Zynex, Inc. reported its second quarter 2025 financial results, showing a substantial decline in net revenue to $22.3 million, a 55.3% decrease from $49.9 million in the prior year quarter. The company recorded a net loss of ($20.0) million, or ($0.66) per share, which included a non-cash adjustment of $10.3 million related to a valuation allowance on deferred tax assets. This contrasts sharply with a net income of $1.2 million in Q2 2024.
The revenue decline was attributed to the ongoing Tricare payment suspension, changes to shipment and billing procedures, and the impact of restructuring and sales force reductions. Gross profit margin fell to 68% from 80% in Q2 2024, partly due to supporting Tricare patients without related revenue. Cash flows from operations were negative ($6.2) million for the quarter and ($16.7) million year-to-date, with cash and cash equivalents at $17.5 million as of June 30, 2025.
A critical financial development is the reclassification of the company's $59.074 million convertible senior notes as a current liability, maturing on May 15, 2026. Management announced annualized cost savings of approximately $40 million from efficiency improvements and staff reallocations, with most savings expected to take full effect in the third and fourth quarters of 2025.
Due to the retirement of the current CEO and the announced departure of the CFO, Zynex temporarily suspended revenue and profitability guidance. Incoming CEO Steven Dyson will lead a review of forecasting procedures, with an update on potential guidance resumption expected in future quarters. The company highlighted the appointment of Steven Dyson as CEO and the FDA submission of the NiCO laser pulse oximeter as transformational events during the quarter.
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