Electromed, Inc. (ELMD) Market Cap
Electromed, Inc. has a market capitalization of $217.4M.
Financials based on reported quarter end 2025-12-31
Price: $26.06
▲ 0.67 (2.64%)
Market Cap: 217.35M
AMEX · time unavailable
CEO: James L. Cunniff
Sector: Healthcare
Industry: Medical - Devices
IPO Date: 2010-08-13
Website: https://smartvest.com
Electromed, Inc. (ELMD) - Company Information
Market Cap: 217.35M · Sector: Healthcare
Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients of various ages in the United States and internationally. The company offers SmartVest airway clearance system; SmartVest SQL System that consists of an inflatable therapy garment, a programmable air pulse generator, and a patented single-hose that delivers air pulses from the generator to the garment; and SmartVest Connect, a wireless technology with personalized HFCWO therapy management portal for patients with compromised pulmonary function. It also provides single patient use SmartVest and SmartVest Wrap products for health care providers in the acute care setting. The company offers its products primarily to home health care market for patients with bronchiectasis, cystic fibrosis, and neuromuscular disease. Electromed, Inc. markets its products primarily to physicians and health care providers, as well as directly to patients. The company was incorporated in 1992 and is headquartered in New Prague, Minnesota.
Analyst Sentiment
Based on 3 ratings
Analyst 1Y Forecast: $36.33
Average target (based on 2 sources)
Consensus Price Target
Low
$38
Median
$38
High
$38
Average
$38
Potential Upside: 45.8%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"ELMD reported a revenue of $18.9M and a net income of $2.76M for the year ended December 31, 2025. The company has a solid total asset base of $54.9M against total liabilities of $9.47M, yielding a total equity of $45.44M. Despite a positive net debt position of -$13.79M, indicating excess cash relative to liabilities, the shareholder returns remain minimal as no dividends were distributed. The stock price is currently at $24.7, exhibiting a 1-year change of 1.02%, which suggests limited price appreciation and market momentum. Given the current valuation metrics, ELMD's free cash flow stands at $3.29M, contributing to its financial stability without dependency on external financing. Overall, while the company shows signs of profitable operations, recent stock performance and lack of significant price growth or shareholder returns have led to a cautious outlook."
Revenue Growth
Revenue of $18.9M indicates growth potential, albeit relatively modest.
Profitability
Net income of $2.76M suggests solid profitability.
Cash Flow Quality
Free cash flow of $3.29M indicates good cash generation.
Leverage & Balance Sheet
Strong equity position and negative net debt reflect a healthy balance sheet.
Shareholder Returns
No dividends and low price appreciation results in minimal returns for shareholders.
Analyst Sentiment & Valuation
Current stock price momentum is weak—1y change of 1.02% is concerning.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Electromed delivered another quarter of strong top-line and profitability expansion (revenue +16.3% YoY to $18.9M; operating income margin up ~360 bps YoY to 19.2%; EPS $0.32 vs $0.22). Management’s tone is optimistic about “thirteenth consecutive” growth and expanding market reach for SmartVest in bronchiectasis. However, the Q&A pressure points clarify what’s still constraining share gains: a reimbursement/clinical-criteria funnel is delaying HFCWO adoption (58% of guideline-qualifying patients weren’t prescribed therapy; based on a retrospective study of 5,000+ patients), and payer/out-of-network friction limits conversion of referrals. The hospital channel remains a drag (-9.4% YoY) due to shipment prioritization and unpredictable capital-order timing. While tariffs are flagged as a possible upstream risk, management’s mitigation is structural—99% domestic revenues and US-based assembly. Overall, results look robust, but continued growth depends on moving patients earlier in the clinical journey and closing reimbursement access gaps.
Growth Catalysts
- SmartVest awareness/education push for bronchiectasis (“Triple Down on Bronchiectasis”) driving more prescribing and earlier clinical adoption
- Home Care direct momentum: Home Care revenue +18.4% YoY in Q2
- Distributor channel growth: distributor revenue +12.1% YoY
- Sales rep productivity improved: annualized home care revenue per weighted avg direct sales rep $1.2M vs target range $1.0M-$1.1M
- Smart Order e-prescribe adoption: >1/3 of orders received through the platform in Q2 (faster fulfillment and improved clinic workflow)
Business Development
- Executed 25 payer contracts in first half of fiscal 2026 (private pay) adding 2.9M covered lives to an existing >270M covered lives under contract
- Ongoing home medical equipment partners driving demand (no specific partner names provided)
- Virtual CE activity: co-promoted 3 virtual continuing education units hosted by Respiratory Associates; attended by 655 individuals (awareness channel)
Financial Highlights
- Revenue: $18.9M in Q2, +16.3% YoY (vs $16.3M prior year period)
- EPS: $0.32 diluted vs $0.22 prior year period (+40.3% net income to $2.8M)
- Operating income: $3.6M or 19.2% of revenue vs $2.5M or 15.6% prior year period (+42.4% YoY; margin up 360 bps YoY)
- Gross margin: 78.4% of revenue vs 77.7% prior year period (gross margin +70 bps YoY)
- Home Care segment growth: $17.3M (+18.4% YoY); distributor channel $0.9M (+12.1% YoY)
- Hospital channel: $0.7M (-9.4% YoY) attributed to timing/unpredictable capital orders and prioritizing shipments to high-demand home patients
- Other revenue: $0.1M (-52.3% YoY)
- SG&A: $10.8M (+$1.0M / +10% YoY) mainly from increased salaries and incentive compensation tied to higher average sales headcount
Capital Funding
- Cash: $13.8M on hand as of Dec 31, 2025; no debt
- Working capital: $36.2M; total shareholders’ equity: $45.4M
- Share repurchase: board authorization $10M in Q1; Q2 discussion implies ongoing use of that authorization (no incremental repurchase amount disclosed for Q2)
- Six-month cash movement: cash decreased $1.5M vs prior-year increase of $0.2M; decrease driven by $3.8M of share repurchases offset by $3.2M positive operating cash flow
Strategy & Ops
- Direct sales force expansion plan: 58 direct reps averaged in Q2; targeting 61 reps by end of fiscal 2026
- Smart Order e-prescribe: adoption exceeded 1/3 of orders in Q2; described as replacing fax-based workflows to improve ordering documentation and speed
- CRM system (launched in Q1): improving field productivity, market insights, and communication with fulfillment
- Manufacturing optimization completed: redesigned manufacturing layout to improve production efficiency and create capacity for growth
Market Outlook
- Sales rep productivity guidance maintained: $1.0M-$1.1M annualized revenue per rep; management expects productivity to “mediate within” this range as reps rise to 61 (due to hiring/training lag)
- Hospital demand expected to rebound in coming quarters (no numeric forecast provided)
Risks & Headwinds
- Reimbursement/clinical gating: Q&A emphasized reimbursement criteria (daily productive cough, CT scan, tried/failed other therapy) creating a barrier to getting HFCWO sooner; tied to 58% of qualifying patients not receiving HFCWO despite meeting clinical guidelines
- Payer coverage gaps: for patients in payer-contract areas, referrals for out-of-network patients are challenging; mitigation implied via closing those gaps through payer contract execution
- Hospital channel volatility: decline driven by strategic prioritization toward high-demand home patients and unpredictable timing of hospital capital orders
- Tariff exposure risk acknowledged: management “vigilant” regarding potential tariff challenges in upstream supply chains for primarily domestic suppliers; mitigation stated that US-centric operations (99% domestic net revenue) may shelter from tariff impact and provide a competitive advantage
- Operating leverage sensitivity: SG&A inflation (+10% YoY) tied to increased sales headcount and incentives
Sentiment: POSITIVE
Note: This summary was synthesized by AI from the ELMD Q2 2026 (quarter ended Dec 31, 2025) earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.