Electromed, Inc. — Q1 FY 2027 Earnings Summary

Financial Performance:

• Net revenues reached $18.7 million, a 10.6% increase from $16.9 million in Q1 FY 2026.
• Operating income increased 30.7% year-over-year to $3.5 million, representing 18.7% of net revenues compared to 15.8% in the prior year period.
• Net income rose 29.3% to $2.8 million ($0.32 per diluted share), up from $2.1 million ($0.25 per diluted share) in Q1 FY 2026.
• Gross profit totaled $14.9 million (80.0% of net revenues), up from $13.2 million (78.1% of net revenues) in the prior year.
• Selling, general and administrative (SG&A) expenses increased 8.6% to $11.2 million, driven by higher salaries, incentive compensation, and travel costs associated with increased sales headcount.
• Cash and cash equivalents stood at $15.9 million as of September 30, 2026, a decrease of $4.6 million from the prior quarter.
• Accounts receivable were $30.3 million, and the company reported no debt.
• Working capital was $44.9 million, and total shareholders' equity was $52.5 million.
• Net cash provided by operating activities was $373,000 for the three months ended September 30, 2026, compared to $169,000 in the prior year period.

Business Segments and Product Lines:

• Direct homecare business revenue grew 17.6% to $17.5 million, driven by an increase in sales representatives and productivity.
• The company averaged 63 homecare field sales representatives during Q1 FY 2027, with annualized revenue per weighted average representative at $1,109,000, within the target range of $1,050,000 to $1,150,000.
• Non-homecare revenue totaled $1.2 million.
• Hospital revenue decreased 31.6% to $0.7 million.
• Homecare distributor revenue decreased 55.9% to $0.4 million.
• Other revenue decreased 23.0% to $0.1 million.

Other Key Points:

• Electromed returned $4.3 million to shareholders through share repurchases of common stock during the quarter.
• The company achieved its 16th consecutive quarter of year-over-year revenue and operating income growth.
• The company remains debt-free with a strong balance sheet.
• A conference call and webcast were scheduled for November 10, 2026, at 5:00 p.m. Eastern Time.
• Forward-looking statements in the release include targets for annualized homecare revenue per sales representative and capital allocation plans.