Electromed, Inc. (ELMD) Q4 2025 Earnings Call Transcript
Quarterly Revenue $17.4 million, a 17% year-over-year growth. This was driven by growth across all key markets, including a 15% increase in the Core Home Care segment, 60% growth in the Hospital segment, and 76% growth in the Distributor Channel due to strong demand from DME partners.
Annual Revenue $64 million, a 17% increase from $54.7 million in the prior year. This growth was attributed to an increase in direct sales representatives and higher net revenues per approval.
Operating Income $3 million in Q4, marking a 30% increase year-over-year. This was due to improved operating leverage of 174 basis points over Q4 last year.
Net Income $2.2 million in Q4, a 21% increase year-over-year. This translated to a diluted earnings per share of $0.25, a 24% increase versus the prior year.
Gross Profit $50 million for the fiscal year, representing 78.1% of net revenues, up from $41.7 million (76.3% of net revenues) in the prior year. The increase was due to higher net revenue per device and increased revenue.
SG&A Expenses $39.3 million for the fiscal year, a 14% increase from $34.5 million in the prior year. This was primarily due to accelerated recognition of share-based compensation and higher salaries and incentive compensation.
Pretax Income $10.3 million for the fiscal year, a significant increase from the prior year, driven by higher net revenues and gross profit.
Net Income (Annual) $7.5 million for the fiscal year, translating to an EPS of $0.85 per diluted share.
Cash Position $15.3 million as of June 30, 2025, reflecting a decrease of $0.8 million from the prior year. The decrease was due to $10 million in share repurchases and $2.3 million in taxes paid, offset by $11.4 million in cash generated from operating activities.
Trade with 70% Backtested Accuracy
Analyst Views on ELMD
About ELMD
About the author
Electromed Reports Q2 2026 Earnings with Strong Growth
- Consistent Growth: Electromed achieved its 13th consecutive quarter of year-over-year revenue and profit growth, reporting $18.9 million in revenue for Q2 2026, reflecting a 16.3% increase and showcasing the strength of its business model and market recognition.
- Core Business Performance: The homecare segment generated $17.3 million, up 18.4% year-over-year, while the distributor channel grew by 12.1%; despite a 9.4% decline in the hospital channel due to strategic shipment prioritization, overall business remains robust.
- Profitability Improvement: Operating income reached $3.6 million, a 42.4% year-over-year increase, with operating margin rising from 15.6% to 19.2%, indicating significant growth in revenue and gross profit, thereby enhancing the company's financial stability for the future.
- Market Expansion Strategy: The company executed 25 new payer contracts covering 2.9 million potential patients and plans to expand its direct sales force to 61 representatives, further increasing market penetration and sales capabilities, which is expected to drive future double-digit growth.
Electromed Q2 Earnings Exceed Expectations
- Strong Earnings Performance: Electromed reported a Q2 GAAP EPS of $0.32, beating expectations by $0.06, indicating a sustained enhancement in profitability and reflecting its competitive position in the market.
- Significant Revenue Growth: The company achieved revenue of $18.9 million, representing a 16% year-over-year increase and exceeding market expectations by $0.85 million, demonstrating substantial progress in sales and market expansion.
- Channel Expansion Strategy: Electromed is actively expanding its hospital channel, driving double-digit growth and further solidifying its market position in the medical device industry, which is expected to provide strong support for future revenue growth.
- Positive Market Ratings: Electromed's performance has been widely recognized in the market according to Seeking Alpha's Quant Rating, reflecting investor confidence in its future growth potential.
Electromed (ELMD) Receives Upgrade to Buy: Reasons Explained
Zacks Rank Upgrade: Electromed, Inc. (ELMD) has been upgraded to a Zacks Rank #2 (Buy) due to a positive trend in earnings estimates, indicating potential stock price increases.
Earnings Estimates Impact: The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock movements, making it a valuable tool for investors.
Analyst Consensus: Over the past three months, the Zacks Consensus Estimate for Electromed has increased by 7%, reflecting analysts' growing confidence in the company's earnings potential.
Market Positioning: Electromed's upgrade places it in the top 20% of Zacks-covered stocks, suggesting it has a superior earnings estimate revision feature and could outperform the market in the near term.
Electromed, Inc. (ELMD) Exceeds Q1 Earnings and Revenue Projections
Earnings Performance: Electromed, Inc. (ELMD) reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.22, and showing an increase from $0.16 per share a year ago, marking a +13.64% earnings surprise.
Revenue Growth: The company generated revenues of $16.89 million for the quarter, surpassing the Zacks Consensus Estimate by 1.30% and up from $14.67 million in the previous year, with two instances of exceeding revenue estimates in the last four quarters.
Stock Outlook: Despite the positive earnings report, Electromed shares have declined by about 15% year-to-date, and the stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Industry Context: The Medical - Instruments industry, to which Electromed belongs, ranks in the top 29% of Zacks industries, suggesting that industry performance could significantly influence Electromed's stock trajectory moving forward.
Stereotaxis Inc. (STXS) Announces Q3 Loss and Falls Short of Revenue Projections
Quarterly Performance: Stereotaxis Inc. reported a quarterly loss of $0.03 per share, better than the expected loss of $0.06, and an improvement from a loss of $0.08 per share a year ago, marking a 50% earnings surprise.
Revenue Insights: The company generated revenues of $7.46 million, missing the consensus estimate by 13.21% and down from $9.2 million year-over-year, while having surpassed revenue estimates twice in the last four quarters.
Stock Outlook: Stereotaxis shares have increased by 22.4% this year, outperforming the S&P 500, and currently hold a Zacks Rank #2 (Buy), indicating expectations for continued outperformance in the near future.
Industry Context: The Medical - Instruments industry is ranked in the top 25% of Zacks industries, suggesting a favorable environment for Stereotaxis, while Electromed, Inc. is set to report its quarterly results soon, with positive expectations.
Electromed, Inc. (ELMD) Shows Strong Momentum: Is It a Good Investment Opportunity?
Momentum Investing Overview: Momentum investing involves buying stocks that are trending upwards, with the expectation that they will continue to rise. The Zacks Momentum Style Score helps identify stocks with strong momentum characteristics, such as price changes and earnings estimate revisions.
Electromed, Inc. (ELMD) Performance: ELMD has a Momentum Style Score of A and a Zacks Rank of #2 (Buy), with shares up 3.73% over the past week and 26.5% over the last year, outperforming the S&P 500. Recent positive earnings estimate revisions further support its strong momentum outlook.
Electromed Reports Q2 2026 Earnings with Strong Growth
- Consistent Growth: Electromed achieved its 13th consecutive quarter of year-over-year revenue and profit growth, reporting $18.9 million in revenue for Q2 2026, reflecting a 16.3% increase and showcasing the strength of its business model and market recognition.
- Core Business Performance: The homecare segment generated $17.3 million, up 18.4% year-over-year, while the distributor channel grew by 12.1%; despite a 9.4% decline in the hospital channel due to strategic shipment prioritization, overall business remains robust.
- Profitability Improvement: Operating income reached $3.6 million, a 42.4% year-over-year increase, with operating margin rising from 15.6% to 19.2%, indicating significant growth in revenue and gross profit, thereby enhancing the company's financial stability for the future.
- Market Expansion Strategy: The company executed 25 new payer contracts covering 2.9 million potential patients and plans to expand its direct sales force to 61 representatives, further increasing market penetration and sales capabilities, which is expected to drive future double-digit growth.
Electromed Q2 Earnings Exceed Expectations
- Strong Earnings Performance: Electromed reported a Q2 GAAP EPS of $0.32, beating expectations by $0.06, indicating a sustained enhancement in profitability and reflecting its competitive position in the market.
- Significant Revenue Growth: The company achieved revenue of $18.9 million, representing a 16% year-over-year increase and exceeding market expectations by $0.85 million, demonstrating substantial progress in sales and market expansion.
- Channel Expansion Strategy: Electromed is actively expanding its hospital channel, driving double-digit growth and further solidifying its market position in the medical device industry, which is expected to provide strong support for future revenue growth.
- Positive Market Ratings: Electromed's performance has been widely recognized in the market according to Seeking Alpha's Quant Rating, reflecting investor confidence in its future growth potential.
Electromed (ELMD) Receives Upgrade to Buy: Reasons Explained
Zacks Rank Upgrade: Electromed, Inc. (ELMD) has been upgraded to a Zacks Rank #2 (Buy) due to a positive trend in earnings estimates, indicating potential stock price increases.
Earnings Estimates Impact: The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock movements, making it a valuable tool for investors.
Analyst Consensus: Over the past three months, the Zacks Consensus Estimate for Electromed has increased by 7%, reflecting analysts' growing confidence in the company's earnings potential.
Market Positioning: Electromed's upgrade places it in the top 20% of Zacks-covered stocks, suggesting it has a superior earnings estimate revision feature and could outperform the market in the near term.
Electromed, Inc. (ELMD) Exceeds Q1 Earnings and Revenue Projections
Earnings Performance: Electromed, Inc. (ELMD) reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.22, and showing an increase from $0.16 per share a year ago, marking a +13.64% earnings surprise.
Revenue Growth: The company generated revenues of $16.89 million for the quarter, surpassing the Zacks Consensus Estimate by 1.30% and up from $14.67 million in the previous year, with two instances of exceeding revenue estimates in the last four quarters.
Stock Outlook: Despite the positive earnings report, Electromed shares have declined by about 15% year-to-date, and the stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Industry Context: The Medical - Instruments industry, to which Electromed belongs, ranks in the top 29% of Zacks industries, suggesting that industry performance could significantly influence Electromed's stock trajectory moving forward.
Stereotaxis Inc. (STXS) Announces Q3 Loss and Falls Short of Revenue Projections
Quarterly Performance: Stereotaxis Inc. reported a quarterly loss of $0.03 per share, better than the expected loss of $0.06, and an improvement from a loss of $0.08 per share a year ago, marking a 50% earnings surprise.
Revenue Insights: The company generated revenues of $7.46 million, missing the consensus estimate by 13.21% and down from $9.2 million year-over-year, while having surpassed revenue estimates twice in the last four quarters.
Stock Outlook: Stereotaxis shares have increased by 22.4% this year, outperforming the S&P 500, and currently hold a Zacks Rank #2 (Buy), indicating expectations for continued outperformance in the near future.
Industry Context: The Medical - Instruments industry is ranked in the top 25% of Zacks industries, suggesting a favorable environment for Stereotaxis, while Electromed, Inc. is set to report its quarterly results soon, with positive expectations.
Electromed, Inc. (ELMD) Shows Strong Momentum: Is It a Good Investment Opportunity?
Momentum Investing Overview: Momentum investing involves buying stocks that are trending upwards, with the expectation that they will continue to rise. The Zacks Momentum Style Score helps identify stocks with strong momentum characteristics, such as price changes and earnings estimate revisions.
Electromed, Inc. (ELMD) Performance: ELMD has a Momentum Style Score of A and a Zacks Rank of #2 (Buy), with shares up 3.73% over the past week and 26.5% over the last year, outperforming the S&P 500. Recent positive earnings estimate revisions further support its strong momentum outlook.
