Electromed(US:ELMD)2025-08-26 20:11Revenue Growth - Total revenue for fiscal year 2025 was $64,000,000, an increase of $9,284,000 or 17.0% compared to $54,716,000 in fiscal year 2024[123] - Homecare revenue increased by $7,784,000 or 15.7% to $57,287,000 in fiscal 2025, driven by an increase in direct sales representatives and higher net revenues per approval[123] - Hospital revenue rose by $605,000 or 23.9% to $3,140,000 in fiscal 2025, attributed to increased sales representatives focused on the hospital market[124] - Homecare distributor revenue surged by $1,076,000 or 58.1% to $2,928,000 in fiscal 2025, due to a higher number of homecare distribution partners[125] Profitability - Gross profit increased to $49,971,000 in fiscal 2025, representing 78.1% of net revenues, up from $41,726,000 or 76.3% in fiscal 2024[128] - Operating income rose by $3,079,000 or 46.8% to $9,660,000 in fiscal 2025, primarily due to increases in net revenues and gross profit[135] - Net income for fiscal 2025 was $7,537,000, an increase of $2,387,000 or 46.3% compared to fiscal 2024's net income of $5,150,000[140] Expenses - Research and development expenses increased by $340,000 or 51.8% to $996,000 in fiscal 2025, mainly due to higher headcount and external spending on product enhancements[134] - Selling, general and administrative expenses were $39,315,000 in fiscal 2025, an increase of $4,826,000 or 14.0% from $34,489,000 in fiscal 2024[129] Cash Flow and Investments - Cash flows from operating activities in fiscal 2025 were $11,393,000, driven by net income and non-cash expenses, despite increases in accounts receivable and other assets[141] - Net cash used for investing activities in fiscal 2025 was approximately $306,000, primarily for property and equipment expenditures of $262,000[142] - Net cash used for financing activities in fiscal 2025 was approximately $11,880,000, including $10,000,000 for stock repurchase[143] Taxation - Income tax expense for fiscal 2025 was $2,747,000, including a current tax expense of $3,057,000 and a deferred benefit of $310,000[137] - The effective tax rates were 26.7% for fiscal 2025 and 26.8% for fiscal 2024, influenced by state income taxes and non-deductible items[139] Financial Position - The company has approximately $34,614,000 in working capital, which is expected to meet liquidity needs for at least the next twelve months[145] - The line of credit provides a maximum borrowing capacity of $2,500,000, with no outstanding principal balance as of June 30, 2025[146] - The company maintains certain financial covenants under its line of credit, including a minimum tangible net worth of $10,125,000[147] - The company anticipates that cash flows from operations will be sufficient to meet working capital and capital expenditure requirements for at least the next twelve months[150]