EXCLUSIVE: Medical Devices Firm Zynex Launches New $20M Share Repurchase Program

Zynex Inc's ZYXI board of directors approved a program to repurchase up to $20.0 million. 

The program will commence on November 1, 2023, and is scheduled to terminate earlier than November 1, 2024, or when the $20.0 million limit is reached. 

Tuesday, Zynex initiated a process to evaluate potential strategic alternatives, confirming a Bloomberg report from Monday. It has retained Cantor Fitzgerald & Co. as its financial advisor. 

"Zynex recently announced strong earnings," said Thomas Sandgaard, Founder and CEO of Zynex. "This stock buyback program reflects our belief in the strength of our business and our continued focus on stockholder returns."

The company expects to finance the purchases with existing cash balances. 

As of September 30, 2023, the company had a working capital of $83.1 million. Cash and cash equivalents and short-term investments were $52.4 million at the end of the third quarter. Operating cash flow was at $8.9 million. 

In June, Zynex announced a share buyback program of up to $10.0 million that started on June 14, 2023, and is expected to conclude on June 13, 2024, or when the buyback limit of $10.0 million is reached.

The company reported Q3 revenues of $49.9 million, up 20% Y/Y, primarily related to a 39% growth in device orders, which resulted from an increased customer base.

Zynex, founded in 1996, develops, manufactures, markets, and sells medical devices used for pain management and rehabilitation, as well as non-invasive fluid, sepsis, and laser-based pulse oximetry monitoring systems for use in hospitals. 

Price Action: ZYXI shares are down 6.15% at $8.60 premarket on the last check Wednesday.