8-K
Electromed, Inc. (ELMD)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 26, 2025
ELECTROMED, INC.
(Exact Name of Registrant as Specified in Its Charter)
| Minnesota | 001-34839 | 41-1732920 |
|---|---|---|
| (State or Other Jurisdiction of<br><br> <br>Incorporation) | (Commission File Number) | (I.R.S. Employer Identification<br><br> <br>Number) |
500 Sixth Avenue NW
New Prague, MN 56071
(Address of Principal Executive Offices) (Zip Code)
(952) 758-9299
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Common Stock, $0.01 par value | ELMD | NYSE American LLC |
|---|---|---|
| (Title of each class) | (Trading Symbol) | (Name of each exchange on which registered) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
|---|
On August 26, 2025, Electromed, Inc., a Minnesota corporation (the “Company”), issued a press release announcing its financial results for the fourth quarter and fiscal year ended June 30, 2025. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference into this Item 2.02.
| Item 7.01 | Regulation FD Disclosure. |
|---|
The Company has updated its investor presentation, a copy of which is furnished as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference into this Item 7.01. The Company intends to use the presentation in whole or in part, in one or more meetings with investors and analysts.
| Item 9.01 | Financial Statements and Exhibits. |
|---|
(d) Exhibits:
| Exhibit Number | Description |
|---|---|
| 99.1 | Press Release dated August 26, 2025 |
| 99.2 | Company Investor Presentation dated August 26, 2025 |
| 104 | Cover Page Interactive Data File (embedded in the cover page and formatted in inline XBRL) |
The information contained in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any registration statement pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ELECTROMED, INC. | ||
|---|---|---|
| Date: August 26, 2025 | By: | /s/ Bradley M. Nagel |
| Name: | Bradley M. Nagel | |
| Title: | Chief Financial Officer |
ex_841353.htm
Exhibit 99.1
Electromed, Inc. Announces Record Fiscal 2025 Fourth Quarter and Full Year Financial Results
Record quarterly and annual revenues and operating income, marking the eleventh consecutive quarter of year-over-year revenue and operating income growth
NEW PRAGUE, Minn.--(BUSINESS WIRE)-- Electromed, Inc. (“Electromed”) (NYSE American: ELMD), a leader in innovative airway clearance technologies, today announced financial results for the three months ("Q4 FY 2025") and full year ended June 30, 2025 ("FY 2025").
Q4 FY 2025 Company Highlights
| ● | Net revenue increased 17.3% to a record $17.4 million in Q4 FY 2025, from $14.8 million in the fourth quarter of the prior fiscal year. |
|---|---|
| ● | Operating income was a record $3.0 million, a 30.2% increase from the fourth quarter of the prior fiscal year. |
| --- | --- |
| ● | Net income was $2.2 million, or $0.25 per diluted share, compared to $1.8 million, or $0.20 per diluted share in the fourth quarter of the prior fiscal year. |
| --- | --- |
| ● | Electromed was added to the Russell 2000^®^ and 3000^®^ indexes in June 2025. |
| --- | --- |
FY 2025 Company Highlights
| ● | Net revenue increased 17.0% to a record $64.0 million in FY 2025, from $54.7 million in the prior fiscal year. |
|---|---|
| ● | Operating income increased 46.8% over the prior year to a record $9.7 million, or 15.1% of net revenues. |
| --- | --- |
| ● | Net income was $7.5 million, or $0.85 per diluted share, compared to $5.2 million, or $0.58 per diluted share in the prior fiscal year. |
| --- | --- |
| ● | Cash provided by operations totaled a record $11.4 million in FY 2025, compared to $9.1 million in the prior fiscal year. |
| --- | --- |
| ● | Electromed repurchased $10.0 million of its common stock throughout FY 2025. |
| --- | --- |
“Fiscal year 2025 was a banner year for Electromed – posting record revenues and profitability as our diverse growth initiatives yielded strong results,” said Jim Cunniff, President, and Chief Executive Officer. “Our direct sales and fulfillment model continues to be a key differentiator for Electromed in the airway clearance space. During the year, we strengthened our operational infrastructure with key new hires, and we allocated meaningful resources to improve operational efficiencies. Specifically, we began a manufacturing optimization plan to increase capacity that we expect to complete in fiscal year 2026 and have begun deploying a new CRM system designed to enhance our sales team’s efficiency and productivity. As in previous years, we continued to strategically expand our direct sales team in geographies where we expect high returns, while executing various initiatives to raise awareness of bronchiectasis, which is a disease that is misdiagnosed and underdiagnosed. Our strong results clearly demonstrate the important role HFCWO therapy plays in treating this awful disease, and we will continue to advance Electromed’s vision of being the most trusted provider in the airway clearance space.”
Q4 FY 2025 Results
All amounts below are for the three months ended June 30, 2025 and compare to the three months ended June 30, 2024.
Net revenues grew 17.3% to $17.4 million, from $14.8 million.
Revenue in our direct homecare business increased 14.8% to $15.4 million, from $13.4 million. The increase in revenue was primarily due to incremental referrals and approvals driven by an increase in direct sales representatives as well as higher net revenues per approval.
Gross profit increased to $13.6 million or 78.3% of net revenues from $11.3 million or 76.2% of net revenues. The increase in gross profit and gross margin was primarily due to increased revenue and higher net revenue per device.
Selling, general and administrative (“SG&A”) expenses were $10.3 million representing an increase of $1.5 million or 17.0%. The increase in the current period was primarily due to the increased salaries and incentive compensation related to the higher average number of personnel in the sales, sales support, marketing, and reimbursement teams to process higher patient referrals.
Operating income was $3.0 million or 17.5% of net revenues, compared to $2.3 million, or 15.7% of net revenues. This increase in operating income was primarily due to an increase in revenue and gross profit.
Net income increased by 20.6% to $2.2 million, or $0.25 per diluted share, compared to $1.8 million, or $0.20 per diluted share.
FY 2025 Summary
All amounts below are for the year ended June 30, 2025 ("fiscal 2025") and compare to the fiscal year ended June 30, 2024 ("fiscal 2024").
Net revenues for fiscal 2025 grew by 17.0% to a record $64.0 million, from $54.7 million in fiscal 2024.
Revenue in our direct homecare market increased year-over-year by 15.7% to $57.3 million, from $49.5 million. The increase in revenue was due to an increase in direct sales representatives and higher net revenues per approval. Field sales employees totaled 62 at year end, 55 of which were direct sales representatives. The annualized homecare revenue per weighted average direct sales representative in FY 2025 was $1,058,000, slightly higher than Electromed’s target range of $900,000 to $1,000,000.
Revenue in our non-homecare business grew to $6.7 million in fiscal 2025, an increase of $1.5 million, or 28.8%, from $5.2 million in fiscal 2024. The increase was primarily due to increased distributor and hospital revenue.
Gross profit increased to $50.0 million, or 78.1% of net revenues in fiscal 2025, from $41.7 million, or 76.3% of net revenues, in fiscal 2024. The increase in gross profit and gross margin was primarily due to increased revenue and higher net revenue per device.
Selling, general and administrative (“SG&A”) expenses were $39.3 million in fiscal 2025, representing an increase of $4.8 million or 14.0% from $34.5 million in fiscal 2024. The increase was primarily due to increased salaries and incentive compensation related to the higher average number of personnel in the sales, sales support, marketing, and reimbursement teams to process higher patient referrals.
Operating income was $9.7 million or 15.1% of net revenues in fiscal 2025, compared to $6.6 million, or 12.0% of net revenues in fiscal 2024. This increase in operating income was primarily due to increases in net revenues and gross profit.
Net income for fiscal 2025 was $7.5 million, or $0.85 per diluted share, compared to $5.2 million, or $0.58 per diluted share in fiscal 2024.
As of June 30, 2025, Electromed had $15.3 million in cash, $24.7 million in accounts receivable and no debt, achieving a working capital of $34.6 million and total shareholders’ equity of $43.2 million. The cash balance reflects a decrease of $0.8 million for the twelve months ended June 30, 2025, compared to an increase in cash of $8.7 million in the twelve months ended June 30, 2024. The decrease in cash for the twelve months ended June 30, 2025, was driven by share repurchases of Electromed common stock totaling $10.0 million and $2.3 million of taxes paid in connection with net settlements and forfeitures of vested equity awards. These cash outflows were offset by $11.4 million of cash generated from operating activities, which represents an increase of $2.3 million over the prior year.
Conference Call and Webcast Information
The conference call with members of Electromed management will be held at 5:00 p.m. Eastern Time on Tuesday, August 26, 2025.
Interested parties may participate in the call by dialing (844) 826-3033 (Domestic) or (412) 317-5185 (International).
The live conference call webcast will be accessible in the Investor Relations section of Electromed’s website and directly via the following link: https://viavid.webcasts.com/starthere.jsp?ei=1726358&tp_key=03c4e0b55a
For those who cannot listen to the live broadcast, a replay will be available by dialing (844) 512-2921 (Domestic) or (412) 317-6671 (International) and referencing the replay pin number 10201085. Additionally, an online replay will be available for at least one year in the Investor Relations section of Electromed’s web site at: https://investors.smartvest.com/events-and-presentations/default.aspx
About Electromed, Inc.
Electromed, Inc. manufactures, markets, and sells products that provide airway clearance therapy, including the SmartVest® Airway Clearance System, to patients with compromised pulmonary function. It is headquartered in New Prague, Minnesota, and was founded in 1992. Further information about Electromed can be found at www.smartvest.com.
Cautionary Statements
Certain statements in this press release constitute forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by words such as “continue,” “expect,” “may,” “plan” “potential,” “should,” “will,” and similar expressions, including the negative of these terms, but they are not the exclusive means of identifying such statements. Forward-looking statements cannot be guaranteed, and actual results may vary materially due to the uncertainties and risks, known or unknown associated with such statements. Examples of risks and uncertainties for Electromed include, but are not limited to, our ability to obtain reimbursement from Medicare, Medicaid, or private insurance payers for our products; component or raw material shortages, changes to lead times or significant price increases and changes to trade regulations (including, but not limited to, changes to tariffs); adverse changes to state and federal health care regulations; our ability to maintain regulatory compliance and to gain future regulatory approvals and clearances; entry of new competitors including new drug or pharmaceutical discoveries; adverse economic and business conditions or intense competition; wage and component price inflation; technical problems with our research and products; the risks associated with cyberattacks, data breaches, computer viruses and other similar security threats; changes affecting the medical device industry; our ability to develop new sales channels for our products such as the hospital or homecare distributor channels; adverse international health care regulation impacting current international business; our ability to renew our line of credit or obtain additional credit as necessary; and our ability to protect and expand our intellectual property portfolio, as well as other factors we may describe from time to time in Electromed’s reports filed with the Securities and Exchange Commission (including Electromed’s most recent Annual Report on Form 10-K, as amended from time to time, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K). Investors should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties or potentially inaccurate assumptions investors should take into account when making investment decisions. Shareholders and other readers should not place undue reliance on “forward-looking statements,” as such statements speak only as of the date of this press release. We undertake no obligation to update them in light of new information or future events.
Brad Nagel, Chief Financial Officer
(952) 758-9299
investorrelations@electromed.com
Mike Cavanaugh, Investor Relations
ICR Healthcare
(617) 877-9641
mike.cavanaugh@icrhealthcare.com
Source: Electromed, Inc.
Electromed, Inc.
Condensed Balance Sheets
| 2024 | |||
| Assets | |||
| Current Assets | |||
| Cash and cash equivalents | 15,287,000 | $ | 16,080,000 |
| Accounts receivable (net of allowances for credit losses of 45,000) | 24,660,000 | 23,333,000 | |
| Contract assets | 1,036,000 | 719,000 | |
| Inventories | 3,299,000 | 3,712,000 | |
| Prepaid expenses and other current assets | 392,000 | 329,000 | |
| Income tax receivable | 408,000 | — | |
| Total current assets | 45,082,000 | 44,173,000 | |
| Property and equipment, net | 4,714,000 | 5,165,000 | |
| Finite-life intangible assets, net | 371,000 | 657,000 | |
| Other assets | 1,173,000 | 87,000 | |
| Deferred income taxes | 2,462,000 | 2,152,000 | |
| Total assets | 53,802,000 | $ | 52,234,000 |
| Liabilities and Shareholders’ Equity | |||
| Current Liabilities | |||
| Accounts payable | 2,667,000 | $ | 1,010,000 |
| Accrued compensation | 5,079,000 | 3,893,000 | |
| Income tax payable | — | 277,000 | |
| Warranty reserve | 1,645,000 | 1,567,000 | |
| Other accrued liabilities | 1,077,000 | 930,000 | |
| Total current liabilities | 10,468,000 | 7,677,000 | |
| Other long-term liabilities | 125,000 | 12,000 | |
| Total liabilities | 10,593,000 | 7,689,000 | |
| Shareholders’ Equity | |||
| Common stock, 0.01 par value per share, 13,000,000 shares authorized; 8,349,176 and 8,637,883 shares issued and outstanding, as of June 30, 2025, and June 30, 2024, respectively | 83,000 | 87,000 | |
| Additional paid-in capital | 21,941,000 | 20,790,000 | |
| Retained earnings | 21,185,000 | 23,668,000 | |
| Total shareholders’ equity | 43,209,000 | 44,545,000 | |
| Total liabilities and shareholders’ equity | 53,802,000 | $ | 52,234,000 |
All values are in US Dollars.
Electromed, Inc.
Condensed Statements of Operations
| Three Months Ended | Year Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| June 30, | June 30, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| (Unaudited) | (Unaudited) | |||||||
| Net revenues | $ | 17,393,000 | $ | 14,832,000 | $ | 64,000,000 | $ | 54,716,000 |
| Cost of revenues | 3,769,000 | 3,531,000 | 14,029,000 | 12,990,000 | ||||
| Gross profit | 13,624,000 | 11,301,000 | 49,971,000 | 41,726,000 | ||||
| Operating expenses | ||||||||
| Selling, general and administrative | 10,282,000 | 8,790,000 | 39,315,000 | 34,489,000 | ||||
| Research and development | 302,000 | 176,000 | 996,000 | 656,000 | ||||
| Total operating expenses | 10,584,000 | 8,966,000 | 40,311,000 | 35,145,000 | ||||
| Operating income | 3,040,000 | 2,335,000 | 9,660,000 | 6,581,000 | ||||
| Interest income, net | 135,000 | 162,000 | 624,000 | 455,000 | ||||
| Net income before income taxes | 3,175,000 | 2,497,000 | 10,284,000 | 7,036,000 | ||||
| Income tax expense | 971,000 | 669,000 | 2,747,000 | 1,886,000 | ||||
| Net income | $ | 2,204,000 | $ | 1,828,000 | $ | 7,537,000 | $ | 5,150,000 |
| Income per share: | ||||||||
| Basic | $ | 0.26 | $ | 0.21 | $ | 0.89 | $ | 0.60 |
| Diluted | $ | 0.25 | $ | 0.20 | $ | 0.85 | $ | 0.58 |
| Weighted-average common shares outstanding: | ||||||||
| Basic | 8,334,821 | 8,601,206 | 8,454,100 | 8,562,245 | ||||
| Diluted | 8,718,900 | 8,997,310 | 8,914,421 | 8,864,585 |
Electromed, Inc.
Condensed Statements of Cash Flows
| Years Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| Cash Flows from Operating Activities | ||||||
| Net income | $ | 7,537,000 | $ | 5,150,000 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Depreciation | 1,039,000 | 789,000 | ||||
| Impairment of intangible assets | 212,000 | — | ||||
| Amortization of finite-life intangible assets | 133,000 | 52,000 | ||||
| Share-based compensation expense | 3,059,000 | 1,692,000 | ||||
| Deferred income taxes | (310,000 | ) | (571,000 | ) | ||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | (1,327,000 | ) | 797,000 | |||
| Contract assets | (317,000 | ) | (232,000 | ) | ||
| Inventories | 175,000 | 459,000 | ||||
| Prepaid expenses and other assets | (959,000 | ) | 1,321,000 | |||
| Income tax receivable, net | (685,000 | ) | (59,000 | ) | ||
| Accounts payable and accrued liabilities | 1,650,000 | (1,206,000 | ) | |||
| Accrued compensation | 1,186,000 | 875,000 | ||||
| Net cash provided by operating activities | 11,393,000 | 9,067,000 | ||||
| Cash Flows from Investing Activities | ||||||
| Expenditures for property and equipment | (262,000 | ) | (287,000 | ) | ||
| Expenditures for finite-life intangible assets | (44,000 | ) | (108,000 | ) | ||
| Net cash used for investing activities | (306,000 | ) | (395,000 | ) | ||
| Cash Flows from Financing Activities | ||||||
| Issuance of common stock upon exercise of options | 398,000 | 311,000 | ||||
| Taxes paid on net share settlement of stock awards | (2,278,000 | ) | — | |||
| Repurchase of common stock | (10,000,000 | ) | (275,000 | ) | ||
| Net cash (used for) provided by financing activities | (11,880,000 | ) | 36,000 | |||
| Net (decrease) increase in cash | (793,000 | ) | 8,708,000 | |||
| Cash and cash equivalents | ||||||
| Beginning of period | 16,080,000 | 7,372,000 | ||||
| End of period | $ | 15,287,000 | $ | 16,080,000 |
Image Exhibit
Exhibit 99.2
Electromed, Inc. Investor Presentation August 26, 2025 NYSE American: ELMD Innovation Leader in Airway Clearance Technologies
Forward Looking Statements Certain statements in this presentation constitute forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by words such as “anticipate,” “believe,” “committed,” “continue,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “should,” “will,” and similar expressions, including the negative of these terms, but they are not the exclusive means of identifying such statements. Forward-looking statements cannot be guaranteed, and actual results may vary materially due to the uncertainties and risks, known or unknown associated with such statements. Examples of risks and uncertainties for Electromed include, but are not limited to, competitive nature of our market; changes to Medicare, Medicaid, or private insurance reimbursement policies; changes to state and federal health care laws; changes affecting the medical device industry; our ability to develop new sales channels for our products such as the homecare distributor channel; our need to maintain regulatory compliance and to gain future regulatory approvals and clearances; new drug or pharmaceutical discoveries; general economic and business conditions; component or raw material shortages; changes to lead times or changes to trade regulations; wage and component price inflation; the risks associated with cyberattacks, data breaches, computer viruses and other similar security threats; technical problems with our research and products; our ability to renew our line of credit or obtain additional credit as necessary; our ability to protect and expand our intellectual property portfolio, as well as other factors we may describe from time to time in Electromed’s reports filed with the Securities and Exchange Commission (including Electromed’s most recent Annual Report on Form 10-K, as amended from time to time, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K). Investors should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties or potentially inaccurate assumptions investors should take into account when making investment decisions. Shareholders and other readers should not place undue reliance on “forward-looking statements,” as such statements speak only as of the date of this press release. We undertake no obligation to update them in light of new information or future events.
Electromed – Who We Are Electromed, Inc. is a growing medical device company focused on airway management to help people around the world breathe better, stay healthier, and lead active and fulfilling lives. Headquarters:New Prague, MN Ticker:ELMD Established:1992 Annual Revenue:$64.0M Market Cap:$187M Share Count:8.5M 179 Employees Manufacturing in Minnesota HFCWO Market Focus
a. Electromed Highlights - Growing and profitable medical technology company - A leader in the large and expanding airway clearance market - The SmartVest® Airway Clearance System’s High Frequency Chest Wall Oscillation (“HFCWO”) technology supported by clinical outcomes data with strong reimbursement -Attractive direct-to-patient and provider model -Strong financial profile with attractive gross margins and well-capitalized balance sheet - 33% Operating Income CAGR* FY’21 Revenue = $35.8, FY’21 Operating Income = $3.1, FY’22 Revenue = $41.7, FY’22 Operating Income = $3.0, FY’23 Revenue = $48.1, FY’23 Operating Income = $4.0, FY’24 Revenue = $54.7, FY’24 Operating Income = $6.5, FY'25 Revenue = $64.0, FY’25 Operating Income = $9.7 (Amounts in millions)
What is Bronchiectasis (BE)? Irreversible lung condition characterized by abnormal widening of one or more of the bronchi (airways) Repeated episodes of pulmonary inflammation and infection leads to mucus accumulating in the airways Mean prevalence of bronchiectasis in patients with COPD is 54%¹ Disease Misdiagnosed Disease Underdiagnosed HFCWO Under-prescribed 1.Chalmers J. and Sethi S. Raising awareness of bronchiectasis in primary care: overview of diagnosis and management strategies in adults. NPJ Prim Care Respir Med. 2017;27:18
U.S. Market: Large, Growing, Underpenetrated Estimated HFCWO bronchiectasis penetration, treated population3 ~148k HFCWO ADOPTED3 Bronchiectasis HFCWO penetration ~16%3 Estimated Net Bronchiectasis prevalence, DIAGNOSED1 ~923k U.S. BE Diagnosed1 Diagnosed BE population growing at ~12% annually1 Estimated bronchiectasis prevalence, UNDIAGNOSED with COPD/BE overlap2 4.1 million U.S. Undiagnosed2 35% of BE patients managed by pulmonologists1 1Internal company estimates derived from GUIDEHOUSE 2023 NASM claims database 2Internal company estimates derived from GUIDEHOUSE 2023 literature review and 2023 CDC NHANES data 3Internal company estimates derived from GUIDEHOUSE 2023 NASM claims database, GUIDEHOUSE 2023 literature review and 2024 S2N HFCWO Claims data
How is Bronchiectasis Treated? Antibiotics, Anti-Inflammatories, Airway Clearance
How is Bronchiectasis Treated? HFCWO Therapy – Mimics Manual CPT
SmartVest Clearway® HFCWO Designed with the Patient in Mind An Enhanced Patient Experience Sleek and light weight generator Intuitive user interface for better patient adherence More portable and easier for travel SmartVest® has a well-established reimbursement code from CMS – E0483; We estimate we have over 250 million contracted lives in the US
SmartNotes™ Patient Progress Report Patient Outcomes and Treatment Progress to Physicians SmartNotes combine patient Quality of Life and Therapy Utilization data to provide physicians with extended views into disease management TeleRespiratory Services: A team of Respiratory Therapists stay connected with patients and support their therapy utilization. Outcomes Management: Easy-to-read report provides physicians with a comprehensive view of disease progression and therapy impact.
Clinical Evidence Electromed has Published Studies Showing Effectiveness of HFCWO to Treat Bronchiectasis Therapy with SmartVest® significantly decreased exacerbations requiring hospitalization, antibiotic use, and stabilizes lung function. Powner (2018) Therapy with HFCWO demonstrated key health outcomes improved in post- compared to pre-index period: cough, all-cause hospitalizations, pneumonia, and pulmonary hospitalizations. DeKoven (2022) 57% Reduction in antibiotic prescriptions1 59% Decrease in hospitalizations1 75% Fewer emergency department visits2 1.Sievert CE, et al 2016. Using High Frequency Chest Wall Oscillation in a Bronchiectasis Patient Population: An Outcomes-Based Case Review. Respiratory Therapy, 11(4), 34-38. 2. Sievert CE, et al 2018. Incidence of Bronchiectasis-Related Exacerbation Rates After HFCWO Treatment—A Longitudinal Outcome-Based Study, Respiratory Therapy, 13(2), 38-41.
Direct-to-Patient Model Drives Attractive Margin Profile Traditional Medical Equipment Channel Direct-to-Patient Distribution (Electromed) Company expects gross margins in the mid-70s and improving with the SmartVest® Clearway® Manufacturer $ DME $ Patient vs. Electromed $$ Patient
Net Revenue Breakdown - $64.0M (TTM ended 6/30/2025) - By Setting: 1% (Other), 5% (Hospitals), 94% (Home Care, includes $2.9M from home care distributor revenue). Homecare By Payer: 2% (Medicaid), 46% (Medicare), 52% (Commercial/Other, Includes Managed Medicare and Managed Medicaid). Homecare Qualified Referral Volume: 2% (Other), 20% (Neuromuscular), 3% (Cystic Fibrosis), 75% (Bronchiectasis).
Growth Strategy How Will Electromed Increase Market Share? Continued sales force expansion along with complementary infrastructure investments Increase brand awareness and revenue with direct-to-consumer and physician marketing Market development to improve diagnosis rates and evidence to support the adoption of the SmartVest system for patients SmartAdvantage™ best-in-class customer care and support Expand e-prescribing capability
Long-Term Objectives Electromed is committed to delivering long-term profitable growth Double-digit Revenue Growth Increase market share Deeper penetration of current SmartVest prescribers Operating Margin Improvement Operating leverage as revenue increases
Capital Allocation Strategy Proven execution against our priorities Capital Allocation Support organic business growth Generate Free Cash Flow Potential Strategic Investments Strategic M&A Opportunities or Return to Shareholders Share Buybacks 2025 Execution New CRM & CAPEX investments Sales rep expansion Market development Triple Down on BE campaign Product enhancements $10.0 million of shares repurchased in FY25
Why Invest? Large, expanding chronic lung diseases market Clinically proven technology Broad payor coverage Consistent double-digit organic revenue growth High gross margins, robust cash flow and expanding operating leverage
Performance vs. Russell Medical Equipment Index (TTM and as of 6/30/2025 Results) Metric ELMD vs. RUS ME: Sales Growth: 17.0% > 11.7%, Gross Margin: 78.1% > 51.6%, Operating Margin: 15.1% > (3.5%)
Jim Cunniff, President & CEO (952) 758-9299 jcunniff@Electromed.com Brad Nagel, CFO (952) 758-9299 bnagel@Electromed.com Mike Cavanaugh (617) 877-8641 mike.cavanaugh@icrhealthcare.com
APPENDIX
Financial Summary Year Ended (in $ millions, except shares amounts) June 30, 2024 June 30, 2025: Revenues: FY24: $54.7 FY25: $64.0, Gross Profit: FY24 $41.7 FY25: $50.0, Gross margin FY24: 76% FY25: 78%, Operating income: FY24: $6.6 FY25: $9.7, Operating margin: FY24: 12% FY25: 15%, Net income: FY24: $5.2 FY25: $7.5, Diluted EPS: FY24: $0.58 FY25: $0.85, Diluted Shares: FY24: 8,864,585 FY25: 8,914,421, Cash provided by operations: FY24: $9.1 FY25: $11.4