Electromed Inc (NYSE American: ELMD) is a medical device company that manufactures, markets, and sells high-frequency chest wall oscillation (HFCWO) therapy systems to patients with compromised pulmonary function. Revenue is generated through direct unit sales of the SmartVest System to patients in the homecare and hospital markets, with reimbursement processed primarily through Medicare, Medicaid, and private insurance payers. Electromed operates from a single approximately 37,000-square-foot headquarters and manufacturing facility in New Prague, Minnesota. The company employs 55 direct field sales employees as of June 30, 2025, who work through physician offices, clinics, and hospitals, supported by a network of approximately 176 independent respiratory therapists across the U.S. Electromed has never paid a cash dividend and carried no outstanding balance on its $2.5 million revolving credit facility as of June 30, 2025. The company reconditions and resells returned SmartVest units under a certified reconditioning program.

Revenue model

Transactional unit sales of the SmartVest System (SmartVest Clearway and SmartVest SQL) to homecare and hospital customers, with payment collected primarily through third-party insurance reimbursement using an assigned Healthcare Common Procedure Coding System (HCPCS) code. Reconditioned returned units are resold or used for demonstration and warranty replacement.

Products and services

SmartVest Clearway (launched 2022, current generation HFCWO device with 360-degree oscillatory pressure and touchscreen interface), SmartVest SQL (sold in domestic homecare market since 2014, launched in hospital and select international markets in 2015), SmartVest Connect wireless technology (launched June 2017, enables physician-patient data connection for therapy tracking), and related accessories. The company also provides reconditioning services for returned units and offers a lifetime warranty on homecare sales within the U.S.

Customers and end markets

Patients with compromised pulmonary function, including those with bronchiectasis, cystic fibrosis, and other pulmonary conditions, in both homecare and hospital settings. Referring physicians are primarily pulmonologists. Reimbursement flows through Medicare, Medicaid, and private third-party payers. No customer concentration figures are disclosed in the filing excerpts.

Value-chain role

Vertically integrated manufacturer and direct seller. Electromed designs, manufactures, markets, and sells its devices from a single facility in New Prague, Minnesota. A dedicated internal reimbursement team manages insurance and payer relations. Independent contractor respiratory therapists provide in-home patient training on a non-exclusive basis.

Geographic exposure

Substantially all revenues, profits, and assets are associated with the New Prague, Minnesota facility. The direct sales force operates across defined U.S. territories. International distribution exists for the SmartVest SQL but is not quantified in the filing excerpts.

Source: SEC 10-K, filed 2025-08-26

Industry: Electromedical & Electrotherapeutic Apparatus Peers: Abbott Laboratories ASENSUS SURGICAL, INC. Co-Diagnostics Inc DarioHealth Corp Pulse Biosciences Inc Fonar Corp LENSAR Inc Neuropace Inc PAVmed Inc