Zynex, Inc. reported its first quarter 2025 financial results, showing a significant decline in net revenue to $26.6 million, down 42.8% from $46.5 million in the prior year quarter. The company posted a net loss of ($10.4) million, or ($0.33) per share, a stark contrast to the nominal net income of $10,000 in Q1 2024. Adjusted EBITDA also turned negative, with a loss of ($11.8) million compared to a positive $1.7 million in the same period last year.
The financial downturn was primarily attributed to the temporary suspension of payments from Tricare, Zynex's largest insurance customer. Gross profit margins compressed to 69% from 80% year-over-year, as the company continued to support new and existing Tricare patients, incurring costs of goods sold without related revenue. Cash flows from operations were negative ($10.5) million for the quarter, and cash and cash equivalents stood at $23.9 million as of March 31, 2025.
Zynex appealed the Tricare suspension and held an appeals meeting in April, with a response expected in June or possibly sooner. The company reiterated its approximately 15% overall staff reduction in Q1, which, along with other expense reduction efforts, is expected to yield $35 million in annual savings. Management remains optimistic about growth opportunities in pain management and patient monitoring, with the FDA submission for its NiCO laser pulse oximeter anticipated in the coming weeks.
For the second quarter of 2025, Zynex expects net revenue of at least $27 million and a loss per share of ($0.20) or better. The company projects quarterly revenues to increase throughout the year, driven by usual seasonality.
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