Zynex Announces $20M Share Repurchase Program for Growth

Key Points:

• Zynex Inc’s board approves $20M share buyback program, reflecting strong confidence.
• Strategic evaluation initiated with Cantor Fitzgerald & Co. as financial advisor.
• Q3 revenues surge 20%, driven by 39% growth in device orders.

Zynex Inc’s commitment to its shareholders was reinforced as the board of directors approved a $20.0 million share repurchase program.

Scheduled to launch on November 1, 2023, the program is slated to end before November 1, 2024, or upon reaching the $20.0 million threshold.

Recent developments indicate the company’s proactive stance in evaluating potential strategic alternatives. Confirming an earlier Bloomberg report, Zynex engaged Cantor Fitzgerald & Co. as its financial advisor, signaling a drive for strategic growth and expansion.

In a statement, Thomas Sandgaard underscored the company’s confidence in its financial performance. Sandgaard emphasized that the stock buyback program reflects Zynex’s unwavering belief in the company’s robust business foundation and its steadfast dedication to delivering value to its shareholders.

Zynex Enlists Cantor Fitzgerald & Co. as Advisor

The company plans to finance the share repurchases using its current cash reserves. As of September 30, 2023, Zynex boasted a healthy working capital of $83.1 million, with $52.4 million in cash and cash equivalents and short-term investments. The company’s sound financial performance was further evidenced by its impressive third-quarter operating cash flow of $8.9 million.

Zynex’s upward trajectory is evident from its recent financial report, where third-quarter revenues soared to $49.9 million, marking a notable 20% year-over-year increase. The remarkable revenue growth was primarily attributed to a substantial 39% surge in device orders, spurred by an expanding customer base.

Established in 1996, Zynex specializes in the development, manufacturing, and marketing of medical devices for pain management and rehabilitation. Additionally, the company offers non-invasive fluid, sepsis, and laser-based pulse oximetry monitoring systems, catering to the needs of hospitals and medical facilities.

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