Why did ZYXI's Q4 2024 earnings miss forecasts so sharply?

Zynex Inc.'s (ZYXI) Q4 2024 earnings fell short of expectations due to a combination of factors:

1. **Revenue Shortfall**: Zynex experienced a significant revenue shortfall in Q4 2024, which was attributed to slower-than-normal payments from certain payers. This shortfall led to a substantial decline in the company's stock price, as it revealed a lack of financial performance in line with market expectations.
2. **Tricare Suspension**: The company disclosed that Tricare, which represents a substantial portion of Zynex's revenue, had temporarily suspended payments while reviewing prior claims. This suspension further contributed to the revenue shortfall and added pressure to the company's financial results.
3. **Oversupplying Scheme Allegations**: Allegations of an oversupplying scheme, where Zynex allegedly shipped excess products to customers, raised questions about the company's sales and billing practices. These allegations, coupled with the publication of the scheme in a medical journal, likely impacted investor confidence and financial relationships with insurers.

In summary, ZYXI's Q4 2024 earnings miss was primarily due to a combination of revenue shortfall, Tricare suspension and oversupplying scheme allegations. These factors together created a challenging financial environment for the company in the period.