Zynex reports Q1 EPS (33c), consensus (24c)

Reports Q1 revenue $26.6M, consensus $30.75M. “In the first quarter of 2025, we continued to see steady orders for our pain management and private-labeled rehabilitation products. Total orders decreased 3% year-over-year, but our sales force headcount was approximately 39% less as we continue to focus on sales rep productivity, so we were encouraged by the strong performance of the current sales reps. As we previously announced, we were notified of a temporary suspension of payments from our largest insurance customer, Tricare,” said Thomas Sandgaard, President and CEO of Zynex (ZYXI). “We appealed the temporary suspension and had an appeals meeting in April where we presented our data and evidence. We expect a response from Tricare in June or possibly sooner. As directed by Tricare, we continue to support both existing patients and new patients as we receive their prescriptions. We made the difficult decision to decrease our overall staff by approximately 15% in the first quarter, which along with other expense reduction efforts should result in savings of approximately $35 million annually. We continue to monitor expenses and adjust as necessary.” Sandgaard concluded: “We expect to complete our FDA submission for our NiCO laser pulse oximeter in the next couple of weeks, which we believe can be a significant driver of new customers, revenue streams and will diversify our product offering. Overall, we remain optimistic about the growth opportunities both in pain management and patient monitoring.”