Zynex 2025 Q3 Earnings Sharp Loss as Net Income Deteriorates 1901.6%

Zynex (ZYXI) reported fiscal 2025 Q3 earnings on Nov 17, 2025, with results far below expectations. The company swung to a $1.42 loss per share, a 2128.6% decline from a $0.07 profit in 2024 Q3, while revenue plummeted 73.3% to $13.36 million. Analysts had estimated a $0.16 loss per share and $24.53 million revenue, highlighting a significant miss.

Revenue

Device sales accounted for $7.06 million, while supplies contributed $6.30 million, leading to a total net revenue of $13.36 million. This 73.3% year-over-year decline was driven by a Tricare payment suspension, claim submission changes, and workforce reductions, which collectively eroded revenue by $36.61 million compared to 2024 Q3.

Earnings/Net Income

Zynex reported a net loss of $42.91 million in 2025 Q3, reflecting a 1901.6% deterioration from the $2.38 million net income in 2024 Q3. The EPS swung to a loss of $1.42, a dramatic 2128.6% decline from the prior year’s profit, reflecting severe financial deterioration.

Price Action

Zynex’s stock price experienced a sharp decline following the earnings release, with a 6.92% drop in a single trading day and a 52.11% plummet over the subsequent week. The month-to-date loss reached 57.83%, underscoring investor pessimism.

The strategy of buying Zynex (ZYXI) shares on the day after earnings releases and holding for 30 days proved highly ineffective, resulting in an annualized return of -71.3% and a total loss of $1.42 per share. This indicates a poor strategy for this stock, especially considering the recent decline in its stock price following the earnings release.

CEO Commentary

CEO Steven Dyson emphasized the management team’s commitment to addressing compliance challenges, liquidity constraints, and revenue improvement. He highlighted the engagement of Province, LLC to explore strategic alternatives and the formation of a Special Committee to oversee restructuring efforts, stating, “Our focus remains on stabilizing operations and restoring investor confidence.”

Additional News

1. Legal Investigation: Bronstein, Gewirtz & Grossman, LLC is investigating potential securities fraud by Zynex and its executives for investors who purchased shares before March 13, 2023.

2. Strategic Restructuring: Zynex is exploring capital raising, debt restructuring, and seeking a commercialization partner for its NiCO CO-Oximeter subsidiary.

3. Liquidity Measures: The company entered a 30-day grace period for a $1.5 million interest payment on its $60 million Convertible Notes, signaling ongoing liquidity pressures.