Electromed, Inc. Delivers Continued Growth in Fiscal 2027 First Quarter
Direct homecare growth offset declines in other sales channels, while share repurchases were the primary driver of lower cash.
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16th consecutive quarter of year-over-year revenue and operating income growth
Q1 FY 2027 Company Highlights
-
Net revenues were
$18.7 million 10.6% increase from$16.9 million 17.6% increase in the core homecare market. -
Operating income increased to
$3.5 million 30.7% increase from the first quarter of the prior fiscal year, and18.7% of net revenues. -
Net income was
$2.8 million $0.32 29.3% , compared to$2.1 million $0.25
“We delivered our 16th consecutive quarter of year-over-year revenue and operating income growth, with double-digit revenue growth, a
Q1 FY 2027 Results
All amounts below are for the three months ended September 30, 2026, and compare to the three months ended September 30, 2025 (“Q1 FY 2026”).
Net revenues grew
Revenue in our direct homecare business increased by
Non-homecare revenue was
Gross profit increased year-over-year to
Selling, general and administrative (“SG&A”) expenses were
Operating income was
Net income increased by
As of September 30, 2026, Electromed had
Conference Call and Webcast Information
The conference call with members of Electromed management will be held at 5:00 p.m. Eastern Time on Tuesday, November 10, 2026.
Interested parties may participate in the call by dialing (877) 407-3982 (Domestic) or (201) 493-6780 (International).
The live conference call webcast will be accessible in the Investor Relations section of Electromed’s website and directly via the following link: https://viavid.webcasts.com/starthere.jsp?ei=1778024&tp_key=72949ff6b5
For those who cannot listen to the live broadcast, a replay will be available by dialing (844) 512-2921 (Domestic) or (412) 317-6671 (International) and referencing the Access ID 13763053. Additionally, an online replay of the webcast will be available for one year in the Investor Relations section of Electromed’s web site at: https://investors.smartvest.com/events-and-presentations/default.aspx
About Electromed, Inc.
Electromed, Inc. manufactures, markets, and sells products that provide airway clearance therapy, including the SmartVest® Airway Clearance System, to patients with compromised pulmonary function. It is headquartered in New Prague, Minnesota, and was founded in 1992. Further information about Electromed can be found at www.smartvest.com.
Cautionary Statements
Certain statements in this press release constitute forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, but are not limited to, statements regarding our targeted annualized homecare revenue per sales representative, our growth prospects and ability to bring SmartVest® therapy to more patients, our capital allocation, including share repurchases, and our liquidity and financial position. Forward-looking statements can generally be identified by words such as "anticipate," "believe," "continue,” “expect,” “may,” "plan," "positioned," “potential,” “target,” “should,” “will,” and similar expressions, including the negative of these terms, but they are not the exclusive means of identifying such statements. Forward-looking statements cannot be guaranteed, and actual results may vary materially due to the uncertainties and risks, known or unknown, associated with such statements. Examples of risks and uncertainties for Electromed include, but are not limited to, our ability to obtain and maintain reimbursement from Medicare, Medicaid, or private insurance payers for our products; component or raw material shortages, changes to lead times or significant price increases, inflationary trends in electronic components, and uncertainty related to trade regulations (including, but not limited to, changes to tariffs); adverse changes to state and federal health care regulations; our ability to maintain regulatory compliance and to gain future regulatory approvals and clearances; entry of new competitors including new drug or pharmaceutical discoveries; adverse economic and business conditions or intense competition; our ability to attract, train and retain personnel and remain competitive with wage inflation; rising energy costs and geopolitical conflicts; technical problems with our research and products; the risks associated with cyberattacks, data breaches, computer viruses and other similar security threats; changes affecting the medical device industry; our ability to develop new sales channels for our products such as the hospital or homecare distributor channels; adverse international health care regulation impacting current international business; our ability to renew our line of credit or obtain additional credit as necessary; and our ability to protect and expand our intellectual property portfolio, as well as other factors we may describe from time to time in Electromed’s reports filed with the Securities and Exchange Commission (including Electromed’s most recent Annual Report on Form 10-K, as amended from time to time, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K). Investors should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties or potentially inaccurate assumptions investors should take into account when making investment decisions. Shareholders and other readers should not place undue reliance on “forward-looking statements,” as such statements speak only as of the date of this press release. We undertake no obligation to update them in light of new information or future events.
Electromed, Inc.
Condensed Balance Sheets |
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September 30,
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June 30, 2026 |
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(Unaudited) |
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Assets |
|
|
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|
|
|
|
Current Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
15,875,000 |
|
|
$ |
20,450,000 |
Accounts receivable (net of allowance for credit losses of |
|
|
30,267,000 |
|
|
|
29,805,000 |
Contract assets |
|
|
1,026,000 |
|
|
|
1,094,000 |
Inventories |
|
|
3,811,000 |
|
|
|
3,681,000 |
Income tax receivable |
|
|
405,000 |
|
|
|
1,168,000 |
Prepaid expenses and other current assets |
|
|
810,000 |
|
|
|
1,170,000 |
Total current assets |
|
|
52,194,000 |
|
|
|
57,368,000 |
Property and equipment, net |
|
|
5,168,000 |
|
|
|
5,214,000 |
Finite-life intangible assets, net |
|
|
379,000 |
|
|
|
379,000 |
Other assets |
|
|
1,317,000 |
|
|
|
1,270,000 |
Deferred income taxes |
|
|
2,036,000 |
|
|
|
2,036,000 |
Total assets |
|
$ |
61,094,000 |
|
|
$ |
66,267,000 |
|
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Liabilities and Shareholders’ Equity |
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Current Liabilities |
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Accounts payable |
|
$ |
2,347,000 |
|
|
$ |
2,643,000 |
Accrued compensation |
|
|
2,830,000 |
|
|
|
6,071,000 |
Warranty reserve, current portion |
|
|
534,000 |
|
|
|
1,899,000 |
Other accrued liabilities |
|
|
1,550,000 |
|
|
|
1,609,000 |
Total current liabilities |
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|
7,261,000 |
|
|
|
12,222,000 |
Long-term warranty reserve |
|
|
1,310,000 |
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|
- |
Other long-term liabilities |
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50,000 |
|
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|
66,000 |
Total liabilities |
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8,621,000 |
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|
12,288,000 |
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Shareholders’ Equity |
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Common stock, |
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82,000 |
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|
84,000 |
Additional paid-in capital |
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|
25,421,000 |
|
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|
25,331,000 |
Retained earnings |
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|
26,970,000 |
|
|
|
28,564,000 |
Total shareholders’ equity |
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|
52,473,000 |
|
|
|
53,979,000 |
Total liabilities and shareholders’ equity |
|
$ |
61,094,000 |
|
|
$ |
66,267,000 |
Electromed, Inc.
Condensed Statements of Operations (Unaudited) |
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Three Months Ended |
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September 30, |
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2026 |
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2025 |
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Net revenues |
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$ |
18,682,000 |
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$ |
16,887,000 |
Cost of revenues |
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3,745,000 |
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|
3,690,000 |
Gross profit |
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|
14,937,000 |
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13,197,000 |
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Operating expenses |
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Selling, general and administrative |
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11,171,000 |
|
|
|
10,286,000 |
Research and development |
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|
277,000 |
|
|
|
241,000 |
Total operating expenses |
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|
11,448,000 |
|
|
|
10,527,000 |
Operating income |
|
|
3,489,000 |
|
|
|
2,670,000 |
Interest income, net |
|
|
148,000 |
|
|
|
134,000 |
Income before income taxes |
|
|
3,637,000 |
|
|
|
2,804,000 |
|
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|
|
|
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Income tax expense |
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|
876,000 |
|
|
|
668,000 |
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|
|
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|
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Net income |
|
$ |
2,761,000 |
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|
$ |
2,136,000 |
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Earnings per share: |
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Basic |
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$ |
0.33 |
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$ |
0.26 |
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Diluted |
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$ |
0.32 |
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$ |
0.25 |
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Weighted-average common shares outstanding: |
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Basic |
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8,307,125 |
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8,322,782 |
Diluted |
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|
8,761,404 |
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|
|
8,681,703 |
Electromed, Inc.
Condensed Statements of Cash Flows (Unaudited) |
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Three Months Ended September 30, |
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2026 |
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2025 |
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Cash Flows From Operating Activities |
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Net income |
|
$ |
2,761,000 |
|
|
$ |
2,136,000 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
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|
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Depreciation |
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|
217,000 |
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|
214,000 |
|
Amortization |
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|
49,000 |
|
|
|
45,000 |
|
Share-based compensation expense |
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|
435,000 |
|
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|
458,000 |
|
Changes in operating assets and liabilities: |
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|
Accounts receivable |
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|
(462,000 |
) |
|
|
(96,000 |
) |
Contract assets |
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|
68,000 |
|
|
|
(134,000 |
) |
Inventories |
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|
(154,000 |
) |
|
|
(515,000 |
) |
Prepaid expenses and other assets |
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|
284,000 |
|
|
|
(241,000 |
) |
Income tax receivable, net |
|
|
763,000 |
|
|
|
202,000 |
|
Accounts payable and accrued liabilities |
|
|
(347,000 |
) |
|
|
448,000 |
|
Accrued compensation |
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|
(3,241,000 |
) |
|
|
(2,348,000 |
) |
Net cash provided by operating activities |
|
|
373,000 |
|
|
|
169,000 |
|
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|
|
|
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Cash Flows From Investing Activities |
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Expenditures for property and equipment |
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|
(165,000 |
) |
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(252,000 |
) |
Expenditures for finite-life intangible assets |
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|
(37,000 |
) |
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|
(15,000 |
) |
Net cash used for investing activities |
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|
(202,000 |
) |
|
|
(267,000 |
) |
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|
|
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Cash Flows From Financing Activities |
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|
|
|
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|
Issuance of common stock upon exercise of options |
|
|
48,000 |
|
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|
156,000 |
|
Taxes paid on net share settlement of stock awards |
|
|
(466,000 |
) |
|
|
(229,000 |
) |
Repurchase of common stock |
|
|
(4,328,000 |
) |
|
|
(1,003,000 |
) |
Net cash used for financing activities |
|
|
(4,746,000 |
) |
|
|
(1,076,000 |
) |
Net decrease in cash and cash equivalents |
|
|
(4,575,000 |
) |
|
|
(1,174,000 |
) |
Cash and cash equivalents |
|
|
|
|
|
|
|
|
Beginning of period |
|
|
20,450,000 |
|
|
|
15,287,000 |
|
End of period |
|
$ |
15,875,000 |
|
|
$ |
14,113,000 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20261110529406/en/
Brad Nagel, Chief Financial Officer
(952) 758-9299
investorrelations@electromed.com
Mike Cavanaugh, Investor Relations
ICR Healthcare
(617) 877-9641
mike.cavanaugh@icrhealthcare.com
Source: Electromed, Inc.