payments from Tricare [4]. - Tricare, which accounted for approximately 20% to 25% of Zynex's annual revenue, is reviewing prior claims, raising concerns about the company's financial stability [4]. Market Reaction - Following the disclosure of these issues, Zynex's stock price plummeted by $3.59 per share, or 51.3%, closing at $3.41 per share, indicating a severe loss of shareholder value [5].

Core Viewpoint - Zynex reported disappointing Q2 2025 results, with significant declines in revenue and profitability, attributed to external reimbursement issues, internal cost cuts, and executive turnover [1][5][8] Financial Performance - GAAP revenue for Q2 2025 was $22.3 million, missing the forecast of $27.4 million, and down 55.3% from $49.9 million in Q2 2024 [2][5] - GAAP earnings per share were ($0.66), worse than the projected ($0.20) and a decline from $0.04 in the prior year [2][5] - Gross profit margin fell to 68%, down from 80% year-over-year, reflecting increased costs associated with supporting Tricare patients [2][5] - Adjusted EBITDA showed a loss of $8.9 million, a significant drop from a gain of $3.5 million in the previous year [2][5] - Cash and cash equivalents decreased to $17.5 million from $39.6 million at the end of 2024, indicating negative cash flow from operations [2][5] Business Overview - Zynex specializes in electrotherapy devices for pain management, generating revenue from device sales and consumable supplies [3][4] - The company has focused on expanding its U.S. sales force, seeking regulatory clearance for new devices, and building recurring revenue through consumable sales [4] Operational Developments - The quarter experienced a steep drop in sales, with supplies revenue down 66.9% year-over-year and device revenue declining 30.7% [5] - The Tricare payment suspension significantly impacted revenue, as the company continued to provide consumables without reimbursement [5] - Zynex shifted its strategy from rapid sales force expansion to consolidation and efficiency gains, reducing sales headcount [6] Product and Regulatory Updates - Zynex filed a new patient-monitoring device, the NiCO laser pulse oximeter, with the FDA, but commercial launch is not expected until 2026 [7] - The company is focusing on ensuring current products meet market needs and maintaining regulatory compliance [7] Future Outlook - Management has suspended all financial guidance amid leadership changes, with a new CEO set to review forecasting procedures [8] - Investors are advised to monitor the resolution of the Tricare payment suspension, cash flow issues, and the effectiveness of new leadership [9]

Company Performance - Zynex Inc. reported a quarterly loss of $0.32 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.20, and a significant decline from earnings of $0.04 per share a year ago, indicating an earnings surprise of -60.00% [1] - The company posted revenues of $22.29 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 17.44%, and a substantial decrease from year-ago revenues of $49.88 million [2] - Over the last four quarters, Zynex has only surpassed consensus EPS estimates once and has not beaten consensus revenue estimates during the same period [2] Stock Performance - Zynex shares have declined approximately 68.9% since the beginning of the year, contrasting sharply with the S&P 500's gain of 8.2% [3] - The current Zacks Rank for Zynex is 4 (Sell), indicating expectations for the stock to underperform the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is -$0.20 on revenues of $28.13 million, while for the current fiscal year, the estimate is -$0.81 on revenues of $110.3 million [7] - The outlook for the Medical - Products industry, to which Zynex belongs, is currently in the bottom 26% of over 250 Zacks industries, suggesting potential challenges ahead [8]