Zynex (ZYXI) Q2 2025 earnings summary

Executive summary

• Q2 2025 focused on restructuring pain management, sales force realignment, and operational streamlining to improve efficiency and cash flow.

• Net revenue for Q2 2025 was $22.3 million, down 55% year-over-year, driven by Tricare payment suspension and reduced device orders.

• Leadership changes include the appointment of Steven Dyson as CEO and the resignation of CFO Dan Moorhead, with outgoing CEO remaining as Chairman.

• Workforce reduced by 14% in June 2025, expected to save $5 million annually, contributing to $40 million in annualized expense reductions.

• Continued servicing of TRICARE patients despite ongoing payment suspension, with efforts to diversify revenue streams.

Financial highlights

• Net revenue for Q2 2025 was $22.3 million, down from $49.9 million in Q2 2024.

• Gross profit was $15.2 million (68% margin), compared to $39.9 million (80% margin) last year.

• Net loss was $20.0 million, or $(0.66) per share, including a $10.3 million non-cash deferred tax asset allowance.

• Adjusted EBITDA loss was $8.9 million, versus a $3.5 million gain in Q2 2024.

• Cash and cash equivalents at June 30, 2025 were $17.5 million, with reduced cash burn.

Outlook and guidance

• Revenue and profitability guidance suspended during CEO transition and CFO replacement.

• Cost reductions expected to further lower sales and G&A expenses by 15-20% and 10-12% respectively in Q3.

• Targeting return to positive cash flow by year-end and long-term profitable growth.

• Management expresses substantial doubt about ability to continue as a going concern without refinancing $60 million convertible notes due May 2026 or raising additional capital.

• Tricare payment suspension continues with no clear resolution timeline; Tricare historically represented 20-25% of annual revenue.