Medical device firm Zynex's Q3 revenue misses expectations

Reuters
Nov 18
Medical device firm Zynex's Q3 revenue misses expectations

Overview

  • Zynex Q3 revenue fell 73% yr/yr, missing analyst expectations

  • Company reported a Q3 net loss of $42.9 mln, impacted by asset impairment charges

Outlook

  • Zynex exploring strategic alternatives, including capital raising and restructuring

  • Company enters 30-day grace period for $1.5 mln interest payment

Result Drivers

  • TRICARE PAYMENT SUSPENSION - Revenue decline attributed to Tricare payment suspension and $2.8 mln revenue reduction during suspension period

  • CLAIM SUBMISSION CHANGES - Changes to payer claim submissions and review practices led to denials and payment delays, impacting revenue

  • WORKFORCE REDUCTIONS - Workforce reductions in early 2025 negatively impacted device orders, new patient onboarding, and revenue

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$13.40 mln

$23.02 mln (2 Analysts)

Q3 EPS

-$1.42

Q3 Net Income

-$42.90 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

  • Wall Street's median 12-month price target for Zynex Inc is $2.85, about 80.1% above its November 14 closing price of $0.57

Press Release: ID:nPn6Ry2tfa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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