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- **Revenue Plunge**: Q3 2025 revenue dropped 73% YoY to $13.4 million due to TRICARE suspension and workforce reductions.
- **Strategic Compliance Push**: New resupply policy and proactive government engagement aim to resolve investigations and restore TRICARE access.
- **Debt Crisis Management**: In grace period for $60 million convertible notes, exploring restructuring to avoid default.
- **Financial Strain**: Net loss of $42.9 million, including a $30.7 million impairment charge, with limited cash reserves ($13.3 million).
- **Growth Hopes**: NexWave device's strong patient base and VA partnerships offer potential for future revenue recovery.

**【Management Opening Remarks】**
- Vikram Bajaj reminded participants of the risks associated with forward-looking statements and cautioned about potential discrepancies between projections and actual results. He emphasized the importance of reviewing SEC filings for a comprehensive understanding of risk factors.

**【CEO Commentary】**
- **New Leadership and Governance**: Introduction of a new management team, including additions in sales, legal, and marketing. Board expanded with Bret Wise (Audit Committee Chair) and Paul Aronzon (Special Committee Chair), bringing expertise in compliance and strategic alternatives.
- **Three-Part Strategy**: 
  1. **Compliance and Investigations**: Proactive engagement with government agencies to resolve TRICARE suspension and ongoing investigations. Implemented a new resupply policy requiring patient confirmation, leading to positive patient engagement.
  2. **Debt Management and Capital Raising**: Addressing $60 million convertible notes maturing in May 2026. In grace period for interest payment, exploring restructuring with Province LLC and a Special Committee.
  3. **Revenue Improvement**: Initiatives include simplified commission plans, VA partnerships, and sales force productivity enhancements, showing early stabilization in orders despite workforce reductions.
- **Product Strength**: NexWave device praised for effectiveness, with thousands of positive patient testimonials, positioning Zynex for long-term growth.

**【CFO Financial Commentary】**
- **Revenue Decline**: Q3 2025 revenue $13.4 million (-73% YoY) due to TRICARE suspension and workforce cuts. Device and supplies revenue both down significantly.
- **Financial Health**: Gross profit margin 60% (vs. 80% YoY). Sales expenses reduced by 54% to $9.5 million. Net loss $42.9 million, including $30.7 million impairment charge. Cash $13.3 million, with reduced cash burn.
- **Debt Challenges**: Convertible notes now a current liability. Discussions with holders for restructuring to ensure operational continuity.


Zynex, Inc.(ZYXI)-20251118-2025 Q3 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ZYXI

ZYXI fundamentals

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