Zynex announced on November 14 that it has retained Province LLC, an internationally recognized restructuring advisory firm, and has established a special board committee chaired by newly appointed director Paul Aronzon to evaluate a range of strategic alternatives, including capital raising, recapitalization, and restructuring.
The company’s liquidity crisis is underscored by a sharp decline in revenue and a swing to a net loss. In the second quarter of 2025, Zynex reported net revenue of $22.29 million, a 55% drop from $49.88 million in Q2 2024, and a net loss of $20.03 million versus a net income of $1.22 million in the same period last year. The loss is largely attributable to the temporary suspension of payments by Tricare, which historically accounted for 20‑25% of the company’s revenue and has left a significant revenue gap that the company has not yet recovered.
Revenue is split almost evenly between the Devices and Supplies segments. Devices generated $11.03 million and Supplies $11.26 million in Q2 2025, compared with $24.12 million and $25.76 million, respectively, in Q2 2024. The decline in both segments reflects reduced demand from government payers and the impact of the Tricare payment halt, which has eroded the company’s cash flow and working‑capital position.
CEO Steven Dyson said, “The engagement of Province and the formation of the Special Committee reflect our commitment to exploring all avenues to create a new future for Zynex.” Dyson added that the company is focused on stabilizing its liquidity, addressing the Tricare issue, and evaluating whether a sale or other transaction is the best path forward.
Zynex previously launched a similar strategic review in October 2023, retaining Cantor Fitzgerald & Co. as its financial advisor. The repeat of this process signals the depth of the company’s financial distress and the urgency of finding a sustainable solution.
The announcement comes amid a formal going‑concern warning issued by auditors, indicating that the company’s ability to continue as a going concern is in doubt. The special committee’s mandate is to assess whether recapitalization, a strategic sale, or other restructuring measures can restore financial stability and preserve shareholder value.
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