In This Article:
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Net Revenue: $26.6 million, down from $46.5 million in Q1 2024.
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Device Revenue: $11.9 million.
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Supplies Revenue: $14.7 million.
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Gross Profit: $18.2 million or 69% of revenue, compared to $37.2 million or 80% in Q1 2024.
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Sales and Marketing Expenses: Decreased 28% to $16.9 million.
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G&A Expenses: $14.4 million, up from $13.3 million last year.
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Net Loss: $10.4 million or $0.33 per share, compared to net income of $10,000 last year.
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Adjusted EBITDA Loss: $11.8 million, compared to adjusted EBITDA of $1.7 million in Q1 2024.
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Working Capital: $40 million.
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Cash on Hand: Approximately $24 million.
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Q2 2025 Revenue Estimate: $27 million.
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Q2 2025 EPS Estimate: Loss of $0.20 per share.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Zynex Inc (NASDAQ:ZYXI) is actively pursuing new growth opportunities with various insurers, including personal injury, which is showing early signs of revenue growth.
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The company is preparing to launch its NiCO pulse oximeter, which has completed all necessary tests and is expected to be submitted to the FDA soon.
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Zynex Inc (NASDAQ:ZYXI) is restructuring its business to operate without TRICARE revenue, focusing on trimming excess costs and refocusing its sales force.
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The company maintains a strong balance sheet with $40 million in working capital and approximately $24 million in cash on hand.
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Zynex Inc (NASDAQ:ZYXI) is optimistic about the future, with plans to continue growing its sales force and exploring additional revenue streams to drive further growth.
Negative Points
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Zynex Inc (NASDAQ:ZYXI) experienced a significant revenue decline in Q1 2025, with net revenue dropping to $26.6 million from $46.5 million in Q1 2024.
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The temporary payment suspension from TRICARE has negatively impacted revenue and created uncertainty about future payments.
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The company reported a net loss of $10.4 million in Q1 2025, compared to a net income of $10,000 in the same period last year.
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Gross profit margin decreased to 69% in Q1 2025 from 80% in Q1 2024, indicating increased cost pressures.
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Zynex Inc (NASDAQ:ZYXI) has not yet provided full-year guidance for 2025, citing the need for more clarity on the TRICARE situation.
Q & A Highlights
Q: Can you provide more details about the conversation with TRICARE and the evidence presented? Are there concerns about a domino effect with other payers? A: The claims from TRICARE for payment suspensions were vague, so we presented our compliance with their guidelines. There are no current issues with other payers, and this is not a denial of coverage but a temporary payment suspension while they verify our compliance.