ELMD · Electromed, Inc.

Electromed delivered record financial results for the third quarter of fiscal 2026, with net revenues increasing 18.4% to $18.6 million, driven by an 18.6% increase in the core homecare market to $16.7 million. The homecare growth was attributed to an expanded direct sales force (averaging 57 representatives), higher productivity, and increased net revenues per representative. Hospital revenue grew 42.5% to $1.0 million, while homecare distributor revenue rose 2.7% to $0.7 million. Gross profit improved to $14.6 million, with gross margin expanding 80 basis points to 78.8%, benefiting from higher revenue and improved net revenue per device. Operating income surged 76.0% to $3.8 million, representing 20.3% of net revenues, as SG&A expenses grew only 7.2% due to higher compensation costs. Net income increased 58.8% to $3.0 million, or $0.35 per diluted share. The company ended the quarter with $17.0 million in cash, no debt, and shareholders' equity of $49.2 million. Management highlighted the 14th consecutive quarter of year-over-year revenue and profit growth, driven by investments in sales and fulfillment teams, and expressed confidence in sustaining profitable growth given the large underserved bronchiectasis market. The company also furnished an updated investor presentation (Exhibit 99.2) for use in meetings with investors and analysts.