Electromed on Monday unveiled fiscal 2026 financial targets, projecting a 35% compound annual growth rate in operating income from fiscal 2021 to fiscal 2026, alongside gross margins of 78.5%.
The New Prague, Minnesota-based company reported net revenues of $73.8 million for the last twelve months, up from $35.8 million in fiscal 2021. Operating income rose to $13.9 million from $3.1 million over the same period, marking the 15th consecutive quarter of year-over-year revenue and profit growth. Gross margins expanded to 78.5%, up 40 basis points from the prior year, while operating margins reached 18.8%, compared with 15.1% in fiscal 2025.
Electromed’s home care segment accounted for 94% of fiscal 2026 revenue, totaling $66.6 million, a 16.3% increase. The hospital segment contributed 5%, reflecting a 29% decline due to extended sales cycles. The company operates debt-free with $20.5 million in cash and reported $11.3 million in net income for the full year. Diluted earnings per share came in at $1.30, while cash provided by operations reached $9.7 million.
The presentation highlighted a total addressable market of $3.1 billion within the primary pulmonology callpoint, based on 834,000 diagnosed but untreated bronchiectasis patients. An estimated 4.1 million undiagnosed cases expand the potential market to $15.1 billion. Medicare reimbursement under code E0483 covers approximately 275 million contracted lives in the U.S.
Patient data from published studies cited in the presentation showed significant healthcare utilization improvements, including a 57% reduction in antibiotic prescriptions, a 59% decrease in hospitalizations, and a 75% drop in emergency department visits among SmartVest users. The company also noted that 94% of patients would recommend the device, with 97% reporting improved or stable health outcomes.
Electromed repurchased $3.9 million in shares during fiscal 2026 and plans to expand its direct sales force to 67 territories in fiscal 2027, targeting home care revenue per representative between $1.05 million and $1.15 million. CEO Jim Cunniff, who announced plans to retire in April 2027, emphasized the company’s focus on commercial and Medicare payer expansion amid the phaseout of CMS fax-based ordering by May 2028.
