Zynex Reports Second Quarter 2023 Financial Results Q2 2023 Revenue increased 22% to $45.0 Million; EPS $0.09

Zynex Reports Second Quarter

2023 Financial Results

Q2 2023 Revenue increased

22% to $45.0 Million; EPS $0.09

ENGLEWOOD, Colo., July 27, 2023 /PRNewswire/ -- Zynex,

Inc. (Nasdaq: ZYXI), an innovative medical technology company specializing in the manufacture and sale of non-invasive medical devices

for pain management, rehabilitation, and patient monitoring, has reported its financial and operational results for the second quarter

ended June 30, 2023.

Key Second Quarter and Subsequent 2023 Highlights

Management Commentary

"During the second quarter we continued our focus

on the profitable growth of our pain management division and developing the next generation of patient monitoring equipment, resulting

in our fifth straight quarter of record-high order numbers," said Thomas Sandgaard, President and CEO of Zynex. "Our sales team

continued to perform and posted a 51% improvement in orders year-over-year.

"Turning to our pipeline, recently we were pleased

to announce FDA clearance for our second-generation blood and fluid volume monitor, a non-invasive and wireless technology targeted to

improve patient outcomes with better fluid management in hospital settings.

"We also have three additional products in the

pipeline in our hospital monitoring products division: a laser-based pulse oximeter, NiCO ; a monitor for early detection of sepsis;

and a non-invasive, laser-based monitor of total hemoglobin levels, HemeOx . The monitoring division is pre-revenue and expects

to submit an application to the FDA for its laser-based pulse oximeter in the fourth quarter of this year.

"Looking ahead, we are making significant progress

as a leader in at-home pain management devices, with a robust and durable business model and high recurring revenue. We are ramping our

hospital monitoring division which represents a large and growing market opportunity," concluded Sandgaard.

Second Quarter 2023 Financial Results

Net revenue was $45.0 million for the three months

ended June 30, 2023, an increase of 22% from $36.8 million in the prior year quarter. The growth in net revenue is primarily related to

a 51% growth in device orders, which resulted from an increased customer base.

Gross profit in the quarter ended June 30, 2023 increased

to $35.7 million, or 79% of revenue, as compared to $29.5 million or 80% of revenue, in 2022.

Sales and marketing expenses were $21.6 million for

the three months ended June 30, 2023, compared to $16.3 million in the prior year.

General and administrative expenses for the three months

ended June 30, 2023 were $11.4 million, versus $8.8 million in the prior year.

Net income for the three months ended June 30, 2023,

totaled $3.4 million, or $0.09 per basic and diluted share, as compared to net income of $3.3 million, or $0.09 per basic and $0.08 per

diluted share, in the quarter ended June 30, 2022.

Adjusted EBITDA for the three months ended June 30,

2023 was $4.0 million, as compared to $5.5 million in the quarter ended June 30, 2022.

As of June 30, 2023, the Company had working capital

of $93.5 million. Cash and cash equivalents was $58.7 million at the end of the second quarter. Cash provided by operations for the six

months ended June 30, 2023 was $2.7 million, as compared to $1.6 million in the six months ended June 30, 2022.

The Company continued its latest stock buyback by repurchasing

$6.1 million of its common stock during the second quarter and has repurchased $36.1 million during the last fifteen months.

Third Quarter and Full Year 2023 Guidance

2023 estimates are unchanged with revenue of $180-$200

million and Diluted EPS of $0.40-$0.50 per share. The revenue range is based on best estimates of labor market conditions and sales rep

productivity. Diluted EPS is impacted by increased operating expenses to support ZMS as the Laser-based Pulse Oximetry products are prepared

for FDA submission and the fluid monitor is readied for the market.

Third quarter 2023 revenue is estimated to be $49-$51

million, an increase of approximately 20% from Q3 2022. Third quarter Diluted EPS is estimated to be $0.08-$0.10.

Conference Call and Webcast Details

Thursday, July 27, 2023 at 2:15 p.m. MT / 4:15 p.m.

To register and participate in the webcast,

interested parties should click on the following link or dial in approximately 10-15 minutes prior to the webcast: Q2 2023

US Participant Dial In (TOLL FREE): 1-844-825-9790

International Participant Dial In: 1-412-317-5170

Canada Participant Dial In (TOLL FREE): 1-855-669-9657

Non-GAAP Financial Measures

Zynex reports its financial results in accordance with

accounting principles generally accepted in the U.S. (GAAP). In addition, the Company is providing in this news release financial information

in the form of Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, other income/expense, stock compensation,

restructuring and non-cash lease charges). Management believes these non-GAAP financial measures are useful to investors and lenders in

evaluating the overall financial health of the Company in that they allow for greater transparency of additional financial data routinely

used by management to evaluate performance. Adjusted EBITDA can be useful for investors or lenders as an indicator of available earnings.

Non-GAAP financial measures should not be considered in isolation from, or as an alternative to, the financial information prepared in

accordance with GAAP.

Zynex, founded in 1996, develops, manufactures,

markets, and sells medical devices used for pain management and rehabilitation as well as non-invasive fluid, sepsis, and laser-based

pulse oximetry monitoring systems for use in hospitals. For additional information, please visit: www.zynex.com.

Safe Harbor Statement

This release contains forward-looking statements within

the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

Forward-looking statements are neither historical facts

nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the

future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions.

Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances

that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially

from those indicated in the forward-looking statements. Therefore you should not rely on any of these forward looking statements. The

Company makes no express or implied representation or warranty as to the completeness of forward-looking statements or, in the case of

projections, as to their attainability or the accuracy and completeness of the assumptions from which they are derived. Factors that could

cause actual results to materially differ from forward-looking statements include, but are not limited to, the need to obtain CE marking

of new products, the acceptance of new products as well as existing products by doctors and hospitals, larger competitors with greater

financial resources, the need to keep pace with technological changes, our dependence on the reimbursement for our products from health

insurance companies, our dependence on third party manufacturers to produce our products on time and to our specifications, implementation

of our sales strategy including a strong direct sales force, the impact of COVID-19 on the global economy and other risks described in

our filings with the Securities and Exchange Commission including but not limited to, our Annual Report on Form 10-K for the year ended

December 31, 2022 as well as our quarterly reports on Form 10-Q and current reports on Form 8-K.

Any forward-looking statement made by us in this release

is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation

to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of

new information, future developments or otherwise.

Investor Relations Contact:

Quinn Callanan, CFA or Brian Prenoveau, CFA

MZ Group - MZ North America

CONDENSED CONSOLIDATED BALANCE SHEETS

(AMOUNTS IN THOUSANDS)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)