Electromed Inc Achieves Record Revenue, Completes $5M Stock Repurchase, and Sees Growth in Strategic Initiatives

Electromed Inc (ELMD) reported record quarterly revenue of $17.4 million, a 17% YoY growth, and a 30% increase in operating income to $3 million. The company completed a $5 million stock repurchase program and launched a campaign to raise awareness about bronchiectasis. The hospital market has a longer sales cycle, and there is a risk of tariff-related turbulence. The market for bronchiectasis treatment is still largely untapped, posing a challenge for market penetration.

Electromed Inc (ELMD) reported robust financial performance in the fourth quarter of 2025, with record quarterly revenue of $17.4 million, representing a 17% year-over-year (YoY) growth. The company's operating income also saw a significant increase, rising to $3 million, a 30% YoY increase. These strong results were driven by growth across all key markets, with the Core Home Care segment, Hospital segment, and Distributor Channel growing by 15%, 60%, and 76% respectively [1].

The company completed a $5 million stock repurchase program during the quarter, demonstrating confidence in its future prospects. Additionally, Electromed launched a campaign to raise awareness about bronchiectasis, aiming to capitalize on the growing market for this condition. The company also reported a 24% increase in diluted earnings per share to $0.25, indicating strong financial performance [1].

However, the company faces several challenges. The hospital market, while showing potential, has a longer sales cycle due to its nature as a capital equipment sale. Additionally, there is a risk of tariff-related turbulence, although Electromed is currently well-insulated from these impacts. The market for bronchiectasis treatment is still largely untapped, posing a challenge for market penetration [1].

Looking ahead, Electromed plans to expand its sales force and hospital presence, aiming to reach 61 home care sales territories across the U.S. in fiscal 2026. The company expects continued double-digit top-line growth and strong operating cash flows in the new year. Management has raised its Home Care revenue per rep target for the coming year to a range of $1 million to $1.1 million [2].

References:
[1] https://ca.finance.yahoo.com/news/electromed-inc-elmd-q4-2025-070426761.html
[2] https://seekingalpha.com/news/4489358-electromed-outlines-1m-1_1m-home-care-revenue-per-rep-target-as-sales-force-expansion-and