Zynex Inc. Reports Q1 2025 Financial Results

Zynex Inc ( (ZYXI) ) has released its Q1 earnings. Here is a breakdown of the information Zynex Inc presented to its investors.

Zynex, Inc., a medical technology company, develops and sells non-invasive devices for pain management, rehabilitation, and patient monitoring. In the first quarter of 2025, Zynex experienced a 3% decrease in total orders year-over-year, attributed to a reduced sales force, yet maintained strong performance from existing sales representatives. The company faced a temporary suspension of payments from its largest insurance customer, Tricare, which impacted its financial results. Despite these challenges, Zynex is optimistic about its growth opportunities, particularly with the anticipated FDA submission of its NiCO laser pulse oximeter.

The financial results for the first quarter of 2025 showed a net revenue of $26.6 million, a significant decrease from $46.5 million in the previous year. The gross profit margin also declined to 69% from 80% due to the Tricare payment suspension. Sales and marketing expenses were reduced by 28% following a decrease in sales force headcount. However, general and administrative expenses increased slightly to $14.4 million. The company reported a net loss of $10.4 million, contrasting with a marginal net income in the same quarter of the previous year.

Zynex’s adjusted EBITDA loss for the quarter was $11.8 million, compared to a positive adjusted EBITDA of $1.7 million in the prior year. Cash flows from operations were negative at $10.5 million, with the company holding $23.9 million in cash and cash equivalents by the end of March 2025. Despite the financial setbacks, Zynex remains focused on cost-saving measures, including a 15% reduction in staff, which is expected to save approximately $35 million annually.

Looking ahead, Zynex expects its second-quarter 2025 net revenue to reach at least $27 million, with an anticipated loss per share of $0.20 or better. The company is optimistic about increasing quarterly revenues throughout the year, driven by new product offerings and strategic adjustments.