Electromed, Inc.

Q4 net revenue was $19.4 million, up 11.6% to 12% year over year, operating income was $3.8 million, and diluted EPS was $0.39. For fiscal 2026, net revenue was a record $73.8 million, up 15.3% from $64 million in fiscal 2025; gross profit was $57.9 million with gross margin of 78.5% versus $50 million and 78.1% last year; SG&A was $42.7 million, up 8.7%; operating income was $13.9 million, or 18.8% of revenue, versus $9.7 million and 15.1%; pretax income was $14.4 million; net income was $11.3 million; and EPS was $1.30. Cash at June 30, 2026 was $20.5 million, accounts receivable were $29.8 million, and the company had no debt. Management said fiscal 2027 should deliver double-digit top-line growth, expanded operating leverage, and strong operating cash flow; it also raised the fiscal 2027 home care revenue per rep target to $1,050,000 to $1,150,000 from a prior target range of $1 million to $1.1 million.

Jim Cunniff framed the quarter as another record result and emphasized that the company has now posted 15 straight quarters of year-over-year revenue and profit growth. He highlighted the long-term bronchiectasis opportunity, the company’s direct-to-patient model, broader education campaigns, and the move toward e-prescribing as structural advantages. He also said he will retire as CEO in April 2027, describing the transition as deliberate and expressing confidence in the team and the company’s future.

Brad Nagel focused on the financial execution: record fiscal 2026 revenue of $73.8 million, gross margin of 78.5%, operating income of $13.9 million, and strong cash generation. He said cash increased by $5.2 million during the year, driven primarily by $9.7 million of positive operating cash flow, partly offset by $3.9 million of share repurchases. He also pointed to a debt-free balance sheet with $20.5 million in cash, $45.1 million in working capital, and $54 million of total shareholders’ equity, and said the company will keep investing in the business while using repurchases opportunistically to add shareholder value.

Analysts asked about operating leverage and rep count growth for fiscal 2027; management said it expects double-digit top-line growth and operating leverage, with plans to end up with 67 filled territories including 2 hospital account liaisons, while acknowledging new reps will take time to ramp. Questions also focused on capital allocation, and CFO Brad Nagel said the priorities are derisking the business, reinvesting in sales, marketing, R&D, and then opportunistic share repurchases. Other questions covered R&D, where management said spending is split between sustaining engineering and innovation, especially connectivity and expanding the vest line, and payer mix, where management said the split is historically about 50/50 between Medicare and commercial and that adding 6 million covered lives should improve access. On guidelines, management said upcoming bronchiectasis guidance and the new BE care pathway should support airway clearance as part of treatment.