Zynex, Inc.

Net revenue was $13.4 million, down from $50 million in Q3 2024. Device revenue was $7.1 million and supplies revenue was $6.3 million. Gross profit was $8.1 million, or 60% of revenue, versus $39.8 million, or 80% of revenue, in Q3 2024. Sales and marketing expense decreased 54% to $9.5 million, and G&A expense was $11.8 million versus $15.3 million last year. Net loss was $42.9 million, or $1.42 per share, compared with net income of $2.4 million a year ago; adjusted EBITDA was a loss of $12.3 million versus positive $5.1 million. The quarter included a $50.7 million non-cash asset impairment charge. The company ended the quarter with $13.3 million of cash, reported negative cash flow of $6.3 million in Q3, and said it did not make a $1.5 million interest payment due November 17, 2025, while entering the contractual 30-day grace period on its $60 million convertible notes due May 2026.

Steven Dyson framed the quarter as part of a broader turnaround effort, saying the new team is focused on compliance, liquidity, and operational improvement. He emphasized the quality of the NexWave device and said the company is making progress in discussions with government agencies, noteholders, and strategic advisers, though timing and outcomes remain uncertain. He also pointed to early signs of stabilization in orders, better sales productivity, and a new patient-contact-based resupply policy that he said is already producing positive responses.

Vikram Bajaj focused on the numbers and the balance-sheet pressure. He said revenue fell because of the TRICARE payment suspension, a $2.8 million reduction in TRICARE-related revenue during the suspension period, payer claim review delays, and workforce reductions that hurt orders and onboarding. He also highlighted lower cash burn in the quarter, but noted $13.3 million of cash at September 30, $60 million of convertible debt now classified as a current liability, and the missed $1.5 million interest payment as the company works with advisers on restructuring and financing alternatives.

There was no live analyst Q&A in the transcript, so the main external concerns came through management’s prepared remarks: liquidity, the May 2026 maturity of the $60 million convertible notes, and uncertainty around TRICARE reinstatement or other government investigation outcomes. Management also addressed the operational questions by explaining that orders had stabilized after months of declines, but that the company still needs to improve sales productivity, order conversion, and collections. The tone was cautious, with repeated emphasis that progress is early and outcomes are not yet certain.