Electromed Inc. reported fourth-quarter fiscal 2026 diluted earnings per share of $0.39, exceeding Wall Street’s $0.31 forecast by 25.8%. Revenue reached $19.41 million, up 12% year-over-year but missing the $19.5 million estimate by $90,000. Operating income rose 26% to $3.8 million.
For the full fiscal year 2026, Electromed posted revenue of $73.8 million, a 15.3% increase from $64 million in 2025, and operating income of $13.9 million, up 43.7% year-over-year. Net income totaled $11.3 million, while diluted EPS came in at $1.30. Gross profit margin improved to 78.5%, up 40 basis points from the prior year.
Home care channel revenue, which accounts for 90.2% of total sales, grew 16.3% to $66.6 million. Non-home care revenue increased 6.7% to $7.2 million, though hospital revenue declined 29% year-over-year while distributor revenue rose 2%. The company ended the year with 64 direct sales representatives, up from 58 in the prior quarter, and plans to expand to 67 territories in fiscal 2027.
Electromed’s cash balance stood at $20.5 million as of June 30, 2026, with no debt and $45.1 million in working capital. Operating cash flow for the year reached $9.7 million, and the company repurchased $3.9 million in common stock. Market capitalization was $324.83 million, with a P/E ratio of 33.16 and a return on equity of 22%.
Shares fell 2.36% to $39.34 during regular trading following the results, extending a decline to $38.90 in after-hours activity. The stock has traded between $19.93 and $47.40 over the past 52 weeks. The company has now reported 15 consecutive quarters of year-over-year revenue and profit growth.
Chief Executive Officer Jim Cunniff announced plans to retire in April 2027, initiating a board-led succession process. Cunniff also highlighted progress in payer coverage, with 87% of U.S. covered lives under contract and 40 new payer agreements adding over 6 million covered lives.
