Zynex Shares Navigate Chapter 11 Turbulence

The stock of medical technology company Zynex is experiencing extreme volatility and a severe devaluation as it undergoes a Chapter 11 bankruptcy process. Following the insolvency filing, market prices plummeted, leaving investors grappling with constrained liquidity and a dramatically reduced trading volume. The central question for stakeholders is whether the ongoing restructuring will be sufficient to stabilize the company's financial position.

Zynex voluntarily filed for Chapter 11 protection in mid-December, a move precipitated by a deteriorating liquidity position and sharply declining revenues in preceding quarters. The immediate market reaction was a loss of over 55% of the stock's value in a single trading session, wiping out approximately $19 million in market capitalization.

The share price has continued to weaken into 2026, declining an additional 12.78% since the start of the year. This follows a trading range between $0.87 and $0.90 observed in mid-December. The most recent weekly closing price was $0.1099, reflecting a minor daily change of -0.09%. From a technical perspective, the equity is trading far below its 200-day moving average of $2.02 and currently exhibits no significant upward momentum.

Delistings and Market Access

A series of index removals have compounded selling pressure, forcing institutional investors to liquidate positions and amplifying the downward trend.

Should investors sell immediately? Or is it worth buying Zynex?

• The stock was deleted from the Nasdaq Composite on December 22.
• Removal from the S&P Total Market Index followed on December 28.
• It was excluded from the Russell Microcap Growth index on December 17.

Consequently, trading has migrated to the OTC Markets, where the shares now carry a "Q" suffix denoting the company's bankruptcy status. This shift has severely impacted visibility and liquidity. Average trading volume has collapsed from over 14 million shares to a recent figure of approximately 540,547 shares.

Revenue Challenges and Restructuring Plan

A steep decline in sales is the primary driver of the current financial crisis. The company reported revenue of $26.6 million for Q1 2025, a 42.8% year-over-year drop from the $46.5 million posted in Q1 2024. The situation worsened in the third quarter of 2025, where the suspension of TRICARE payments and billing changes contributed to a 73% revenue decline compared to the same period the prior year. Internally, the company had modeled an approximate 28% revenue decrease for the full year 2025 versus 2024.

As part of its court-supervised restructuring, management has secured a new financing agreement and plans to implement significant cost savings in the first half of 2026. A key operational goal is to increase revenue per sales representative to a target of $1 million. Despite the fundamental weakness, market data from yesterday indicated two analysts maintained a 'Buy' rating on the shares, a stance that contrasts sharply with the company's evident struggles.

The future for equity holders will ultimately be determined by the final terms of the court-approved restructuring plan. The success of the planned cost-saving initiatives in early 2026 and the structure of the new financing will be critical factors in achieving a sustainable balance sheet stabilization.