ELMD earnings analysis
What we found in ELMD's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Electromed delivered a strong fiscal 2026, with revenue up 15.3%, operating income up 43.7%, gross margin reaching 78.5% and diluted EPS rising to $1.30. Growth was led by the homecare market, while management is targeting additional adult pulmonology and bronchiectasis market share in fiscal 2027 through sales-force expansion, marketing and clinical evidence. Cash generation remained positive and the balance sheet held $20.450 million of cash, although supply-chain inflation and the December 16, 2026 credit-facility maturity are important forward-looking considerations.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and Operating Leverage Accelerated
- Fiscal 2026 revenue increased 15.3% to $73.776 million from $64.000 million, while operating income rose 43.7% to $13.881 million. Operating margin expanded to approximately 18.8% from 15.1% in fiscal 2025.
- Margins and EPS Improved Sharply
- Gross profit increased to $57.943 million and gross margin improved to 78.5% from 78.1%, primarily due to higher revenue and higher net revenue per device. Diluted EPS increased to $1.30 from $0.85.
- Homecare Drives Company Growth
- Homecare remained the core growth engine at $66.612 million, representing approximately 90% of total revenue and growing 16.3%. The increase included approximately $7.959 million from higher volume and $1.366 million from higher net revenue per approval.
- Focused Bronchiectasis Expansion Plan
- Management is targeting adult pulmonology and bronchiectasis in fiscal 2027 through additional direct-sales territories, increased direct-to-consumer and physician marketing, peer-to-peer education, customer support, and expanded clinical evidence.
- Direct Model and Product Roadmap
- Electromed’s direct-to-patient and provider model is intended to disintermediate traditional HME distributors and capture both manufacturer and distributor margins. The company sells the SmartVest Clearway, SmartVest SQL and related products, with Clearway launched in 2022 and SmartVest Connect wireless technology launched in 2017.
- Strong Cash Position Supports Reinvestment
- Operating cash flow was $9.665 million, versus $11.393 million in fiscal 2025, despite higher earnings, principally because accounts receivable increased by $5.145 million. The company spent $1.252 million on property and equipment and repurchased $3.918 million of common stock, ending with $20.450 million of cash.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Fiscal 2027 Supply-Chain Cost Pressure
- Management expects component and raw-material costs to remain a challenge in fiscal 2027 because of supply-chain constraints, geopolitical energy costs, tariffs and inflation in electronic components. The filing states that significant increases in raw-material or shipping costs would reduce gross margins; fiscal 2026 gross margin was 78.5%.
- Near-Term Credit Facility Renewal Risk
- The December 2025 credit agreement provides a $10.000 million revolving facility that matures on December 16, 2026, unless renewed or replaced. Although there was no outstanding principal balance at June 30, 2026, the facility is secured by substantially all existing and future assets and requires a maximum total funded debt ratio of 2.50x and minimum fixed-charge coverage ratio of 1.20x.
- Potential Patient-Data Cybersecurity Incident
- The company maintains cybersecurity controls over confidential patient health information and states that it has not identified a cybersecurity incident with a material impact to date. However, it cautions that a future incident affecting Electromed or a third party could materially affect the business, strategy, results of operations or financial condition.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.3
- Gross margin
- 78.5%
- Operating margin
- 18.8%
- Segment
- Homecare: $66.612 million, up 16.3% from $57.287 million
- Segment
- Hospital: $3.442 million, up 9.6% from $3.140 million
- Segment
- Homecare distributor: $3.301 million, up 12.7% from $2.928 million
- Segment
- Other: $0.421 million, down 34.7% from $0.645 million
- Segment
- Single reportable operating segment; revenue is also disaggregated by market and homecare payer type
What they said about what is next.
No quantitative fiscal 2027 revenue or EPS guidance was provided in the 10-K. Management describes fiscal 2027 priorities as accelerating revenue growth through adult pulmonology/bronchiectasis market-share gains and expansion of the addressable population.
The filing reads better than the one before it.
What came before.
- 10-Q · May 12, 2026
- Electromed, Inc. reported strong Q3 FY 2026 results with revenues of $18.575 million and an EPS of $0.35, both significantly exceeding estimates. The company saw an overall revenue increase of 18.4% year-over-year,…
- 10-Q · February 10, 2026
- Electromed, Inc. showed strong financial performance in Q2 FY2026, achieving record revenue and earnings as compared to prior quarters. Total revenues reached $18.9 million, marking a 16.3% increase from $16.3 million…
- 10-Q · November 12, 2025
- Electromed, Inc. reported strong Q1 results for fiscal 2026 with a total revenue of $16,887,000, reflecting a 15.1% increase year-over-year. Despite increasing operating expenses, the company achieved an EPS of $0.25,…
- 10-K · August 26, 2025
- Electromed, Inc. demonstrated strong growth in fiscal 2025, achieving total revenue of $64 million, up 17% from the previous year. The company increased its net income by 46% to $7.54 million, driven primarily by robust…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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