Zynex Inc (NASDAQ:ZYXI) reported full-year revenue has grown 4% to reach $192.4 million in the 2024 financial year.
The medical technology company specializing in non-invasive devices for pain management, rehabilitation and patient monitoring saw 16% year-over-year growth in orders in 2024.
Net income for the year was $3 million or $0.09 per share, with cash flow from operations totaling $12.7 million.
Zynex CEO Thomas Sandgaard told shareholders that the firm is confident that its pain management business has "significant growth potential" in the long term, citing ongoing payer expansion efforts and progress with its NiCO laser pulse oximeter clinical trial, which produced positive results.
The NiCO pulse oximeter uses advanced laser technology to measure fractional blood oxygenation levels, offering greater accuracy than LED-based pulse oximeters, which have been found to misread oxygen levels in some populations, particularly individuals with darker skin tones.
"Over the long term we believe we will remain a leader of holistic, non-invasive approaches to pain management and patient monitoring and continue to pursue additional lines of revenue that improve patient outcomes and overall health," Sandgaard said in a statement.
For Q1 2025, Zynex expects revenue of at least $30 million.
Good relations with Tricare
For the fourth quarter of 2024, revenue was $46 million compared to $47.3 million in the year-ago quarter.
Zynex CEO Thomas Sandgaard attributed the shortfall to due to slower payments from some insurers and a temporary suspension of payments from Tricare, which represents 20% to 25% of Zynex's annual revenue.
“We continue to be in-network and have maintained good relations with Tricare,” Sandgaard said. “We have a meeting with Tricare in April and believe we have good evidence to get payments reinstated.”
To address this, Zynex is reducing staff by 15%, focusing on corporate roles, which along with other expense cuts is expected to save $35 million annually.
“Although these processes are never easy, it is critical for us to be prudent and conservative in adapting to external changes and execute these expense adjustments immediately,” Sandgaard said.