Zynex Inc. Faces Financial Challenges Amid Tricare Payment Suspension
Zynex Inc., a health care equipment and supplies company listed on the Nasdaq, is experiencing a downturn in its stock price following a continued payment suspension by Tricare, its largest insurance customer. The company, known for its electrotherapy products aimed at improving the lives of patients with functional disabilities, has seen its stock fall as Tricare extends its review of payments.
Stock Performance and Market Impact
As of June 30, 2025, Zynex’s stock closed at $2.66, a significant drop from its 52-week high of $10.62 on July 17, 2024. The recent developments have further impacted the stock, which has been trading at its 52-week low of $1.66 since April 29, 2025. The suspension of payments by Tricare has raised concerns among investors, contributing to the decline in stock value.
Tricare’s Continued Suspension
On July 2, 2025, Zynex announced that Tricare would continue its temporary payment suspension amid an ongoing review. Despite Zynex’s efforts to appeal the suspension and present supporting data to Tricare officials in April, the insurance provider has decided to maintain the hold. This decision has left Zynex in a challenging financial position, as Tricare is a significant contributor to the company’s revenue.
Leadership Changes
In the midst of these financial challenges, Zynex has announced a change in leadership. Steven Dyson has been appointed as the new Chief Executive Officer, effective August 18, 2025. Dyson’s appointment follows the company’s announcement on June 30, 2025, where Thomas Sandgaard, the founder and current Chairman of the Board, will continue to serve in his role while Dyson takes the helm as CEO.
Company Overview
Zynex Inc. operates through its subsidiary, focusing on the health care equipment and supplies industry. The company’s product range includes muscle stimulation, inferential, and TENS devices, primarily used for home-based rehabilitation in stroke and spinal cord injury patients, as well as for managing incontinence. Headquartered in Lone Tree, United States, Zynex aims to enhance patient care through its innovative medical devices.
As Zynex navigates these financial and operational challenges, the company remains committed to its mission of improving patient outcomes through advanced medical technology. Investors and stakeholders are closely monitoring the situation, awaiting further updates on the resolution of the payment suspension and the impact of the new leadership on the company’s future.