Zynex Inc. (ZYXI) Plunges 25.68% as Q3 Earnings Spark Liquidity Woes, Debt Crisis

Zynex Inc. (ZYXI) plunged 25.6769% in pre-market trading on November 19, 2025, as investors reacted to the company’s strategic overhaul and liquidity pressures. The stock’s sharp decline came amid a Q3 earnings call where CEO Steven Dyson outlined a three-part plan to address government investigations, $60 million in convertible senior notes maturing in May 2026, and revenue challenges. Management highlighted recent leadership additions in sales, compliance, and strategic marketing but acknowledged uncertainty around TRICARE reinstatement and ongoing regulatory scrutiny.

Financial results revealed a stark drop in net revenue to $13.4 million in Q3 2025, down from $50 million in the same period a year prior, driven by the suspension of TRICARE payments. The company reported a $42.9 million net loss and a $30.7 million non-cash asset impairment charge. Liquidity concerns intensified as Zynex entered a 30-day grace period for a $1.5 million interest payment and engaged Province LLC to explore restructuring options. Despite early signs of order volume stabilization, the CEO stressed that “we cannot predict the outcome” of debt negotiations or regulatory resolutions.

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Backtest assumptions suggest a focus on short-term volatility management given Zynex’s elevated debt burden and regulatory risks. A hypothetical strategy might prioritize monitoring TRICARE reinstatement progress, debt restructuring milestones, and cash flow improvement indicators. Position sizing would require caution due to the stock’s high beta and limited liquidity, with exit triggers tied to either resolution of investigations or further deterioration in liquidity metrics.