Nevro Corp. (NVRO): Business Model Canvas [Dec-2025 Updated]

You're looking at a medical device business that just got folded into a larger structure, and you need to know if the core engine is still running hot. As someone who's spent two decades dissecting these plays, I can tell you Nevro Corp.'s model, now under Globus Medical, hinges on its proprietary 10 kHz Therapy and the new HFX iQ platform-that's their differentiator against the old guard. Honestly, seeing their 2024 worldwide revenue hit $408.5 million with a 66.0% gross margin shows the underlying tech has real pull, even as integration costs loom. This canvas breaks down exactly how they plan to keep delivering that superior, paresthesia-free pain relief in this new reality. See below for the full nine blocks of how they make their money.

Nevro Corp. (NVRO) - Canvas Business Model: Key Partnerships

The Key Partnerships block for Nevro Corp. is now defined by its relationship as an acquired entity under the umbrella of Globus Medical, Inc., following the transaction closing on April 3, 2025.

Parent company Globus Medical for integration and scale

The integration with Globus Medical, Inc. is a central element of the current structure, aimed at achieving anticipated synergies. The acquisition was valued at approximately $250 million, or $5.85 per share in an all-cash deal. For the third quarter of fiscal year 2025, the former Nevro business contributed $99.3 million in revenue to Globus Medical. Furthermore, the integration accelerated profitability, with the Nevro segment achieving a positive adjusted EBITDA margin of 16.2% in Q3 2025, leading Globus Medical to revise guidance, expecting the acquisition to be accretive to non-GAAP earnings per share in fiscal year 2025.

Third-party suppliers and contract manufacturers for device production

Nevro Corp., now operating within Globus Medical, relies on a network of third-party entities for the physical production of its Spinal Cord Stimulation (SCS) systems and other devices. Specific financial commitments or the exact number of these suppliers are not publicly itemized post-acquisition.

Clinical research organizations for new indication studies (e.g., PDN)

Clinical evidence generation remains critical, particularly for expanding indications like Painful Diabetic Neuropathy (PDN). The SENZA-PDN Randomized Controlled Trial (RCT), which evaluated 10 kHz Therapy for PDN, enrolled 216 patients. The estimated annual addressable market in the U.S. for PDN patients refractory to conventional medical management is approximately $3.5 billion to $5.0 billion.

Strategic alliances for SI Joint Fusion product distribution (Vyrsa acquisition)

The acquisition of Vyrsa Technologies, which closed on November 30, 2023, brought a portfolio of FDA-cleared SI joint fusion devices. The upfront payment for Vyrsa was $40 million, with an additional potential payment of up to $35 million tied to milestones. This segment targets a U.S. SI joint fusion market valued at over $2 billion.

• Vyrsa portfolio allows physician use of established SI joint fusion Category I CPT codes at all approved sites of service.
• The Vyrsa acquisition was projected to be accretive to revenue in 2024.

Key opinion leaders (KOLs) in pain management for clinical advocacy

Clinical advocacy is driven by Key Opinion Leaders (KOLs) who support the evidence base for Nevro Corp.'s 10 kHz Therapy. The therapy has impacted the lives of more than 100,000 patients globally.

Nevro Corp. (NVRO) - Canvas Business Model: Key Activities

You're looking at the core engine of Nevro Corp.'s value creation, especially in the context of its acquisition by Globus Medical, which closed on April 3, 2025. The key activities reflect the intensive, specialized work required to support a high-tech, implantable medical device business, even as operations integrate post-merger.

Research and development of next-gen neuromodulation platforms like HFX iQ

The R&D focus centers on refining the AI-driven platform. While specific 2025 R&D spend for Nevro as a standalone entity isn't explicitly stated for the full year post-acquisition, the commitment to innovation is clear from the product pipeline. The HFX iQ system, launched in late 2024, is the result of this activity, leveraging the 10 kHz Therapy platform. The foundation for the HFX Algorithm was built from over 20 million datapoints and data from more than 80,000 implanted patients.

Manufacturing and quality control of complex implantable medical devices

This activity demands rigorous control given the nature of implantable devices. The company previously noted investments in manufacturing, such as the Costa Rica facility, aimed at driving margin expansion. Post-acquisition, the operational efficiency of these activities is critical for profitability. For the quarter where Nevro contributed revenue, its adjusted gross profit margin was 67.6%, showing the underlying efficiency of the product delivery system.

Direct sales force training and management for physician engagement

Growing revenue requires a highly specialized sales force capable of educating physicians on the differentiation of the therapy. Nevro had previously stated the need to continue building this force, particularly for new indications like PDN (Painful Diabetic Neuropathy) and NSBP (Nonsurgical Back Pain). The success of this activity is reflected in the sequential growth seen in the latest reported quarter, where Nevro contributed $99.3 million in revenue, up 4.9% sequentially.

• The company historically competed with established players who had strong physician relationships.
• Educating physicians on the advantages of the HFX iQ SCS system was required to grow revenue.

Securing and maintaining regulatory approvals (FDA, CE Mark)

Regulatory success is a gatekeeper for commercialization. The HFX iQ system received FDA approval and was announced with a limited market launch in late 2024. Furthermore, the CE Mark Certification for HFX iQ was secured in November 2024.

Clinical evidence generation to support 10 kHz Therapy superiority

Sustained market access and physician adoption depend on robust clinical data. This activity involves ongoing trials and publication of results. For instance, data published in the Journal of Pain Research in early 2025 demonstrated durable pain relief and reductions in HbA1c in diabetic neuropathy patients treated with 10 kHz SCS therapy.

Here's a quick look at the financial performance metrics tied to these activities in the most recent reported period following the acquisition:

The company carried significant tax attributes as of December 31, 2024, which could impact future tax liabilities if utilized: federal Net Operating Loss (NOL) carryforwards of $586.3 million and state NOLs of $372.4 million. Finance: draft post-integration synergy realization report by end of Q4 2025.

Nevro Corp. (NVRO) - Canvas Business Model: Key Resources

You're looking at the core assets Nevro Corp. brought into the Globus Medical fold after the acquisition closed in April 2025. These resources are what underpin the value proposition, so let's look at the hard numbers we have as of late 2025, primarily through Globus Medical's Q3 2025 reporting.

Proprietary 10 kHz Therapy intellectual property and patents

The foundation here is the intellectual property around the high-frequency therapy. While a specific, current patent count isn't public, the real-world validation is substantial:

• The HFX Algorithm was built from over 20 million data points.
• The therapy is supported by real-world evidence from more than 80,000 implanted patients.

HFX iQ™ with HFX AdaptivAI™ AI-driven technology platform

This platform represents the AI-driven evolution of the core technology. The system launched in select European countries in the first quarter of 2025, following its US launch in late 2024. The AI component is trained on significant patient data:

Specialized direct sales and clinical support teams globally

Post-acquisition, these teams are integrated into Globus Medical. The most concrete 2025 data point reflecting the business's scale is its recent financial contribution to the parent company. We don't have the headcount, but we see the revenue impact:

For the third quarter ended September 30, 2025, the business acquired from Nevro Corp. contributed $99.3 million in net sales to Globus Medical's total worldwide net sales of $769.0 million.

Manufacturing facility in Costa Rica for cost-efficient production

Specific financial metrics or capacity figures for the Costa Rica facility are not separately disclosed in the latest filings. However, the overall financial structure shows a focus on margin improvement post-integration.

Financial backing and operational synergies from Globus Medical

The acquisition itself was an all-cash transaction valued at approximately $250 million, or $5.85 per share, closing on April 3, 2025. The operational synergies are already showing up in the combined entity's outlook. Globus Medical increased its full-year 2025 revenue guidance to a range of $2.86 to $2.90 billion, up from the previous range, and increased non-GAAP fully diluted EPS guidance to $3.75 to $3.85.

The expectation is that the Nevro acquisition will be accretive to earnings in 2025.

For the full-year 2024 results (pre-acquisition close), Nevro Corp. reported worldwide revenue of $408.5 million and a gross margin of 66.0%.

Finance: draft 13-week cash view by Friday.

Nevro Corp. (NVRO) - Canvas Business Model: Value Propositions

Superior, paresthesia-free pain relief with 10 kHz Therapy

• For Non-Surgical Refractory Back Pain (NSRBP) at 24 months post-implant, 81.6% of patients achieved $\ge 50\%$ pain relief.
• For NSRBP at three months, 84% of patients reported $\ge 50\%$ pain relief, nearly double that of traditional SCS therapy.
• For Painful Diabetic Neuropathy (PDN) at 24 months, 90.1% of participants experienced $\ge 50\%$ pain relief.
• The mean pain reduction from baseline for PDN patients at 24 months was 79.9%.

Personalized therapy optimization via HFX iQ's AdaptivAI technology

• HFX AdaptivAI leverages millions of data points and ten years of innovation and patient care.
• The Smart Power feature, enabled by therapy optimization, can reduce device charging frequency to as little as six times per year.

Level 1 clinical evidence for chronic back/leg pain and painful diabetic neuropathy (PDN)

The value proposition is supported by data from randomized controlled trials (RCTs) such as SENZA-RCT for NSRBP and SENZA-PDN for PDN.

Minimally invasive solutions, including the Nevro1™ SI Joint Fusion System

The portfolio includes solutions like the SI Joint Fusion System, following the acquisition of Vyrsa Technologies in November 2023.

Reduced need for programming adjustments, improving patient quality of life

• The HFX AdaptivAI platform provides enhanced real-time insights and advanced proactive remote monitoring for physicians.
• Patients can report pain relief in significantly less time compared to traditional programming methods.

Financial Context as of Late 2025

Nevro Corp. completed its acquisition by Globus Medical on April 3, 2025, in an all-cash transaction valued at approximately $250 million, or $5.85 per share. The latest reported revenue prior to the acquisition was $96.9 million for the third quarter of 2025, with full-year 2024 worldwide revenue at $408.5 million. As of December 31, 2024, the company held $292.5 million in cash, cash equivalents, and short-term investments. The market capitalization was reported at $221.21 million with 37.88 million shares outstanding shortly before the acquisition closed. Finance: draft 13-week cash view by Friday.

Nevro Corp. (NVRO) - Canvas Business Model: Customer Relationships

You're looking at the relationship structure for Nevro Corp. (NVRO) right before the planned closing of the Globus Medical acquisition in the second quarter of 2025. The focus here is on the deep, ongoing support that underpins their premium technology.

Dedicated clinical support and HFX Coaches for patient follow-up

• The company's success metric is patient satisfaction, with 88% of patients treated with 10 kHz Therapy reporting increased independence due to reduced pain.
• As of November 2024, the proprietary 10 kHz Therapy had impacted the lives of more than 115,000 patients globally.
• The company provides ongoing Patient Services & Support as part of its comprehensive HFX platform.

High-touch, consultative sales model with pain specialists

Nevro Corp. sold its products through a direct sales force, supported by a network of sales agents and independent distributors. The Q4 2024 worldwide revenue was $105.5 million, contributing to a full-year 2024 worldwide revenue of $408.5 million. Full-year 2024 worldwide revenue was higher than guidance primarily due to greater-than-anticipated spinal cord stimulation (SCS) device replacement procedures in Q4 2024.

Digital engagement and data sharing via the HFX App for physicians

The HFX iQ system, which received CE Mark Certification in November 2024, is designed for continuous digital interaction. The HFX Algorithm, which powers the system, was built from more than 20 million data points and data from over 80,000 implanted patients. This system allows patients to input assessments via the HFX App on a smartphone, enabling real-time programming adjustments for optimized relief.

Long-term device support and replacement programs for implanted patients

The relationship extends well beyond the initial implant, focusing on enduring patient success. The company's cash, cash equivalents, and short-term investments totaled approximately $292.5 million as of December 31, 2024. The final trade price for Nevro Corp. stock on April 2, 2025, before inactivation due to the acquisition, was $5.84 per share.

Educational programs and training for new physician users

Nevro Corp. supports healthcare professionals through various educational avenues. The company prioritizes support for educational activities and independent research that contribute to improved provider knowledge. Requests for in-kind support for procedure trainings, such as SCS Cadaver Workshops, are processed via an Educational Grant Application. Eligible organizations for grant requests include Academic medical institutions, Hospitals, Professional medical societies, Patient advocacy and education organizations, and Accredited/certified continuing education providers.

Here are the key quantifiable metrics related to the customer base and technology foundation:

Finance: review the final Q2 2025 integration budget allocation by Monday.

Nevro Corp. (NVRO) - Canvas Business Model: Channels

You're looking at how Nevro Corp. gets its innovative SCS (Spinal Cord Stimulation) systems, like the HFX platform, into the hands of the physicians who use them and the patients who need them. Given the pending acquisition by Globus Medical, which was expected to close in the second quarter of 2025, the channel strategy reflects a structure optimized for direct physician engagement, though international operations rely on a hybrid approach.

The core of Nevro Corp.'s channel strategy centers on a highly specialized, direct-to-physician model, particularly in the United States, which generated approximately $353.1 million of the $408.5 million in worldwide revenue for the full year 2024.

Direct sales force targeting interventional pain specialists and neurosurgeons

The company relies heavily on its direct sales force to engage interventional pain specialists and neurosurgeons. This requires significant investment in specialized personnel, as indicated by the total employee count of 1,099 as of a recent profile, a large portion of whom are dedicated to commercial execution. To gauge the effectiveness of this channel, you see that approximately 60% of sales reps typically hit their quota in the past year, which is above the Medical Devices Industry Average of 54%. However, the company has historically noted the risk associated with the 'limited size of our sales force and the learning curve required to gain experience selling our product'.

Distribution centers shipping directly to hospitals and medical facilities

While the search results emphasize the direct sales force, the mechanism for product delivery involves distribution centers shipping systems directly to hospitals and medical facilities. This is the logistical backbone supporting the direct sales effort. The company manages credit risk by performing ongoing credit evaluations of its direct customers and distributors.

International distribution network in Europe and Australia

Nevro Corp. utilizes a mixed channel approach outside the US, employing both a direct sales force and distributors to sell its products in international markets, including Europe and Australia, where the HFX iQ SCS system launched in select countries in January 2025. For the full year 2024, international revenue was $55.4 million, representing a decrease from $58.6 million in 2023. The fourth quarter of 2024 saw international revenue at $14.1 million.

Clinical training centers for physician certification on the HFX platform

The complexity of the HFX platform, especially with the launch of HFX iQ with HFX AdaptivAI in late 2024, necessitates robust physician training. While specific numbers for training centers aren't available, the channel includes an end-to-end partnership model that supports patient care and optimal outcomes, which inherently involves physician certification and ongoing support for the Senza, Senza II, Senza Omnia, and HFX iQ systems.

Digital platforms for patient engagement and therapy management (HFX App)

The digital channel is critical for patient engagement and therapy optimization. The HFX iQ system is powered by HFX AdaptivAI, a responsive, personalized pain management platform. This platform leverages significant historical data, built from algorithms based on more than 20 million datapoints and 80,000 implanted patients as of late 2022, and more recently, insights from over 100,000 patients and more than 100 million data points as of September 2024. The HFX App allows patients to provide direct input on metrics like percent pain relief and pain score, which informs customized therapy adjustments. The company has impacted the lives of over 115,000 patients globally with its 10 kHz Therapy.

Here's a quick look at some operational metrics that underpin these channel activities:

The company also reallocated investments to its direct-to-consumer (DTC) advertising efforts in the third quarter of 2024, anticipating a more meaningful benefit ramping throughout 2025.

The channel structure is designed to support the high-value, specialized nature of SCS implantation, which requires close collaboration between the sales team, distributors, and the physician community for both initial placement and ongoing patient management via the HFX App. Finance: draft 13-week cash view by Friday.

Nevro Corp. (NVRO) - Canvas Business Model: Customer Segments

Interventional Pain Specialists and Neurosurgeons who implant SCS devices represent the core clinical customer base for the HFX spinal cord stimulation (SCS) platform, which features the proprietary paresthesia-free 10 kHz Therapy. These physicians drive the initial trial and subsequent permanent implant procedures. In the fourth quarter of 2024, U.S. permanent implant procedures saw a decrease of 7.0% compared to the prior year period, while U.S. trial procedures decreased approximately 14.2%. The company, prior to its acquisition, employed 1,099 people as of early 2025 to support these specialists.

Patients suffering from chronic back and leg pain, including non-surgical refractory back pain, are the ultimate beneficiaries and key influencers in the decision-making process. Nevro Corp.'s technology is designed to offer significant, long-lasting relief for this population. The company's full-year 2024 worldwide revenue was $408.5 million, reflecting the commercial activity within this segment and others.

Patients with painful diabetic neuropathy (PDN) seeking non-pharmacological relief form a distinct, high-need segment. Nevro Corp. has invested heavily in clinical evidence for this indication, including the SENZA-PDN trial, which randomized 216 patients. Furthermore, a subsequent PDN Sensory Study was designed to enroll up to 236 patients to assess restoration of neurological function. The U.S. diabetic neuropathy market size was estimated at $1.28 billion in 2024.

Hospitals and Ambulatory Surgery Centers (ASCs) are the institutional customers purchasing the SCS systems, which include the HFX iQ platform. These facilities are critical for procedure scheduling and device inventory. The company's U.S. revenue for the fourth quarter of 2024 was approximately $91.4 million. The integration with Globus Medical, which completed the acquisition in the second quarter of 2025, directly impacts the sales and distribution channels serving these sites.

Third-party payors and government bodies are essential for securing reimbursement coverage, which dictates patient access to the therapy. Clinical data, such as that generated from Nevro's trials, is used to support coverage decisions. The company's executives noted that Level 1 data generated from studies would be helpful in working with payers to expand PDN coverage generally.

Here's a look at some relevant financial and operational metrics leading up to the late 2025 period:

The clinical evidence base directly supports adoption by the physician segment:

• 10 kHz Therapy demonstrated superior efficacy over traditional SCS in the SENZA-RCT study.
• The proprietary technology is designed to be paresthesia-free.
• The HFX platform includes HFX AdaptivAI, an AI-driven technology.
• The company has systems approved for chronic trunk/limb pain and PDN.

Nevro Corp. (NVRO) - Canvas Business Model: Cost Structure

You're looking at the cost base of Nevro Corp. right as it integrates into Globus Medical, so the numbers we have are primarily from the last full fiscal year before the acquisition closed in Q2 2025. This gives us a clear picture of the cost drivers that Globus Medical is now absorbing.

High cost of goods sold (COGS) due to complex implantable device manufacturing; 2024 Gross Margin was 66.0%. Manufacturing complex, sterile, implantable medical devices like the spinal cord stimulation systems naturally carries a high material and production cost. For the full-year 2024, Nevro Corp.'s worldwide revenue was reported at $408.5 million, resulting in a Gross Profit of $269.5 million. This translates to a full-year 2024 Gross Margin of 66.0%. To be fair, this margin was slightly down from 2023's 68.2%, but the Q1 2024 margin did hit 70.2%, showing variability based on product mix and manufacturing efficiency, like the shift to higher-margin products from the Costa Rica facility. The implied COGS for 2024 was approximately $139.0 million ($408.5 million revenue minus $269.5 million gross profit).

The cost structure is heavily weighted toward operating expenses, which Globus Medical is now looking to streamline. Here's a quick math look at the key 2024 financial components:

Significant investment in Research & Development (R&D) for AI and new indications. Nevro Corp. historically committed substantial resources to innovation, which is a major fixed cost component. For instance, in Q1 2024, R&D expenses were $14.8 million, which was described as remaining almost flat year-over-year. You know that R&D costs are expensed as incurred, covering personnel, prototypes, testing, and clinical trial programs. The company was actively pushing its AI-driven technology, HFX AdaptivAI™, which launched in limited release in late 2024, signaling continued investment in that area leading up to the acquisition.

High Selling, General, and Administrative (SG&A) expenses for the direct sales force. The SG&A line item is significant because it funds the direct sales force necessary to drive adoption of complex implantable devices. Personnel costs, including salaries, benefits, stock-based compensation, and sales commissions, form the bulk of this expense. In Q1 2024, SG&A expenses rose to $88.3 million. The company had also undertaken restructurings in January and May 2024, which aimed to create discipline in expense management, showing an ongoing effort to control these high fixed costs.

The operating expense breakdown reflects several key cost centers:

• Personnel costs are the most significant component of operating expenses.
• SG&A includes marketing, travel, and intellectual property legal fees.
• R&D includes costs for product design, testing, and regulatory activities.

Costs associated with clinical trials and regulatory compliance. Developing and maintaining market access for SCS systems requires ongoing, expensive clinical work and navigating global regulatory hurdles. R&D expense explicitly includes costs associated with clinical trial programs and regulatory activities. The company celebrated receiving regulatory approval to offer its HFX iQ system in CE-marked countries in Europe, which required significant upfront investment in trials and submissions.

Integration costs related to the Globus Medical acquisition. The acquisition itself, finalized on April 3, 2025, introduces a new, large cost category: integration expenses. While the deal was structured as an all-cash transaction for approximately $250 million, the costs to combine the two organizations-streamlining manufacturing, merging sales forces, and achieving anticipated synergies-will be substantial in the second half of 2025. Globus Medical expected the acquisition to be accretive to its earnings in the second year of operation post-close, implying that 2025 costs would likely include significant one-time integration charges.

Finance: draft 13-week cash view incorporating post-acquisition integration estimates by Friday.

Nevro Corp. (NVRO) - Canvas Business Model: Revenue Streams

You're looking at how Nevro Corp. actually brings in the money, which is key for any valuation, especially given the recent acquisition news. The revenue streams are pretty concentrated around their core neurostimulation technology, but they're pushing to diversify with the SI Joint line.

The main engine is the sale of their spinal cord stimulation (SCS) systems and the necessary consumables. This includes the hardware like the Senza, Senza II, and Senza Omnia systems, plus the newer HFX iQ system, which they launched in select European countries in January 2025 after getting the CE Mark in November 2024. That's the capital equipment part of the sale.

But you can't forget the recurring or supporting revenue components. This stream covers the necessary parts to keep those systems running:

• Sales of leads, which deliver the therapy to the patient.
• Trial stimulators used before a permanent implant decision.
• Related accessories, like anchors and tunneling tools.

The company also generates revenue from its growing portfolio of SI Joint solutions, which expanded following the Vyrsa Technologies acquisition. The Nevro1™ SI Joint Fusion System is a key part of this, offering a minimally invasive treatment option for chronic sacroiliac joint pain.

Geographically, the business is still heavily weighted toward the U.S. market, but international sales are a distinct stream, primarily focused on Europe and Australia. For the full-year 2024, the worldwide revenue came in at $408.5 million. That's the top-line number you need to anchor your analysis on.

Here's the quick math on how that $408.5 million broke down geographically for the full year 2024:

To be fair, the international segment saw some headwinds in 2024, like negative media reports in Australia and healthcare reform delays in Germany, which impacted Q2 2024 results. Still, the international portion represented about 13.6% of the total 2024 revenue ($55.4 million / $408.5 million). The fourth quarter of 2024 showed the international segment brought in $14.1 million.

The revenue from SCS devices, leads, and accessories is bundled together in the primary reporting, but the fourth quarter of 2024 saw greater-than-anticipated spinal cord stimulation (SCS) device replacement procedures, which helped the full-year revenue land slightly ahead of prior guidance.