Electromed(ELMD) - 2026 Q2 - Quarterly Results

Financial Performance - Net revenues increased by 16.3% to a record $18.9 million in Q2 FY 2026, compared to $16.3 million in Q2 FY 2025[5] - Operating income reached a record $3.6 million, reflecting a 42.4% increase from the previous year, with an operating margin of 19.2%[8] - Net income was $2.8 million, or $0.32 per diluted share, representing a 40.3% increase compared to $2.0 million, or $0.22 per diluted share in Q2 FY 2025[10] - Gross profit increased to $14.8 million, or 78.4% of net revenues, up from $12.6 million, or 77.7% of net revenues in the prior year[7] - Net income for the six months ended December 31, 2025, was $4,897,000, an increase from $3,442,000 in 2024, representing a growth of approximately 42.3%[22] Revenue Sources - Revenue from the direct homecare business grew by 18.4% to $17.3 million, driven by an increase in sales representatives and higher revenue per representative[6] - The average annualized homecare revenue per sales representative was $1.2 million, exceeding the target range of $1 million to $1.1 million[6] Cash Flow and Investments - Cash balance as of December 31, 2025, was $13.8 million, with no debt and total shareholders' equity of $45.4 million[11] - Net cash provided by operating activities decreased to $3,195,000 from $5,460,000, a decline of about 41.5% year-over-year[22] - Cash used for investing activities increased to $923,000 compared to $295,000 in the previous year, indicating a rise of approximately 212.5%[22] - Cash used for financing activities was $3,768,000, down from $5,010,000, reflecting a decrease of about 25%[22] - The ending cash and cash equivalents balance was $13,791,000, down from $16,235,000, a decrease of approximately 15.0%[22] - The net decrease in cash for the period was $1,496,000, contrasting with a net increase of $155,000 in the previous year[22] Expenses and Shareholder Actions - Selling, general and administrative expenses rose by 10.0% to $10.8 million, primarily due to increased salaries and compensation costs[9] - Share-based compensation expense decreased to $1,114,000 from $1,652,000, a reduction of about 32.5%[22] - The company repurchased $2.8 million of common stock at an average price of $26.16 per share during Q2 FY 2026[8] - The company repurchased common stock amounting to $3,766,000, compared to $4,536,000 in the prior year, a decrease of about 16.9%[22] Accounts and Expenditures - Accounts receivable saw a significant change, increasing by $1,600,000 compared to a decrease of $558,000 in the previous year[22] - Expenditures for property and equipment rose to $886,000 from $270,000, an increase of approximately 228.5%[22] Marketing Strategy - The company is focused on expanding its market presence through the "Triple Down on Bronchiectasis" marketing campaign, targeting nearly 800,000 diagnosed patients[3]