Zynex (ZYXI) AI Stock Analysis

• Market Cap: $50.29M
• Dividend Yield: N/A
• Average Volume (3M): 399.79K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.50
• Revenue Growth: -25.21%
• EPS Growth: -631.48%
• Country: US
• Employees: 1,000
• Sector: Healthcare
• Sector Strength: 49
• Industry: Medical - Distribution
• EPS (TTM): -0.66
• Shares Outstanding: 30,297,441
• 10 Day Avg. Volume: 152,082
• 30 Day Avg. Volume: 399,794
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.64
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 1.22
• Enterprise Value/Ebitda: -7.42
• 1Y Price Target: $2.40
• Price Target Upside: 44.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 44 Neutral
• Price Target: $1.50 ▼(-9.64% Downside)

Zynex's overall stock score is primarily impacted by its financial struggles, including declining revenues and profitability, and increased leverage. Technical indicators suggest bearish momentum, and valuation metrics are weak due to a negative P/E ratio. While the earnings call provides some hope with cost reduction and strategic refocus, these efforts are overshadowed by the current challenges.

Positive Factors

Leadership Change

Steven Dyson, with over 25 years of experience in the medical technology sector, has been appointed as CEO to refocus Zynex's business strategy and return it to a strong growth trajectory.

Market Expansion

NiCO, if cleared by the FDA, would allow Zynex to enter the $2.8 billion pulse oximetry market with differentiating precision and accuracy in hospital and non-hospital settings.

Negative Factors

Financial Performance

Total revenue was $22.3M, representing 55% YoY decline and missing our projection of $27.0M.

Net Loss

Net loss was $20.0M, or ($0.66) per share, more than our estimated loss of $6.1M.

Zynex Business Overview & Revenue Model

Company Description

Zynex, Inc., through its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography triggered electrical stimulation device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; and E-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and knee braces for knee support. Further, it offers Zynex Fluid Monitoring System (CM-1500), a fluid volume monitor, which is a non-invasive medical device for monitoring relative fluid volume changes used in operating and recovery rooms to detect fluid loss during surgery and internal bleeding during recovery; Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.

How the Company Makes Money

Zynex generates revenue primarily through the sale and rental of its electrotherapy devices. The company offers its products directly to patients, as well as through healthcare providers, hospitals, and clinics. This dual revenue stream allows Zynex to capture a wide range of customers in the healthcare market. Additionally, Zynex earns recurring revenue through the rental of its devices, which provides ongoing income as patients continue to use the equipment for extended periods. The company also benefits from partnerships with medical professionals and organizations that facilitate the adoption of its products in clinical settings. Other factors contributing to its earnings include strong marketing efforts and a growing demand for non-invasive pain management solutions.

Zynex Financial Statement Overview

Summary

Zynex is experiencing severe financial challenges, with declining revenues, negative profitability margins, high leverage, and deteriorating cash flow. The income statement, balance sheet, and cash flow all signal significant financial stress, requiring urgent strategic interventions.

Income Statement

Zynex's income statement shows a troubling trajectory with declining revenue and net income in the TTM period. Gross Profit Margin remains relatively strong at 77.7% TTM, but significant drops in EBIT and EBITDA margins to negative values signal operational challenges. The revenue growth rate has been negative in the most recent period, indicating potential demand issues. Continued focus on cost management and revenue recovery is essential.

Balance Sheet

The balance sheet highlights a high debt-to-equity ratio of 3.52, indicating substantial leverage and potential financial risk. Equity ratio is low at 19.6%, reflecting high reliance on debt financing. Return on Equity has turned negative, further highlighting financial stress. Improvement in financial structure is needed to enhance stability.

Cash Flow

Cash flow analysis reveals a concerning negative free cash flow in the TTM period, coupled with a significant decrease in operating cash flow. The free cash flow to net income ratio is unfavorable, indicating cash generation issues. Enhanced cash management and operational efficiency are critical to reversing this trend.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	144.81M	192.35M	184.32M	158.17M	130.30M	80.12M
Gross Profit	109.22M	152.93M	145.96M	126.16M	102.98M	62.70M
EBITDA	-17.93M	10.79M	17.89M	26.18M	22.37M	11.75M
Net Income	-28.66M	2.99M	9.73M	17.05M	17.10M	9.07M
Balance Sheet
Total Assets	85.94M	122.08M	136.90M	116.47M	133.27M	72.17M
Cash, Cash Equivalents and Short-Term Investments	17.54M	39.63M	44.58M	20.14M	42.61M	39.17M
Total Debt	72.46M	73.82M	76.17M	26.96M	35.09M	7.33M
Total Liabilities	84.67M	86.37M	90.78M	50.11M	59.35M	15.32M
Stockholders Equity	1.26M	35.71M	46.13M	66.36M	73.92M	56.85M
Cash Flow
Free Cash Flow	-7.67M	12.14M	16.55M	13.33M	6.34M	-167.00K
Operating Cash Flow	-7.18M	12.72M	17.76M	13.75M	6.95M	818.00K
Investing Cash Flow	-485.00K	-578.00K	-966.00K	-418.00K	-16.61M	-985.00K
Financing Cash Flow	-5.68M	-17.09M	7.64M	-35.80M	13.10M	25.30M

Zynex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZYXI, the sentiment is Negative. The current price of 1.66 is above the 20-day moving average (MA) of 1.59, below the 50-day MA of 2.10, and below the 200-day MA of 4.60, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 45.22 is Neutral, neither overbought nor oversold. The STOCH value of 76.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZYXI.

Zynex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PDCO	70 Outperform		―		―	-0.85%	-23.40%
HSIC	70 Outperform	$8.37B	22.21	11.18%	―	2.29%	14.98%
PBH	65 Neutral	$3.27B	15.58	12.05%	―	0.63%	4.23%
Sector *	51 Neutral	$7.83B	-0.15	-40.10%	2.29%	21.46%	-2.01%
GRDN	47 Neutral	$1.65B	―	-97.70%	―	―	―
ZYXI	44 Neutral	$50.29M	24.14	-168.22%	―	-25.21%	-631.48%
OMI	43 Neutral	$386.99M	―	-144.11%	―	-17.10%	-2720.40%

Zynex Corporate Events

Zynex Appoints New CFO and CLO Amid Leadership Changes

On August 18, 2025, Zynex, Inc. announced the appointment of Vikram Bajaj as Chief Financial Officer and John Bibb as Chief Legal Officer, as part of a strategic move to strengthen its leadership team. These appointments, along with the addition of Steven Dyson as CEO, are aimed at enhancing the company’s operational performance and positioning it for future growth in the medical technology sector.

Zynex CFO Dan Moorhead Resigns, Effective August 2025

Zynex announced the resignation of its Chief Financial Officer, Dan Moorhead, effective August 29, 2025. His departure is not due to any disagreements with the company. To ensure a smooth transition, Moorhead will enter into a consulting agreement to assist with the handover of his responsibilities. The company, led by Chairman and CEO Thomas Sandgaard, along with incoming CEO Steven Dyson and the Board of Directors, will work to appoint a new CFO.

Zynex Faces Continued Payment Suspension from Tricare

On July 2, 2025, Zynex, Inc. announced that Tricare, its largest insurance customer, will continue the temporary suspension of payments. Despite Zynex’s appeal and presentation of evidence to lift the suspension, Tricare has decided to maintain the suspension while conducting further review, impacting Zynex’s operations and financial stability.

Zynex Appoints Steven Dyson as New CEO

Zynex, Inc. announced the appointment of Steven Dyson as Chief Executive Officer, effective August 18, 2025, succeeding Thomas Sandgaard who will continue as Chairman of the Board. Dyson, with over 25 years of experience in healthcare investment and medical technology, aims to lead Zynex towards a stronger growth trajectory, leveraging his extensive background in the sector.

Zynex Announces Workforce Reduction for Cost Savings

On June 18, 2025, Zynex, Inc. executed a workforce reduction affecting 86 corporate roles, representing 14% of its total employees, aiming for $5 million in annualized cost savings. The reduction is part of a strategic adjustment in order processing and billing, unrelated to the temporary suspension of payments by Tricare, for which the company has appealed but not yet received a response.