Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Gro ...

Electromed, Inc. (ELMD) closed the last trading session at $23.88, gaining 26.2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $36.33 indicates a 52.1% upside potential.The mean estimate comprises three short-term price targets with a standard deviation of $1.53. While the lowest estimate of $35.00 indicates a 46.6% increase from the current price level, the most optimistic analy ...

Core Viewpoint - Electromed, Inc. (ELMD) is identified as a promising growth stock with strong financial metrics, including earnings and cash flow growth, making it a solid choice for growth investors [2][9]. Earnings Growth - Electromed has a historical EPS growth rate of 16.8%, with projected EPS growth of 22.4% for the current year, surpassing the industry average of 14.8% [5][4]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 48.9%, significantly higher than the industry average of -2.4%. The historical annualized cash flow growth rate over the past 3-5 years is 15.6%, compared to the industry average of 6.2% [6][7]. Earnings Estimate Revisions - The current-year earnings estimates for Electromed have been revised upward, with the Zacks Consensus Estimate increasing by 4% over the past month, indicating a positive trend in earnings estimate revisions [8]. Overall Assessment - Electromed holds a Zacks Rank of 2 (Buy) and a Growth Score of B, reflecting its potential as an outperformer in the growth stock category [9][10].

Core Viewpoint - Electromed, Inc. (ELMD) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, and their trading actions based on these estimates can lead to significant price movements [4]. Recent Performance and Outlook - Electromed's rising earnings estimates and the recent rating upgrade suggest an improvement in the company's underlying business, likely leading to increased stock prices [5]. - For the fiscal year ending June 2026, Electromed is expected to earn $1.04 per share, with a 4% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7]. - Electromed's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - The company achieved record quarterly revenue of $17.4 million, representing a robust 17% year-over-year growth, bringing net revenues for the year to $64 million, also a record [6][17] - Operating income reached $3 million in Q4, marking a 30% increase year-over-year, with net income of $2.2 million, a 21% increase compared to the same quarter last year [7][8] - The diluted earnings per share increased to $0.25, a 24% increase versus the prior year [8] - Gross profit increased to $50 million, or 78.1% of net revenues, compared to 76.3% in the previous year [19] Business Line Data and Key Metrics Changes - Home Care segment revenue grew 15% year-over-year to $57.3 million, driven by an increase in direct sales representatives and higher net revenues per approval [6][17] - Hospital Surge revenue increased by 60%, while the distributor channel delivered 76% growth [6] - Non-home care business revenue grew 28.8% to $6.7 million, primarily due to increased distributor and hospital revenue [18] Market Data and Key Metrics Changes - The company reported a significant milestone with the addition of its common stock into the Russell 2000 index, which is expected to improve trading liquidity [9] - The company is targeting the large unrecognized market for bronchiectasis treatment, with an estimated 800,000 patients who could benefit from its SmartVest therapy [11] Company Strategy and Development Direction - The company is focused on expanding its direct sales team, ending the year with 55 representatives, up from 53 the previous year, and plans to increase this number to 61 in fiscal year 2026 [9][18] - The company is implementing a manufacturing optimization plan to add new capacity, expected to be completed in early fiscal year 2026 [14][35] - The company is enhancing its Smart Order e-prescribe solution to streamline order submissions and improve efficiency [15][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future prospects, expecting to deliver double-digit top-line growth and strong operating cash flows in the upcoming fiscal year [21] - The company is well insulated from tariff-related turbulence, with 99% of revenues generated domestically [13] - Management highlighted the importance of the recent FDA approval of a drug for bronchiectasis, which is expected to raise awareness and potentially benefit the company [30][50] Other Important Information - The company completed a $5 million stock repurchase program in Q4, demonstrating confidence in its future [8] - The company maintained zero back orders in Q4 with a first pass yield of 99% [13] Q&A Session Summary Question: Can you provide more color on the strong margins in the quarter? - Management noted that strong growth in home care revenue, a high-margin channel, and a favorable mix within that channel contributed to the gross margin strength [25] Question: What caused the hospital channel to be so strong? - Management indicated that investments in hospital-focused sales reps and the untapped market dynamics contributed to the growth [27] Question: Are you seeing increased awareness around bronchiectasis due to new entrants in the market? - Management believes that the introduction of new drugs has raised awareness of bronchiectasis, which could serve as a tailwind for the company [30] Question: How does the manufacturing optimization plan expand current capacity? - Management stated that the plan is not primarily a margin play but aims to expand growth opportunities within the existing footprint [35] Question: What has been the response to the new CRM system? - Management reported positive feedback from the sales team, indicating that the new system has improved access to data and productivity [42]

Financial Data and Key Metrics Changes - The company achieved record quarterly revenue of $17.4 million, representing a robust 17% year-over-year growth, bringing net revenues for the year to $64 million, also a record [6][17] - Operating income reached $3 million in Q4, marking a 30% increase year-over-year, with net income of $2.2 million, a 21% increase compared to the same quarter last year [7][19] - Diluted earnings per share were $0.25, a 24% increase versus the prior year [7] - Gross profit increased to $50 million, or 78.1% of net revenues, up from 76.3% in the previous year [19] Business Line Data and Key Metrics Changes - Home Care segment revenue grew 15% year-over-year to $57.3 million, while Hospital Surge revenue increased by 60% and distributor channel revenue grew by 76% [6][17] - Non-home care business revenue grew 28.8% to $6.7 million, primarily due to increased distributor and hospital revenue [18] Market Data and Key Metrics Changes - The company noted a significant opportunity in the bronchiectasis treatment market, estimating nearly 800,000 patients could benefit from their SmartVest therapy, with over 4 million more potentially undiagnosed [11][12] - The company was recognized as the seventh fastest growing public company in Minnesota, highlighting its competitive position in the medical technology sector [8] Company Strategy and Development Direction - The company is focused on expanding its direct sales team, ending the year with 55 representatives, and plans to increase this number to 61 in fiscal year 2026 [9][18] - A manufacturing optimization plan is underway to add new capacity, expected to be completed in early fiscal year 2026 [14][35] - The company is actively working on a campaign to raise awareness about bronchiectasis and the role of HFCWO therapy in treatment [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, expecting to leverage investments made to drive double-digit top-line growth and strong operating cash flows [21] - The company is well insulated from tariff-related issues due to its domestic manufacturing operations [13] Other Important Information - The company completed a $5 million stock repurchase program in Q4, demonstrating confidence in its future [7] - The implementation of a new CRM system is expected to enhance sales productivity and provide better market insights [14][44] Q&A Session Summary Question: Can you provide more color on the strong margins in the quarter? - Management indicated that strong growth in home care revenue, a high-margin channel, contributed to favorable mix and margins [24] Question: What caused the hospital channel to be so strong? - Management noted investments in hospital-focused sales reps and the potential for hospitals to serve as gateways for home care prescriptions [26] Question: Are new entrants in the market increasing awareness around bronchiectasis? - Management believes that new drug approvals are raising awareness, which could be a tailwind for the market [29] Question: How will the manufacturing optimization plan impact capacity and margins? - Management stated that the plan is aimed at expanding growth opportunities rather than directly impacting margins [35] Question: Will there be further expansion of the hospital-focused team? - Management confirmed plans to expand the team cautiously, ensuring a successful algorithm for growth [41] Question: How is the new CRM system performing? - Management reported positive feedback from the sales team regarding the new CRM system, which is expected to enhance productivity [44] Question: What response has been seen from VA-specific marketing efforts? - Management indicated that over a million dollars of hospital revenue was generated from VA calls, highlighting the potential in that market segment [54]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K The aggregate market value of the common stock held by non-affiliates of the registrant as of December 31, 2024 was approximately $229,679,000 based upon the closing price of the registrant's common stock, as reported on the NYSE American, on such date. There were 8,349,176 shares of the registrant's common stock outstanding as of August 20, 2025. DOCUMENTS INCORPORATED BY REFERENCE | | (Mark One) | | --- | - ...

[Executive Summary & Company Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Highlights) Electromed, Inc. achieved record financial performance in FY2025, marked by significant revenue and operating income growth, strategic market index inclusions, and strong operational cash flow [Overall Performance Overview](index=1&type=section&id=Overall%20Performance%20Overview) Electromed, Inc. announced record financial results for both the fourth quarter and full fiscal year 2025, marking its eleventh consecutive quarter of year-over-year revenue and operating income growth - Electromed, Inc. achieved **record quarterly and annual revenues and operating income** for FY2025, marking the **eleventh consecutive quarter of year-over-year growth**[1](index=1&type=chunk) [Q4 FY2025 Company Highlights](index=1&type=section&id=Q4%20FY2025%20Company%20Highlights) Key financial achievements for the fourth quarter of fiscal year 2025 include significant revenue and operating income growth, alongside the company's inclusion in the Russell 2000® and 3000® indexes Q4 FY2025 Key Financial Highlights | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :----- | :-------- | :-------- | :----------- | | Net Revenue | $17.4 million | $14.8 million | +17.3% | | Operating Income | $3.0 million | $2.3 million | +30.2% | | Net Income | $2.2 million | $1.8 million | +22.2% | | Diluted EPS | $0.25 | $0.20 | +25.0% | - Electromed was added to the **Russell 2000® and 3000® indexes** in June 2025[8](index=8&type=chunk) [FY2025 Company Highlights](index=1&type=section&id=FY2025%20Company%20Highlights) For the full fiscal year 2025, Electromed achieved record net revenues, operating income, and net income, demonstrating strong operational cash generation and a significant share repurchase program FY2025 Key Financial Highlights | Metric | FY2025 | FY2024 | Change (YoY) | | :----- | :----- | :----- | :----------- | | Net Revenue | $64.0 million | $54.7 million | +17.0% | | Operating Income | $9.7 million | $6.6 million | +46.8% | | Operating Margin | 15.1% | 12.0% | +3.1 pp | | Net Income | $7.5 million | $5.2 million | +44.2% | | Diluted EPS | $0.85 | $0.58 | +46.6% | | Cash from Operations | $11.4 million | $9.1 million | +25.3% | - Electromed repurchased **$10.0 million of its common stock** throughout FY2025[8](index=8&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Jim Cunniff highlighted FY2025 as a banner year with record revenues and profitability, attributing success to the direct sales and fulfillment model, strengthened operational infrastructure, and strategic initiatives - Fiscal year 2025 was a "banner year" with **record revenues and profitability**, driven by diverse growth initiatives[4](index=4&type=chunk) - The **direct sales and fulfillment model** remains a key differentiator in the airway clearance space[4](index=4&type=chunk) - Operational improvements include a **manufacturing optimization plan** (expected completion FY2026) and deployment of a **new CRM system** to enhance sales efficiency. **Strategic expansion of the direct sales team** in high-return geographies and **initiatives to raise bronchiectasis awareness** were also key[4](index=4&type=chunk) [Q4 FY2025 Financial Performance](index=1&type=section&id=Q4%20FY2025%20Financial%20Performance) Electromed, Inc. achieved strong financial growth in Q4 FY2025, with significant increases across key revenue and income metrics [Net Revenues](index=1&type=section&id=q4-net-revenues) Net revenues for Q4 FY2025 increased significantly, primarily driven by growth in the direct homecare business due to increased referrals, approvals, and higher net revenues per approval Q4 FY2025 Net Revenues | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :----- | :-------- | :-------- | :----------- | | Total Net Revenues | $17.4 million | $14.8 million | +17.3% | | Direct Homecare Revenue | $15.4 million | $13.4 million | +14.8% | - The increase in direct homecare 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**[6](index=6&type=chunk) [Gross Profit](index=1&type=section&id=q4-gross-profit) Gross profit and gross margin improved in Q4 FY2025, mainly due to increased revenue and higher net revenue per device Q4 FY2025 Gross Profit | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :----- | :-------- | :-------- | :----------- | | Gross Profit | $13.6 million | $11.3 million | +20.4% | | Gross Margin | 78.3% | 76.2% | +2.1 pp | - The increase in gross profit and gross margin was primarily due to **increased revenue** and **higher net revenue per device**[7](index=7&type=chunk) [Operating Expenses (SG&A)](index=2&type=section&id=q4-operating-expenses-sga) Selling, general and administrative (SG&A) expenses increased in Q4 FY2025, primarily due to higher salaries and incentive compensation for an increased number of personnel in sales, sales support, marketing, and reimbursement teams Q4 FY2025 SG&A Expenses | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :----- | :-------- | :-------- | :----------- | | SG&A Expenses | $10.3 million | $8.8 million | +17.0% | - The increase in SG&A was primarily due to **increased salaries and incentive compensation** related to a **higher average number of personnel** in sales, sales support, marketing, and reimbursement teams to process higher patient referrals[9](index=9&type=chunk) [Operating Income & Net Income](index=2&type=section&id=q4-operating-income-net-income) Electromed reported strong growth in operating income and net income for Q4 FY2025, driven by increased revenue and gross profit Q4 FY2025 Operating & Net Income | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :----- | :-------- | :-------- | :----------- | | Operating Income | $3.0 million | $2.3 million | +30.2% | | Operating Margin | 17.5% | 15.7% | +1.8 pp | | Net Income | $2.2 million | $1.8 million | +20.6% | | Diluted EPS | $0.25 | $0.20 | +25.0% | - The increase in operating income was primarily due to an **increase in revenue and gross profit**[10](index=10&type=chunk) [Full Year FY2025 Financial Performance](index=2&type=section&id=Full%20Year%20FY2025%20Financial%20Performance) Electromed, Inc. achieved record full-year financial results in FY2025, with substantial growth in key financial metrics and a robust cash position [Net Revenues](index=2&type=section&id=fy2025-net-revenues) Electromed achieved record net revenues for fiscal year 2025, demonstrating robust growth across its business segments FY2025 Net Revenues | Metric | FY2025 | FY2024 | Change (YoY) | | :----- | :----- | :----- | :----------- | | Total Net Revenues | $64.0 million | $54.7 million | +17.0% | [Direct Homecare Business Performance](index=2&type=section&id=fy2025-direct-homecare-business-performance) The direct homecare market segment was a primary driver of revenue growth in FY2025, supported by an expanded sales force and increased revenue per approval FY2025 Direct Homecare Revenue | Metric | FY2025 | FY2024 | Change (YoY) | | :----- | :----- | :----- | :----------- | | Direct Homecare Revenue | $57.3 million | $49.5 million | +15.7% | - Revenue increase was due to an **increase in direct sales representatives** (62 total, 55 direct sales reps at year-end) and **higher net revenues per approval**[12](index=12&type=chunk) - Annualized homecare revenue per weighted average direct sales representative in FY2025 was **$1,058,000**, **exceeding the target range of $900,000 to $1,000,000**[12](index=12&type=chunk) [Non-Homecare Business Performance](index=2&type=section&id=fy2025-non-homecare-business-performance) Electromed's non-homecare business also experienced substantial growth in FY2025, primarily fueled by increased distributor and hospital revenue FY2025 Non-Homecare Revenue | Metric | FY2025 | FY2024 | Change (YoY) | | :----- | :----- | :----- | :----------- | | Non-Homecare Revenue | $6.7 million | $5.2 million | +28.8% | - The increase was primarily due to **increased distributor and hospital revenue**[13](index=13&type=chunk) [Gross Profit](index=2&type=section&id=fy2025-gross-profit) Gross profit and gross margin for FY2025 improved significantly, driven by higher overall revenue and increased net revenue per device FY2025 Gross Profit | Metric | FY2025 | FY2024 | Change (YoY) | | :----- | :----- | :----- | :----------- | | Gross Profit | $50.0 million | $41.7 million | +19.9% | | Gross Margin | 78.1% | 76.3% | +1.8 pp | - The increase in gross profit and gross margin was primarily due to **increased revenue** and **higher net revenue per device**[13](index=13&type=chunk) [Operating Expenses (SG&A)](index=2&type=section&id=fy2025-operating-expenses-sga) Selling, general and administrative (SG&A) expenses increased in FY2025, mainly due to higher compensation costs associated with an expanded workforce supporting increased patient referrals FY2025 SG&A Expenses | Metric | FY2025 | FY2024 | Change (YoY) | | :----- | :----- | :----- | :----------- | | SG&A Expenses | $39.3 million | $34.5 million | +14.0% | - The increase was primarily due to **increased salaries and incentive compensation** related to the **higher average number of personnel** in sales, sales support, marketing, and reimbursement teams to process higher patient referrals[14](index=14&type=chunk) [Operating Income & Net Income](index=2&type=section&id=fy2025-operating-income-net-income) Electromed achieved substantial growth in operating income and net income for FY2025, reflecting strong revenue and gross profit performance FY2025 Operating & Net Income | Metric | FY2025 | FY2024 | Change (YoY) | | :----- | :-------- | :-------- | :----------- | | Operating Income | $9.7 million | $6.6 million | +46.8% | | Operating Margin | 15.1% | 12.0% | +3.1 pp | | Net Income | $7.5 million | $5.2 million | +44.2% | | Diluted EPS | $0.85 | $0.58 | +46.6% | - The increase in operating income was primarily due to **increases in net revenues and gross profit**[15](index=15&type=chunk) [Financial Position & Cash Flow](index=2&type=section&id=fy2025-financial-position-cash-flow) As of June 30, 2025, Electromed maintained a strong financial position with significant working capital and no debt, despite a decrease in cash primarily due to substantial share repurchases FY2025 Key Financial Position Metrics (as of June 30, 2025) | Metric | Amount | | :----- | :----- | | Cash | $15.3 million | | Accounts Receivable | $24.7 million | | Debt | $0 | | Working Capital | $34.6 million | | Total Shareholders' Equity | $43.2 million | FY2025 Cash Flow from Operations | Metric | FY2025 | FY2024 | Change (YoY) | | :----- | :----- | :----- | :----------- | | Cash Provided by Operations | $11.4 million | $9.1 million | +25.3% | - The decrease in cash for FY2025 (**$0.8 million decrease** vs. **$8.7 million increase** in FY2024) was driven by **$10.0 million in share repurchases** and **$2.3 million in taxes paid on equity awards**, offset by **$11.4 million cash generated from operating activities**[16](index=16&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents Electromed, Inc.'s condensed financial statements, including balance sheets, income statements, and cash flows [Condensed Balance Sheets](index=5&type=section&id=condensed-balance-sheets) The condensed balance sheets provide a snapshot of Electromed, Inc.'s financial position as of June 30, 2025, and 2024, detailing assets, liabilities, and shareholders' equity Condensed Balance Sheets (as of June 30) | | As of June 30, 2025 | As of June 30, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $15,287,000 | $16,080,000 | | Accounts receivable (net) | 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 | 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** | [Condensed Statements of Operations](index=6&type=section&id=condensed-statements-of-operations) The condensed statements of operations present Electromed, Inc.'s financial performance for the three months and full years ended June 30, 2025, and 2024, detailing revenues, cost of revenues, operating expenses, and net income Condensed Statements of Operations | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Year Ended June 30, 2025 | Year Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | 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 | [Condensed Statements of Cash Flows](index=7&type=section&id=condensed-statements-of-cash-flows) The condensed statements of cash flows illustrate Electromed, Inc.'s cash generation and utilization for the years ended June 30, 2025, and 2024, categorized into operating, investing, and financing activities 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 | | **Cash and cash equivalents, End of period** | **$15,287,000** | **$16,080,000** | [Corporate Information & Disclosures](index=2&type=section&id=Corporate%20Information%20%26%20Disclosures) This section provides corporate details, including conference call, company overview, cautionary statements, and investor relations [Conference Call and Webcast Information](index=2&type=section&id=conference-call-webcast-information) Details for the upcoming conference call and webcast to discuss the financial results, including participation instructions and replay options - A conference call with management will be held on **Tuesday, August 26, 2025, at 5:00 p.m. Eastern Time**[17](index=17&type=chunk) - Participants can dial **(844) 826-3033 (Domestic)** or **(412) 317-5185 (International)**, or access the **live webcast** via Electromed's Investor Relations section or a direct link. A **replay** will also be available[18](index=18&type=chunk) [About Electromed, Inc.](index=2&type=section&id=about-electromed-inc) Electromed, Inc. is a Minnesota-based company founded in 1992, specializing in the manufacture, marketing, and sale of airway clearance therapy products, notably the SmartVest® Airway Clearance System - Electromed, Inc. manufactures, markets, and sells products for airway clearance therapy, including the **SmartVest® Airway Clearance System**[20](index=20&type=chunk) - The company is headquartered in **New Prague, Minnesota**, and was founded in **1992**[20](index=20&type=chunk) [Cautionary Statements](index=4&type=section&id=cautionary-statements) This section outlines the forward-looking nature of certain statements in the press release and details various risks and uncertainties that could cause actual results to differ materially from those projected - The press release contains **forward-looking statements**, which are subject to **uncertainties and risks** that may cause actual results to vary materially[21](index=21&type=chunk) - Risks include obtaining **reimbursement**, **component shortages**, **regulatory changes**, **competition**, **economic conditions**, **cyberattacks**, and **intellectual property protection**[21](index=21&type=chunk) [Investor Relations Contact](index=4&type=section&id=investor-relations-contact) Provides contact information for investor relations, including key personnel and their contact details - Contact information for investor relations is provided for **Brad Nagel (CFO)** and **Mike Cavanaugh (ICR Healthcare)**[22](index=22&type=chunk)

Summary of Electromed (ELMD) FY Conference Call - August 12, 2025 Company Overview - **Company Name**: Electromed (ELMD) - **Industry**: Airway management and medical devices - **Headquarters**: New Prague, Minnesota - **Market Position**: Approximately $62 million company, single product focus on SmartVest system - **Financial Health**: Growing, profitable, generating cash, and has no debt [5][6][28] Core Product and Market - **Product**: SmartVest, a high-frequency chest wall oscillation (HFCWO) device designed for patients with bronchiectasis and other respiratory diseases [7][8] - **Primary Disease Target**: Bronchiectasis, a chronic and irreversible respiratory condition affecting approximately 824,000 patients in the U.S. [8][9] - **Market Opportunity**: Only 127,000 patients have been prescribed the technology, indicating a significant untapped market of 700,000 patients [9] - **Revenue Potential**: If all identified patients were prescribed the technology, it could represent a $2.3 billion revenue opportunity [9] Competitive Landscape - **Market Competitors**: Electromed is one of four companies offering HFCWO devices, with a focus on ergonomic design and patient compliance [14][15] - **Unique Selling Proposition**: Lightest weight vest on the market, single hose design, and direct-to-patient delivery model [14][20] Clinical Evidence and Patient Impact - **Patient Outcomes**: 97% of patients report feeling better or the same after using SmartVest; 98% report increased sputum production [18] - **Clinical Goals**: Aim to reduce hospitalizations and minimize antibiotic use by improving airway clearance [19] Business Model and Revenue Streams - **Revenue Sources**: Primarily from home care, with about half from Medicare and the other half from commercial payers [22][23] - **Direct-to-Patient Model**: Electromed delivers products directly to patients, maintaining higher margins compared to traditional distribution models [20][21] - **Growth Strategy**: Focus on increasing awareness among pulmonologists and expanding direct-to-consumer outreach [24][31] Financial Performance and Growth Strategy - **Profitability**: Historically profitable, with recent improvements in operating income due to better efficiency in back-office functions and sales processes [41][42] - **Shareholder Value**: Engaged in share repurchase programs to return value to shareholders [44] - **Future Outlook**: Anticipates continued double-digit revenue growth and plans to invest in expanding sales channels and operational efficiencies [26][43] Regulatory and Market Environment - **Impact of Legislation**: Current healthcare legislation has not significantly impacted Electromed's business, with stable Medicare reimbursement expected [45][46] - **Market Positioning**: Positioned well within the home care space, with a focus on chronic disease management and patient quality of life [28][46] Conclusion Electromed is strategically positioned in a growing market with a unique product that addresses significant unmet medical needs. The company’s focus on direct patient engagement, strong clinical outcomes, and efficient operational practices supports its growth trajectory and profitability.