Financial Performance - Net revenue increased by 19.0% to $14.7 million in Q1 FY 2025, up from $12.3 million in Q1 FY 2024[2] - Gross margin improved to 78.3% of net revenues, compared to 77.1% in the same quarter last year[2] - Operating income rose to $1.9 million, representing 13.2% of revenue, compared to $0.1 million or 1.2% of revenue in Q1 FY 2024[2] - Net income was $1.5 million, or $0.16 per diluted share, compared to $0.2 million, or $0.02 per diluted share in Q1 FY 2024[2] - Net income for the three months ended September 30, 2024, increased to $1,474,000 compared to $155,000 for the same period in 2023, representing a significant growth[17] Revenue Sources - Revenue from the direct homecare business increased by 18.5% to $13.2 million, driven by more referrals and an increase in direct sales representatives[5] - The annualized homecare revenue per weighted average direct sales representative was $985,000, at the higher end of the target range of $900,000 to $1,000,000[5] Expenses and Cash Flow - Selling, general and administrative expenses were $9.4 million, an increase of 2.6% compared to Q1 FY 2024[7] - Net cash provided by operating activities was $2,309,000, a turnaround from a cash outflow of $244,000 in the prior year[17] - Accounts receivable increased by $967,000, up from $675,000 year-over-year, indicating higher sales or delayed collections[17] - Cash and cash equivalents at the end of the period were $13,864,000, compared to $7,024,000 at the end of the same period last year, reflecting improved liquidity[17] - The company experienced a net decrease in cash of $2,216,000, compared to a decrease of $348,000 in the prior year, highlighting cash flow challenges[17] - Expenditures for property and equipment were $37,000, down from $109,000, suggesting a more conservative investment approach[17] - The company reported a net cash used for investing activities of $58,000, a decrease from $133,000 in the previous year, indicating reduced capital expenditures[17] Shareholder Value and Compensation - The company repurchased common stock amounting to $4,536,000 during the period, indicating a strategy to return value to shareholders[17] - Share-based compensation expense rose to $697,000 from $371,000, reflecting increased employee compensation costs[17] Marketing and Leadership - The company launched a new marketing campaign called "Triple Down on Bronchiectasis," which has received positive feedback[3] - Electromed hired Peter Horwich as the new VP of Marketing to lead market development initiatives[3]
Electromed(ELMD) - 2025 Q1 - Quarterly Results