Zynex, Inc. released a statement on January 22 2026 following the unsealing of federal indictments against former chief executive officer Thomas Sandgaard and former chief operating officer Anna Lucsok on January 21 2026. The company confirmed that both executives are no longer employed and that the board has removed Sandgaard from his roles as director and chair.
The statement emphasized Zynex’s extensive cooperation with the Department of Justice and other regulators and reiterated that the company itself has not been charged in any criminal or civil enforcement actions. It also noted that Zynex is reorganizing under Chapter 11 protection, a filing that was made on December 15 2025 and is separate from the indictments but part of the broader crisis the company is navigating.
The indictments allege that Sandgaard and Lucsok orchestrated a scheme that resulted in more than $873 million in billings for Zynex’s products, including over $600 million for supplies, from healthcare payors and patients between 2017 and late 2025. The allegations also claim that the executives concealed the fraudulent nature of these billings from investors, thereby defrauding shareholders.
Zynex’s financial performance has deteriorated sharply in the wake of these events. Net revenue fell 43 % to $26.6 million in Q1 2025 from $46.5 million in Q1 2024, and plunged 73 % to $13.4 million in Q3 2025 from $50 million in Q3 2024. The decline is driven by a suspension of payments from Tricare, increased payer claim denials, and workforce reductions that have reduced order volumes. Gross profit margins contracted from 80 % in Q1 2024 to 69 % in Q1 2025 and further to 60 % in Q3 2025, reflecting pricing pressure and higher cost of goods sold.
CEO Steven Dyson said the company is focused on restoring compliance, improving liquidity, and rebuilding revenue streams. He noted that Zynex has engaged Province, LLC to evaluate strategic alternatives, including a potential sale of the business. CFO comments highlighted aggressive cost‑control measures and restructuring initiatives aimed at stabilizing cash flow.
Analysts have responded to the bankruptcy filing and the company’s earnings misses with cautious outlooks, reflecting uncertainty about the outcome of the restructuring and the impact of the indictments on Zynex’s long‑term viability.
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