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Zynex , Inc. (NASDAQ:ZYXI), a medical technology company with annual revenue of $172.4 million, reported a reduction in its workforce affecting 86 corporate roles, or 14% of its total employees, according to a statement released Tuesday based on a recent SEC filing. The company executed the workforce reduction on June 18. According to InvestingPro data, this move comes as the stock has declined over 70% in the past six months.
Zynex anticipates approximately $5 million in annualized cost savings as a result of the reduction. The total estimated costs and cash expenditures related to the workforce reduction are about $0.2 million, with most of these expenses tied to employee severance. The company expects to recognize these costs in the second quarter of 2025 and pay the majority in the second and third quarters of 2025. The company maintains a strong liquidity position with a current ratio of 3.46, indicating sufficient assets to cover short-term obligations.
Affected employees were notified of the reduction on or around June 18. Zynex stated that the workforce reduction is part of a planned adjustment to its order processing and billing strategy. The company noted that this action is not related to the temporary suspension of payments by Tricare.
Zynex also provided an update on the Tricare payment suspension, stating that it has appealed the temporary suspension but has not yet received a response to its appeal.
All information is based on a statement in the company’s recent SEC filing.
In other recent news, Zynex Inc. reported its financial results for the first quarter of 2025, which fell significantly short of market expectations. The company posted an earnings per share (EPS) of -$0.33, missing the forecasted $0.06, and recorded revenue of $26.58 million, well below the anticipated $53.47 million. Zynex’s revenue saw a substantial decline from $46.5 million in the same quarter of the previous year. The company’s net loss for the quarter was $10.4 million, and it currently holds $24 million in cash on hand. Zynex is also undergoing staff reductions and restructuring efforts to improve its financial performance. Despite these challenges, the company is focusing on launching its NICO Pulse Oximeter, with plans to generate revenue from this product in 2026. Additionally, Zynex continues to face unresolved challenges with TRICARE reimbursements, which could impact future revenue.
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