Zynex (ZYXI) Q4 2024 earnings summary

Executive summary

• Revenue grew 4% year-over-year in 2024 to $192.4 million, with order growth of 16% and a focus on diversifying revenue streams through new products and expanded sales channels.

• Tricare, representing 20%-25% of revenue, temporarily suspended payments, creating significant short-term uncertainty for 2025 projections.

• The company is restructuring, reducing staff by 15% and implementing cost-saving measures expected to yield $35 million in annual savings.

• Cash flow from operations reached $12.7 million for FY 2024; working capital stood at $58.3 million and cash at $39.6 million at year-end.

• FDA clearance received for TensWave device; NiCO pulse oximeter completed successful human trials and is nearing FDA submission.

Financial highlights

• FY 2024 net revenue was $192.4 million (+4% year-over-year); Q4 2024 net revenue was $46 million, down from $47.3 million in Q4 2023.

• Device revenue for FY 2024 was $59.6 million; supplies revenue was $132.7 million.

• Gross margin for FY 2024 was 80% (up from 79% in 2023); Q4 gross margin held steady at 78%.

• FY 2024 net income was $3.0 million (down from $9.7 million in 2023); Q4 2024 net loss was $615,000 ($0.02 per share) versus net income of $1.2 million in Q4 2023.

• FY 2024 Adjusted EBITDA was $10.9 million (vs. $22.3 million in 2023); Q4 2024 Adjusted EBITDA was $584,000, down from $9.9 million in Q4 2023.

Outlook and guidance

• No full-year 2025 guidance provided due to Tricare payment suspension; Q1 2025 revenue expected to be ~$30 million with a net loss of $9–$10 million or $(0.30) per share.

• Quarterly revenues anticipated to increase throughout 2025, with typical seasonality.

• Patient monitoring revenue expected to begin late 2025 or 2026, pending FDA clearance.

• Ongoing cost structure adjustments and payer expansion efforts planned throughout 2025.