Zynex (ZYXI) Surges 18.14% on FDA Clearance, Strategic Overhauls Amid Liquidity Woes

Zynex (ZYXI) surged 18.14% in pre-market trading on November 25, 2025, pushing shares to $0.73 despite a 52-week low of $0.3759. The sharp rebound follows a volatile earnings report, liquidity challenges, and strategic overhauls, sparking speculation about short-term momentum versus deeper structural risks.

The stock’s Q3 2025 earnings revealed a $1.42 per-share loss and $13.36 million revenue (far below the $25.53 million estimate), while a missed $1.5 million interest payment on $59.3 million convertible notes maturing in May 2026 heightened default concerns. However, FDA clearance for the NextWave electrotherapy device and board restructuring efforts have injected cautious optimism, even as cash reserves fell 67% to $13.3 million. Technical indicators show an oversold RSI of 30.27 and a price 76% below the 200-day average, suggesting a tug-of-war between bearish liquidity pressures and speculative buying.

Strategic moves, including the FDA-cleared device and leadership changes, highlight long-term bets on innovation, but near-term survival hinges on resolving Tricare payment suspensions and securing capital. Investors are advised to monitor key levels: $0.63 as a critical support and $0.8776 as a potential breakout threshold. The stock’s volatility remains tied to its liquidity crisis rather than broader sector trends.

Backtest analysis of Zynex’s performance after ≥18% daily surges (2022–2025) shows mixed outcomes. While median returns dipped 4.8% after one day and 8.6% after four days, a brief mean reversion emerged by day 16. However, the limited sample size (n=2) and high post-event volatility underscore the risks of momentum-driven trades. Risk-managed mean reversion strategies may offer more stability, though further data is needed for conclusive insights.