Operational efficiency is evidenced by a 2026Q3 free cash flow of $3.3 million, supported by an OCF/NI ratio of 1.16 that confirms high-quality earnings.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 |
|---|
| Cash from Operations | 10.53M | 11.39M | 9.07M | 1.31M | -686K | 3.08M | 4.2M | 2.59M | 2.44M | 1.19M | 2.17M | 2.78M | 2.06M | 1.88M | -1.17M | -1.42M | 607.94K | -1.16M | 243.16K |
| Operating CF Margin % | - | 17.8% | 16.57% | 2.74% | -1.65% | 8.61% | 12.92% | 8.27% | 8.63% | 4.61% | 9.42% | 14.33% | 13.32% | 12.42% | -6% | -7.45% | 4.25% | -8.91% | 2.78% |
| Operating CF Growth % | -43.08% | 25.65% | 589.51% | 291.69% | -122.29% | -26.67% | 62.02% | 6.05% | 105.03% | -45.03% | -22.09% | 34.84% | 9.91% | 260.15% | 17.2% | -332.77% | 152.51% | -576.11% | - |
| Net Income | 10.1M | 7.54M | 5.15M | 3.17M | 2.31M | 2.36M | 4.16M | 1.97M | 1.9M | 2.23M | 2.21M | 1.09M | -1.29M | -1.33M | 186.61K | 1.06M | 933.54K | 1.36M | 284.35K |
| Depreciation & Amortization | 1.11M | 1.17M | 841K | 613K | 628K | 610K | 741K | 925.23K | 790.03K | 755.13K | 738.7K | 736.22K | 695.55K | 589.86K | 532.63K | 449.47K | 351.75K | 318.94K | 268.39K |
| Stock-Based Compensation | 1.76M | 3.06M | 1.69M | 708K | 976K | 1.02M | 902K | 924.07K | 862.67K | 479.48K | 222.76K | 110.35K | 82.23K | 175.8K | 135.6K | 156.17K | 168.9K | 153.23K | 67.86K |
| Deferred Taxes | -310K | -310K | -571K | -43K | -489K | -294K | -126K | -265K | -134K | -117K | -343K | 300.53K | 454K | -78K | 179K | -186K | -149K | 299K | -459K |
| Other Non-Cash Items | 1.15M | 212K | 0 | 0 | 0 | 0 | 0 | 17.98K | 36.46K | 149.09K | 76.18K | 19.21K | 156.85K | 59.43K | 60.73K | 57.69K | 80.16K | 100.94K | 253.84K |
| Working Capital Changes | -3.29M | -277K | 1.96M | -3.13M | -4.11M | -625K | -1.48M | -981.63K | -1.02M | -2.31M | -740.24K | 522.42K | 1.96M | 2.46M | -2.27M | -2.95M | -777.4K | -3.38M | -172.28K |
| Change in Receivables | -3.56M | -1.64M | 565K | -3.28M | -3.91M | -3.58M | -350K | -948.73K | -1.61M | -2.34M | -1.09M | -31.55K | 2.53M | 1.84M | -1.26M | -3.02M | -228.86K | -2.42M | -629.65K |
| Change in Inventory | -512K | 175K | 459K | -1.03M | -1.07M | 971K | -449K | -106.17K | 234.59K | -28.33K | -347.62K | 163.39K | -855.9K | 1.01M | -536.46K | -385.18K | -292.09K | -329.18K | -259.36K |
| Change in Payables | 1.06M | 1.65M | -1.21M | 420K | 2.17M | 214K | -472K | -2.56K | 555.99K | -337.47K | 873.77M | 384.04M | -302.29M | -77.85M | -58.57M | 646.62M | -145.12M | -6.95M | -3.2M |
| Cash from Investing | -1.23M | -306K | -395K | -1.72M | -1.52M | -448K | -977K | -1.39M | -571.78K | -687.15K | -579.52K | -624.51K | -935.8K | -1.05M | -848.75K | -1.11M | -909.12K | -712.32K | -645.63K |
| Capital Expenditures | -311K | -306K | -395K | -1.72M | -1.52M | -287K | -844K | -1.39M | -571.78K | -687.15K | -577.52K | -624.51K | -935.8K | -1.05M | -853.75K | -1.13M | -784.12K | -710.62K | -611.86K |
| CapEx % of Revenue | 0.43% | 0.48% | 0.72% | 3.57% | 3.66% | 0.8% | 2.6% | 4.44% | 2.02% | 2.66% | 2.51% | 3.22% | 6.04% | 6.97% | 4.37% | 5.92% | 5.48% | 5.47% | 6.99% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.75K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -923K | 0 | 0 | 0 | 0 | -161K | -133K | -56.04K | -45.55K | -68.39K | -2K | -101.32K | -45.15K | -36.75K | 5K | 14.81K | -125K | -1.7K | -33.77K |
| Cash from Financing | -7.55M | -11.88M | 36K | -380K | -1.52M | -1.22M | -548K | -851.15K | 11.71K | -53.62K | -62.27K | -61.17K | -127.72K | -2.02M | -368.78K | 6.01M | 550K | 790.32K | 877.38K |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.1M | -50.7K | -48.75K | -48.75K | -46.37K | -92.43K | -2.02M | -420.58K | -435.97K | 648.38K | 452.99K | 204.67K |
| Equity Issued (Net) | -7.47M | -10M | -275K | -153K | -1.45M | -1.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6.36M | 390.83K | 357.64K | 689.4K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -7.59M | -10M | -275K | -153K | -1.45M | -1.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -6.36K | 0 |
| Other Financing | -73K | -1.88M | 311K | -227K | -77K | -95K | -548K | 251.85K | 62.41K | -4.87K | -13.52K | -14.8K | -35.3K | 0 | 51.8K | 79.08K | -489.22K | -22.01K | -16.7K |
| Net Change in Cash | 1.75M | -793K | 8.71M | -781K | -3.74M | 1.41M | 2.67M | 352.08K | 1.88M | 450.35K | 1.53M | 2.1M | 999.14K | -1.2M | -2.39M | 3.48M | 248.81K | -1.08M | 474.9K |
| Free Cash Flow | 10.23M | 11.09M | 8.67M | -401K | -2.21M | 2.63M | 3.22M | 1.2M | 1.87M | 503.97K | 1.59M | 2.16M | 1.13M | 823.28K | -2.03M | -2.54M | -176.18K | -1.87M | -368.7K |
| FCF Margin % | 14.25% | 17.32% | 15.85% | -0.83% | -5.31% | 7.35% | 9.91% | 3.84% | 6.61% | 1.95% | 6.91% | 11.11% | 7.28% | 5.45% | -10.37% | -13.37% | -1.23% | -14.37% | -4.21% |
| FCF Growth % | -14.38% | 27.85% | 2262.59% | 81.86% | -184.1% | -18.33% | 167.92% | -35.76% | 271.14% | -68.29% | -26.31% | 91.39% | 36.87% | 140.65% | 20.27% | -1342.03% | 90.57% | -406.73% | - |
| FCF per Share | 1.18 | 1.27 | 0.98 | -0.05 | -0.25 | 0.30 | 0.36 | 0.14 | 0.22 | 0.06 | 0.19 | 0.26 | 0.14 | 0.10 | -0.25 | -0.32 | -0.03 | -0.31 | -0.06 |
| FCF Conversion (FCF/Net Income) | 1.01x | 1.51x | 1.76x | 0.42x | -0.30x | 1.30x | 1.01x | 1.31x | 1.33x | 0.53x | 0.98x | 2.55x | -1.60x | -1.41x | -6.28x | -1.34x | 0.66x | -0.87x | 0.91x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 3.13K | 22.99K | 46K | 59.23K | 61.56K | 68.93K | 78.81K | 116.19K | 164.31K | 170.69K | 0 | 0 | 0 |
| Taxes Paid | 1.6M | 3.74M | 2.51M | 676K | 1.42M | 534K | 1.75M | 1.31M | 1.02M | 1.09M | 1.49M | 2.6K | 7.33K | 10.36K | 468.88K | 693.41K | 0 | 0 | 0 |
Single product concentration risk
According to recent financial filings, Electromed consistently reports operating cash flow that exceeds net income, with an OCF/NI ratio frequently above 1.0, suggesting that the company's reported earnings are supported by high-quality cash inflows rather than aggressive accounting accruals or non-cash adjustments to the bottom line.
The consistent ability to generate more cash than net income implies that the company's revenue recognition is conservative and closely aligned with actual collection cycles. Investors should monitor this relationship, as any sustained compression in the OCF/NI ratio could indicate a shift toward more aggressive revenue recognition or deteriorating collection efficiency.
As reported in quarterly statements, Electromed maintains healthy free cash flow margins, peaking at 30% in 2024Q4, which demonstrates the company's ability to convert its high-margin revenue into tangible liquidity while funding its ongoing sales force expansion and clinical support infrastructure without relying on external financing.
The volatility in FCF margins appears largely tied to working capital fluctuations rather than structural cost issues. This suggests that the underlying business model is highly cash-generative, provided the company maintains its current discipline in managing the reimbursement cycle and avoiding excessive capital expenditure.
Based on the provided data, working capital changes frequently swing between positive and negative, with a notable $2.7 million outflow in 2026Q1, highlighting the inherent sensitivity of the company's cash flow to the timing of third-party payer reimbursements and the administrative friction of the medical billing process.
These periodic outflows suggest that the company's cash position is vulnerable to delays in insurance authorizations or changes in payer behavior. Analysts should interpret these swings as a reflection of the complex reimbursement logistics rather than a fundamental breakdown in the company's ability to collect on its sales.
As evidenced by the company's financial statements, Electromed has utilized its cash reserves to fund share repurchases, such as the $4.5 million buyback in 2025Q1, while maintaining a debt-free balance sheet, which indicates a management preference for returning capital to shareholders over aggressive, potentially dilutive, inorganic growth strategies.
This capital allocation approach appears to prioritize balance sheet strength and shareholder value, though it raises questions regarding the long-term strategy for portfolio diversification. Investors should monitor whether this conservative deployment continues or if the company eventually pivots toward acquisitions to mitigate its single-product concentration risk.
Quick answers to the most common questions about buying ELMD stock.
Electromed, Inc. (ELMD) generated $11.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Electromed, Inc. (ELMD) generated $11.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Electromed, Inc. (ELMD) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Electromed, Inc. (ELMD) spent $10.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.