Zynex, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a mixed performance compared to the previous fiscal period. The company achieved net revenue of $49.966 million for Q3 2024, a slight increase of $0.051 million (0.2%) from $49.915 million in Q3 2023. For the nine months ended September 30, 2024, net revenue rose to $146.380 million, up $9.343 million (7%) from $137.037 million in the same period last year.
Device revenue for Q3 2024 was $14.858 million, down 12% from $16.855 million in Q3 2023. However, for the nine months, device revenue increased by 5% to $44.803 million, attributed to an 18% growth in device orders despite a reduced sales force. Supplies revenue saw a notable increase, with Q3 2024 supplies revenue at $35.108 million, up $2.048 million (6%) from $33.060 million in Q3 2023, and for the nine months, it rose to $101.6 million, a 7% increase from $94.5 million.
The company's operating expenses also increased, with total costs of revenue and operating expenses for Q3 2024 amounting to $46.164 million, compared to $44.430 million in Q3 2023. This led to a decrease in income from operations to $3.802 million in Q3 2024, down from $5.485 million in the prior year. Net income for Q3 2024 was $2.382 million, a decline from $3.594 million in Q3 2023, resulting in basic and diluted earnings per share of $0.07, down from $0.10.
For the nine months ended September 30, 2024, net income was $3.609 million, significantly lower than $8.517 million in the same period in 2023. The effective income tax rate increased to 25% from 20% in the previous year.
Zynex's cash and cash equivalents decreased to $37.630 million as of September 30, 2024, from $44.579 million at the end of 2023. Total current assets also fell to $78.350 million, down from $87.855 million. The company reported total current liabilities of $19.868 million, up from $18.532 million at the end of 2023, and total stockholders’ equity decreased to $35.773 million from $46.129 million.
Strategically, Zynex continues to focus on its core business of medical devices, particularly in electrotherapy and pain management. The company has maintained its operational structure with subsidiaries Zynex Medical, Inc. and Zynex Monitoring Solutions, Inc. Additionally, Zynex's acquisition of Kestrel Labs, Inc. in December 2021 continues to play a role in its product offerings, although the regulatory status of Kestrel's products remains pending with the FDA. The company has also faced challenges with internal controls over financial reporting, identifying material weaknesses but reporting no misstatements in its financial statements.
About ZYNEX INC
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