Electromed Q1 net income rises 29.3% to $2.8M
Direct homecare revenue reached $17.5 million, while $4.3 million of repurchases primarily drove the quarter's cash decrease.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Electromed, Inc. reported first-quarter fiscal 2027 net revenue of $18.7 million for the three months ended September 30, 2026, up 10.6% from $16.9 million a year earlier. Direct homecare revenue rose 17.6% to $17.5 million, primarily due to more sales representatives and higher productivity. The company averaged 63 homecare field sales representatives; annualized homecare revenue per weighted average direct sales representative was $1,109,000, within its $1,050,000 to $1,150,000 target for the year.
Gross profit was $14.9 million, or 80.0% of revenue, versus $13.2 million and 78.1%. Operating income increased 30.7% to $3.5 million; net income rose 29.3% to $2.8 million, and diluted earnings per share were $0.32 versus $0.25. SG&A expenses rose 8.6% to $11.2 million, primarily reflecting higher salaries, incentive compensation, travel and meals tied to headcount, and higher overall compensation costs.
Operating cash flow was $373,000, compared with $169,000. As of September 30, 2026, Electromed had $15.9 million in cash and no debt. Cash decreased $4.6 million during the quarter, primarily due to $4.3 million of common-stock repurchases; shareholders’ equity was $52.5 million.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointQ1 revenue increased 10.6% to $18.7 million year over year.
- Moderate pointOperating income rose 30.7% to $3.5 million year over year.
- Moderate pointNet income rose 29.3% to $2.8 million year over year.
Negative
- None.
Filing Explained
At
8-K Event Classification
Key Figures
Key Terms
HFCWO medical
Bronchiectasis medical
working capital financial
contracted lives financial
Earnings Snapshot
Annualized homecare revenue per weighted average direct sales representative target range for the year: $1,050,000 to $1,150,000.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did ELMD report in Q1 FY 2027?
How much did ELMD's operating and net income increase in Q1 FY 2027?
AI-generated analysis. How Rhea-AI works. Not financial advice.
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(State or Other Jurisdiction of
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(Commission File Number)
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(I.R.S. Employer Identification
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition.
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Item 7.01
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Regulation FD Disclosure.
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Item 9.01
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Financial Statements and Exhibits.
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Exhibit Number
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Description
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99.1
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Press Release dated November 10, 2026
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99.2
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Company Investor Presentation dated November 10, 2026
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104
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Cover Page Interactive Data File (embedded in the cover page and formatted in inline XBRL)
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ELECTROMED, INC.
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Date: November 10, 2026
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By:
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/s/ Bradley M. Nagel
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Name:
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Bradley M. Nagel
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Title:
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Chief Financial Officer
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Exhibit 99.1
Electromed, Inc. Delivers Continued Growth in Fiscal 2027 First Quarter
16th consecutive quarter of year-over-year revenue and operating income growth
NEW PRAGUE, Minn.--(BUSINESS WIRE)-- Electromed, Inc. (“Electromed”) (NYSE American: ELMD), a leader in innovative airway clearance technologies, today announced financial results for the three months ended September 30, 2026 (“Q1 FY 2027”).
Q1 FY 2027 Company Highlights
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● |
Net revenues were $18.7 million in Q1 FY 2027, a 10.6% increase from $16.9 million in the first quarter of the prior fiscal year, driven by a 17.6% increase in the core homecare market. |
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● |
Operating income increased to $3.5 million, a 30.7% increase from the first quarter of the prior fiscal year, and 18.7% of net revenues. |
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● |
Net income was $2.8 million, or $0.32 per diluted share, representing an increase of 29.3%, compared to $2.1 million, or $0.25 per diluted share in the first quarter of the prior fiscal year. |
“We delivered our 16th consecutive quarter of year-over-year revenue and operating income growth, with double-digit revenue growth, a 30.7% increase in operating income and an 80.0% gross margin—demonstrating the strength of our direct-to-patient model and operating leverage. We also returned $4.3 million to shareholders through share repurchases while remaining debt-free. With a strong balance sheet and high-performing sales and fulfillment teams, Electromed is well positioned to bring SmartVest® therapy to more patients who need to breathe easier,” said Jim Cunniff, President and Chief Executive Officer.
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 10.6% to $18.7 million, from $16.9 million.
Revenue in our direct homecare business increased by 17.6% to $17.5 million, from $14.9 million. The increase in revenue was primarily due to an increase in sales representatives and increased sales representative productivity. Throughout Q1 FY 2027, we averaged 63 homecare field sales representatives. The annualized homecare revenue per weighted average direct sales representative in Q1 FY 2027 was $1,109,000, within Electromed’s target range for the year of $1,050,000 to $1,150,000.
Non-homecare revenue was $1.2 million. Hospital revenue was $0.7 million, a decrease of 31.6%. Homecare distributor revenue was $0.4 million, a decrease of 55.9%. Other revenue was $0.1 million, a decrease of 23.0%.
Gross profit increased year-over-year to $14.9 million or 80.0% of net revenues from $13.2 million or 78.1% of net revenues. The increase in gross profit was primarily a result of increased overall revenue and the increase in gross profit percentage was due to revenue mix.
Selling, general and administrative (“SG&A”) expenses were $11.2 million, representing an increase of $0.9 million, or 8.6%. The increase in the current period was primarily due to increased salaries and incentive compensation, travel and meals related to the higher average sales representative headcount and higher overall compensation costs.
Operating income was $3.5 million or 18.7% of net revenues, compared to $2.7 million, or 15.8% of net revenues. The 30.7% increase in operating income was primarily due to the increases in revenue and gross profit.
Net income increased by 29.3% to $2.8 million, or $0.32 per diluted share, compared to $2.1 million, or $0.25 per diluted share.
As of September 30, 2026, Electromed had $15.9 million in cash, $30.3 million in accounts receivable and no debt, achieving a working capital of $44.9 million and total shareholders’ equity of $52.5 million. The cash balance reflects a decrease of $4.6 million for the three months ended September 30, 2026, compared to a decrease in cash of $1.2 million in the three months ended September 30, 2025. The decrease in cash for the three months ended September 30, 2026, was driven primarily by share repurchases of $4.3 million of Electromed common stock.
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.
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.
Electromed, Inc.
Condensed Balance Sheets
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September 30, 2026 |
June 30, 2026 |
|||||||
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(Unaudited) |
||||||||
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Assets |
||||||||
|
Current Assets |
||||||||
|
Cash and cash equivalents |
$ | 15,875,000 | $ | 20,450,000 | ||||
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Accounts receivable (net of allowance for credit losses of $75,000 and $45,000 as of September 30, 2026, and June 30, 2026, respectively) |
30,267,000 | 29,805,000 | ||||||
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Contract assets |
1,026,000 | 1,094,000 | ||||||
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Inventories |
3,811,000 | 3,681,000 | ||||||
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Income tax receivable |
405,000 | 1,168,000 | ||||||
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Prepaid expenses and other current assets |
810,000 | 1,170,000 | ||||||
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Total current assets |
52,194,000 | 57,368,000 | ||||||
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Property and equipment, net |
5,168,000 | 5,214,000 | ||||||
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Finite-life intangible assets, net |
379,000 | 379,000 | ||||||
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Other assets |
1,317,000 | 1,270,000 | ||||||
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Deferred income taxes |
2,036,000 | 2,036,000 | ||||||
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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 | ||||
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Accrued compensation |
2,830,000 | 6,071,000 | ||||||
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Warranty reserve, current portion |
534,000 | 1,899,000 | ||||||
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Other accrued liabilities |
1,550,000 | 1,609,000 | ||||||
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Total current liabilities |
7,261,000 | 12,222,000 | ||||||
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Long-term warranty reserve |
1,310,000 | - | ||||||
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Other long-term liabilities |
50,000 | 66,000 | ||||||
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Total liabilities |
8,621,000 | 12,288,000 | ||||||
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Shareholders’ Equity |
||||||||
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Common stock, $0.01 par value per share, 13,000,000 shares authorized; 8,236,585 and 8,366,163 shares issued and outstanding, as of September 30, 2026, and June 30, 2026, respectively |
82,000 | 84,000 | ||||||
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Additional paid-in capital |
25,421,000 | 25,331,000 | ||||||
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Retained earnings |
26,970,000 | 28,564,000 | ||||||
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Total shareholders’ equity |
52,473,000 | 53,979,000 | ||||||
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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 |
2025 |
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Net revenues |
$ | 18,682,000 | $ | 16,887,000 | ||||
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Cost of revenues |
3,745,000 | 3,690,000 | ||||||
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Gross profit |
14,937,000 | 13,197,000 | ||||||
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Operating expenses |
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Selling, general and administrative |
11,171,000 | 10,286,000 | ||||||
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Research and development |
277,000 | 241,000 | ||||||
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Total operating expenses |
11,448,000 | 10,527,000 | ||||||
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Operating income |
3,489,000 | 2,670,000 | ||||||
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Interest income, net |
148,000 | 134,000 | ||||||
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Income before income taxes |
3,637,000 | 2,804,000 | ||||||
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Income tax expense |
876,000 | 668,000 | ||||||
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Net income |
$ | 2,761,000 | $ | 2,136,000 | ||||
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Earnings per share: |
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Basic |
$ | 0.33 | $ | 0.26 | ||||
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Diluted |
$ | 0.32 | $ | 0.25 | ||||
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Weighted-average common shares outstanding: |
||||||||
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Basic |
8,307,125 | 8,322,782 | ||||||
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Diluted |
8,761,404 | 8,681,703 | ||||||
Electromed, Inc.
Condensed Statements of Cash Flows (Unaudited)
|
Three Months Ended September 30, |
||||||||
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2026 |
2025 |
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Cash Flows From Operating Activities |
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Net income |
$ | 2,761,000 | $ | 2,136,000 | ||||
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation |
217,000 | 214,000 | ||||||
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Amortization |
49,000 | 45,000 | ||||||
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Share-based compensation expense |
435,000 | 458,000 | ||||||
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Changes in operating assets and liabilities: |
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Accounts receivable |
(462,000 | ) | (96,000 | ) | ||||
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Contract assets |
68,000 | (134,000 | ) | |||||
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Inventories |
(154,000 | ) | (515,000 | ) | ||||
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Prepaid expenses and other assets |
284,000 | (241,000 | ) | |||||
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Income tax receivable, net |
763,000 | 202,000 | ||||||
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Accounts payable and accrued liabilities |
(347,000 | ) | 448,000 | |||||
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Accrued compensation |
(3,241,000 | ) | (2,348,000 | ) | ||||
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Net cash provided by operating activities |
373,000 | 169,000 | ||||||
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Cash Flows From Investing Activities |
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Expenditures for property and equipment |
(165,000 | ) | (252,000 | ) | ||||
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Expenditures for finite-life intangible assets |
(37,000 | ) | (15,000 | ) | ||||
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Net cash used for investing activities |
(202,000 | ) | (267,000 | ) | ||||
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Cash Flows From Financing Activities |
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Issuance of common stock upon exercise of options |
48,000 | 156,000 | ||||||
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Taxes paid on net share settlement of stock awards |
(466,000 | ) | (229,000 | ) | ||||
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Repurchase of common stock |
(4,328,000 | ) | (1,003,000 | ) | ||||
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Net cash used for financing activities |
(4,746,000 | ) | (1,076,000 | ) | ||||
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Net decrease in cash and cash equivalents |
(4,575,000 | ) | (1,174,000 | ) | ||||
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Cash and cash equivalents |
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Beginning of period |
20,450,000 | 15,287,000 | ||||||
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End of period |
$ | 15,875,000 | $ | 14,113,000 | ||||
Exhibit 99.2
Electromed, Inc. Investor Presentation November 10, 2026 NYSE American: ELMD Innovation Leader in Airway Clearance Technologies
Certain statements in this presentation constitute forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. 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 presentation. We undertake no obligation to update them in light of new information or future events.
Electromed – Who We Are - Electromed, Inc. is a growing medical device company focused on airway management to help people around the world breathe better, stay healthier, and lead active and fulfilling lives. Key Stats: Headquarters:
New Prague, MN Ticker: ELMD Manufacturing: Minnesota, USA Established:
1992 Treatment Focus: HFCWO Employees: 189* LTM Net Revenues:
$75.6M* Market Cap: $233M* Cash / Debt: $15.9M / $0.0M* *As of and for the 12 months ended 9/30/2026
Electromed Highlights
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Growing and profitable medical technology company |
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A leader in the large and expanding airway clearance market |
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The SmartVest® Airway Clearance System’s |
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Attractive direct-to-patient and provider model |
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Strong financial profile with attractive gross margins and well-capitalized balance sheet |
35% Operating Income CAGR*
*FY ‘21 through Q1 FY2027 TTM
FY21: Operating Income: $3.1M Revenue: $35.8M
FY22: Operating Income: $3.0M Revenue: $41.7M
FY23: Operating Income: $4.0M Revenue: $48.1M
FY24: Operating Income: $6.5M Revenue: $54.7M
FY25: Operating Income: $9.7M Revenue: $64.0M
FY26: Operating Income: $13.9M Revenue: $73.8M
TTM Q1’27: Operating Income: $14.7M Revenue: $75.6M
What is Bronchiectasis (BE)? BE is a condition that is prevalent, but underdiagnosed and often misdiagnosed
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Irreversible lung condition characterized by abnormal widening of one or more of the bronchi (airways) |
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Repeated episodes of pulmonary inflammation and infection leads to mucus accumulating in the airways |
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Mean prevalence of Bronchiectasis in patients with COPD is 54%¹ |
1.Chalmers J. and Sethi S. Raising awareness of Bronchiectasis in primary care: overview of diagnosis and management strategies in adults. NPJ Prim Care Respir Med. 2017;27:18.
Disease Misdiagnosed – Disease Underdiagnosed – HFCWO Under-prescribed
Normal airways, lungs in cross-section, widened airways – normal airway – airway wall – muscle
Airway with bronchiectasis – widened airway, mucus, scarred and thickened airway wall
U.S. Market: Large, Growing, Underpenetrated The Company is expanding awareness within the large BE patient population
~166K HFCWO Adopted - Estimated HFCWO Bronchiectasis penetration, treated population1 Bronchiectasis HFCWO penetration ~16%1
~$3.1B - Estimated Revenue Opportunity for HFCWO Within Primary Pulmonology Callpoint2 ((1 million – 166K) x 35% x $10.5K) = $3.1B2
~1 million U.S. BE Diagnosed - Estimated Net Bronchiectasis Prevalence, Diagnosed3
Diagnosed BE population has grown at ~12% annually3
4.1 Million U.S. Undiagnosed - Potential Total Addressable Market - $15.1B
(4.1M x $10.5K) - Estimated Bronchiectasis Prevalence, Undiagnosed With COPD / BE Overlap4 35% of BE patients managed by pulmonologists3
1. Internal company estimates derived from GUIDEHOUSE 2023 NASM claims database, GUIDEHOUSE 2023 literature review and 2024 S2N HFCWO Claims data.
2. Internal company estimates derived from GUIDEHOUSE 2023 NASM claims database. 35% of BE patients managed by pulmonologists and $10.5K represents the assumed HFCWO ASP.
3. Internal company estimates derived from GUIDEHOUSE 2023 NASM claims database.
4. Internal company estimates derived from GUIDEHOUSE 2023 literature review and 2023 CDC NHANES data.
How is Bronchiectasis Treated? HFCWO therapy mimics manual Chest Percussion Therapy (CPT)
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1. |
Clear Airways FirstTM With SmartVest® |
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2. |
Treat The Infection (Antibiotics) |
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3. |
Reduce The Inflammation (Anti-Inflammatories) |
On average, HFCWO therapy is performed as follows: 2x per day, 15 minutes per session, 7 days a week
How does SmartVest® HFCWO therapy work? Air-pulse technology – a generator delivers repeating pulses of air through a single hose to an inflated wearable vest.
Gentle squeeze and release – each pulse gently squeezes and releases the chest to thin and loosen mucus in the lungs.
Airway clearance – mucus is propelled upward toward major airways where it can be coughed and more easily.
Airway clearance – smartvest – reduce inflammation – treat infection – complete bronchiectasis care
SmartVest ® Clearway HFCWO designed with the patient in mind
SmartVest® has a well-established reimbursement code from CMS – E0483; the Company estimates it has over 270 million contracted lives in the U.S.
An Enhanced Patient Experience - Sleek and lightweight generator - Intuitive user interface for better patient adherence - More portable and easier for travel
SmartNotes™ Patient Progress Report - Tracking patient outcomes and treatment progress to physicians
SmartNotes combines patient Quality of Life and Therapy Utilization data to provide physicians with extended views into disease management
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Proactive, ongoing support: Licensed Respiratory Therapists stay connected with patients and support their therapy utilization |
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Outcomes Management: Easy-to-read report provides physicians with a comprehensive view of therapy impact |
Clinical Evidence & Patient Satisfaction - HFCWO therapy is effective in treating BE patients
“Therapy with SmartVest® significantly decreased exacerbations requiring hospitalization, antibiotic use, and stabilizes lung function”
- Powner
94% Of patients would recommend the SmartVest® to others3
97% Of patients report feeling better or the same after SmartVest® use3
99% Of patients report an increase in sputum production3
57% Reduction in antibiotic prescriptions1
59% Decrease in hospitalizations1
75% Fewer emergency department visits2
1. Sievert CE, et al 2016. Using High Frequency Chest Wall Oscillation in a Bronchiectasis Patient Population: An Outcomes-Based Case Review. Respiratory Therapy, 11(4), 34-38.
2. Sievert CE, et al 2018. Incidence of Bronchiectasis-Related Exacerbation Rates After HFCWO Treatment—A Longitudinal Outcome-Based Study, Respiratory Therapy, 13(2), 38-41.
3. Patient data on file.
“Therapy with HFCWO demonstrated key health outcomes improved in post- compared to pre-index period: cough, all-cause hospitalizations, pneumonia, and pulmonary hospitalizations”
- DeKoven
Direct-to-Patient Model - Drives an attractive margin profile
Electromed expects 80% gross margins to continue improving going forward
Traditional Medical Equipment Channel: Manufacturer > Home Medical Equipment (HME) Distributor > Patient
Direct-to-Patient Distribution (Electromed): Electromed > Patient
Net Revenue Breakdown - $75.6M (TTM Q1 FY’27)
By Setting: 95% Home Care (Includes $3.3 million from home care distributor revenue), 4% Hospitals, 1% Other
Homecare by Payer: 48% Commercial/Other (Includes Managed Medicare and Managed Medicaid), 48% Medicare, 4% Medicaid
Homecare Qualified Referral Volume: 74% Bronchiectasis, 20% Neuromuscular, 3% Cystic Fibrosis, 3% Other
Electromed Growth Strategy - Leveraging commercial team and reimbursement expertise to accelerate growth
Electromed, Inc:
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Protect and grow homecare core |
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Protect and grow Homecare core with current strategy (sales force expansion, payor contracting, market development) as well as converting low prescribers to high prescribers and target high BE diagnosing physicians who are not prescribing SmartVest® |
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Expand into natural adjacencies |
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Leverage existing technology platform – Pediatrics and Hospital (leveraging DTC and GPO contracts) |
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Acquisition opportunities |
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Explore potential inorganic acquisition opportunities |
Capital Allocation Strategy: Proven execution against the Company’s priorities
Capital Allocation: Organic Business Growth > Generate Free Cash Flow > Potential Strategic Investments or Return to Shareholders
FY2026 Execution:
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New Technology & CAPEX Investments |
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Sales rep expansion |
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Market development |
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Treat SMART from the Start Campaign |
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Payor coverage expansion |
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$10.0 million of shares repurchased in FY25 |
Why invest? Large, expanding chronic lung diseases market, clinically proven technology, broad payor coverage, consistent double-digit organic revenue growth, high gross margins, robust cash flow and expanding operating leverage
Performance vs. Russell Medical Equipment Index (TTM and as of 9/30/2026 Results):
Sales Growth: ELMD 14.1% > RUS ME 7.7%
Gross Margin: ELMD 79.0% > RUS ME 54.4%
Operating Margin: ELMD 19.5% > RUS ME (4.5)%
Electromed, Inc. Jim Cunniff, President & CEO, (952) 758-9299, jcunniff@electromed.com – Brad Nagel, CFO, (952) 758-9299, bnagel@electromed.com
ICR Healthcare: Mike Cavanaugh, (617) 877-8641, mike.cavanaugh@icrhealthcare.com
Appendix
Financial Highlights (in $ millions, except share amounts)
Three Months Ended September 30, 2025 (unaudited): Revenues $16.9 Gross Profit $13.2 Gross Margin 78.1% Operating Income $2.7 Operating Margin 15.8% Net Income $2.1 Diluted EPS $0.25 Diluted Shares 8,681,703 Cash Provided by Operations $0.2
Three Months Ended September 30, 2026 (unaudited): Revenues $18.7 Gross Profit $14.9 Gross Margin 80.0% Operating Income $3.5 Operating Margin 18.7% Net Income $2.8 Diluted EPS $0.32 Diluted Shares 8,761,404 Cash Provided by Operations $0.4