NEW PRAGUE, Minn.–(BUSINESS WIRE)–Aug 25, 2026–
Electromed, Inc. (“Electromed”) (NYSE American: ELMD), a leader in innovative airway clearance technologies, today announced financial results for the three months (“Q4 FY 2026″) and full year ended June 30, 2026 (“FY 2026″).
Q4 FY 2026 Company Highlights
Net revenue increased 11.6% to a record $19.4 million in Q4 FY 2026, from $17.4 million in the fourth quarter of the prior fiscal year. Operating income increased 25.8% over the prior year to a record $3.8 million, or 19.7% of net revenues. Net income increased 54.3% to a record $3.4 million, or $0.39 per diluted share, compared to $2.2 million, or $0.25 per diluted share, in the fourth quarter of the prior fiscal year. FY 2026 Company Highlights
Net revenue increased 15.3% to a record $73.8 million in FY 2026, from $64.0 million in the prior fiscal year.
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Operating income increased 43.7% over the prior year to a record $13.9 million, or 18.8% of net revenues. Net income was $11.3 million, or $1.30 per diluted share, compared to $7.5 million, or $0.85 per diluted share, in the prior fiscal year. Cash provided by operations totaled $9.7 million in FY 2026, compared to $11.4 million in the prior fiscal year. Electromed repurchased $3.9 million of its common stock throughout FY 2026. “Fiscal 2026 was another exceptional year for Electromed, as the company generated record revenues and profits.
The fourth fiscal quarter marked our 15th consecutive quarter of year-over-year revenue and profit growth. Also, our operating margin increased more than 370 basis points over FY 2025, which demonstrates our continued success in driving operational leverage,” said Jim Cunniff, Electromed’s President and Chief Executive Officer. “Our strong financial performance, combined with strategic investments in our sales force, systems, and bronchiectasis market development initiatives, positions us to capitalize on the opportunity to serve the approximately 800,000 diagnosed bronchiectasis patients who could benefit from our SmartVest® therapy. Our robust balance sheet with $20.5 million in cash, and recognition as one of Minnesota’s fastest-growing public companies has Electromed well-positioned for durable, long-term growth and value creation for our investors.”
Q4 FY 2026 Results
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All amounts below are for the three months ended June 30, 2026, and compare to the three months ended June 30, 2025.
Net revenues grew 11.6% to $19.4 million from $17.4 million. Revenue in our direct homecare business increased 15.2% to $17.7 million from $15.4 million. The increase in revenue was primarily due to an increase in direct sales representatives, increased sales representative productivity, and higher net revenues per approval. Gross profit increased to $15.3 million or 78.7% of net revenues from $13.6 million or 78.3% of net revenues. The increase in gross profit and gross margin was primarily due to increased revenue and higher net revenue per device. Selling, general and administrative (“SG&A”) expenses were $11.1 million, representing an increase of $0.8 million or 8.3%. 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 $3.8 million or 19.7% of net revenues, compared to $3.0 million, or 17.5% of net revenues. This increase in operating income was primarily due to increases in revenue and gross profit. Net income increased by 54.3% to $3.4 million, or $0.39 per diluted share, compared to $2.2 million, or $0.25 per diluted share. FY 2026 Summary
All amounts below are for the year ended June 30, 2026 (“fiscal 2026″) and compare to the fiscal year ended June 30, 2025 (“fiscal 2025″).
Net revenues for fiscal 2026 grew by 15.3% to a record $73.8 million, from $64.0 million in fiscal 2025. Revenue in our direct homecare market increased year-over-year by 16.3% to $66.6 million, from $57.3 million. The increase in revenue was due to an increase in direct sales representatives, increased sales representative productivity, and higher net revenues per approval. For the year ended June 30, 2026, we averaged 58 homecare field sales representatives. The homecare revenue per weighted average direct sales representative was $1,145,000, exceeding Electromed’s target range for the year of $1,000,000 to $1,100,000. Revenue in our non-homecare business grew to $7.2 million in fiscal 2026, an increase of $0.5 million, or 6.7%, from $6.7 million in fiscal 2025. The increase was primarily due to increased distributor and hospital revenue.
Gross profit increased to $57.9 million, or 78.5% of net revenues in fiscal 2026, from $50.0 million, or 78.1% of net revenues, in fiscal 2025. The increase in gross profit and gross margin was primarily due to increased revenue and higher net revenue per device. Selling, general and administrative (“SG&A”) expenses were $42.7 million in fiscal 2026, representing an increase of $3.4 million or 8.7% from $39.3 million in fiscal 2025. The increase was primarily due to increased salaries and incentive compensation related to the higher average number of personnel in the sales, sales support, marketing, and reimbursement teams to process more patient referrals. Operating income was $13.9 million or 18.8% of net revenues in fiscal 2026, compared to $9.7 million, or 15.1% of net revenues in fiscal 2025. This increase in operating income was primarily due to increases in net revenues and gross profit. Net income for fiscal 2026 was $11.3 million, or $1.30 per diluted share, compared to $7.5 million, or $0.85 per diluted share in fiscal 2025.
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As of June 30, 2026, Electromed had $20.5 million in cash, $29.8 million in accounts receivable and no debt, achieving working capital of $45.1 million and total shareholders’ equity of $54.0 million. The cash balance reflects an increase of $5.2 million for the twelve months ended June 30, 2026, compared to a decrease in cash of $0.8 million in the twelve months ended June 30, 2025. The increase in cash for the twelve months ended June 30, 2026, was driven primarily by positive operating cash flow of $9.7 million, partially offset by share repurchases of $3.9 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, August 25, 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=1770216&tp_key=c0342b57c3
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 13761827.
Additionally, an online replay will be available for at least 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 “continue,” “expect,” “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, 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, 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; wage and component price inflation; rising energy costs and geopolitical conflict; 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
As of June 30,
2026
2025
Assets
Current Assets
Cash and cash equivalents
$
20,450,000
$
15,287,000
Accounts receivable (net of allowances for credit losses of $45,000)
29,805,000
24,660,000
Contract assets
1,094,000
1,036,000
Inventories
3,681,000
3,299,000
Prepaid expenses and other current assets
1,170,000
392,000
Income tax receivable
1,168,000
408,000
Total current assets
57,368,000
45,082,000
Property and equipment, net
5,214,000
4,714,000
Finite-life intangible assets, net
379,000
371,000
Other assets
1,270,000
1,173,000
Deferred income taxes
2,036,000
2,462,000
Total assets
$
66,267,000
$
53,802,000
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable
$
2,643,000
$
2,667,000
Accrued compensation
6,071,000
5,079,000
Warranty reserve
1,899,000
1,645,000
Other accrued liabilities
1,609,000
1,077,000
Total current liabilities
12,222,000
10,468,000
Other long-term liabilities
66,000
125,000
Total liabilities
12,288,000
10,593,000
Shareholders’ Equity
Common stock, $0.01 par value per share, 13,000,000 shares authorized; 8,366,163 and 8,349,176 shares issued and outstanding, as of June 30, 2026, and June 30, 2025, respectively
84,000
83,000
Additional paid-in capital
25,331,000
21,941,000
Retained earnings
28,564,000
21,185,000
Total shareholders’ equity
53,979,000
43,209,000
Total liabilities and shareholders’ equity
$
66,267,000
$
53,802,000
Electromed, Inc. Condensed Statements of Operations
Three Months Ended
Year Ended
June 30,
June 30,
2026
2025
2026
2025
(Unaudited)
(Unaudited)
Net revenues
$
19,417,000
$
17,393,000
$
73,776,000
$
64,000,000
Cost of revenues
4,133,000
3,769,000
15,833,000
14,029,000
Gross profit
15,284,000
13,624,000
57,943,000
49,971,000
Operating expenses
Selling, general and administrative
11,131,000
10,282,000
42,748,000
39,315,000
Research and development
328,000
302,000
1,314,000
996,000
Total operating expenses
11,459,000
10,584,000
44,062,000
40,311,000
Operating income
3,825,000
3,040,000
13,881,000
9,660,000
Interest income, net
136,000
135,000
479,000
624,000
Net income before income taxes
3,961,000
3,175,000
14,360,000
10,284,000
Income tax expense
560,000
971,000
3,059,000
2,747,000
Net income
$
3,401,000
$
2,204,000
$
11,301,000
$
7,537,000
Income per share:
Basic
$
0.41
$
0.26
$
1.37
$
0.89
Diluted
$
0.39
$
0.25
$
1.30
$
0.85
Weighted-average common shares outstanding:
Basic
8,258,440
8,334,821
8,266,071
8,454,100
Diluted
8,734,188
8,718,900
8,688,563
8,914,421
Electromed, Inc. Condensed Statements of Cash Flows
Years Ended June 30,
2026
2025
Cash Flows from Operating Activities
Net income
$
11,301,000
$
7,537,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
868,000
1,039,000
Impairment of intangible assets
—
212,000
Amortization
208,000
133,000
Share-based compensation expense
2,722,000
3,059,000
Deferred income taxes
426,000
(310,000
)
Changes in operating assets and liabilities:
Accounts receivable
(5,145,000
)
(1,327,000
)
Contract assets
(58,000
)
(317,000
)
Inventories
(517,000
)
175,000
Prepaid expenses and other assets
(1,024,000
)
(959,000
)
Income tax receivable, net
(760,000
)
(685,000
)
Accounts payable and accrued liabilities
652,000
1,650,000
Accrued compensation
992,000
1,186,000
Net cash provided by operating activities
9,665,000
11,393,000
Cash Flows from Investing Activities
Expenditures for property and equipment
(1,252,000
)
(262,000
)
Expenditures for finite-life intangible assets
(48,000
)
(44,000
)
Net cash used for investing activities
(1,300,000
)
(306,000
)
Cash Flows from Financing Activities
Issuance of common stock upon exercise of options
965,000
398,000
Taxes paid on net share settlement of stock awards
(249,000
)
(2,278,000
)
Repurchase of common stock
(3,918,000
)
(10,000,000
)
Net cash used for financing activities
(3,202,000
)
(11,880,000
)
Net increase (decrease) in cash
5,163,000
(793,000
)
Cash and cash equivalents
Beginning of period
15,287,000
16,080,000
End of period
$
20,450,000
$
15,287,000
View source version on businesswire.com: https://www.businesswire.com/news/home/20260825250618/en/
CONTACT: Brad Nagel, Chief Financial Officer
(952) 758-9299
[email protected]
Mike Cavanaugh, Investor Relations
ICR Healthcare
(617) 877-9641
[email protected]
KEYWORD: MINNESOTA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: MEDICAL DEVICES HOSPITALS FDA CLINICAL TRIALS HEALTH TECHNOLOGY PRACTICE MANAGEMENT BIOTECHNOLOGY PHYSICAL THERAPY GENERAL HEALTH HEALTH
SOURCE: Electromed, Inc.
Copyright Business Wire 2026. PUB: 08/25/2026 04:05 PM/DISC: 08/25/2026 04:05 PM
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