Zynex(US:ZYXI) Prnewswireยท2025-07-31 20:01Core Insights - Zynex, Inc. reported a significant decline in net revenue for Q2 2025, totaling $22.3 million, down from $49.9 million in the same quarter of the previous year, primarily due to the Tricare payment suspension and restructuring efforts [3][6] - The company appointed Steven Dyson as the new CEO, aiming to refocus its business strategy and improve cash flow, while also submitting a new product, the NiCO laser pulse oximeter, to the FDA [2][3] - Zynex implemented operational efficiency improvements expected to yield annualized savings of approximately $40 million, with most effects anticipated in Q3 and Q4 2025 [2][3] Financial Performance - Gross profit for Q2 2025 was $15.2 million, representing 68% of revenue, a decrease from $39.9 million or 80% of revenue in Q2 2024 [4] - Sales and marketing expenses decreased by 45% to $12.8 million compared to $23.2 million in the prior year, largely due to reduced sales force headcount [5] - The net loss for Q2 2025 was $20.0 million, or $0.66 per share, compared to a net income of $1.2 million, or $0.04 per share, in Q2 2024 [6][17] Cash Flow and Collections - Cash collections for the quarter were $26.1 million, with a year-to-date total of $56.8 million, while cash flow from operations showed a deficit of $6.2 million for the quarter [8] - As of June 30, 2025, the company had cash and cash equivalents of $17.5 million, down from $39.6 million at the end of 2024 [15][18] Future Guidance - The company has temporarily suspended revenue and profitability guidance due to leadership changes, with the new CEO expected to review forecasting procedures [9]