Electromed, Inc. Announces Record Financial Performance in Fiscal 2026 Third Quarter

18% Revenue growth and strong operating leverage exceeds consensus expectations for the third quarter of fiscal 2026NEW 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 nine months ended March 31, 2026 (“Q3 FY 2026”). Q3 FY 2026 Company Highlights Net revenues increased 18.4% to a record $18.6 million in Q3 FY 2026, from $15.7 million in the third quarter of the prior fiscal year, led by an 18.6% increase in the core homecare market. Operating income increased to a record $3.8 million, a 76.0% increase from the third quarter of the prior fiscal year, and 20.3% of net revenues. Net income was a record $3.0 million, or $0.35 per diluted share, representing an increase of 58.8%, compared to $1.9 million, or $0.21 per diluted share in the third quarter of the prior fiscal year. “I'm happy to report that Electromed has delivered its 14th consecutive quarter of year-over-year revenue and profit growth. Electromed's unique business model created to address the underserved airway clearance market is achieving the desired results we had expected,” said Jim Cunniff, President and Chief Executive Officer. “We continue to make investments in our sales and fulfillment teams to drive greater prescription volumes and faster delivery of our SmartVest therapy to more patients. With 86% of covered lives in the United States now under contract and our manufacturing optimization complete, we're well-positioned to capture the opportunity in the underserved bronchiectasis market. As we look ahead, our strong operational foundation, strategic investments, and continued focus on education and awareness give us confidence in sustaining our trajectory of profitable growth." Q3 FY 2026 Results All amounts below are for the three months ended March 31, 2026, and compare to the three months ended March 31, 2025 (“Q3 FY 2025”). Net revenues grew 18.4% to $18.6 million, from $15.7 million. Revenue in our direct homecare business increased by 18.6% to $16.7 million, from $14.1 million. The increase in revenue was primarily due to an increase in direct sales representatives, increased sales representative productivity, and higher net revenues per sales representative. Throughout Q3 FY 2026, we averaged 57 homecare direct field sales representatives. The annualized homecare revenue per weighted average direct sales representative in Q3 FY 2026 was $1,168,000, exceeding Electromed’s target range for the year of $1,000,000 to $1,100,000. Non-homecare revenue was $1.8 million. Hospital revenue grew 42.5%, totaling $1.0 million. Homecare distributor revenue was $0.7 million, an increase of 2.7%. Other revenue of $0.1 million declined 40.7%. Gross profit increased year-over-year to $14.6 million or 78.8% of net revenues from $12.2 million or 78.0% 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 $10.5 million, representing an increase of $0.7 million or 7.2%. The increase in the current period was primarily due to the increased salaries and incentive compensation related to the higher average sales representative headcount and higher overall compensation costs. Operating income was $3.8 million or 20.3% of net revenues, compared to $2.1 million, or 13.6% of net revenues. The 76.0% increase in operating income was primarily due to the increases in revenue and gross profit. Net income increased by 58.8% to $3.0 million, or $0.35 per diluted share, compared to $1.9 million, or $0.21 per diluted share. As of March 31, 2026, Electromed had $17.0 million in cash, $28.3 million in accounts receivable and no debt, achieving a working capital of $40.0 million and total shareholders’ equity of $49.2 million. The cash balance reflects an increase of $1.7 million for the nine months ended March 31, 2026, compared to a decrease in cash of $0.8 million in the nine months ended March 31, 2025. The increase in cash for the nine months ended March 31, 2026, was driven primarily by positive operating cash flow of $6.7 million, partially offset by share repurchases of $3.9 million of Electromed common stock. Conference Call and Webcast InformationRead the full story here

Electromed, Inc. Announces Record Financial Performance in Fiscal 2026 Third Quarter

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