Revenue Performance - Net revenue decreased by $36.6 million or 73% to $13.4 million for the three months ended September 30, 2025, compared to $50.0 million for the same period in 2024[168] - For the nine months ended September 30, 2025, net revenue decreased by $84.2 million or 57% to $62.2 million from $146.4 million in the same period in 2024[168] - Device revenue decreased by $7.8 million or 53% to $7.1 million for the three months ended September 30, 2025, from $14.9 million for the same period in 2024[176] - Device revenue decreased by $14.8 million or 33% to $30.0 million for the nine months ended September 30, 2025, from $44.8 million for the same period in 2024[176] - Supplies revenue decreased by $28.8 million or 82% to $6.3 million for Q3 2025, and by $69.3 million or 68% to $32.2 million for the nine months ended September 30, 2025[178] Operational Challenges - Device orders decreased by 35% and 20% for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[168] - The decrease in supplies revenue was significantly impacted by the Tricare payment suspension, resulting in a $13.3 million decline for Q3 2025[179] - Device revenue declined by approximately $2.0 million (from the same period in 2024) due to a temporary Tricare payment suspension and workforce reductions[177] Financial Position - Cash used in operating activities was $23.0 million during the nine months ended September 30, 2025, compared to cash provided by operating activities of $10.3 million during the same period in 2024[169] - Working capital deficit was $41.8 million as of September 30, 2025, compared to working capital of $58.3 million as of December 31, 2024[169] - As of September 30, 2025, the company had $13.3 million in cash and cash equivalents and $6.7 million in net accounts receivable[192] Expenses and Impairments - The company recognized pre-tax non-cash asset impairment charges of $30.7 million during the quarter ended September 30, 2025, primarily related to goodwill and certain fixed assets associated with Zynex Monitoring Solutions[154] - Cost of revenue for devices and supplies decreased by $4.9 million or 48% to $5.3 million for Q3 2025, but as a percentage of revenue, it increased to 40% from 20%[180] - General and administrative expenses decreased by $3.5 million or 23% to $11.8 million for Q3 2025, with the percentage of revenue increasing to 88% from 31%[186] - The company recorded non-cash impairment charges totaling $30.7 million during Q3 2025 related to its ZMS subsidiary[189] Net Loss and Default Risk - The company has incurred net losses of $73.3 million for the nine months ended September 30, 2025, compared to net income of $3.6 million during the same period in 2024[198] - The company has not made an interest payment of approximately $1.5 million due on November 15, 2025, which could lead to an event of default[201] Workforce and Severance - The company expects to incur aggregate pre-tax cash severance charges of approximately $0.7 million in the fourth quarter of 2025 due to workforce reductions[154] - Tricare historically represented approximately 20-25% of the company's annual revenue, with cash collections from Tricare amounting to $48.8 million and $38.8 million for the years ended December 31, 2024 and 2023, respectively[165]

Financial Performance - Net revenue for Q3 2025 was $13.4 million, a decline of 73% compared to $50.0 million in Q3 2024, primarily due to Tricare payment suspension and a $2.8 million revenue reduction during the suspension period[6] - Gross profit for the quarter was $8.1 million, representing 60% of revenue, down from $39.8 million or 80% of revenue in Q3 2024[7] - Net loss for Q3 2025 totaled ($42.9) million, or ($1.42) per share, significantly impacted by a non-cash asset impairment charge of $30.7 million[9] - Adjusted EBITDA loss for Q3 2025 was ($12.3) million, compared to an Adjusted EBITDA of $5.1 million in Q3 2024[10] - Total net revenue for Q3 2025 was $13,360,000, a decrease of 73% compared to $49,966,000 in Q3 2024[20] - Net income (loss) for the nine months ended September 30, 2025, was $(73,343,000), compared to $3,609,000 for the same period in 2024[21] - Adjusted EBITDA for Q3 2025 was $(12,343,000), representing -92% of net revenue, compared to 10% in Q3 2024[23] - Total costs of revenue and operating expenses for Q3 2025 were $57,322,000, an increase from $46,164,000 in Q3 2024[20] Cash Flow and Assets - Cash flow from operations for Q3 2025 was ($6.3) million, with total cash and cash equivalents at $13.3 million as of September 30, 2025[10] - Cash and cash equivalents at the end of Q3 2025 were $13,259,000, down from $37,630,000 at the end of Q3 2024[21] - Total current assets decreased to $37.0 million as of September 30, 2025, down from $75.2 million at the end of 2024[19] Liabilities and Debt - Total liabilities increased to $86.7 million as of September 30, 2025, compared to $86.4 million at the end of 2024[19] - Zynex has entered a 30-day grace period and will not make a $1.5 million interest payment on its $60 million Convertible Notes due in May 2026[4] - The company incurred interest expense of $890,000 in Q3 2025, compared to $625,000 in Q3 2024[20] Revenue Breakdown - Devices revenue for Q3 2025 was $7,057,000, down from $14,858,000 in Q3 2024[20] - Supplies revenue for Q3 2025 was $6,303,000, compared to $35,108,000 in Q3 2024[20] Expenses - Sales and marketing expenses decreased by 54% to $9.5 million from $20.7 million in Q3 2024, primarily due to reduced sales force headcount[8] - The company reported impairment charges of $30,740,000 for the nine months ended September 30, 2025[20] Strategic Initiatives - The company has engaged Province, LLC to evaluate strategic alternatives, including potential capital raising and restructuring strategies[3] Shareholder Information - Weighted average basic shares outstanding decreased to 30,314,000 in Q3 2025 from 31,775,000 in Q3 2024[20]

Core Insights - Zynex, Inc. reported a significant decline in net revenue for Q3 2025, totaling $13.4 million, down from $50.0 million in the same quarter of the previous year, primarily due to a Tricare payment suspension and operational challenges [4][7][8] Management Commentary and Strategic Initiatives - The new management team, led by CEO Steven Dyson, is focused on compliance, liquidity challenges, and improving revenue and cash flow performance [2] - Zynex has engaged Province, LLC for strategic alternatives, including potential capital raising and restructuring strategies [2][3] - A Special Committee has been formed to oversee the evaluation of these strategic alternatives [3] Financial Performance - Gross profit for Q3 2025 was $8.1 million, representing 60% of revenue, compared to $39.8 million or 80% of revenue in Q3 2024 [5] - Sales and marketing expenses decreased by 54% to $9.5 million, while general and administrative expenses were $11.8 million, down from $15.3 million in the prior year [6] - The net loss for Q3 2025 was ($42.9) million, or ($1.42) per share, influenced by a non-cash asset impairment charge of $30.7 million [7][8] Cash Flow and Liquidity - Cash flow from operations for Q3 2025 was ($6.3) million, with total cash and cash equivalents at $13.3 million as of September 30, 2025 [8] - The company has opted for a 30-day grace period on a $1.5 million interest payment due on its $60 million Convertible Notes [3] Balance Sheet Overview - As of September 30, 2025, total assets were $45.3 million, a significant decrease from $122.1 million at the end of 2024 [15][16] - Current liabilities increased to $78.8 million, primarily due to the current portion of convertible senior notes [15][16]

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Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Viewpoint - Zynex, Inc. is implementing strategic initiatives to ensure long-term success, including engaging a financial advisory firm and forming a Special Committee to explore various strategic alternatives [1][2][5]. Strategic Initiatives - Zynex has engaged Province, LLC to evaluate strategic alternatives, including capital raising and restructuring strategies [2]. - A Special Committee has been formed by the Board, consisting of independent directors, to oversee the assessment of these strategic alternatives [4]. Leadership Changes - Paul Aronzon has been appointed to the Board of Directors, bringing over 40 years of experience in corporate restructuring and advisory roles [3]. - Aronzon will serve as Chair of the Special Committee, which will work closely with management and Province to assess strategic options [4]. Management Statements - CEO Steven Dyson emphasized the company's commitment to exploring all avenues for a new future for Zynex through these strategic steps [5].

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The team delivers insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4][5] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [5]

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]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive has bureaus and studios in key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Group 2 - The company is a forward-looking technology adopter, utilizing various technologies to enhance workflows [4] - Proactive employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]