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]