Business
Electromed, Inc. Announces First Quarter Fiscal 2026 Results
NEW PRAGUE, Minn., November 12, 2025--Electromed Reports First Quarter Fiscal 2026 Results
About this update from Electromed, Inc.
Strong operational execution results in twelfth consecutive quarter of year-over-year revenue and net income growth NEW PRAGUE, Minn., November 12, 2025 --( 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, 2025 ("Q1 FY 2026"). Q1 FY 2026 Company Highlights "Electromed kicked off the new fiscal year with another tremendous quarter. Our sales and fulfillment teams continue to power our top line growth, while expanding our presence in the Hospital and Distributor markets to complement our core Homecare business. Operationally, improved efficiencies drove strong operating leverage and profitability," said Jim Cunniff, Electromed’s President and Chief Executive Officer. "During the quarter, we completed our manufacturing optimization plan, which we believe positions us for future growth. Moreover, during the quarter, our team continued to implement programs to further improve efficiencies throughout the organization. Of note, is the recent implementation of our new CRM system, which has had a meaningful and immediate impact on our sales team’s productivity. I believe that Electromed is ideally positioned to generate attractive returns for shareholders in fiscal 2026 and beyond." Q1 FY 2026 Results All amounts below are for the three months ended September 30, 2025, and compare to the three months ended September 30, 2024 ("Q1 FY 2025"). Net revenues grew 15.1% to $16.9 million, from $14.7 million. Revenue in our direct homecare business increased year-over-year by 12.7% to $14.9 million, from $13.2 million. The increase in revenue was primarily due to an increase in direct sales representatives and higher net revenues per sales representative. Throughout Q1 FY 2026, we averaged 57 homecare direct field sales representatives. The annualized homecare revenue per weighted average direct sales representative in Q1 FY 2026 was $1,052,000, which is within Electromed’s target range of $1,000,000 to $1,100,000. Revenue in our non-homecare businesses increased year-over-year, coming in at $2.0 million. Hospital revenue grew 51.7%, increasing to $1,047,000, and Homecare distributor revenue of $829,000 grew 41.2%. These were partially offset by a 32.2% decrease in Other revenue, which decreased to $122,000. Gross profit increased year-over-year to $13.2 million or 78.1% of net revenues from $11.5 million or 78.3% of net revenues. The increase in gross profit dollars was primarily a result of increased overall revenue and higher net revenues per device. The decrease in gross profit percentage was a result of higher costs, which were partially offset by higher net revenues per device. Selling, general and administrative ("SG&A") expenses were $10.3 million, representing an increase of $0.9 million or 9.6%. The increase in the current period was primarily due to the increased salaries and incentive compensation related to the higher average number of personnel in the sales, sales support, marketing, and reimbursement teams to process higher patient referrals. Operating income was $2.7 million or 15.8% of net revenues, compared to $1.9 million, or 13.2% of net revenues. This increase in operating income was primarily due to an increase in revenue and gross profit. Net income increased by 44.9% to $2.1 million, or $0.25 per diluted share, compared to $1.5 million, or $0.16 per diluted share in Q1 FY 2025. As of September 30, 2025, Electromed had $14.1 million in cash, $24.8 million in accounts receivable and no debt, achieving a working capital of $35.8 million and total shareholders’ equity of $44.7 million. The cash balance reflects a decrease of $1.2 million for the three months ended September 30, 2025, compared to a decrease in cash of $2.2 million in the three months ended September 30, 2024. The decrease in cash for the three months ended September 30, 2025, was driven primarily by share repurchases of $1.0 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 Wednesday, November 12, 2025. 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=1738570&tp_key=2cea7a4b9e 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 replay pin number 10203773. Additionally, an online replay 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. Electromed, Inc. Condensed Balance Sheets Electromed, Inc. Condensed Statements of Operations (Unaudited) Electromed, Inc. Condensed Statements of Cash Flows (Unaudited) View source version on businesswire.com: https://www.businesswire.com/news/home/20251112771398/en/ Contacts Brad Nagel, Chief Financial Officer (952) 758-9299 [email protected] Mike Cavanaugh, Investor Relations ICR Healthcare (617) 877-9641 [email protected]