Electromed(NYSEMKT) ELMD

Electromed makes medical devices that help people clear their lungs of mucus. These machines use gentle vibrations to help patients with chronic breathing conditions breathe better. The company serves people at home and in hospitals who have difficulty coughing on their own.

Helping People Breathe Easier

• SmartVest System: Airway clearance device using high frequency vibrations to loosen mucus; includes a programmable generator and a therapy garment.
• SmartVest Clearway: Next-generation system introduced in November 2022 with a touchscreen interface and lightweight design.
• Homecare Revenue: Direct-to-patient sales for managing chronic conditions at home; accounted for 95.3% of U.S. revenue in fiscal year 2026.
• Hospital Products: Single-patient use vests and wraps for acute care settings; represented 4.7% of U.S. revenue in fiscal year 2026.

Expanding the Sales Network

• Launched the SmartVest Clearway in November 2022 to improve the therapy experience for home patients.
• Increased the direct field sales force to an average of 58 employees during fiscal year 2026.
• Published clinical study results in 2023 and 2025 to support the use of therapy for bronchiectasis and COPD patients.
• Secured a new credit agreement in December 2025 providing a $10 million revolving line of credit.

Direct Support and Clinical Evidence

The company employs a direct-to-patient model that captures both manufacturer and distributor margins by managing insurance claims and patient training. It operates a network of 167 independent respiratory therapists to provide nationwide in-home support and education for its users.

Scaling the Top Line

• Net revenue reached $73.8 million in fiscal year 2026, up 15.3% year over year.
• Net income was $11.3 million in fiscal year 2026, up 49.9% year over year.
• Operating income grew to $13.9 million in fiscal year 2026, up 43.7% year over year.
• Gross profit margin was 78.5% of net revenues in fiscal year 2026.

Evolution of Airway Therapy

Electromed has evolved into a specialized provider of airway clearance therapy for chronic conditions like bronchiectasis. Its focus on clinical evidence and a direct sales force supports its position in the expanding home respiratory market.