InfuSystem Holdings, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenues totaled $37.6 million, a 3.0% increase from the prior year ($36.5 million).
• Net income was $3.2 million ($0.15 per diluted share), compared to $2.3 million ($0.11 per diluted share) in the prior year.
• Adjusted EBITDA (non-GAAP) was $9.4 million, a 12.5% increase from the prior year ($8.3 million).
• Adjusted EBITDA margin expanded to 24.9% from 22.8% in the prior year.
• Gross profit was $21.7 million, a 4.4% increase from the prior year, with gross margin at 57.8% (up 0.7% from 57.1%).
• Operating cash flow for the nine months ended September 30, 2026, was $18.1 million, a 5% increase from the prior year period.
• Liquidity totaled $64.1 million as of September 30, 2026, consisting of $9.1 million in cash and cash equivalents and $55.0 million in available borrowing capacity.
• Net debt was $10.6 million as of September 30, 2026, a decrease of $5.9 million from $16.4 million at December 31, 2025.
• The net debt to Adjusted EBITDA ratio for the last four quarters was 0.32 to 1.00.

Guidance and Future Outlook:

• Reaffirmed full-year 2026 guidance for net revenue and Adjusted EBITDA margin.
• Pro-forma net revenue growth for 2026 is expected to be between 6% and 8% after adjusting for the GE Healthcare contract restructuring.
• Adjusted EBITDA margin for 2026 is forecast to be in the low-to-mid 20% range.
• Modest additional investments in workflow automation and software-enabled process improvements within the Patient Services platform are expected to begin in the fourth quarter.
• ERP project expenses are expected to continue tapering down during future quarterly periods as the company transitions from implementation to ongoing optimization.

Business Segments and Product Lines:

• Patient Services net revenue was $25.8 million, a 15.4% increase from the prior year.
  • Oncology revenue increased 7.2% ($1.4 million).
  • Wound Care revenue increased 112% ($2.0 million), including approximately $1.6 million from compression therapy product lines focused on lymphedema treatment.
  • Wound Care net revenues included sales of Pneumatic Compression Devices (PCDs) and Adjustable Compression Wraps (ACWs) from two new supplier relationships.
• Device Solutions net revenue was $11.8 million, a 16.6% decrease from the prior year.
  • Biomedical services revenue decreased 41.3% ($1.9 million) due to the GE Healthcare contract restructuring.
  • Medical equipment sales decreased 27.2% ($0.4 million) and disposable medical supplies decreased 13.5% ($0.3 million), partially offset by a 6.4% increase in equipment rental revenue ($0.3 million).
  • On a pro-forma basis, biomedical services grew 19.8% year-over-year after adjusting for the GE Healthcare contract lost revenue.
• Selling and marketing expenses were $2.7 million, a 14.3% increase from the prior year.
• General and administrative expenses were $14.1 million, a 2.2% decrease from the prior year.

Market and Competitive Landscape:

• The company restructured its largest biomedical services contract with GE Healthcare, resulting in a $2.4 million revenue reduction for the quarter but a favorable impact on earnings and cash flows due to larger expense reductions.
• Pro-forma growth has accelerated each quarter in 2026, rising from 1.7% in the first quarter and 7.5% in the second quarter to 10.2% in the third quarter.
• The company continues to expand through manufacturer partnerships and complementary clinic-to-home therapies.

Risks and Challenges:

• Cost inflation impacts from increased employee wage rates and higher healthcare expenses reduced the Device Solutions segment gross margin by 1.0%.
• An unfavorable product mix change toward lower gross margin revenue categories, specifically in Wound Care, reduced Patient Services gross margin by 3.3%.
• Temporary working capital pressure of approximately $5.0 million occurred during the quarter due to invoicing and billing process disruptions associated with the ERP implementation.
• The Company faces risks related to third-party reimbursement processes, changes in law, global financial conditions, inflation, interest rates, supply chain disruptions, and potential litigation.

Management Commentary and Tone:

• CEO Carrie Lachance stated the company delivered a "strong quarter" with record revenue, reflecting continued execution of a profitable growth strategy.
• Management noted that the GE Healthcare contract restructuring improved profitability by reducing costs more than the related reduction in revenue.
• The company highlighted the success of its strategy to expand through manufacturer partnerships and the benefits of the ERP implementation transition.
• Management expressed confidence in disciplined execution, profitable growth, and creating long-term value for shareholders.

Other Key Points:

• The Company used cash to repurchase $5.0 million in common stock under its ongoing share repurchase program during the nine-month period ended September 30, 2026.
• Capital expenditures for the nine months included $8.7 million in purchases of medical devices, a 63% increase from the prior year period.
• The ERP system upgrade project went live on March 1, 2026, with project-related expenses declining significantly from the prior year.
• A non-recurring $0.6 million price increase adjustment associated with the GE Healthcare contract restructuring was included in biomedical services revenue during the third quarter of 2025.
• A large customer rental buyout that began in the prior year elevated equipment sales in 2025 and reduced rental revenues in subsequent quarters.