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Zynex Inc (ZYXI)
:ZYXI
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Zynex (ZYXI) AI Stock Analysis

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ZYXI

Zynex

(NASDAQ:ZYXI)

Rating:43Neutral
Price Target:
$1.50
▼(-12.79% Downside)
Zynex's overall stock score is primarily impacted by significant financial challenges, negative technical indicators, and valuation issues. Despite strategic efforts to improve operations and leadership changes, the persistent headwinds and uncertain outlook limit the stock's appeal.
Positive Factors
Financial Stability
The company has sufficient capital to fund its operations for the upcoming year, with $39.6M in cash at the end of December 2024.
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.
Product Development
Zynex has submitted a 510(k) application to the FDA for its NiCO pulse oximeter, which uses precise laser technology for more accurate oxygenation measurement, potentially opening access to a $2.8 billion market.
Negative Factors
Net Loss
Net loss was $20.0M, or ($0.66) per share, significantly more than the estimated loss of $6.1M.
Regulatory Risks
Risks include slower-than-anticipated revenue growth due to competition and inability to secure regulatory clearance for other medical devices.
Revenue Decline
Total revenue was $22.3M, representing a 55% YoY decline and missing analyst projections of $27.0M.

Zynex (ZYXI) vs. SPDR S&P 500 ETF (SPY)

Zynex Business Overview & Revenue Model

Company DescriptionZynex, 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 MoneyZynex generates revenue primarily through the sale and rental of its medical devices, particularly in the area of pain management and rehabilitation. The company's key revenue streams include direct sales of its electrotherapy devices to healthcare facilities and patients, as well as rental agreements where devices are provided to patients for a recurring fee. Additionally, Zynex may benefit from insurance reimbursements for its devices, which can significantly impact its revenue. The company also engages in direct distribution and partnerships with healthcare providers to expand its market reach and enhance its sales channels.

Zynex Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: -22.87%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Negative
The earnings call reflected significant challenges, including a notable decline in revenue and continued issues with TRICARE payments, overshadowing positive steps like cost reductions and new leadership. Despite strategic efforts to refocus and reduce costs, the financial performance and current market conditions suggest substantial headwinds.
Q2-2025 Updates
Positive Updates
Cost Reduction Initiatives
The company announced a reduction in overall expenses of approximately $40 million annualized through better supply chain management and a more diversified prescriber and payer customer base.
Introduction of New CEO
Steven Dyson was announced as the new CEO, bringing over 25 years of experience in the medical technology sector, which is expected to help refocus business strategy towards growth.
FDA Submission for NiCO Pulse Oximeter
The company submitted its NiCO laser pulse oximeter to the FDA, marking a potential milestone in the pulse oximetry market by addressing accuracy issues with current technologies.
Negative Updates
Revenue Decline
Net revenue was $22.3 million compared to $49.9 million in the second quarter of 2024, primarily due to the temporary payment suspension from TRICARE and sales force reductions.
TRICARE Payment Suspension
The temporary suspension of payments from TRICARE continues, affecting revenue as the company maintains patient services without receiving payments.
Net Loss for the Quarter
The company posted a net loss of $20 million, with more than half attributed to a noncash adjustment to the tax allowance.
Sales Force and Marketing Challenges
Sales and marketing expenses decreased by 45% due to headcount reductions, reflecting challenges in maintaining sales force productivity and market impact.
Company Guidance
During the Zynex Second Quarter 2025 Earnings Conference Call, several key metrics and strategic decisions were discussed. The company reported net revenue of $22.3 million, a decline from $49.9 million in the same quarter of 2024, primarily due to a temporary payment suspension from TRICARE and a reduction in order growth. Zynex achieved a gross profit of $15.2 million, representing 68% of revenue, compared to 80% in Q2 2024. The company experienced a net loss of $20 million, with a significant portion due to a $10.3 million noncash tax allowance adjustment. The company aims to reduce expenses by approximately $40 million annually through staff reductions and operational realignment, including a 14% decrease in overall staff and the elimination of nearly 90 corporate roles. Zynex collected $26 million in cash during the quarter and plans to continue reducing cash burn. The financial outlook remains cautious, with quarterly guidance suspended as the company transitions to new leadership, including the appointment of Steven Dyson as CEO. The company is optimistic about its NiCO pulse oximeter, submitted to the FDA, with a potential market impact anticipated in the coming months.

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
45
Neutral
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
35
Negative
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
30
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue144.81M192.35M184.32M158.17M130.30M80.12M
Gross Profit109.22M152.93M145.96M126.16M102.98M62.70M
EBITDA-17.93M10.79M17.89M26.18M22.37M11.75M
Net Income-28.66M2.99M9.73M17.05M17.10M9.07M
Balance Sheet
Total Assets85.94M122.08M136.90M116.47M133.27M72.17M
Cash, Cash Equivalents and Short-Term Investments17.54M39.63M44.58M20.14M42.61M39.17M
Total Debt72.46M73.82M76.17M26.96M35.09M7.33M
Total Liabilities84.67M86.37M90.78M50.11M59.35M15.32M
Stockholders Equity1.26M35.71M46.13M66.36M73.92M56.85M
Cash Flow
Free Cash Flow-7.67M12.14M16.55M13.33M6.34M-167.00K
Operating Cash Flow-7.18M12.72M17.76M13.75M6.95M818.00K
Investing Cash Flow-485.00K-578.00K-966.00K-418.00K-16.61M-985.00K
Financing Cash Flow-5.68M-17.09M7.64M-35.80M13.10M25.30M

Zynex Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.72
Price Trends
50DMA
2.31
Negative
100DMA
2.31
Negative
200DMA
5.15
Negative
Market Momentum
MACD
-0.15
Positive
RSI
34.70
Neutral
STOCH
17.82
Positive
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 1.72 is below the 20-day moving average (MA) of 2.25, below the 50-day MA of 2.31, and below the 200-day MA of 5.15, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 34.70 is Neutral, neither overbought nor oversold. The STOCH value of 17.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZYXI.

Zynex Risk Analysis

Zynex disclosed 48 risk factors in its most recent earnings report. Zynex reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Zynex Peers Comparison

Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$3.65B17.5412.30%1.10%2.65%
61
Neutral
$7.89B21.3211.18%2.29%14.98%
47
Neutral
$1.34B
47
Neutral
C$187.88M-2.96-23.77%3.19%17.07%2.49%
44
Neutral
$498.76M-49.91%2.84%-828.91%
43
Neutral
$47.26M24.14-168.22%-25.21%-631.48%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZYXI
Zynex
1.56
-6.28
-80.10%
HSIC
Henry Schein
64.83
-3.33
-4.89%
OMI
Owens & Minor
6.51
-8.80
-57.48%
PBH
Prestige Consumer Healthcare
74.20
7.36
11.01%
GRDN
Guardian Pharmacy Services, Inc. Class A
20.26
2.51
14.14%

Zynex Corporate Events

Executive/Board Changes
Zynex CFO Dan Moorhead Resigns, Effective August 2025
Neutral
Jul 29, 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.

The most recent analyst rating on (ZYXI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Zynex stock, see the ZYXI Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Zynex Faces Continued Payment Suspension from Tricare
Negative
Jul 2, 2025

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.

The most recent analyst rating on (ZYXI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Zynex stock, see the ZYXI Stock Forecast page.

Executive/Board Changes
Zynex Appoints Steven Dyson as New CEO
Positive
Jul 2, 2025

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.

The most recent analyst rating on (ZYXI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Zynex stock, see the ZYXI Stock Forecast page.

Business Operations and Strategy
Zynex Announces Workforce Reduction for Cost Savings
Negative
Jun 24, 2025

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.

The most recent analyst rating on (ZYXI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Zynex stock, see the ZYXI Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Zynex Elects New Directors at Annual Meeting
Neutral
May 15, 2025

On May 15, 2025, Zynex, Inc. held its Annual Meeting of Stockholders in Englewood, Colorado, where key decisions were made regarding the company’s leadership and financial oversight. Thomas Sandgaard, Barry D. Michaels, Michael Cress, and Joshua R. Disbrow were elected as directors, and the appointment of CBIZ CPAs P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified, indicating a stable governance structure for the company moving forward.

The most recent analyst rating on (ZYXI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Zynex stock, see the ZYXI Stock Forecast page.

Product-Related AnnouncementsRegulatory Filings and Compliance
Zynex Submits 510(k) for NiCO™ CO-Oximeter
Positive
May 14, 2025

On May 12, 2025, Zynex, Inc. announced the submission of a 510(k) application to the FDA for its NiCO™ Noninvasive CO-Oximeter device, marking a significant milestone in pulse oximetry technology. This device addresses the inaccuracies of traditional pulse oximeters, particularly in patients with darker skin, by using laser technology to provide more accurate oxygen and carbon monoxide measurements. This advancement is expected to revolutionize patient monitoring and improve clinical outcomes by providing reliable data for early detection of hypoxia and hyperoxia, thus enhancing patient care and reducing costs.

The most recent analyst rating on (ZYXI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Zynex stock, see the ZYXI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 05, 2025