Record Q2 2026 results for Electromed (NYSE: ELMD) with strong growth and margins
Rhea-AI Filing Summary
Electromed, Inc. reported record fiscal 2026 second-quarter results, with net revenues of $18.9 million, up 16.3% from $16.3 million a year earlier. Direct homecare revenue rose 18.4% to $17.3 million, driven by more sales representatives and higher revenue per rep, which annualized at $1.2 million, above the company’s $1.0–$1.1 million target range.
Gross profit increased to $14.8 million and gross margin edged up to 78.4%. Operating income grew 42.4% to $3.6 million, lifting the operating margin to 19.2%. Net income rose 40.3% to $2.8 million, or $0.32 per diluted share, marking the 13th consecutive quarter of year-over-year revenue and net income growth.
As of December 31, 2025, Electromed held $13.8 million in cash, $36.2 million in working capital, and no debt, with shareholders’ equity of $45.4 million. Cash declined by $1.5 million over six months, mainly due to $3.8 million of share repurchases, partly offset by $3.2 million of positive operating cash flow.
Positive
- Record growth and profitability: Q2 FY 2026 net revenues rose 16.3% to $18.9 million while operating income increased 42.4% to $3.6 million, expanding operating margin to 19.2% and delivering the 13th consecutive quarter of year-over-year revenue and net income growth.
- Strong unit economics and balance sheet: Annualized homecare revenue per direct sales representative reached $1.2 million, above target, and the company held $13.8 million in cash with no debt while repurchasing $3.8 million of stock over six months.
Negative
- None.
Insights
Electromed posts record Q2 with strong growth, margins, and cash-funded buybacks.
Electromed delivered a robust Q2 FY 2026: net revenues rose 16.3% to
Net income grew 40.3% to
The balance sheet remains solid with
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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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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 February 10, 2026
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99.2
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Company Investor Presentation dated February 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: February 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. Announces Record Financial Performance in Fiscal 2026 Second Quarter
Strong operational execution results in thirteenth consecutive quarter of year-over-year revenue and net 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 and six months ended December 31, 2025 (“Q2 FY 2026”).
Q2 FY 2026 Company Highlights
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Net revenues increased 16.3% to a record $18.9 million in Q2 FY 2026, from $16.3 million in the second quarter of the prior fiscal year, led by an 18.4% increase in the core homecare market. |
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Operating income increased to a record $3.6 million, a 42.4% increase from the second quarter of the prior fiscal year. |
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Operating margin improved to 19.2% of net revenues, demonstrating continued operating leverage. |
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Net income was a record $2.8 million, or $0.32 per diluted share, representing an increase of 40.3%, compared to $2.0 million, or $0.22 per diluted share in the second quarter of the prior fiscal year. |
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Repurchased $2.8 million of Electromed common stock at an average price of $26.16 per share in Q2 FY 2026 and finished the quarter with $13.8 million in cash and no debt. |
“I'm thrilled to share our record results for the second quarter of fiscal 2026, which represented our 13th consecutive quarter of year-over-year revenue and net income growth. The Electromed team is executing our strategic growth plan at a high level, delivering over 16% revenue growth accompanied by strong operating leverage and net income of $0.32 per diluted share, a record for Electromed,” said Jim Cunniff, Electromed’s President and Chief Executive Officer. “Our Triple Down on Bronchiectasis marketing campaign is generating tremendous physician and patient awareness as we work to serve the nearly 800,000 diagnosed bronchiectasis patients who could benefit from our SmartVest® system. Our strong operational execution, investments in profitable growth, judicious stock buybacks, and maintenance of a strong balance sheet reflect our commitment to driving superior value to our shareholders. Most importantly, we remain dedicated to our mission of helping patients with compromised pulmonary function breathe easier and enjoy an improved quality of life."
Q2 FY 2026 Results
All amounts below are for the three months ended December 31, 2025, and compare to the three months ended December 31, 2024 (“Q2 FY 2025”).
Net revenues grew 16.3% to $18.9 million, from $16.3 million.
Revenue in our direct homecare business increased by 18.4% to $17.3 million, from $14.6 million. The increase in revenue was primarily due to an increase in direct sales representatives and higher net revenues per sales representative. Throughout Q2 FY 2026, we averaged 58 homecare direct field sales representatives. The annualized homecare revenue per weighted average direct sales representative in Q2 FY 2026 was $1,200,000, exceeding Electromed’s target range of $1,000,000 to $1,100,000.
Non-homecare revenue was $1.6 million. Homecare distributor revenue grew 12.1%, totaling $0.9 million for the three months ended December 31, 2025. Hospital revenue of $0.7 million decreased 9.4%, and Other revenue of $0.1 million declined 52.3%.
Gross profit increased year-over-year to $14.8 million or 78.4% of net revenues from $12.6 million or 77.7% of net revenues. The increases in gross profit and gross margin were primarily a result of increased overall revenue and higher net revenues per device.
Selling, general and administrative (“SG&A”) expenses were $10.8 million, representing an increase of $1.0 million or 10.0%. The increase in the current period was primarily due to the increased salaries and incentive compensation related to the higher average number of sales headcount and higher overall compensation costs.
Operating income was $3.6 million or 19.2% of net revenues, compared to $2.5 million, or 15.6% of net revenues. The 42.4% increase in operating income was primarily due to an increase in revenue and gross profit.
Net income increased by 40.3% to $2.8 million, or $0.32 per diluted share, compared to $2.0 million, or $0.22 per diluted share.
As of December 31, 2025, Electromed had $13.8 million in cash, $26.3 million in accounts receivable and no debt, achieving a working capital of $36.2 million and total shareholders’ equity of $45.4 million. The cash balance reflects a decrease of $1.5 million for the six months ended December 31, 2025, compared to an increase in cash of $0.2 million in the six months ended December 31, 2024. The decrease in cash for the six months ended December 31, 2025, was driven primarily by share repurchases of $3.8 million of Electromed common stock, offset by $3.2 million of positive operating cash flow.
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, February 10, 2026.
Interested parties may participate in the call by dialing (844) 826-3033 (Domestic) or (412) 317-5185 (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=1750329&tp_key=9b1228f9bf
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 10206198. 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 can generally be identified by words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “ongoing,” “plan,” “potential,” “project,” “target,” “should,” “will,” “would” 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 reimbursement from Medicare, Medicaid, or private insurance payers for our products; component or raw material shortages, changes to lead times or significant price increases and changes 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; wage and component price inflation; 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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December 31, 2025 |
June 30, 2025 |
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(Unaudited) |
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Assets |
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Current Assets |
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Cash and cash equivalents |
$ | 13,791,000 | $ | 15,287,000 | ||||
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Accounts receivable (net of allowances for credit losses of $45,000) |
26,260,000 | 24,660,000 | ||||||
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Contract assets |
1,152,000 | 1,036,000 | ||||||
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Inventories |
3,458,000 | 3,299,000 | ||||||
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Income tax receivable |
- | 408,000 | ||||||
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Prepaid expenses and other current assets |
906,000 | 392,000 | ||||||
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Total current assets |
45,567,000 | 45,082,000 | ||||||
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Property and equipment, net |
5,218,000 | 4,714,000 | ||||||
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Finite-life intangible assets, net |
387,000 | 371,000 | ||||||
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Other assets |
1,276,000 | 1,173,000 | ||||||
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Deferred income taxes |
2,462,000 | 2,462,000 | ||||||
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Total assets |
$ | 54,910,000 | $ | 53,802,000 | ||||
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Liabilities and Shareholders' Equity |
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Current Liabilities |
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Accounts payable |
$ | 2,320,000 | $ | 2,667,000 | ||||
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Accrued compensation |
3,711,000 | 5,079,000 | ||||||
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Income tax payable |
382,000 | - | ||||||
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Warranty reserve |
1,813,000 | 1,645,000 | ||||||
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Other accrued liabilities |
1,149,000 | 1,077,000 | ||||||
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Total current liabilities |
9,375,000 | 10,468,000 | ||||||
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Other long-term liabilities |
96,000 | 125,000 | ||||||
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Total liabilities |
9,471,000 | 10,593,000 | ||||||
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Shareholders' Equity |
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Common stock, $0.01 par value per share, 13,000,000 shares authorized; 8,279,631 and 8,349,176 shares issued and outstanding, as of December 31, 2025, and June 30, 2025, respectively |
83,000 | 83,000 | ||||||
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Additional paid-in capital |
23,073,000 | 21,941,000 | ||||||
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Retained earnings |
22,283,000 | 21,185,000 | ||||||
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Total shareholders' equity |
45,439,000 | 43,209,000 | ||||||
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Total liabilities and shareholders' equity |
$ | 54,910,000 | $ | 53,802,000 | ||||
Electromed, Inc.
Condensed Statements of Operations (Unaudited)
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Three Months Ended |
Six Months Ended |
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December 31, |
December 31, |
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2025 |
2024 |
2025 |
2024 |
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Net revenues |
$ | 18,897,000 | $ | 16,255,000 | $ | 35,784,000 | $ | 30,923,000 | ||||||||
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Cost of revenues |
4,078,000 | 3,628,000 | 7,768,000 | 6,805,000 | ||||||||||||
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Gross profit |
14,819,000 | 12,627,000 | 28,016,000 | 24,118,000 | ||||||||||||
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Operating expenses |
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Selling, general and administrative |
10,815,000 | 9,834,000 | 21,101,000 | 19,221,000 | ||||||||||||
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Research and development |
384,000 | 251,000 | 625,000 | 417,000 | ||||||||||||
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Total operating expenses |
11,199,000 | 10,085,000 | 21,726,000 | 19,638,000 | ||||||||||||
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Operating income |
3,620,000 | 2,542,000 | 6,290,000 | 4,480,000 | ||||||||||||
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Interest income, net |
109,000 | 152,000 | 243,000 | 347,000 | ||||||||||||
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Net income before income taxes |
3,729,000 | 2,694,000 | 6,533,000 | 4,827,000 | ||||||||||||
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Income tax expense |
968,000 | 726,000 | 1,636,000 | 1,385,000 | ||||||||||||
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Net income |
$ | 2,761,000 | $ | 1,968,000 | $ | 4,897,000 | $ | 3,442,000 | ||||||||
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Income per share: |
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Basic |
$ | 0.33 | $ | 0.23 | $ | 0.59 | $ | 0.41 | ||||||||
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Diluted |
$ | 0.32 | $ | 0.22 | $ | 0.56 | $ | 0.38 | ||||||||
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Weighted-average common shares outstanding: |
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Basic |
8,270,565 | 8,424,534 | 8,296,674 | 8,494,511 | ||||||||||||
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Diluted |
8,689,290 | 8,953,349 | 8,685,497 | 8,983,726 | ||||||||||||
Electromed, Inc.
Condensed Statements of Cash Flows (Unaudited)
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Six Months Ended December 31, |
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2025 |
2024 |
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Cash Flows From Operating Activities |
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Net income |
$ | 4,897,000 | $ | 3,442,000 | ||||
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation |
427,000 | 414,000 | ||||||
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Amortization |
90,000 | 78,000 | ||||||
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Share-based compensation expense |
1,114,000 | 1,652,000 | ||||||
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Changes in operating assets and liabilities: |
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Accounts receivable |
(1,600,000 | ) | 558,000 | |||||
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Contract assets |
(116,000 | ) | (278,000 | ) | ||||
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Inventories |
(260,000 | ) | 500,000 | |||||
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Prepaid expenses and other assets |
(691,000 | ) | (279,000 | ) | ||||
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Income tax payable, net |
790,000 | (791,000 | ) | |||||
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Accounts payable and accrued liabilities |
(88,000 | ) | 434,000 | |||||
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Accrued compensation |
(1,368,000 | ) | (270,000 | ) | ||||
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Net cash provided by operating activities |
3,195,000 | 5,460,000 | ||||||
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Cash Flows From Investing Activities |
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Expenditures for property and equipment |
(886,000 | ) | (270,000 | ) | ||||
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Expenditures for finite-life intangible assets |
(37,000 | ) | (25,000 | ) | ||||
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Net cash used for investing activities |
(923,000 | ) | (295,000 | ) | ||||
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Cash Flows From Financing Activities |
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Issuance of common stock upon exercise of options |
232,000 | 346,000 | ||||||
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Taxes paid on net share settlement of stock awards |
(234,000 | ) | (820,000 | ) | ||||
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Repurchase of common stock |
(3,766,000 | ) | (4,536,000 | ) | ||||
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Net cash used for financing activities |
(3,768,000 | ) | (5,010,000 | ) | ||||
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Net (decrease) increase in cash |
(1,496,000 | ) | 155,000 | |||||
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Cash and cash equivalents |
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Beginning of period |
15,287,000 | 16,080,000 | ||||||
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End of period |
$ | 13,791,000 | $ | 16,235,000 | ||||
Exhibit 99.2
Electromed, Inc. Investor Presentation February 10, 2026 NYSE American: ELMD Innovation Leader in Airway Clearance Technologies
Forward looking statements - 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,” “committed,” “continue,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “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, competitive nature of our market; changes to Medicare, Medicaid, or private insurance reimbursement policies; changes to state and federal health care laws; changes affecting the medical device industry; our ability to develop new sales channels for our products such as the homecare distributor channel; our need to maintain regulatory compliance and to gain future regulatory approvals and clearances; new drug or pharmaceutical discoveries; general economic and business conditions; component or raw material shortages; changes to lead times or changes to trade regulations; wage and component price inflation; the risks associated with cyberattacks, data breaches, computer viruses and other similar security threats; technical problems with our research and products; our ability to renew our line of credit or obtain additional credit as necessary; 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 – 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: 186* LTM Net Revenues:
$68.9M* Market Cap: $241.1M* Cash / Debt: $13.8M / $0.0M* *As of and for the 12 months ended 12/31/2025
Electromed Highlights Growing and profitable medical technology company
» A leader in the large and expanding airway clearance market
» The SmartVest® Airway Clearance System’s
High Frequency Chest Wall Oscillation (“HFCWO”) technology supported by clinical outcomes data with strong reimbursement.
» Attractive direct-to-patient and provider model
» Strong financial profile with attractive gross margins and well-capitalized balance sheet
34% Operating Income CAGR*
*FY ‘21 through Q2 FY2026 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
TTM Q2’26: Operating Income: $11.5M Revenue: $68.9M
What is Bronchiectasis (BE)? BE is a condition that is prevalent, but underdiagnosed and often misdiagnosed
Irreversible lung condition characterized by abnormal widening of one or more of the bronchi (airways)
Repeated episodes of pulmonary inflammation and infection leads to mucus accumulating in the airways
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
~148K HFCWO Adopted - Estimated HFCWO Bronchiectasis penetration, treated population1 Bronchiectasis HFCWO penetration ~16%1
~$2.8B - Estimated Revenue Opportunity for HFCWO Within Primary Pulmonology Callpoint2 ((923K – 148K) x 35% x $10.5K) = $2.8B2
~923K 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)
1. Clear Airways FirstTM With SmartVest®
2. Treat The Infection (Antibiotics)
3. Reduce The Inflammation (Anti-Inflammatories)
On average, HFCWO therapy is performed as follows: 2x per day, 30 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
» Telerespiratory Services: A team of Respiratory Therapists stay connected with patients and support their therapy utilization
» 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
95% Of patients would recommend the SmartVest® to others3
97% Of patients report feeling better or the same after SmartVest® use3
98% 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 78% 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 - $68.9M (TTM ended 12/31/2025)
By Setting: 94% Home Care (Includes $3.3 million from home care distributor revenue), 5% Hospitals, 1% Other
Homecare by Payer: 51% Commercial/Other (Includes Managed Medicare and Managed Medicaid), 47% Medicare, 2% Medicaid
Homecare Qualified Referral Volume: 75% Bronchiectasis, 20% Neuromuscular, 3% Cystic Fibrosis, 2% Other
Electromed Growth Strategy - Leveraging commercial team and reimbursement expertise to accelerate growth
Electromed, Inc:
- Protect and grow homecare core
o 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®
- Expand into natural adjacencies
o Leverage existing technology platform – Pediatrics and Hospital (leveraging DTC and GPO contracts)
- Acquisition opportunities
o Explore potential inorganic acquisition opportunities
Long-Term Objectives, Electromed is committed to delivering long-term profitable growth
Double-digit revenue growth: increase market share, deeper penetration of current SmartVest prescribers
Operating margin improvement: operating leverage as revenue increases
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
FY2025 Execution:
- New CRM & CAPEX investments
- Sales rep expansion
- Market development
- Triple Down on BE campaign
- Product enhancements
- $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 12/31/2025 Results):
Sales Growth: ELMD 15.5% = RUS ME 15.5%
Gross Margin: ELMD 78.2% > RUS ME 54.1%
Operating Margin: ELMD 16.7% > RUS ME (7.6)%
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 December 31, 2024: Revenues $16.3 Gross Profit $12.6 Gross Margin 78% Operating Income $2.5 Operating Margin 16% Net Income $2.0 Diluted EPS $0.22 Diluted Shares 8,953,349 Cash Provided by Operations $3.2
Three Months Ended December 31, 2025: Revenues $18.9 Gross Profit $14.8 Gross Margin 78% Operating Income $3.6 Operating Margin 19% Net Income $2.8 Diluted EPS $0.32 Diluted Shares 8,689,290 Cash Provided by Operations $3.0
Year Ended June 30, 2024: Revenues $54.7 Gross Profit $41.7 Gross Margin 76% Operating Income $6.6 Operating Margin 12% Net Income $5.2 Diluted EPS $0.58 Diluted Shares 8,864,585 Cash Provided by Operations $9.1
Year Ended June 30, 2025: Revenues $64.0 Gross Profit $50.0 Gross Margin 78% Operating Income $9.7 Operating Margin 15% Net Income $7.5 Diluted EPS $0.85 Diluted Shares 8,914,421 Cash Provided by Operations $11.4
TTM December 31, 2025 (unaudited): Revenues $68.9 Gross Profit $53.9 Gross Margin 78% Operating Income $11.5 Operating Margin 17% Net Income $9.0 Diluted EPS $1.03 Diluted Shares 8,689,290 Cash Provided by Operations $9.1
FAQ
How did Electromed (ELMD) perform in its fiscal 2026 second quarter?
What drove Electromed’s revenue growth in Q2 FY 2026?
How profitable was Electromed (ELMD) in the quarter ended December 31, 2025?
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Filing Exhibits & Attachments
6 documentsPress Releases
