Electromed posts record Q4 2026 revenue, operating income
Electromed said fourth-quarter net revenue rose to a record $19.4 million, operating income increased to $3.8 million, and diluted EPS was a quarterly record at $0.39.
Electromed (AMEX: ELMD ) held its fourth-quarter earnings conference call on Tuesday.
Below is the complete transcript from the call.
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Access the full call at Summary Electromed Inc. reported a record fourth quarter with net revenue reaching $19.4 million, a 12% increase year-over-year, and operating income growing by 26% to $3.8 million.
The company expanded its direct sales force to 64 representatives, preparing for territory expansion in fiscal 2027, while maintaining strong U.S.-based manufacturing operations.
Electromed's strategic initiatives include the Triple Down on Bronchiectasis campaign and expanding payer coverage, with 87% of U.S. covered lives under contract.
The company achieved a gross margin of 78.5% for fiscal 2026, with annual revenues growing 15.3% to $73 million, driven by strong performance in the home care market.
CEO Jim Cunniff announced his retirement planned for April 2027, with a succession plan in place, and expressed confidence in the company's future growth and leadership transition.
Full Transcript OPERATOR If anyone should require operator assistance during the conference, please press star-0 on your telephone keypad.
As a reminder, this conference is being recorded.
I would now like to turn the conference over to Mike Cavanaugh, Investor Relations.
Thank you, Mike.
You may begin.
Mike Cavanaugh, Investor Relations Good afternoon and thank you for joining the Electromed earnings call.
Earlier today, Electromed Inc. released financial results for the fourth quarter of fiscal 2026.
The press release is currently available on the company's website at Before we get started, I would like to remind everyone that some of the statements that management will make on this call are considered forward-looking statements, including statements about the company's future operating and financial results and plans.
Such statements are subject to risks and uncertainties that could cause actual performance or achievements to be materially different from those projected.
Any such statements represent management's expectations as of today's date.
You should not place any undue reliance on those forward-looking statements, and the company does not undertake any obligation to update or revise forward-looking statements, whether because of new information, future events, or otherwise.
Please refer to the company's SEC filings for further guidance on this matter.
Joining me on the call today are Jim Cunniff, Electromed's President and Chief Executive Officer, and Brad Nagle, Chief Financial Officer.
As on previous calls, Jim will provide operational highlights from the quarter.
Brad will then review the financials, and we will close with a question and answer session.
With that, I will now turn the call over to Jim Cunniff, President and Chief Executive Officer of Electromed.
Jim Cunniff, President and Chief Executive Officer Thank you, Mike, and thank you all for joining us today.
I'm pleased to report on another record quarter for Electromed.
Q4 marks our 15th consecutive quarter of year-over-year revenue and profit growth, a track record that reflects the durability of our direct-to-patient model and the growing recognition of SmartVest within the bronchiectasis community.
Net revenue for the fourth quarter was a record $19.4 million, up 12% versus the fourth quarter of last year.
We again delivered operating leverage in the quarter.
Operating income was $3.8 million in Q4, representing 26% year-over-year growth.
Earnings per share was also a quarterly record at $0.39 per share on a fully diluted basis.
Growth in the quarter was led by our core home care channel, which grew 15%, and our distributor channel, which grew 2%, both reflecting consistent demand for our SmartVest.
Hospital revenue declined 29% in the quarter.
As we've discussed on prior calls, hospital orders have a longer sales cycle and are inherently less predictable than our other channels.
We are bullish on our hospital as a gateway to the home and will continue to invest in this area of our business.