0001104659-26-054877
SEC filingRevenue grew 22.8% to $75.3 million driven by strong partnerships and sales force productivity in lymphedema and airway clearance products, expanding gross margins to 76.5% and narrowing operating and net losses despite increased investments.
Revenue increased to $75.3 million in Q1 FY2026 from $61.3 million in the prior year quarter, representing 22.8% growth. This reflects accelerating commercial momentum in the lymphedema product line from strong partnerships, effective go-to-market strategy, and disciplined sales force productivity. Similarly, airway clearance product line revenue rose primarily due to strong partnerships and prioritized placement agreements with top 10 respiratory DME providers. These dynamics underscore our focus on strategic relationships and execution to drive top-line expansion.
Gross profit improved to $57.6 million, up 27.1% from $45.3 million, expanding the gross margin to 76.5%. Cost of revenue increased primarily attributable to the higher revenue volumes, enabling favorable absorption of fixed costs and margin leverage. We continue manufacturing and shipping key products like the AffloVest from our Minnesota facility, supporting this operational efficiency.
This quarter demonstrates progress toward profitability through revenue acceleration and cost discipline, even as we invest in growth drivers like Nimbl, which has replaced most Entre system orders and is expected to continue doing so.