Nevro Corp. Reports $113.4 Million Net Loss and $408.5 Million Revenue for 2024

Nevro Corp., a global medical device company specializing in chronic pain treatment solutions, reported a net loss of $113.4 million for the year ended December 31, 2024, compared to a net loss of $92.2 million in 2023. Total revenue decreased by 4% to $408.5 million in 2024 from $425.2 million in 2023, primarily due to lower trial and permanent implant volumes in the U.S. U.S. sales accounted for 86% of total revenue, totaling $353.1 million in 2024, while international sales reached $55.4 million. The company's gross margin decreased to 66% in 2024 from 68% in 2023.

Operating expenses totaled $395.8 million in 2024, a slight increase from $389.4 million in 2023. Research and development expenses decreased by 5% to $51.5 million, while sales, general, and administrative expenses decreased by 7% to $309.8 million. A significant factor impacting the 2024 results was a $38.2 million impairment charge on goodwill. The company also reported a gain of $27.9 million from the change in fair market value of warrants, offset by increased interest expense related to a new credit facility.

In November 2023, Nevro acquired Vyrsa Technologies, expanding its portfolio to include minimally invasive sacroiliac (SI) joint fusion devices. This acquisition marked the company's entry into a growing market estimated at $300 million in the U.S. The company also launched HFX AdaptivAI™, an AI-driven pain management platform, in September 2024, and continued its efforts to expand payer coverage for its 10 kHz Therapy in painful diabetic neuropathy (PDN) and non-surgical back pain (NSBP). As of December 31, 2024, Nevro had 1,099 employees globally and approximately 132,000 patients implanted with Senza systems worldwide.

The company's financial performance was also influenced by the ongoing impact of alternative minimally invasive spine procedures on the overall spinal cord stimulation (SCS) market, which experienced relatively flat growth in 2023 and 2024. Nevro's strategic initiatives focus on growing market share through its Senza platform, expanding the SCS market by treating patients with back pain and PDN, and expanding the SI joint fusion market. The company also highlighted its robust clinical evidence base supporting the superiority of its 10 kHz Therapy.

On February 6, 2025, Nevro entered into a merger agreement with Globus Medical, Inc., under which Globus Medical will acquire all outstanding shares of Nevro for $5.85 per share in cash, representing a total equity value of approximately $250 million. The merger is expected to close in the second quarter of 2025, subject to stockholder approval, regulatory approvals, and other customary closing conditions. The filing included extensive disclosures regarding various risks associated with the company's business, including those related to the merger, market acceptance, competition, intellectual property, regulatory compliance, and financial performance.