Electromed (ELMD) Q2 2026 earnings summary

Executive summary

• Achieved record net revenues of $18.9 million in Q2 FY 2026, up 16.3% year-over-year, marking the 13th consecutive quarter of revenue and net income growth, driven by strong execution and increased awareness of bronchiectasis and airway clearance solutions.

• Net income reached a record $2.8 million, or $0.32 per diluted share, a 40.3% increase year-over-year.

• Maintains a strong position in the airway clearance market with clinically proven technology and broad payor coverage.

• Strategic focus on the underserved bronchiectasis market, with new marketing campaigns and expanded payer coverage.

• Continued investment in sales force expansion, digital order solutions, and manufacturing optimization.

Financial highlights

• Net revenues grew 16.3% year-over-year to $18.9 million for the quarter and $68.9 million for the trailing twelve months; home care revenue reached $17.3 million, up 18.4%.

• Gross profit increased to $14.8 million (78.4% of net revenues) for the quarter, with TTM gross margin at 78%.

• Operating income rose 42.4% to $3.6 million (19.2% of net revenues) for the quarter; TTM operating income was $11.5 million with a 17% margin.

• Net income for the TTM was $9.0 million, with diluted EPS of $1.03.

• Cash on hand was $13.8 million with no debt; working capital at $36.2 million and shareholders' equity at $45.4 million.

Outlook and guidance

• Management expects to continue double-digit top-line growth and expanded operating leverage for the remainder of fiscal 2026.

• Plans to expand direct sales force to 61 representatives by year-end, maintaining productivity guidance of $1 million–$1.1 million per rep.

• Ongoing investments in sales force and infrastructure are planned to support growth.