Zynex Reports 4% Revenue Growth to $192.4 Million, Net Income Declines to $3.0 Million

Zynex, Inc. reported a 4% increase in net revenue for the fiscal year ending December 31, 2024, totaling $192.4 million, compared to $184.3 million in 2023. The growth was primarily driven by a 16% increase in device orders, which contributed to a larger customer base and higher sales of consumable supplies. Despite this revenue growth, the company recorded a net income of $3.0 million, a significant decrease from $9.7 million in the previous year. This decline in profitability was attributed to increased operating expenses, particularly in general and administrative costs, which rose by 24% to $60.4 million, largely due to headcount growth and inflationary pressures.

In terms of operational changes, Zynex has been restructuring its workforce in response to a temporary suspension of payments from TriCare, which accounts for approximately 20-25% of its annual revenue. The company plans to reduce its overall staff by about 10%, primarily affecting corporate departments, which is expected to yield annual savings of approximately $35 million. This decision comes as Zynex aims to adapt to external changes while maintaining a focus on long-term growth in its pain management business.

The company’s sales force remains a critical component of its strategy, with approximately 350 field sales representatives employed as of December 31, 2024. Zynex has emphasized increasing sales representative productivity, which has contributed to the growth in device orders. The company also continues to invest in research and development, with ongoing clinical studies for its fluid monitoring system and pulse oximetry products acquired through the 2021 acquisition of Kestrel Labs, although Zynex has yet to generate revenue from these initiatives.

Zynex's financial condition as of December 31, 2024, shows working capital of $58.3 million, down from $69.3 million in 2023, primarily due to the repurchase of $15.6 million in common stock. The company generated $12.7 million in operating cash flows, a decrease from $17.8 million in the previous year, reflecting lower profitability and changes in accounts payable. Looking ahead, Zynex remains optimistic about its growth potential in the pain management market, despite the challenges posed by external factors such as payment suspensions and increased operational costs.