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ENGLEWOOD, Colo. - Zynex, Inc. (NASDAQ:ZYXI) announced Wednesday that Tricare, its largest insurance customer, will continue its temporary payment suspension while conducting further review. The news comes as the company faces broader challenges, with InvestingPro data showing a 70.7% decline in stock price over the past year and three analysts recently revising earnings expectations downward.
The medical technology company, which specializes in non-invasive devices for pain management and patient monitoring, had previously appealed the suspension and met with Tricare officials in April to present data supporting why the suspension should be lifted.
"We received a response from Tricare, and they have decided to continue the temporary suspension while they conduct further review," said Thomas Sandgaard, President and CEO of Zynex, in a press release statement.
Sandgaard added that the temporary payment suspension will remain in effect until Tricare reaches its final decision. The company did not provide details about the reason for the initial suspension or a timeline for when Tricare might complete its review.
Zynex, founded in 1996, manufactures and sells medical devices for pain management, rehabilitation, and patient monitoring systems used in hospitals. The company’s stock trades on the Nasdaq exchange.
The continuation of the payment suspension from a major insurance provider could potentially impact the company’s revenue stream while the review process continues. No further details were provided regarding the specific issues under review by Tricare or what steps Zynex might take during the extended suspension period.
In other recent news, Zynex Inc. reported disappointing financial results for the first quarter of 2025, with earnings per share (EPS) of -$0.33 and revenue of $26.58 million, both significantly missing analyst expectations. These figures fell short of the forecasted EPS of $0.06 and anticipated revenue of $53.47 million. In a strategic move, Zynex announced the appointment of Steven Dyson as the new Chief Executive Officer, effective August 18, 2025. Dyson, who has over 25 years of experience in the medical technology sector, is expected to guide the company towards a more optimized business strategy. Additionally, Zynex has secured a UK patent for a noninvasive sepsis monitoring device, which aims to provide early alerts on a patient’s sepsis status. The company also executed a workforce reduction affecting 86 corporate roles, aiming for $5 million in annualized cost savings. Meanwhile, H.C. Wainwright has reiterated its Buy rating on Zynex, maintaining an $8 price target, expressing confidence in the company’s potential to refocus and grow under Dyson’s leadership.
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