Financial Data and Key Metrics Changes - In 2025, the company achieved $726 million in revenue, marking a significant increase compared to previous years, with the highest gross margins in its history at 80% for Q4 2025, up from 79% in Q4 2024 [5][19] - The fourth quarter sales for EXPAREL increased to $155.8 million from $147.7 million in 2024, reflecting a volume growth of approximately 7% [18] - Non-GAAP R&D expenses rose to $34.4 million in Q4 2025 from $22.0 million in the previous year, while SG&A expenses increased to $91.9 million from $70.6 million [20] Business Line Data and Key Metrics Changes - EXPAREL's sales growth was driven by expanding patient and provider access, with a notable increase in coverage outside the surgical bundle, reaching 102 million lives by the end of 2025 [15][8] - ZILRETTA sales remained flat at $33 million in Q4 2025 compared to 2024, while ioveraê°™ sales grew to $7 million from $6.5 million [18] Market Data and Key Metrics Changes - The company reported a significant shift in payer coverage, with 102 million lives covered outside the surgical bundle, indicating a positive trend in reimbursement policies [15][8] - The strategic focus on key markets with high procedural volumes contributed to a collective volume growth of over 7% in these markets compared to 2024 [15] Company Strategy and Development Direction - The company is advancing its 5x30 strategy, aiming to help 3 million patients annually by 2030, with a clear focus on innovative, non-opioid pain management therapies [5][12] - Partnerships with J&J MedTech and LG Chem are expected to enhance market access and revenue growth, particularly in Asia Pacific [9][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving steady top-line growth in 2026, despite potential headwinds from a soft market for elective procedures [48][49] - The company anticipates a revenue guidance for 2026 of $745 million to $770 million, with EXPAREL sales projected between $600 million and $620 million [22] Other Important Information - The company has secured a volume-limited settlement with Fresenius, extending EXPAREL's exclusivity through 2039, and strengthened its IP estate to 21 patents [8] - The company executed $150 million in stock repurchases, reducing outstanding shares to approximately 41 million [21] Q&A Session Summary Question: What constitutes a clinically meaningful signal for the OA readout? - Management clarified that the primary focus of the PCRX-201 trial is safety, with secondary endpoints related to pain, stiffness, and function being evaluated [28][30] Question: What factors could lead to higher or lower guidance for EXPAREL? - Management highlighted the steady growth achieved in 2025 and the potential for upside or downside developments based on market conditions, particularly in elective procedures [37][39] Question: What are the headwinds affecting ZILRETTA's performance? - Management noted that prioritizing EXPAREL led to some disruption in ZILRETTA sales, but they expect clearer growth objectives for the partnership with J&J MedTech in 2026 [58][60]

Financial Data and Key Metrics Changes - In 2025, the company achieved $726 million in revenue, marking a significant increase compared to previous years, with the highest gross margins in its history at 80% for Q4 2025, up from 79% in Q4 2024 [5][19] - The fourth quarter sales for EXPAREL increased to $155.8 million from $147.7 million in 2024, reflecting a volume growth of approximately 7% [18] - Non-GAAP R&D expenses rose to $34.4 million in Q4 2025 from $22.0 million in the previous year, while SG&A expenses increased to $91.9 million from $70.6 million [20] Business Line Data and Key Metrics Changes - EXPAREL showed solid performance with volume-based growth driven by increased education and awareness, payer adoption, and demand across care sites [7][8] - ZILRETTA sales remained flat at $33 million in Q4 2025 compared to 2024, while iovera sales grew to $7 million from $6.5 million [18] Market Data and Key Metrics Changes - The company ended 2025 with 102 million lives covered outside the surgical bundle, indicating a significant shift in payer policies [15] - The strategic focus on expanding payer coverage in key markets resulted in over 7% volume growth in these areas compared to 2024 [15][16] Company Strategy and Development Direction - The company is committed to its 5x30 strategy, aiming to help 3 million patients annually by 2030, with a focus on expanding its pipeline and strategic partnerships [5][7] - A significant partnership with LG Chem was announced to commercialize EXPAREL in select Asia Pacific countries, with revenues expected to begin in 2027 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, highlighting a clear strategic direction and improved operational efficiencies [4][12] - The company anticipates steady top-line growth in 2026, with revenue guidance set between $745 million and $770 million [22] Other Important Information - The company executed $150 million in stock repurchases, reducing outstanding shares to approximately 41 million [21] - The company is focused on maintaining a disciplined approach to capital deployment while investing in growth and innovation [21] Q&A Session Summary Question: What constitutes a clinically meaningful signal for the OA readout? - Management clarified that the primary focus of the study is safety, with secondary endpoints related to pain, stiffness, and function being evaluated [28][30] Question: What factors could lead to higher or lower EXPAREL sales guidance? - Management indicated that the steady growth observed in 2025 positions the company well for 2026, with potential market dynamics influencing sales [37][39] Question: What headwinds affected ZILRETTA's performance in 2025? - Management noted that prioritization of EXPAREL and restructuring of sales forces impacted ZILRETTA sales, but they expect growth in 2026 with a fully trained J&J sales team [58][60] Question: Will unexpected business development costs continue? - Management acknowledged that such costs may occur but emphasized a disciplined approach to investments and potential accretive deals [64][66]

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]