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1. Company Snapshot

1.a. Company Description

Zynex, Inc., through its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation.The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography triggered electrical stimulation device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; and E-Wave, an NMES device.It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products.


In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and knee braces for knee support.Further, it offers Zynex Fluid Monitoring System (CM-1500), a fluid volume monitor, which is a non-invasive medical device for monitoring relative fluid volume changes used in operating and recovery rooms to detect fluid loss during surgery and internal bleeding during recovery; Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter.The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring; and pulse oximetry monitoring.


It sells its products through direct sales force primarily in the United States.Zynex, Inc.was founded in 1996 and is headquartered in Englewood, Colorado.

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1.b. Last Insights on ZYXI

Zynex, Inc.'s recent performance was negatively impacted by a confluence of financial setbacks, regulatory scrutiny, and a pending investor class action. The company's dismal Q4 and FY 2024 financial results, which included a $3.59 (-51%) drop in share price on March 12, 2025, led to a securities class action being filed against the company. Additionally, Tricare's temporary suspension of payments as they review prior claims further exacerbated the situation. The company's inability to meet revenue expectations, partly due to slower than normal payments from certain payers, also contributed to its poor performance.

1.c. Company Highlights

2. Zynex's Q3 2025 Earnings: A Challenging Quarter Amidst Strategic Revamp

Zynex reported a significant decline in net revenue to $13.4 million in Q3 2025, down from $50 million in the same period last year, primarily due to the TRICARE payment suspension and changes in payers' claim submission review practices. The company's device revenue was $7.1 million, while supplies revenue was $6.3 million. Gross profit stood at $8.1 million, or 60% of revenue, compared to $39.8 million or 80% of revenue in Q3 2024. The net loss was $42.9 million, or $1.42 per share, compared to a net income of $2.4 million in Q3 2024. Adjusted EBITDA loss was $12.3 million, compared to an adjusted EBITDA of $5.1 million in Q3 2024. Actual EPS came out at -$1.41565, missing estimates of -$0.19.

Publication Date: Nov -24

📋 Highlights
  • New Management Leadership:: Vikram Bajaj (CFO) and Steven Dyson (CEO) introduced new leadership across sales, legal, compliance, and HR, adding two board members for strategic oversight.
  • Revenue Decline:: Q3 net revenue fell to $13.4 million (from $50 million in 2024) due to TRICARE payment suspension and payer claim review changes.
  • Net Loss Expansion:: Reported a $42.9 million net loss ($1.42/share) vs. $2.4 million net income in 2024; adjusted EBITDA loss of $12.3 million vs. $5.1 million positive.
  • Cash Position:: $13.3 million in cash as of September 2025, with $60 million in convertible notes maturing in May 2026 and deferred $1.5 million interest payment until December 2025.
  • Gross Profit Margin Drop:: Gross profit at 60% ($8.1 million) compared to 80% ($39.8 million) in Q3 2024, reflecting operational challenges.

Cash Position and Debt Obligations

As of September 30, 2025, Zynex had $13.3 million in cash and cash equivalents. The company has $60 million in convertible senior notes due in May 2026 and has elected to enter a contractual thirty-day grace period, not making a $1.5 million interest payment due November 17, 2025. The company is in discussions with holders of the convertible notes regarding potential restructuring opportunities.

Valuation Metrics

With a P/S Ratio of 0.17, the market is pricing in a significant decline in revenue. The EV/EBITDA ratio stands at -1.2, indicating that the market is not expecting a quick turnaround in the company's profitability. The company's ROE and ROIC are also negative, at -1807.05% and 243.35%, respectively, indicating a challenging financial situation.

Future Outlook

Despite the challenges, analysts estimate revenue growth of 10.2% next year, indicating a potential turnaround. The new management team's three-part strategy to address government investigations, manage near-term debt obligations, and improve revenue and cash flow performance is expected to drive this growth. However, the company's ability to execute this plan remains to be seen.

Management's Strategic Initiatives

The new management team has implemented a three-part strategy to turn the company around, with a focus on addressing business and compliance challenges. They have added new leaders in sales, legal, compliance, regulatory, HR, and billing, as well as strategic marketing. The company's board has also added two new directors to oversee strategic alternatives, including potential capital raising and recapitalization strategies.

3. NewsRoom

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Zynex Announces New In-Network Provider Status with Humana

Feb -04

Source: prnewswire.com

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New Zynex Leadership Responds to Indictment of Former Executives

Jan -22

Source: prnewswire.com

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Zynex Financial Restructuring Puts Company on Path to Long-Term Success

Dec -16

Source: prnewswire.com

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Zynex, Inc. (ZYXI) Q3 2025 Earnings Call Prepared Remarks Transcript

Nov -18

Source: seekingalpha.com

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Zynex Reports Third Quarter 2025 Financial Results

Nov -17

Source: prnewswire.com

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Zynex taps adviser Province, forms special board committee to review strategic options

Nov -14

Source: proactiveinvestors.com

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Zynex Announces Strategic Initiatives: Engagement of Province, Appointment of Paul Aronzon to Board of Directors, and Formation of Special Committee

Nov -14

Source: prnewswire.com

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Zynex appoints industry veteran Bret Wise to its Board, will also serve as Audit Committee chair

Oct -15

Source: proactiveinvestors.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.64%)

6. Segments

Related Supplies

Expected Growth: 8.9%

Zynex, Inc.'s 8.9% growth in Related Supplies is driven by increasing demand for electrotherapy products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on product innovation, such as its NexWave technology, has contributed to market share gains and revenue growth.

Electrotherapy Devices

Expected Growth: 8.1%

Zynex's Electrotherapy Devices segment growth of 8.1% is driven by increasing adoption in physical therapy and rehabilitation centers, rising demand for non-invasive pain management solutions, and expanding distribution channels. Additionally, the company's focus on product innovation and strategic partnerships contribute to its growth momentum.

7. Detailed Products

NexWave

A non-invasive, electrical stimulation device used for the treatment of chronic and acute pain.

InWave

A non-invasive, electrical stimulation device used for the treatment of urinary incontinence and pelvic pain.

IAS (Intraoperative Anxiety System)

A system used to monitor and manage anxiety in patients undergoing surgical procedures.

CM-1500 Cardiac Monitor

A portable, 12-lead electrocardiogram (ECG) device used to monitor cardiac activity.

Zynex ECM (Electrical Cardiac Monitoring) System

A comprehensive system used to monitor and analyze cardiac activity.

8. Zynex, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Zynex, Inc. faces moderate threat from substitutes due to the availability of alternative medical devices and therapies.

Bargaining Power Of Customers

Customers have limited bargaining power due to the specialized nature of Zynex's products and the lack of alternative suppliers.

Bargaining Power Of Suppliers

Suppliers have moderate bargaining power due to the availability of alternative suppliers and the importance of timely delivery of components.

Threat Of New Entrants

The medical device industry is highly competitive, and new entrants can easily enter the market with innovative products, posing a significant threat to Zynex, Inc.

Intensity Of Rivalry

The medical device industry is highly competitive, and Zynex, Inc. faces intense rivalry from established players, leading to a high level of competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 57.15%
Debt Cost 3.95%
Equity Weight 42.85%
Equity Cost 6.37%
WACC 4.98%
Leverage 133.39%

11. Quality Control: Zynex, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Patterson Companies

A-Score: 5.2/10

Value: 5.5

Growth: 3.7

Quality: 4.9

Yield: 3.0

Momentum: 9.0

Volatility: 5.3

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Spero Therapeutics

A-Score: 4.7/10

Value: 7.0

Growth: 7.2

Quality: 3.1

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

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Cryo-Cell International

A-Score: 4.7/10

Value: 7.2

Growth: 3.7

Quality: 6.4

Yield: 8.0

Momentum: 0.5

Volatility: 2.7

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Zynex

A-Score: 3.7/10

Value: 10.0

Growth: 7.4

Quality: 5.0

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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OraSure Technologies

A-Score: 3.4/10

Value: 7.5

Growth: 4.2

Quality: 5.0

Yield: 0.0

Momentum: 0.5

Volatility: 3.3

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Owens & Minor

A-Score: 2.9/10

Value: 10.0

Growth: 2.7

Quality: 3.8

Yield: 0.0

Momentum: 0.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.03$

Current Price

0.03$

Potential

-0.00%

Expected Cash-Flows