Electromed Inc. posted fiscal fourth-quarter earnings that topped Wall Street expectations but fell short on revenue, sending shares lower in after-hours trading. The company reported adjusted earnings per share of $0.39 for the quarter ended June 30, up 25.8% from a year earlier and exceeding the $0.31 consensus estimate by $0.08.
Revenue for the quarter totaled $19.41 million, a 12% year-over-year increase but slightly below the $19.5 million forecast. Operating income rose 26% to $3.8 million. For the full fiscal year, revenue increased 15.3% to $73.8 million, while operating income climbed 43.7% to $13.9 million. Net income for the year reached $11.3 million, with diluted EPS of $1.30.
Home care revenue, which accounts for 90.2% of total revenue, grew 16.3% to $66.6 million. Non-home care business revenue rose 6.7% to $7.2 million. The company maintained a gross profit margin of 78.5%, up 40 basis points from the prior year. Operating cash flow for the year was $9.7 million, with a cash balance of $20.5 million as of June 30.
Electromed’s shares fell 2.36% to close at $39.34 in regular trading, extending declines into after-hours where they slipped an additional 1.12% to $38.90. The stock has traded between $19.93 and $47.40 over the past 52 weeks.
Chief Executive Officer Jim Cunniff highlighted the company’s 15th consecutive quarter of year-over-year revenue and profit growth, attributing it to the direct-to-patient model and growing adoption of SmartVest therapy for bronchiectasis. He noted that only about 16% of the estimated 1 million diagnosed U.S. patients currently use high-frequency chest wall oscillation therapy. Cunniff also announced plans to retire in April 2027, with the board initiating a succession process.
Chief Financial Officer Brad Nagel reported that annualized home care revenue per sales representative reached $1.145 million in fiscal 2026, exceeding the target range of $1 million to $1.1 million. The company ended the year with 64 direct sales representatives and plans to expand to 67 territories in fiscal 2027. Over 45% of orders in Q4 were processed through the SmartOrder ePrescribe platform, which ships orders an average of five days faster than fax-based orders.
Electromed generated 99% of its net revenue domestically in the U.S. and holds a working capital position of $45.1 million. The company has no debt and a return on equity of 22% for the last twelve months.
