Electromed(US:ELMD)2025-11-12 21:07Revenue Growth - Net revenues increased by 15.1% to $16.9 million in Q1 FY 2026, compared to $14.7 million in Q1 FY 2025[5] - Direct homecare revenue grew by 12.7% to $14.9 million, driven by an increase in direct sales representatives and higher net revenues per representative[6] - Non-homecare revenue reached $2.0 million, with hospital revenue growing by 51.7% to $1,047,000 and homecare distributor revenue increasing by 41.2% to $829,000[7] Profitability - Gross profit rose to $13.2 million, representing 78.1% of net revenues, compared to 78.3% in the prior year[8] - Operating income increased by 37.8% to $2.7 million, or 15.8% of net revenues, compared to $1.9 million, or 13.2% of net revenues in Q1 FY 2025[11] - Net income was $2.1 million, or $0.25 per diluted share, reflecting a 44.9% increase from $1.5 million, or $0.16 per diluted share in the prior year[9] Expenses - Selling, general and administrative expenses rose by 9.6% to $10.3 million, primarily due to increased salaries and personnel in sales and support teams[10] - Depreciation expenses rose to $214,000 from $202,000, reflecting an increase of approximately 5.94%[22] - Share-based compensation expense decreased to $458,000 from $697,000, a decline of about 34.34%[22] Cash Flow and Financial Position - As of September 30, 2025, Electromed had $14.1 million in cash and no debt, achieving total shareholders' equity of $44.7 million[12] - Net cash provided by operating activities decreased to $169,000 from $2,309,000 year-over-year, indicating a decline of about 92.65%[22] - Cash used for investing activities increased to $267,000 compared to $58,000 in the prior year, reflecting a rise of approximately 360.34%[22] - Cash used for financing activities was $1,076,000, a decrease from $4,467,000 in the previous year, showing a reduction of about 76.14%[22] - Cash and cash equivalents at the end of the period were $14,113,000, compared to $13,864,000 at the end of the same period in 2024, showing a slight increase of about 1.80%[22] - The company experienced a net decrease in cash of $1,174,000, compared to a decrease of $2,216,000 in the same quarter of the previous year, indicating an improvement of approximately 47.00%[22] Stock and Corporate Actions - The company completed its manufacturing optimization plan and implemented a new CRM system to enhance sales productivity[3] - Electromed's board approved a stock repurchase authorization of $10 million in Q1 FY 2026[9] - The company repurchased common stock amounting to $1,003,000, down from $4,536,000 in the same quarter last year, indicating a decrease of approximately 77.92%[22] Accounts Receivable - Accounts receivable showed a significant change, decreasing by $96,000 compared to an increase of $967,000 in the previous year[22]