Zynex (ZYXI) Q3 2024 earnings summary

Executive summary

• Q3 2024 net revenue was $50 million, nearly flat compared to $49.9 million in Q3 2023, with net income of $2.4 million, down from $3.6 million last year.

• Orders increased 13% year-over-year, driving growth in consumable supplies and reflecting productivity gains, with revenue per sales rep up 25% to $530,000.

• Achieved continued revenue growth and sustained profitability, enabling reinvestment and capital returns to shareholders.

• Diversified revenue streams with new pain management and monitoring products, including FDA-cleared devices such as TensWave.

• Strategic focus on sales force optimization, operational controls, and expansion into orthopedic products to drive efficiency and future growth.

Financial highlights

• Supplies revenue for Q3 2024 increased to $35.1 million from $33.1 million, while device revenue declined to $14.9 million from $16.9 million.

• Gross profit was $39.8 million (80% margin), down from $40.4 million (81% margin) in Q3 2023.

• Net income was $2.4 million ($0.07 per diluted share), compared to $3.6 million ($0.10 per share) last year.

• Adjusted EBITDA was $5.1 million, down from $7.3 million in Q3 2023; adjusted EBITDA margin was 10% of net revenue.

• Cash and cash equivalents were $37.6 million as of September 30, 2024, up 22% sequentially.

Outlook and guidance

• Full-year 2024 net revenue projected at a minimum of $200 million, a 9% increase from 2023, with diluted EPS of at least $0.20.

• Q4 2024 revenue expected to be at least $53.6 million, up 13% from Q4 2023, with diluted EPS at least $0.09.

• Order growth expected to remain in double digits, in the high teens, into next year.

• Management anticipates a return to 20% top-line growth in the pain management division in 2025.

• Cash and cash equivalents, along with anticipated cash flow from operations, are expected to meet working capital and capital expenditure needs for at least the next twelve months.