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Electromed Inc. reported its fourth-quarter earnings for 2025, surpassing analyst expectations with an earnings per share (EPS) of $0.25, beating the forecast of $0.22. This represents a 13.64% surprise. The company also achieved a record quarterly revenue of $17.4 million, exceeding the forecast of $16.6 million by 4.82%. Following these results, Electromed’s stock rose by 2.28% in after-hours trading, reaching $20.2 per share. According to InvestingPro data, the company maintains excellent financial health with an overall score of 3.75, supported by strong profitability and growth metrics.
Key Takeaways
- Electromed’s EPS of $0.25 exceeded expectations, marking a 24% increase year-over-year.
- The company reported record quarterly revenue of $17.4 million, up 17% from the previous year.
- Stock price increased by 2.28% in after-hours trading following the earnings announcement.
- Gross margins improved to 78.1%, reflecting operational efficiencies.
- Electromed continues to focus on expanding its SmartVest technology and sales force.
Company Performance
Electromed has demonstrated strong performance in Q4 2025, with significant year-over-year growth in both revenue and net income. The company continues to leverage its position as the only pure-play provider of high-frequency chest wall oscillation (HFCWO) therapy, driving growth through direct-to-patient sales and strategic market expansion. InvestingPro analysis reveals the company’s impressive financial position, with a current ratio of 5.19 and more cash than debt on its balance sheet. The stock is currently trading near its Fair Value, based on comprehensive analysis available in the InvestingPro Research Report, one of 1,400+ detailed company analyses available to subscribers.
Financial Highlights
- Revenue: $17.4 million, a 17% increase from the same quarter last year.
- Earnings per share: $0.25, a 24% increase year-over-year.
- Net income: $2.2 million, up 21% from the previous year.
- Gross margin: Improved to 78.1% from 76.3%.
- Operating income: $3 million, a 30% increase year-over-year.
Earnings vs. Forecast
Electromed’s actual EPS of $0.25 exceeded the forecasted $0.22, resulting in a 13.64% earnings surprise. The revenue of $17.4 million also surpassed expectations by 4.82%. This performance reflects the company’s continued focus on operational efficiency and market expansion.
Market Reaction
Following the earnings announcement, Electromed’s stock rose by 2.28% in after-hours trading, reaching $20.2. This positive market reaction highlights investor confidence in the company’s growth trajectory and its ability to exceed financial expectations.
Outlook & Guidance
Looking ahead, Electromed anticipates continued double-digit top-line growth. The company plans to expand its home care sales territories from 55 to 61 and expects home care revenue per representative to range between $1 million and $1.1 million in FY2026. Electromed remains committed to investing in clinical education and innovation to drive future growth. InvestingPro data shows the company’s strong execution with a 14.85% revenue growth over the last twelve months and an attractive PEG ratio of 0.39, suggesting reasonable valuation relative to growth. Subscribers can access 6 additional ProTips and detailed financial metrics through the platform.
Executive Commentary
CEO Jim Kinniff emphasized the company’s growth strategy, stating, "We’re taking market share and expanding our reach through sales team growth, improved productivity, investments in clinical education and innovation." CFO Brad Nagel highlighted the company’s financial position, noting, "We continue to see the opportunity to leverage the investments we’ve made to drive both our mission and our financial commitments forward."
Risks and Challenges
- Market Saturation: As the only pure-play HFCWO therapy provider, Electromed faces the challenge of expanding its market share in a potentially saturated market.
- Supply Chain Issues: Any disruptions could impact manufacturing and delivery timelines.
- Competition: New entrants or advancements in alternative bronchiectasis treatments could pose a threat.
- Regulatory Changes: Changes in healthcare regulations could affect reimbursement rates and market dynamics.
Q&A
During the earnings call, analysts inquired about the impact of a new bronchiectasis drug by Insmed, to which Electromed executives highlighted their focus on leveraging their direct-to-patient model. Other questions addressed the benefits of the new e-prescribe system and opportunities within the Veterans Affairs market.
Full transcript - Electromed Inc (ELMD) Q4 2025:
Conference Operator: Good day and welcome to the Electromed Fourth Quarter Fiscal Year twenty twenty five Earnings Conference Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Mike Cavanaugh, Investor Relations. Please go ahead.
Mike Cavanaugh, Investor Relations, Electromed: Good afternoon and thank you for joining the Electromed earnings call. Earlier today, Electromed Incorporated released financial results for the fourth quarter and fiscal twenty twenty five. The press release is currently available on the company’s website at smartvest.com. Before we get started, I would like to remind everyone that some of the statements that management will make on this call are considered forward looking statements, including statements about the company’s future operating and financial results and plans. Such statements are subject to risks and uncertainties that could cause actual performance or achievements to be materially different from those projected.
Any such statements represent management’s expectations as of today’s date. You should not place any undue reliance on those forward looking statements and the company does not undertake any obligation to update or revise forward looking statements whether as a result of new information, future events or otherwise. Please refer to the company’s SEC filings for further guidance on this matter. Joining me on the call today are Jim Kinniff, Electromed’s President and Chief Executive Officer and Brad Nagel, Chief Financial Officer. As on previous calls, Jim will provide operational highlights from the quarter.
Brad will then review the financials and we will close with a question and answer session. With that, I will now turn the call over to Jim Kniff, President and Chief Executive Officer of Electromed.
Jim Kinniff, President and Chief Executive Officer, Electromed: Thank you, Mike, and thank you to everyone who is joining our call today to review our results for the fourth quarter and fiscal year twenty twenty five. As I complete my second year as Electromed’s President and Chief Executive Officer, I’m thrilled to share that the company had another exceptional quarter and year. As I look at our results, I’m reminded of a quote that captures our progress. Success is not a destination, it’s a continuous journey of excellence. And that’s exactly what we delivered, our eleventh consecutive quarter of year over year revenue proving that our focused strategy and unwavering commitment to helping patients breathe easier continues to drive remarkable results.
As usual Brad will provide a thorough review of our financials, but I’d like to start with some of the numbers that tell our story. We achieved record quarterly revenue of $17,400,000 representing a robust 17% year over year growth which brought our net revenues for the year to $64,000,000 also a record. This performance was driven by growth across all key markets in the quarter. Our core Home Care segment grew 15%, Hospital Surge 60% and our distributor channel delivered 76% growth fueled by strong demand from our carefully selected DME partners. While Home Care remains the core of our business, we believe the hospital and DME segments can add meaningful incremental revenues and contribute to overall profitability.
Our profitability metrics are equally impressive. Operating income reached $3,000,000 in Q4 marking a 30% increase year over year with improved operating leverage of 174 basis points over Q4 last year. Net income of $2,200,000 was 21% higher than the same quarter last year translating to a diluted earnings per share of $0.25 a 24% increase versus the prior year. Once again during the fiscal year our strong cash position enabled us to return excess capital to our shareholders. I am pleased to report that in Q4 we successfully completed our second $5,000,000 stock repurchase program of fiscal year twenty twenty five demonstrating our confidence in the company’s future and our commitment to enhancing shareholder value.
We also achieved a significant milestone with the addition of our common stock into the Russell two thousand and indexes which we believe should provide our stock with improved trading liquidity through broader institutional exposure. Closer to home we were honored to be recognized by the Minneapolis St. Paul Business Journal as the seventh fastest growing public company in Minnesota, a notable achievement in a state known for its impressive roster of public companies including many that are well known medical technology leaders. Our growth initiatives are delivering exceptional results. A key component is the careful expansion of our direct sales team and we ended the year with 55 representatives up from 53 in the prior year ensuring we can capitalize on the growing market opportunities ahead of us.
Besides adding headcount we also realized incremental revenue growth through productivity gains from our reps. During the year productivity exceeded $1,000,000 per rep which was at the high end of our target range at the beginning of the year. Just three years ago productivity was in the $850,000 range which shows a meaningful improvement. Also to support our rapid growth during the year we bolstered our team with new leadership roles in marketing, payer access and information technology. As we have mentioned many times in the past, one of the opportunities for Electromed is penetrating the large unrecognized market for bronchiectasis treatment.
It is estimated that today in The United States there are approximately nine and twenty three thousand patients diagnosed with bronchiectasis and of those only one hundred and forty eight thousand are using HFCWO therapy which suggests a patient opportunity of nearly eight hundred thousand patients with bronchiectasis who could benefit from our SmartVest. Even more eye opening, it is estimated that over four million more people have bronchiectasis but are undiagnosed. To address this knowledge gap, our Triple Down on Bronchiectasis campaign is designed to bring awareness of both the disease and the important role HFCWO therapy can play in improving the quality of life for patients with bronchiectasis. The campaign has already over 31,000 views to our dedicated landing page and is succeeding in not only raising awareness about bronchiectasis but also highlighting how our SmartVest therapy plays a crucial role in successful long term disease management. This is done through a three pronged treatment approach of airway clearance, infection treatment and inflammation reduction.
We’re also targeting industry events for medical professionals who diagnose and treat bronchiectasis through the generation of clinical evidence supporting the use of SmartVest as a key component of effective treatment. An example is our recent presentation at the World Bronchiectasis Conference in Australia which showcased compelling data from the bronchiectasis research registry demonstrating the clinical value of HFCWO therapy and suggesting opportunities for earlier intervention in the disease process. Specifically, the study analyzed a cohort of 5,673 bronchiectasis patients and while only nine percent of patients had been prescribed HFCWO at baseline, fifty eight percent of non HFCWO users at baseline met CMS guideline criteria for HFCWO therapy. This analysis suggests the need for education on HFCWO prescribing indications and guidelines earlier in the disease process. We’re actively working on the manuscript now with anticipated completion in 2026.
We also continue to raise the bar on our operational performance. As a U. S.-based company with 99% of our revenues generated domestically in all manufacturing operations located in The United States, we feel we are well insulated from tariff related turbulence and are therefore well positioned to maintain our strong track record of on time delivery and preserve our healthy mid-70s gross margins. However, tariffs are a fluid situation which we are continuing to monitor with our primarily domestic suppliers who may have exposure within their upstream supply chains. In Q4 we maintained zero back orders with a first pass yield of 99% while inventory levels remain lean.
We initiated our manufacturing optimization plan to add new capacity with completion expected in early fiscal year twenty twenty six and just implemented a new CRM system in July which we expect will enhance sales productivity while providing incremental market insights. Another important effort is supporting our prescribing clinics by moving them from the dark ages of inefficient order submission to our fulfillment team via fax and into the new age of submitting orders via our Smart Order e prescribe solution. This significant efficiency enhancement for our clinic seamlessly provides Electromed with complete prescription documentation enabling us to ship SmartVest to our patients sooner so they can breathe easier. In Q4, 38% of the orders we received were via our SmartOrder e prescribe solution. As we look ahead, I’m optimistic about our prospects to deliver meaningful results.
As the only pure play HFCWO therapy provider with a convenient direct to patient model, we’re taking market share and expanding our reach through sales team growth, improved productivity, investments in clinical education and innovation. Our focus remains on helping patients with bronchiectasis breathe easier while delivering exceptional value to our shareholders. That concludes my prepared remarks and I’d now like to turn the call over to Brad Nagel for a review of our financials. Brad over to you.
Brad Nagel, Chief Financial Officer, Electromed: Thanks Jim. All amounts I’m about to review are for the twelve months ended 06/30/2025 fiscal year 2025 and compared to the twelve months ended 06/30/2024 fiscal year 2024 unless otherwise noted. Net revenues for Q4 grew 17.3 to $17,400,000 bringing net revenues for our full fiscal year 2025 to a record $64,000,000 or 17% growth from $54,700,000 last year. Revenue in our direct home care market increased year over year by 15.7% to $57,300,000 from $49,500,000 in the prior year. The increase in revenue was due to an increase in direct sales representatives and higher net revenues per approval.
The annualized home care revenue per weighted average direct sales representative in fiscal year twenty twenty five was $1,058,000 exceeding Electromed’s target range of $900,000 to $1,000,000 per rep. With our strong performance in fiscal year twenty twenty five and continued efficiency expected in fiscal year twenty twenty six, we are increasing our expectations for fiscal year twenty twenty six Home Care revenue per rep to a range of $1,000,000 to $1,100,000 Jim mentioned that we closed out fiscal year twenty twenty five with 55 home care field sales reps. In fiscal year twenty twenty six, we expect the number of sales reps to continue to rise as we hire to expand into as many as 61 home care sales territories across The U. S. Revenue in our non home care business grew 28.8 to $6,700,000 in fiscal year twenty twenty five.
The increase was primarily due to increased distributor and hospital revenue which grew 58.123.9% respectively. Gross profit increased to $50,000,000 or 78.1% of net revenues from $41,700,000 or 76.3% of net revenues in fiscal year twenty twenty four. The increase in gross profit and gross margin was primarily due to increased revenue and higher net revenue per device. Selling, general and administrative or SG and A expenses were $39,300,000 representing an increase of $4,800,000 or 14% from $34,500,000 The increase in the current year was primarily due to the accelerated recognition of share based compensation associated with the vesting of performance based equity awards and salaries and incentive compensation related to the higher average number of sales, sales support, marketing and reimbursement personnel to process higher patient referrals. Operating income this year was $9,700,000 or 15.1 percent of net revenues compared to $6,600,000 or 12% of net revenues last year.
The growth of 46.8% in operating income was primarily due to an increase in net revenues and gross profit. When putting these full year results together, we’re excited to have delivered a record year with pretax income of $10,300,000 net income of $7,500,000 and full year EPS for our shareholders of $0.85 per diluted share. As of 06/30/2025, Electromed had $15,300,000 in cash, dollars 24,700,000.0 in accounts receivable and no debt achieving a working capital of $34,600,000 and total shareholders’ equity of $43,200,000 The cash balance reflects a decrease of 800,000 for the year ended 06/30/2025 compared to an increase in cash of $8,700,000 in the same period in the prior year. The decrease in cash in fiscal year twenty twenty five was driven by share repurchases of 10,000,000 and $2,300,000 of taxes paid from net share settlement of vested stock offset by $11,400,000 of cash generated from operating activities which represents an increase of $2,300,000 over the prior year. I’ll close by saying Jim and I are excited by the passion the Electromed team has for bringing our innovative SmartVest technology to an underserved patient population.
And it’s fun to see how this passion for the patients and physicians we serve has translated into strong financial performance throughout fiscal year twenty twenty five for Electromed and our shareholders. As we look forward into fiscal year twenty twenty six and beyond, we continue to see the opportunity to leverage the investments we’ve made to drive both our mission and our financial commitments forward delivering double digit top line growth, expanded operating leverage and strong operating cash flows in the New Year. With that, we’d like to move to the Q and A portion of the call. Operator, please open the call to questions.
Conference Operator: Thank you. First question comes from Kyle Bauser with ROTH Capital Partners. Please go ahead.
Kyle Bauser, Analyst, ROTH Capital Partners: Hello, great. Jim and Brad, thanks for taking the questions and really nice results wrapping up the fiscal year here. Maybe just on the really strong margins in the quarter. I think Brad you mentioned some of the gross margin strength was attributed to just higher net revenue per device. Can you provide a little bit more color there?
Is that just a change in the mix from different payers or different points of care? Just kind of curious a little bit more on COGS.
Brad Nagel, Chief Financial Officer, Electromed: Hey, Kyle. Thanks for the question. And you are right on. We had a really strong growth in our home care revenue, which is a really strong margin channel for us. And the mix within that channel was really favorable.
So we had different sort of payer targets across commercial versus Medicare and it worked in our favor this quarter and really for the full year putting up over 78 gross margins for the year.
Kyle Bauser, Analyst, ROTH Capital Partners: Okay, got it. And maybe just related, obviously, really strong hospital and DME revenue. I know it’s a small portion of overall sales, but Jim you had mentioned that’s kind of a growth area. Can you call out anything there? Was there anything in particular that caused the hospital channel in particular to be so strong?
Jim Kinniff, President and Chief Executive Officer, Electromed: It’s a great question and good to hear from you Kyle. Basically when we take a look at other revenue sources for us, our primary focus continues to be in the home care market. That’s where our strength is. That’s where we’re continuing to invest. But I think we’ve talked about this in the past.
One of the other areas that we think is a gateway to the home is in the hospital. So in the past fiscal year one of the investments that we’ve made is to bolster our hospital focused sales reps. So today we’ve got three people that are really focused on that market. We feel like there it’s kind of untapped predominantly because one of our competitors is distracted who’s had a strong presence in that market. But fundamentally the market dynamics in purchasing are different there.
Whereas in the home you basically get a prescription from a provider, We’re able to convert that to revenue pretty quickly. In the hospital market, the sales cycle is a lot longer because it’s a capital equipment sale. But we do believe that it’s just a terrific opportunity. And if a patient uses our technology in a hospital and has bronchiectasis and needs to continue that therapy at the home, we feel like the hospital is a gateway for them to get used to our technology, get comfortable with it. And then when they get discharged, hopefully we get the prescription for them to then use it at home if they don’t already have a device.
Kyle Bauser, Analyst, ROTH Capital Partners: Right. Got it. That makes sense. Appreciate that. And then just a couple of quick ones.
Obviously, couple of new entrants in the market most recently around the bronchiectasis drug and previously a new device entrant. Are you seeing increased awareness around bronchiectasis? Just kind of trying to understand the puts and takes here and if those could actually be a tailwind looking forward, I know it’s a little bit early.
Jim Kinniff, President and Chief Executive Officer, Electromed: Yes, we think so as well on the tailwind. And for everybody that’s on the call basically what Kyle is referring to is Insmed just introduced the first drug that has specifically been approved by the FDA for bronchiectasis. But the drug does not clear the airways. And so one of the things that they have done which has been fantastic is they’ve brought awareness to this under deserved, under diagnosed disease state and we appreciate that. But we feel like the drug is part of the care modality.
You have to first if you’ve got bronchiectasis typically you’ve got mucus that’s built up in your airways, you need to clear the airways first. Part of the protocol also is those patients typically have an infection and so they’re being treated with antibiotics that’s been kind of the norm. And then with the new drug that’s hit the market that’s really targeted on inflammation. And again this is a chronic irreversible condition. So really what we’re seeing and what we’re expecting with that drug that just came out is that it’s really going to help those patients not get further exacerbations or flares that they have today.
So that’s on that point. There’s some other devices that have been approved by the FDA but in one instance specifically the product is I think they’re slow rolling the introduction of that product here in The United States and that’s mainly due to the fact that they don’t have reimbursement. They’ve got the device FDA approved but they don’t have reimbursement which is a key hurdle. It’s difficult for a patient to get prescribed our technology or any other airway clearance type technology in this market if there isn’t reimbursement. And that’s mainly because the device’s value is so high and the patient would then have a very high out of pocket expense.
Kyle Bauser, Analyst, ROTH Capital Partners: Got it. Really appreciate that color there. And then just lastly, the manufacturing optimization plan that’s expected to be completed in this next fiscal year. Can you just remind me how this expands upon current capacity and maybe even how margins might be impacted by this? Thank you.
Jim Kinniff, President and Chief Executive Officer, Electromed: Yes. No, it’s a great question. Thanks Kyle. We’re really excited about it. We actually believe that the team in operations has done a fantastic job on our facility expansion and really reimagining our assembly process here in New Prague.
And we don’t believe it’s going to really be a margin play because one of the offsetting factors is wage increases and any potential impact from tariffs. Although as I mentioned on my comments, we feel like we’re pretty well insulated from any tariff impact on the components that we buy. But really the play there is to expand our opportunity to grow. And through the changes that we’ve made, we’re really reducing a lot of the movement we’ve had in our manufacturing operations and we feel like that’s going to enable us to grow within our existing footprint really for the next three years comfortably.
Kyle Bauser, Analyst, ROTH Capital Partners: Sounds great. Well, great finish to the year. I’ll jump back in queue. Thanks for taking my question.
Jim Kinniff, President and Chief Executive Officer, Electromed: Okay. Thanks.
Conference Operator: The next question comes from Anderson Shock with B. Riley. Please go ahead.
Anderson Shock, Analyst, B. Riley: Hey, thank you for taking the questions and congrats on a really strong quarter and year. So first on the hospital revenue growth, is this just early results from the expansion of your hospital focused team? And should we expect to see continued sequential growth in the coming quarters here?
Jim Kinniff, President and Chief Executive Officer, Electromed: Yes. We do have a focus there. I do anticipate that much like our overall revenue growth because this is can be somewhat lumpy Anderson on the hospital side because it is a capital equipment sale. We do expect that we’re going to have broader than double digit growth in our hospital market albeit on a much lower base than our home care space and we feel like there’s plenty of runway for that. Hospitals are replacing existing equipment that they have right now and we do believe that one of the key players that had a really strong presence in that market is internally distracted and has an older product.
And I think that that’s really opening us up to opportunities that heretofore we might not have had.
Anderson Shock, Analyst, B. Riley: Okay, got it. And then do you plan any further expansion in this team in fiscal twenty twenty six?
Jim Kinniff, President and Chief Executive Officer, Electromed: We want to be conscious of adding reps in the space too quickly. We want to make sure that we’ve got an algorithm for success to perpetuate what we’ve already done in really the last two years in the hospital market. And provided that’s the case, have the demand absolutely. Yes, we think that that is as I mentioned on the previous questions from Kyle, we feel like that’s really a nice not only revenue opportunity for us and exposure to our technology to a broader range of patients, But also we feel like that’s a gateway to get the patients that are entering the hospital when they get discharged to then use our product in the home. Good question.
Anderson Shock, Analyst, B. Riley: Okay, got it. And then on your new CRM system you implemented in July, I guess how do you structure the implementation to avoid a learning curve that could negatively impact the sales force productivity?
Jim Kinniff, President and Chief Executive Officer, Electromed: We are really excited about the CRM system that we just introduced. It was introduced on time. It was introduced on budget. And I think part of the secret sauce there was the fact that it wasn’t done within a vacuum with just a few people on the team. It was really a cross functional effort with both our sales team as well as our reimbursement team because this is the first time, Anderson, that we’re really going be able to tie together the systems that our reimbursement team uses with our sales team so they can both see the same data at the same time.
And we just had our sales meeting just as an example in August and the feedback when I started, the feedback with our previous CRM system was so negative. And as we were doing additional training at our sales meeting with the team at this most recent annual sales meeting with the same folks, it was joy to see what kind of information they now have access to. It’s a very we’re on salesforce.com, it’s a very intuitive system. And I think that you know day by day as people become more and more comfortable with the system, it’s going to become more and more a stronger asset to how we can leverage what they do on a daily basis. So no, thus far it’s been fantastic.
Anderson Shock, Analyst, B. Riley: Okay, got it. Thank you for taking our questions and congrats again on the great finish to the year.
Jim Kinniff, President and Chief Executive Officer, Electromed: Appreciate it. Thank you.
Conference Operator: The next question comes from Ben Haynor with Lake Street Capital Markets. Please go ahead.
Ben Haynor, Analyst, Lake Street Capital Markets: Good afternoon, gentlemen. Thanks for taking the questions. First, kind of following up on the question earlier about the Insmed drug. Obviously, raising awareness when you have a large undiagnosed population or and certainly an undertreated patient population is great. Just wondering if there are any kind of historical examples you might be able to point to where that really led to the acceleration of a market.
And all of a sudden folks that hadn’t known about the condition or hadn’t been diagnosed really took off, you know, obviously exempting Viagra or something like that?
Jim Kinniff, President and Chief Executive Officer, Electromed: Yeah, you know, I don’t really have a proxy I can give you know, for that. But you know, what we have seen is that can you hear me okay? I think we’re getting some static Yeah. On the Yeah, you know, I think what we’re seeing though is and you know, to their credit, when you show up at a trade show, if you look at some of the different foundations that are involved in this space and some of the providers that are in this space, when I started and again albeit this was just a couple of years ago, when you’d go to one of these conferences, big topics people were talking about were COPD, asthma and obviously COVID. But you know, that has since pivoted.
And so part of it is the work that we’ve done on market development, part of it is what Insmed has done, because they couldn’t sell anything. They’re just basically seeding the market. And I think a consequence of that is, you know, this is now in the forefront of what people are thinking about, you know, when they see a patient whereas, you know, in the past a patient enters a pulmonologist office and they, you know, everybody they look at they believe might have COPD or asthma and they’re now looking at other disease states. I think that’s going be a great catalyst really for this market.
Ben Haynor, Analyst, Lake Street Capital Markets: Okay, that’s very helpful color, I appreciate that. And then secondly for me on kind of the e prescribe availability, what have you seen anecdotally, if anything, does that change folks’ habits when prescribing? I mean, do they see a boost like automatically? Is it a certain cohort of folks that change their habits? What kind of changes having that available?
Jim Kinniff, President and Chief Executive Officer, Electromed: Well, it’s going be a big focus. It was a focus for our team this past fiscal year. It’s going to continue to be a focus this year. And it’s like any type of change that anybody goes through, there’s resistance initially until you show them how much easier it is for them to process the prescriptions that they have to pull all the documentation together for and send to us And how that also translates into a benefit in getting the technology to the patient sooner because we have most of the documentation in a really clean format that we can then peruse to make sure that it’s going to meet reimbursement coverage. So, you know, kind of the first point of entry is you’ve got to get people to try it.
And so once they try it and they see how it’s going to benefit them personally in, you know, the clinic and how they’re doing their work, I think they then start to adapt it. You know, the key thing for us too is we don’t want it to be a one and done. We want to make sure that we’re cultivating that behavior so that this is something that we sustain. But boy, it’s just been a great benefit I think to the clinics that have really adopted it. And for us internally it’s been a really good boon as well because, you know, now today we can get our average days to ship go down almost in half and the same thing for the time to approve a prescription.
Ben Haynor, Analyst, Lake Street Capital Markets: Great. And then lastly for me, just looking for an update and I apologize if I missed this in the prepared remarks. What’s kind of response that you’ve seen from some of the VA specific marketing efforts that you’ve done here over recent periods?
Jim Kinniff, President and Chief Executive Officer, Electromed: Yes, buried within our hospital numbers and I don’t have those in front of me relative well, I think we’ve when you take a look at our hospital revenue, I believe last year over a million dollars of our hospital revenue was generated out of VAs that we called on. And what’s nice about the VA is when we get a what we call a prescription from them, it acts like a like capital equipment. So this has been a big benefit to us. And we’re going to continue to push on that because there’s a lot of folks that are within that market segment that can utilize our technology.
Ben Haynor, Analyst, Lake Street Capital Markets: Great. Well, thanks for the color gentlemen and congrats on all the progress.
Jim Kinniff, President and Chief Executive Officer, Electromed: Hey, thank you.
Kyle Bauser, Analyst, ROTH Capital Partners: That’s
Conference Operator: all the time we have for questions today. I would now like to turn the conference back over to Jim Kinnisch for any closing remarks. Please go ahead.
Jim Kinniff, President and Chief Executive Officer, Electromed: Well, thank you for your continued confidence in Electromed and for being on the call today. I would say we’re just getting started and I couldn’t be more excited about what lies ahead for us in fiscal year ’twenty six. Thanks everyone.
Conference Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
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