Zynex, Inc. Q2 FY2025 earnings call

• Refocused pain management business model, reshaping sales force and corporate structures to streamline operations. Annualized expense reduction of ~$40 million through staff reductions, inventory and supply chain improvements.
• Added Steven Dyson as new CEO effective August 18, bringing medical technology expertise. Submitted NiCO pulse oximeter to FDA in May, expecting 6 months for clearance after August info request.
• TRICARE temporary payment suspension ongoing; redirecting focus to diversify revenue streams. 14% staff reduction in corporate office in June, eliminating 90 corporate roles and replacing with outsourced teams.
• Net revenue $22.3M, cash collected $26M, net loss $20M with noncash tax adjustment contributing to loss.

In the second quarter of 2025, net revenue was $22.3 million. Device revenue was $11 million and supplies revenue was $11.3 million, each contributing approximately 50% to the net revenue.

• Suspended quarterly guidance while onboarding new CEO and appointing new CFO. New CEO will review forecasting procedures and provide guidance in coming quarters.

• TRICARE temporary payment suspension ongoing with uncertain resolution timeline. Dependence on TRICARE revenue, need to further diversify revenue streams.

Q: Recap on NiCO submission timeline A: Initial submission made, expecting August info request from FDA, with ~6 months for clearance likely closer to December Q: TRICARE next steps and patient referrals A: Servicing patients as directed by DHA/TRICARE, inflow of patients reduced due to sales force reduction Q: Sales and marketing/G&A expenses for back half A: Continued reductions, more effect in Q3 with full cost reduction effect starting in Q3 Q: FDA data request details A: FDA concerned about LED technology, reviewing clinical data and claims positioning Q: New CEO initiatives A: Aligned with current refocus efforts, aiming for better valuation over next years Q: Revenue below guidance A: Due to TRICARE, sales force reduction, and lower supply shipments Q: Reason for servicing TRICARE patients A: Directed by DHA/TRICARE, reallocating resources evaluated