Zynex 2025 Q3 Earnings Misses Targets with Net Income Deterioration of 1901.6%

Zynex(ZYXI), ranking by market capitalization reported its fiscal 2025 Q3 earnings on Nov 17th, 2025.

Zynex’s Q3 revenue of $13.36 million fell far below the $24.53 million consensus estimate, while its net loss of $42.91 million—versus $2.38 million profit in 2024—highlighted severe financial strain. The company is exploring strategic alternatives, including capital raising and restructuring, amid operational challenges like Tricare payment suspensions and workforce reductions.

Revenue

The total revenue of Zynex decreased by 73.3% to $13.36 million in 2025 Q3, down from $49.97 million in 2024 Q3. Revenue was primarily driven by devices, which contributed $7.06 million, while supplies added $6.30 million. Together, these segments combined to total net revenue of $13.36 million.

Earnings/Net Income

Zynex swung to a loss of $1.42 per share in 2025 Q3 from a profit of $0.07 per share in 2024 Q3 (2128.6% negative change). Meanwhile, the company reported a net loss of $-42.91 million in 2025 Q3, reflecting a 1901.6% deterioration from the net income of $2.38 million achieved in 2024 Q3. Zynex’s Q3 EPS of -$1.42 marked a dramatic downturn from prior-year profitability, signaling severe financial distress.

Post-Earnings Price Action Review

The strategy of buying Zynex (ZYXI) shares on the day after earnings releases and holding for 30 days resulted in significant underperformance. The annualized return was -71.3%, with 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 and the market's concerns about its financial health and future prospects. This strategy of buying Zynex shares after earnings releases and holding for 30 days has not yielded positive returns, suggesting that investors should consider these factors and possibly alternative investment strategies.

CEO Commentary

Steven Dyson, CEO of Zynex, emphasized the management team’s commitment to addressing business and compliance challenges while prioritizing liquidity and revenue improvement. He noted, “We are confident in our ability to adapt to market dynamics and deliver sustainable value,” despite the quarter’s significant revenue decline. Dyson highlighted the engagement of Province, LLC, and the formation of a Special Committee as critical steps toward ensuring Zynex’s future stability and growth. The CEO expressed a cautious outlook, acknowledging the need for strategic restructuring but remained focused on long-term recovery.

Additional News

Zynex faces a securities investigation by Bronstein, Gewirtz & Grossman, LLC, targeting potential corporate wrongdoing from March 2023 to the present. Meanwhile, Paul Aronzon joined the board to chair the Special Committee overseeing strategic alternatives. The company also entered a 30-day grace period for a $1.5 million interest payment on its $60 million Convertible Notes. These developments underscore heightened scrutiny and financial pressure amid ongoing operational challenges.