Zynex, Inc. has recently released its annual report, providing a detailed look into its financial performance and operations. The company designs, manufactures, and markets medical devices for treating chronic and acute pain, as well as for muscle activation and exercise for rehabilitative purposes using electrical stimulation. Zynex also offers a range of products including electrotherapy devices, fluid monitoring systems, and pulse oximeters. The company primarily operates in the electrotherapy and pain management products segment, and its active subsidiaries include ZMI and ZMS.
In the year ended December 31, 2023, Zynex achieved a 43% increase in order growth, recording a 17% growth in revenue and a 29% increase in operating cash flows compared to the prior year. The company reported net income of $9.7 million, marking its 8th consecutive profitable year. Notably, Zynex repurchased approximately $37.9 million worth of its common stock due to strong results and related cash flow. The company's achievements also include being ranked 11th in Forbes list of "Americas Best Small Companies 2023" and 23rd in the Top 100 Healthcare Technology Companies of 2023 according to The Healthcare Technology Report. Zynex was also included in the Deloitte Technology Fast 500 Fastest Growing Companies for a 5th consecutive year.
In terms of financial performance, Zynex reported a 17% increase in net revenue to $184.3 million in 2023 from $158.2 million in 2022. However, net income decreased to $9.7 million in 2023 from $17.0 million in 2022. Cash flows from operating activities increased by 29% to $17.8 million in 2023. The company also maintained a working capital of $69.3 million and repurchased $37.9 million of common stock in 2023.
The breakdown of net revenue for the year ended December 31, 2023, shows that device revenue increased by 35% to $58.8 million, while supplies revenue increased by 9% to $125.5 million. The costs of revenue and operating expenses also saw increases, with costs of revenue – devices and supplies rising by 20% to $38.4 million, sales and marketing expenses increasing by 29% to $86.7 million, and general and administrative expenses increasing by 34% to $48.5 million.
The company's shares are now trading at a price of $12.61. For more information, read the company's full 10-K submission here.
