Electromed (ELMD) Q3 2026 earnings summary

Executive summary

• Achieved 14th consecutive quarter of year-over-year revenue and profit growth, with Q3 FY 2026 net revenues of $18.6 million, up 18.4% year-over-year, driven by strong homecare and hospital market growth.

• Operating income rose 76% to $3.8 million (20.3% margin), and net income increased 58.8% to $3.0 million ($0.35 per diluted share).

• Maintained a strong cash position of $17 million, with no debt and working capital of $40 million as of March 31, 2026.

• Strategic focus on the underdiagnosed bronchiectasis market, with campaigns and education driving awareness and adoption.

• Operates a direct-to-patient model with strong reimbursement and broad payor coverage, notably for the SmartVest® HFCWO system.

Financial highlights

• Net revenues grew 18.4% year-over-year to $18.6 million in Q3; TTM net revenues reached $71.8 million as of March 31, 2026.

• Gross profit increased to $14.6 million (78.8% of net revenues) for Q3; TTM gross margin held steady at 78%.

• Operating income for Q3 was $3.8 million (20.3% margin); TTM operating income was $13.1 million (18% margin).

• Net income for Q3 was $3.0 million; TTM net income was $10.1 million, with diluted EPS of $1.17.

• Cash provided by operations for TTM was $10.5 million.

Outlook and guidance

• Confident in sustaining double-digit revenue growth and expanded operating leverage for the remainder of fiscal 2026.

• Plan to add four to five additional sales reps in the next fiscal year to support continued growth.

• Ongoing investments in sales force, infrastructure, and manufacturing optimization to support growth and market share gains.