ELMD

Image source: The Motley Fool. Tuesday, Aug. 25, 2026 at 5:00 p.m. ET Investor Relations - Mike Cavanaugh President and Chief Executive Officer - James Cunniff Chief Financial Officer - Brad Nagel Operator: Greetings, and welcome to the Electromed Fiscal Q4 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Mike Cavanaugh, Investor Relations. Thank you, Mike. You may begin. Mike Cavanaugh: Good afternoon, and thank you for joining the Electromed earnings call. Earlier today, Electromed Inc. released financial results for the fourth quarter of fiscal 2026. The press release is currently available on the company's website at www.smartvest.com. Before we get started, I would like to remind everyone that some of the statements that management will make on this call are considered forward-looking statements, including statements about the company's future operating and financial results and plans. Such statements are subject to risks and uncertainties that could cause actual performance or achievements to be materially different from those projected. Any such statements represent management's expectations as of today's date. You should not place any undue reliance on those forward-looking statements, and the company does not undertake any obligation to update or revise forward-looking statements, whether because of new information, future events or otherwise. Please refer to the company's SEC filings for further guidance on this matter. Joining me on the call today are Jim Cunniff, Electromed's President and Chief Executive Officer; and Brad Nagel, Chief Financial Officer. As on previous calls, Jim will provide operational highlights from the quarter. Brad will then review the financials, and we will close with a question-and-answer session. With that, I will now turn the call over to Jim Cunniff, President and Chief Executive Officer of Electromed. James Cunniff: Thank you, Mike, and thank you all for joining us today. I'm pleased to report on another record quarter for Electromed. Q4 marks our 15th consecutive quarter of year-over-year revenue and profit growth, a track record that reflects the durability of our direct-to-patient model and the growing recognition of SmartVest within the bronchiectasis community. Net revenue for the fourth quarter was a record $19.4 million, up 12% versus the fourth quarter of last year. We again delivered operating leverage in the quarter. Operating income was $3.8 million in Q4, representing 26% year-over-year growth. Earnings per share was also a quarterly record at $0.39 per share on a fully diluted basis. Growth in the quarter was led by our core home care channel, which grew 15% and our distributor channel, which grew 2%, both reflecting consistent demand for our SmartVest. Hospital revenue declined 29% in the quarter. As we've discussed on prior calls, hospital orders have a longer sales cycle and are inherently less predictable than our other channels. We are bullish on our hospital as a gateway to the home, and we'll continue to invest in this area of our business. We ended the quarter with 64 direct sales representatives, an increase of 6 reps versus the third quarter. This increase reflects hiring ahead of our planned territory expansions in fiscal 2027, and we're pleased with the caliber of talent we've been able to bring on to the team. We continue to expand our sales force deliberately, and I continue to be impressed with the revenue growth the team has delivered. As many of you know, the largest strategic opportunity for Electromed is within the underserved bronchiectasis market. Today, approximately 1 million patients in the United States are diagnosed with bronchiectasis, yet only about 16% are currently benefiting from high-frequency chest wall oscillation therapy. That leaves approximately 800,000 patients who have been diagnosed with bronchiectasis that could benefit from SmartVest but have not been prescribed therapy. We also estimate that more than 4 million additional individuals may have undiagnosed bronchiectasis which underscores the market opportunity and necessity for further patient and provider education. To address this, we initiated our triple down on bronchiectasis campaign last year to raise awareness of our therapy to highlight the integral part airway clearance plays in the treatment of bronchiectasis. The campaign is built around our 3-part treatment approach. Number one, clear airways first with SmartVest to remove the mucus that fuels future infections; second, treat the infection with antibiotics; and third, reduce inflammation. Together, these 3 steps are designed to break the cycle of chronic infection, persistent inflammation and airway damage that drives progressive lung disease and decline in quality of life for these patients. This year, we've expanded this campaign with a new initiative we're calling Treat Smart from the start, which is designed to help clinicians identify patients whose current airway clearance therapy isn't working and determine whether it's time to reassess treatment. Beyond these campaigns, our clinical team remained active raising awareness among providers this quarter. We presented at 2 regional respiratory conferences reaching a combined audience of more than 200 clinicians. Additionally, we conducted 3 peer-to-peer webinars this quarter, each with at least 100 clinicians in attendance and attended several national conferences. On the research side, we completed a manuscript, which was accepted for publication in the September issue of the COPD Foundation Journal. Using data from the NTM Bronchiectasis Research Registry, the study found that 58% of qualified patients were not prescribed HFCWO therapy despite meeting all the clinical criteria needed for insurance coverage. That's a meaningful gap we are addressing by engaging physicians who diagnose high volumes of bronchiectasis patients but are not yet prescribing HFCWO therapy. Separately, the BE NTM Association launched a new educational website for physicians and patients, including a quick guide on airway clearance. We're proud to be a sponsor of their airway clearance resource library helping close the void in patient and provider education. I've talked previously about our smart order e-prescribe solution, which is changing how prescribing clinics submit orders more efficiently to our fulfillment team. Of note, the Centers for Medicare and Medicaid Services finalized its rule on administrative simplification, adopting new standards for health care claims attachment transactions and electronic signatures. In practice, this means covered entities will need to modernize how they process orders and phase out faxes by May of 2028. Our e-prescribed solution already meets CMS' requirements for electronic signatures and order processing, which positions us well as the industry moves away from faxes. In the fourth quarter, more than 45% of the orders we received came through Smart Order and those orders shipped on average 5 days faster than orders submitted by fax. Expanding payer coverage remains one of our core strategies because it's what ultimately gives patients in need access to SmartVest. We ended the year with 87% of covered lives in the United States under contract. This is a tremendous accomplishment by our market access team, which ended the year by having executed 40 new payer contracts and expanded our network by more than 6 million covered lives. I'm also proud that Electromed's products are manufactured here in the United States. Given the supply chain disruptions we've seen across the industry, we believe our U.S.-based operations are competitive advantage. 99% of our net revenue is generated domestically and that concentration gives us confidence in our ability to maintain our strong track record of on-time delivery and our mid-70% or better gross margins. I also want to recognize the Electromed team, which continues to operate at a high level. Recently, the Minneapolis St. Paul Business Journal named Electromed the eighth fastest-growing public company in Minnesota, and we were named a top workplace in Minnesota this year by the Star Tribune. In fiscal 2026, 45% of our new hires came through employee referrals. Our employees are engaged and want to bring others like them on to the team. We believe engaged employees lead to engaged customers, and that virtuous cycle is a big part of how we built this business. Before I turn the call over to Brad, I'd like to take a moment to address an important leadership transition that we also announced today. After considerable thought and discussion with our Board, I have decided to retire as Chief Executive Officer of Electromed with expected timing in April 2027. My decision is accompanied by a thoughtful succession planning process led by our Board, and I believe the timing will be right for the company and for me personally. I'm extremely proud of what our team has accomplished over the past 3 years. We've built a strong business, established a clear strategy for growth and most importantly, developed a talented leadership team that gives me tremendous confidence in the company's future. Between now and my retirement, my focus will remain exactly where it's been on executing our strategy, delivering against our commitments to shareholders and ensuring a smooth transition of leadership. I have never been more confident in the strength of the organization or in its opportunities. I'm grateful to our employees, customers, shareholders and Board for the opportunity to lead this company, and I look forward to continuing to work with the team over the coming months. With that, Brad, over to you. Brad Nagel: Thank you, Jim. I've enjoyed our partnership and your leadership of the Electromed team over the past few years, and I look forward to continuing to work with you until your retirement. Turning to our financial results. All amounts I'm about to review are for the 12 months ended June 30, 2026, which I will refer to as fiscal 2026 and compared to the 12 months ended June 30, 2025, or fiscal 2025, unless otherwise noted. Net revenues for Q4 grew 11.6% to $19.4 million, bringing net revenues for our full fiscal year 2026 to a record $73.8 million or 15.3% growth from $64 million last year. Annual revenues in our direct home care market increased year-over-year by 16.3% to $66.6 million from $57.3 million in the prior year. The increase in revenue was due to an increase in direct sales representatives, increased sales representative productivity and higher net revenues per approval. The annualized home care revenue per weighted average direct sales representative in fiscal year 2026 was $1,145,000, exceeding Electromed's target range of $1 million to $1,100,000 per rep. With our strong performance in fiscal 2026 and continued efficiency expected in fiscal 2027, we're increasing our target range for fiscal year 2027 home care revenue per rep to a range of $1,050,000 to $1,150,000 as we balance the record sales rep productivity we saw in fiscal 2026 with the sales team expansion plans for fiscal 2027. Revenue in our non-home care business grew 6.7% to $7.2 million in fiscal 2026. The increase was primarily due to increased distributor and hospital revenue, which grew 12.7% and 9.6%, respectively. Gross profit increased to $57.9 million or 78.5% of net revenues from $50 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 or SG&A expenses were $42.7 million, representing an increase of $3.4 million or 8.7% from $39.3 million. 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 this year was $13.9 million or 18.8% of net revenues compared to $9.7 million or 15.1% of net revenues last year. The growth of 43.7% in operating income reflects the leverage benefit of mid-teen growth in net revenues and gross profit, balanced with the disciplined investment into the business' operating expenses, which grew about 9%. When putting these full year results together, we're excited to have delivered a record year with pretax income of $14.4 million, net income of $11.3 million and full year EPS of $1.30 per diluted share. As of June 30, 2026, Electromed had $20.5 million in cash, $29.8 million in accounts receivable and no debt, achieving a working capital of $45.1 million and total shareholders' equity of $54 million. The cash balance reflects an increase of $5.2 million for the year ended June 30, 2026, compared to a decrease in cash of $0.8 million in the same period in the prior year. The increase in cash for the 12 months ended June 30, 2026, was driven primarily by positive operating cash flow of $9.7 million, partially offset by repurchases of Electromed common stock totaling $3.9 million. I'll close by saying that Jim and I are very encouraged by the commitment and energy of the Electromed team as we continue bringing our innovative SmartVest technology to patient populations that remain significantly underserved. It's rewarding to see how that dedication to the patients and physicians we serve has translated into strong financial performance throughout fiscal 2026, creating meaningful value for Electromed and our shareholders. As we look forward into fiscal 2027, we continue to see opportunity to leverage the investments we've made to drive both our mission and our financial commitments forward, delivering double-digit top line growth, expanded operating leverage and strong operating cash flow in the new year. Operator, please open the call to questions. Operator: [Operator Instructions] Our first question comes from the line of Kyle Bauser with Titan Partners. Kyle Bauser: But first, Jim, congrats on your retirement next year, we wish you all the best. James Cunniff: Thank you, Kyle. I appreciate that. Kyle Bauser: Yes. Glad to see there's some time to make the transition. So thanks for the update there. And maybe for my first question, obviously, another really strong quarter of operating leverage, and you talked a little bit about it. But maybe you could just discuss a bit about your expectations for continued leverage in fiscal '27. And any expectations to kind of add more reps in territories as well? James Cunniff: Well, as I think Brad said it well, we're expecting this year to be not necessarily a repeat of last fiscal year, but we're certainly projecting that we will be able to deliver double-digit top line growth and operating leverage. And that's been the mantra that we've been beating the drum on for the last 3 years, and we've been able to deliver on that. So yes, we're confident we'll be able to do that. We have added sales reps, which we're excited about. So as you heard in the prepared remarks, we really ended the year with 64 direct sales reps. A lot of those actually came in, in June of the last fiscal year. But the good news is they were to help fill the void for territory expansions that we have for this fiscal year. So we're kind of hitting the ground running. That includes actually 2 hospital account liaisons. These are folks that we're actually doing a pilot with in a couple of key markets to see if we can capture some of those patients that are in the hospital that then get transitioned to the home and get those referrals. In addition to that, we also have 3 additional territories that we're looking to fill. So our touch wood, our expectation is to have 67 territories filled this year, including 2 hospital account liaisons. Brad had also mentioned in his comments that we have raised our guidance on the revenue per rep for this year, albeit it's below where we ended up last year. And that's mainly because, as you know, Kyle, some of these reps are going to take some time to ramp up and become productive for us. But yes, we're really bullish on the business and the new talent that we're bringing on to the team. Kyle Bauser: Got it. Appreciate that. And maybe for my follow-up, obviously, the cash balance continues to grow amid very strong share price. Any thoughts on your capital allocation strategy and how you're thinking about deploying cash going forward? Brad Nagel: Thanks for the question, Kyle. Yes, the strategy remains the same. We continue to think in terms of priorities with our cash. First, just derisking the business. Second, investing back into the business. And as Jim mentioned, we are adding quite a few sales reps as we come into 2027 and want to support them, not just the headcount, but also with sort of the right marketing support, the right investment into R&D, continuing to reinvest into the business to the extent that we can and still show leveraged growth across the P&L. Beyond that, as we have in the past, we'll continue to look for ways to add shareholder value. Our key method of operation on that has been through share repurchases, which we've done over the past couple of years. So opportunistically, when we have the option to, we'll continue to find ways to create that shareholder value. Operator: Our next question comes from the line of Arailym Kanatkyzy with Freedom Broker. Arailym Kanatkyzy: Before I get to my questions, congratulations on the announcement. 3 years and 15 straight quarters is a good place to hand off from. So I want to say thanks for taking my question. James Cunniff: Thank you for the kind words. Arailym Kanatkyzy: So first question is about R&D. Spend was up meaningfully year-over-year in percentage terms. So it's still a small name for the P&L. Can you give us a sense of what that dollar is actually going forward or going forward to? Is it iteration on the Clearway generator? Is it the connectivity and data side of things like smart nodes? Or is it work on something adjacent to the current platform? James Cunniff: That's a great question. And to your point, it's actually on a really small base, our R&D investment. We are a single product company. And so when you take a look at our R&D spend, it's really bifurcated for sustaining engineering. So we're always looking at upgrading the technology that we have today. That's one element to it. And so we're investing in that. The other side of it is innovation. And I think I've mentioned this on previous calls in the past. One of the areas that we believe needs a little bit more innovation on our side. There's really 2 areas, one of which is connectivity and we're working on that right now, as you had mentioned. And then the second piece of it is really just expanding our vest line. And so to do that predominantly on the smaller sizes of our vest, that's really where a big focal point of our R&D team is, is to enhance that and expand it. Arailym Kanatkyzy: Great. And I also have a related question. So acquisition shows up in the deck as one of the 3 main pillars of the growth strategy. I want to know the detail behind it. When you talk about inorganic opportunities, what problem are you trying to solve? Is it adding a second product to the reps are already carrying? Or is it acquiring a capability like monitoring data? Or is it about diversification? James Cunniff: Yes, it could be all of the above. No, I think those are great questions. So we're always looking at -- we are a single product company. It would be great if we could add another leg to the stool for our sales reps, add something to their bag that complements the call point that they focus on and enhances the customer relationship. And we are constantly on the lookout if there's a 1 plus 1 equals 3, we're interested in it. We just haven't found it yet. And to your question, we're not pigeonholing ourselves into one inorganic opportunity. If it makes sense for our sales rep and it complements what they're doing, that's something that we're very much open to. Conversely, we've got a terrific reimbursement team and contracting engine. And in the home care space, that's a very valuable asset. And so that's another area where we could see leveraging that capability through an acquisition and bringing somebody on board who may have a technology that fits this space, but they don't have that same type of capability. Arailym Kanatkyzy: I am really excited for the results. James Cunniff: Thank you so much. Operator: Our next question comes from the line of Ben Haynor with Lake Street Capital Markets. Benjamin Haynor: First off for me, just thinking about payer mix as we get into fiscal 2027, it looks like you had commercial go down a couple of few hundred basis points over the course of fiscal '26. Some of that is probably comps, Medicare and Medicare Advantage up a little bit. How should we think about that tracking? Is it just kind of bounce around? Is there any underlying trends that make things go towards one or the other? James Cunniff: Yes. No, first off, thanks for the question, Ben, and thanks for being on the call. As you know, when we're going into a clinic and talking to a physician, we're not identifying who the payer type is that the patient has. What we're really looking for is are there patients that could benefit from using our technology. And so from that, it's kind of a black box for us. We really don't find out what type of insurance that patient has until we've gotten a prescription. And so typically and historically, the split has been pretty even between Medicare and commercial pay. I think the good news and one of the things we want to highlight is the fact that over the course of the last fiscal year, we've added 6 million additional covered lives. So in the past, we might have gotten a prescription. We may have been out of network, and we can't fulfill that because the patient doesn't want to be burdened with a large out-of-pocket expense. And so by continuing to add payer coverage, it just helps our ability to serve our patients and our ability to no longer be out of network. Benjamin Haynor: Okay. So there's not necessarily a clear trend except for perhaps demographics? James Cunniff: No. I mean I think the reality is what's the stat? I think there's about 10,000 people per day who turn 65. And so the trend is more towards Medicare. But again, when we look historically over the last 3 years, the Medicare to commercial pay split has been pretty much 50-50. Benjamin Haynor: Sure. That makes sense. And then secondly for me on the CHEST guidelines, I believe those got published not all that long ago, listing HFCWO kind of across the board, I believe. What does that do for your reps when they're detailing [indiscernible]? Can you give us a sense of how that helps folks out? James Cunniff: Yes. I think the good news is there's never been care guidelines in the United States on how to treat bronchiectasis patients. And the guidelines truthfully, they're going to be published later on this quarter. And so we're excited about that. It's been on the horizon for a long time, Ben, as you know. And it's not as definitive as we would like. There's not really an algorithm for treatment of bronchiectasis patients. Really what the guidelines point to is what are some of the different things that a provider can use to take care of bronchiectasis patients. And included in that is airway clearance, no surprise. And as you even heard on my remarks, these patients, they have a chronic irreversible condition. They have fluid that's building up in their lungs, and they need something to remove that mucus, which is the fuel for future infections. And so we're kind of the first point of attack. The other thing I would just point you to is, and this is exciting is that in conjunction with the CHEST guidelines, the bronchiectasis and NTM Foundation have actually just introduced new BE care pathway. And I think that's going to be a little bit better for health care providers to understand what tools they have in their toolbox to treat bronchiectasis patients. So it's good news for the industry in general, and it's good news for us because airway clearance is included in both of those guidelines. Benjamin Haynor: Congrats on the retirement going on top. James Cunniff: Yes, appreciate it Ben. Thank you so much. Operator: There are no further questions at this time. I'd like to turn the floor back over to Jim Cunniff for closing comments. James Cunniff: Yes. Thank you, operator. And before we close the call, I just want to leave you with some key takeaways from this past quarter. First, this was our 15th consecutive quarter of year-over-year revenue and profit growth with record revenue and record diluted earnings per share. It's our goal to deliver continued growth and profitability. In line with this goal, we're investing ahead of demand such as adding to our sales force. The bronchiectasis opportunity remains substantial and our Treat Smart from the Start campaign, together with our clinical, educational and payer initiatives are all designed to help us reach more patients responsibly. Our financial foundation is strong. We have a debt-free balance sheet and strong cash generation, which enable us to keep investing in profitable growth. As always, I want to thank you for joining us today. If you have questions or would like to schedule a call with the Electromed team after today's report, please reach our Investor Relations partners at ICR Healthcare. Operator, please close the call. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Electromed, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Electromed wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Electromed. The Motley Fool has a disclosure policy. Electromed (ELMD) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 15th consecutive quarter of year-over-year revenue and profit growth, driven by the durability of the direct-to-patient model and increased SmartVest recognition. Home care revenue grew 15% due to a combination of increased sales representative headcount, higher productivity per rep, and improved net revenue per approval. Hospital revenue declined 29% in Q4, which management attributes to inherently longer and less predictable sales cycles compared to home care channels. The 'Triple Down on Bronchiectasis' campaign focuses on a three-part treatment framework to break the cycle of chronic infection and inflammation in an underserved market. Strategic investment in the 'Smart Order' e-prescribe solution resulted in 45% of orders being processed digitally, reducing shipping times by an average of 5 days. Maintained mid-70% or better gross margins by leveraging U.S.-based manufacturing, which provides a competitive advantage against global supply chain disruptions. Expanded payer coverage to 87% of U.S. covered lives, adding 6 million lives and 40 new contracts to minimize out-of-network barriers for patients. Management expects to deliver double-digit top-line growth and continued operating leverage throughout fiscal 2027. The sales force target is set at 67 territories for the coming year, including a pilot program utilizing two hospital account liaisons to capture home care referrals. Increased the fiscal 2027 home care revenue target per representative to a range of $1,050,000 to $1,150,000 to balance high productivity with new hire ramp-up periods. CEO James Cunniff announced retirement effective April 2027, announcing a leadership transition with the CEO expected to retire in April 2027 to ensure leadership continuity and strategic execution. Anticipated publication of CHEST guidelines and the new BE Care Pathway are expected to improve provider understanding of airway clearance tools. CMS administrative simplification rules will require the phasing out of faxed orders by May 2028, a transition the company is already navigating via its e-prescribe platform. Operating expenses grew 9% in fiscal 2026, reflecting disciplined investment in sales support and reimbursement teams to handle increased patient referral volumes. The company remains a single-product entity, creating a strategic focus on R&D for product line expansion and potential inorganic diversification. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed they are hiring ahead of demand, ending the year with 64 reps and targeting 67 in fiscal 2027. The company is piloting hospital account liaisons to better bridge the gap between inpatient treatment and home care referrals. Priorities remain derisking the business, reinvesting in R&D and marketing, and opportunistically returning value via share repurchases. Management is actively seeking M&A opportunities that could add a 'second leg to the stool' for sales reps or leverage their reimbursement engine. Spending is bifurcated between sustaining engineering for current technology and innovation in connectivity and vest size expansion. The company aims to enhance its digital connectivity capabilities and expand the vest line, particularly for smaller patient sizes. While aging demographics favor Medicare, the historical split between Medicare and commercial remains approximately 50-50. The primary focus is on expanding the total number of contracted covered lives to ensure prescriptions are not lost to out-of-network costs.

This article first appeared on GuruFocus. Net Revenue (Q4 FY2026): Record $19.4 million, up 11.6% year-over-year. Net Revenue (Full Year FY2026): Record $73.8 million, up 15.3% from $64 million in FY2025. Operating Income (Q4 FY2026): $3.8 million, up 26% year-over-year. Earnings Per Share (Q4 FY2026): Record $0.39 per diluted share. Gross Profit (Full Year FY2026): $57.9 million, or 78.5% of net revenues, up from 78.1% in FY2025. SG&A Expenses (Full Year FY2026): $42.7 million, up 8.7% from $39.3 million. Operating Income (Full Year FY2026): $13.9 million, or 18.8% of net revenues, up 43.7% from $9.7 million (15.1% of net revenues) in FY2025. Net Income (Full Year FY2026): $11.3 million, with full-year EPS of $1.30 per diluted share. Cash Position: $20.5 million in cash, no debt, and working capital of $45.1 million as of June 30, 2026. Operating Cash Flow (Full Year FY2026): Positive $9.7 million. Home Care Revenue (Full Year FY2026): $66.6 million, up 16.3% year-over-year. Non-Home Care Revenue (Full Year FY2026): $7.2 million, up 6.7%. Distributor Channel Revenue (Q4 FY2026): Grew 2% year-over-year. Hospital Revenue (Q4 FY2026): Declined 29% year-over-year. Sales Representatives: Ended the quarter with 64 direct sales representatives, an increase of six versus the third quarter. Home Care Revenue per Rep (FY2026): $1,145,000, exceeding the target range of $1 million to $1.1 million. Warning! GuruFocus has detected 6 Warning Signs with MDDNF. Is ELMD fairly valued? Test your thesis with our free DCF calculator. Release Date: August 25, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Electromed Inc (ELMD) delivered its 15th consecutive quarter of year-over-year revenue and profit growth, with record Q4 net revenue of $19.4 million, up 12% year-over-year. The company achieved strong operating leverage, with Q4 operating income growing 26% to $3.8 million and full-year EPS reaching a record $1.30 per diluted share. Home care channel revenue grew 15% in Q4 and 16.3% for the full year, driven by increased sales rep productivity, which exceeded the company's target range. Electromed Inc (ELMD) expanded its payer coverage to 87% of covered lives in the U.S., adding 6 million covered lives through 40 new payer contracts in fiscal 2026. The company's Smart Order ePrescribe solution is gaining traction, with over 45% of orders coming through the platform, shipping five days faster than fax orders, and positioning the company well for CMS's upcoming electronic order standards. Hospital revenue declined 29% in Q4, reflecting the inherent unpredictability and longer sales cycles of this channel. The company faces a significant market challenge, as only 16% of the approximately 1 million diagnosed bronchiectasis patients currently use HFCWO therapy, leaving a large underserved population. SG&A expenses increased 8.7% in fiscal 2026, driven by higher salaries and incentive compensation, which could pressure margins if revenue growth slows. The CEO's planned retirement in April 2027 introduces leadership transition uncertainty, which could impact strategic execution. R&D spending increased meaningfully year-over-year, but the company remains a single-product company, limiting diversification and increasing reliance on the SmartVest's success. Q: What are the expectations for continued operating leverage and sales force expansion in fiscal 2027?A: CEO James Cunniff stated the company expects to deliver double-digit top-line growth and operating leverage again in fiscal 2027. The company ended fiscal 2026 with 64 direct sales representatives, including two new hospital account liaisons, and plans to fill three additional territories to reach 67 total. The new reps are expected to take time to ramp up, which is reflected in the adjusted revenue-per-rep guidance of $1.05 million to $1.15 million for fiscal 2027. Q: How is the company thinking about capital allocation given its growing cash balance and strong share price?A: CFO Brad Nagel explained the capital allocation strategy remains consistent, with priorities being de-risking the business, investing back into operations (including new sales reps, marketing, and R&D), and then returning value to shareholders through opportunistic share repurchases, which the company has utilized over the past couple of years. Q: What is the increased R&D spending going toward?A: CEO James Cunniff noted that while R&D spend is on a small base, it is focused on two key areas: sustaining engineering to upgrade current technology, and innovation. The innovation efforts are specifically directed at improving device connectivity and expanding the vest product line, particularly in smaller sizes to better serve the patient population. Q: What is the strategy behind the company's inorganic growth pillar, and what problems is it trying to solve?A: CEO James Cunniff stated the company is open to acquisitions that could add a complementary product for sales reps to carry, enhance customer relationships, or leverage its strong reimbursement and contracting capabilities. The company is not pigeonholing itself to one type of opportunity and is looking for "one plus one equals three" scenarios, though it has not found the right fit yet. Q: How should investors think about the payer mix trend between commercial and Medicare as the company enters fiscal 2027?A: CEO James Cunniff explained that the company does not target specific payer types when detailing physicians, and the split has historically been about 50/50 between Medicare and commercial payers. While demographics may skew slightly toward Medicare as 10,000 people turn 65 daily, the key driver is expanding payer coverage. The company added 6 million covered lives in fiscal 2026, ending the year with 87% of covered lives under contract, which helps reduce out-of-network situations and fulfill more prescriptions. Q: How do the newly published CHEST guidelines for bronchiectasis help the sales reps when detailing physicians?A: CEO James Cunniff noted that these are the first-ever care guidelines for bronchiectasis in the U.S., and while they are not as definitive as an algorithm, they include airway clearance as a key treatment component. This validates the company's approach. Additionally, the Bronchiectasis and NTM Foundation launched a new care pathway that provides healthcare providers with a better understanding of available treatment tools, which is positive for the industry and for Electromed since airway clearance is included in both guidelines. Q: Can you provide more detail on the "Triple Down on Bronchiectasis" campaign and the new "Treat Smart from the Start" initiative?A: CEO James Cunniff explained that the campaign is built around a three-part treatment approach: clear airways first with SmartVest, treat the infection with antibiotics, and reduce inflammation. The new "Treat Smart from the Start" initiative is designed to help clinicians identify patients whose current airway clearance therapy isn't working and determine if it's time to reassess treatment. These campaigns aim to address the significant market opportunity, as only about 16% of the 1 million diagnosed bronchiectasis patients currently use HFCWO therapy. Q: What is the significance of the CMS rule on administrative simplification and how does it relate to the company's Smart Order ePrescribe solution?A: CEO James Cunniff highlighted that CMS finalized a rule requiring covered entities to modernize order processing and phase out faxes by May 2028. Electromed's Smart Order ePrescribe solution already meets CMS's requirements for electronic signatures and order processing, positioning the company well for this industry shift. In Q4, over 45% of orders came through Smart Order, and those orders shipped on average five days faster than faxed orders. Q: What drove the strong financial performance in fiscal 2026, and what are the key financial highlights?A: CFO Brad Nagel reported record full-year net revenues of $73.8 million, up 15.3% year-over-year. Gross margin improved to 78.5% from 78.1%, driven by increased revenue and higher net revenue per device. Operating income grew 43.7% to $13.9 million, reflecting operating leverage. The company delivered record pre-tax income of $14.4 million, net income of $11.3 million, and full-year EPS of $1.30 per diluted share. The company ended the year with $20.5 million in cash, no debt, and generated $9.7 million in operating cash flow. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Electromed, Inc. (ELMD) came out with quarterly earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +21.88%. A quarter ago, it was expected that this company would post earnings of $0.26 per share when it actually produced earnings of $0.35, delivering a surprise of +34.62%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Electromed, which belongs to the Zacks Medical - Instruments industry, posted revenues of $19.42 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.43%. This compares to year-ago revenues of $17.39 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Electromed shares have added about 38.4% since the beginning of the year versus the S&P 500's gain of 11.8%. While Electromed has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Electromed was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.30 on $19.6 million in revenues for the coming quarter and $1.52 on $84.2 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Instruments is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Medical sector, InnovAge Holding Corp. (INNV), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +800%. The consensus EPS estimate for the quarter has been revised 4.2% lower over the last 30 days to the current level. InnovAge Holding Corp.'s revenues are expected to be $238.35 million, up 7.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Electromed, Inc. (ELMD) : Free Stock Analysis Report InnovAge Holding Corp. (INNV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Strong homecare revenue growth and expanded operating leverage drive record operating income in Fiscal 2026 NEW PRAGUE, Minn., August 25, 2026--(BUSINESS WIRE)--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. 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 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. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260825250618/en/ Contacts Brad Nagel, Chief Financial Officer(952) [email protected] Mike Cavanaugh, Investor RelationsICR Healthcare(617) [email protected]

Electromed, Inc. (ELMD) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +34.62%. A quarter ago, it was expected that this company would post earnings of $0.27 per share when it actually produced earnings of $0.32, delivering a surprise of +18.52%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Electromed, which belongs to the Zacks Medical - Instruments industry, posted revenues of $18.58 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.35%. This compares to year-ago revenues of $15.68 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Electromed shares have lost about 11% since the beginning of the year versus the S&P 500's gain of 8.3%. While Electromed has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Electromed was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.31 on $19.1 million in revenues for the coming quarter and $1.11 on $72.5 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Instruments is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Rapid Micro Biosystems, Inc. (RPID), is yet to report results for the quarter ended March 2026. This company is expected to post quarterly loss of $0.25 per share in its upcoming report, which represents a year-over-year change of +3.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Rapid Micro Biosystems, Inc.'s revenues are expected to be $7.5 million, up 4.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Electromed, Inc. (ELMD) : Free Stock Analysis Report Rapid Micro Biosystems, Inc. (RPID) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

18% Revenue growth and strong operating leverage exceeds consensus expectations for the third quarter of fiscal 2026 NEW PRAGUE, Minn., May 12, 2026--(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 Information The conference call with members of Electromed management will be held at 5:00 p.m. Eastern Time on Tuesday, May 12, 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: Electromed Q3 Fiscal 2026 Earnings 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 13760099. 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 "continue," "expect," "may," "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 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260512118202/en/ Contacts Brad Nagel, Chief Financial Officer (952) 758-9299 [email protected] Mike Cavanaugh, Investor Relations ICR Healthcare (617) 877-9641 [email protected]

This article first appeared on GuruFocus. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Electromed Inc (ELMD) achieved its 14th consecutive quarter of year-over-year revenue and profit growth, with Q3 revenue reaching $18.6 million, an 18.4% increase from the previous year. The company's operating income increased by 76% to $3.8 million, showcasing strong financial performance. Electromed Inc (ELMD) maintained a strong cash position of $17 million and has no debt, indicating financial stability. The company successfully launched the 'Triple Down on Bronchiectasis' campaign, which has generated over 2 million impressions and increased awareness among clinicians. Electromed Inc (ELMD) has expanded its sales force to 62 representatives, enhancing market coverage and driving revenue growth. Despite the growth, Electromed Inc (ELMD) experienced a 40.7% decline in other revenue, indicating potential challenges in certain segments. The company faced increased SG&A expenses, rising by 7.2% due to higher salaries and compensation costs. There is a significant gap in the prescription of HFCWO therapy, with 58% of qualifying patients not receiving it, highlighting a missed opportunity. The ramp-up period for new sales representatives is four to six months, which could delay immediate productivity and revenue contributions. Electromed Inc (ELMD) slowed its stock repurchase activity in Q3 due to macro market dynamics, which may affect shareholder returns. Warning! GuruFocus has detected 7 Warning Signs with VELO. Is ELMD fairly valued? Test your thesis with our free DCF calculator. Q: Have you been adding territories or regions, or have you been splitting existing territories in half? A: Jim Kniff, President and CEO: We had about 57 reps this past quarter, and the strong performance is attributable to the reps in territory and positive tailwinds from our insurance mix. We ended the quarter with 58 reps and have since increased to 62 territories. We plan to add four to five additional reps in the next fiscal year. Q: Do you still believe Brynsupri has been a net positive for SmartVest given the increased awareness around bronchiectasis? A: Jim Kniff, President and CEO: Yes, Brynsupri has increased awareness, but bronchiectasis is chronic and irreversible. Our SmartVest is crucial for removing mucus, which fuels future infections. The drug addresses inflammation and is an adjunct, not a replacement for SmartVest. Preliminary guidelines from CHEST include airway clearance as part of the care continuum. Q: How quickly does it typically take for new sales reps to get ramped up to productivity in a new territory? A: Jim Kniff, President and CEO: The ramp-up period is typically four to six months. We had some retirements this past quarter, but we are focused on filling territories as this is largely a clinical sale requiring reps to engage with pulmonologists and identify patients who can benefit from our technology. Q: Is there a way to quantify when and whether the 375 clinicians attending events ultimately become prescribers? A: Jim Kniff, President and CEO: We track awareness, but it's challenging to quantify conversion rates from the 375 participants. Many clinicians are being exposed to the disease state and treatment options for the first time. We continue to create awareness through conferences and educational initiatives. Q: What is the upper bound in terms of headcount for sales reps? A: Jim Kniff, President and CEO: We are currently at 62 reps and plan to add four to five more in the next fiscal year. We are on a journey to expand our sales force to maximize market coverage and continue our growth trajectory. For the complete transcript of the earnings call, please refer to the full earnings call transcript.