Electromed, Inc. (ELMD): Marketing Mix Analysis [Dec-2025 Updated]

You're looking past the ticker symbol to see how Electromed, Inc. actually makes its money, and honestly, their late 2025 story is one of focused execution. We're talking about a company that hit record Net Revenue of $64.0 million in FY 2025, backed by a very healthy 78.1% Gross Margin, largely driven by their core SmartVest device and a direct sales force expansion to 55 reps. This analysis cuts right to the chase, mapping how their specific Product, Place, Promotion, and Price levers-from the estimated $10,000 average revenue per patient to their clinician outreach campaign reaching over 10,000-created this financial result. Read on to see the precise mechanics behind this performance.

Electromed, Inc. (ELMD) - Marketing Mix: Product

The product offering centers on the SmartVest Airway Clearance System, which serves as the flagship device for Electromed, Inc.

The core technology deployed by the SmartVest System is High-Frequency Chest Wall Oscillation (HFCWO) therapy. This non-invasive therapy is designed to loosen excess mucus buildup in the lungs.

The primary clinical focus is on providing effective symptom relief for patients managing chronic respiratory conditions.

• Primary indication is bronchiectasis, which is noted as the fastest-growing diagnostic category for HFCWO growth in the United States.
• The device is also prescribed for conditions such as cystic fibrosis and various neuromuscular diseases like cerebral palsy and muscular dystrophies.
• Internal company estimates suggest a 15% to 20% penetration of HFCWO within the diagnosed Bronchiectasis population as of 2020 analysis.
• The diagnosed Bronchiectasis population is growing at approximately 12% annually.

Differentiation for the SmartVest device is centered on patient experience, supported by a direct-to-patient and provider approach. The company strengthens its position by building on a body of clinical evidence.

• Clinical studies support that HFCWO therapy with the SmartVest System leads to a reduction in exacerbations requiring hospitalization and antibiotic use, and stabilizes mean forced expiratory volume in bronchiectasis patients.
• The company is executing a 'Triple Down on BE campaign' as part of its 2025 execution priorities.

Electromed, Inc.'s strategy is currently single-device focused, but with clear plans for market expansion and operational scaling. The company's direct sales and fulfillment model is cited as a key differentiator.

The company is actively expanding its market presence, including penetration into the hospital market, which saw 22% growth in FY2024. Electromed, Inc. also repurchased $10.0 million of its common stock throughout FY 2025.

Electromed, Inc. (ELMD) - Marketing Mix: Place

You're looking at how Electromed, Inc. gets its SmartVest System into the hands of patients and providers. For Electromed, Inc., the distribution strategy is heavily weighted toward a direct approach, which is a key differentiator in the market.

The core of the distribution model centers on the direct-to-patient and provider model. This channel is where the majority of the revenue is generated, allowing for direct control over the patient experience and relationship building with prescribing physicians.

Here's a look at the financial breakdown of Electromed, Inc.'s revenue channels for the fiscal year ending June 30, 2025:

The direct sales force is the engine driving the homecare segment. At the end of fiscal year 2025, the sales force expansion concluded with exactly 55 direct sales reps on staff. This team achieved significant productivity, with the annualized homecare revenue per weighted average direct sales representative reaching $1,058,000 for FY 2025, exceeding the company's target range of $900,000 to $1,000,000.

The non-homecare channels, which include hospital and distributor sales, also showed growth, contributing $6.7 million to the total revenue for fiscal 2025. This segment saw an increase of $1.5 million, or 28.8%, from the prior fiscal year's $5.2 million.

The physical footprint supporting this distribution network is centralized. Electromed, Inc. is headquartered and manufactures its products in New Prague, Minnesota. The company owns its principal headquarters and manufacturing facilities, which consist of approximately 37,000 square feet situated on an approximately 2.3-acre parcel in that location.

Distribution logistics involve several key operational points:

• The primary focus remains on the direct homecare market.
• International sales are handled primarily through independent distributors specializing in respiratory products.
• The company utilizes a new CRM system and reached 38% of orders through their SmartOrder E-prescribe Solution in the fourth quarter of FY 2025.
• The company reported an operational achievement of 0 back orders with a first pass yield of 99%.

Electromed, Inc. (ELMD) - Marketing Mix: Promotion

Promotion for Electromed, Inc. centers on targeted educational outreach and technological infrastructure to drive physician adoption and patient referrals for the SmartVest Airway Clearance System.

Electromed, Inc. launched the 'Triple Down on Bronchiectasis' educational campaign in the first quarter of Fiscal Year 2025 (Q1 FY 2025). This campaign emphasizes a three-pronged treatment paradigm for bronchiectasis: clearing airways first with SmartVest, treating infection, and reducing inflammation. By the second quarter of FY 2025 (Q2 FY 2025), this initiative had reached over 10,000 clinicians. The campaign generated over 31,000 views as part of the strategy to penetrate the large, underrecognized bronchiectasis market.

To enhance the commercial team's effectiveness, Electromed, Inc. started investing in a new Customer Relationship Management (CRM) system during Q2 FY 2025. The deployment of this new CRM system was completed in July, which falls within the fourth quarter of FY 2025 (Q4 FY 2025). The stated goal of the CRM investment is to boost sales productivity and gather incremental market insights. The overall Selling, General and Administrative (SG&A) expenses for the full Fiscal Year 2025 reached $39.3 million, marking an increase of $4.8 million or 14.0% compared to FY 2024.

Electromed, Inc. uses clinical outcomes data to defintely support physician adoption. This data-driven approach is integrated into sales support tools, such as the SmartNotes Patient Progress Report, which provides physicians with extended views into disease management. A key metric showing the success of the sales and marketing efforts supporting physician engagement is the adoption rate of the Smart Order E-Prescribe solution, which streamlined clinic workflows by handling 35% of orders submitted in Q3 FY 2025. The focus remains squarely on increasing brand awareness and driving patient referrals.

The effectiveness of the expanded commercial team, supported by these promotional and technological investments, is reflected in the sales force productivity metrics for the fiscal year ending June 30, 2025:

The company's promotional and commercial structure supports its distribution model, which relies on direct-to-patient fulfillment following a physician's prescription. The overall growth in the commercial infrastructure is evident in the personnel increases supporting these efforts:

• Increased salaries and incentive compensation for sales, sales support, marketing, and reimbursement personnel contributed to the SG&A increase in FY 2025.
• The direct homecare revenue grew by 15.7% year-over-year in FY 2025, reaching $57.3 million.
• Hospital revenue, a key target for awareness campaigns, surged 23.9% in Q4 FY 2025.
• The company ended Q2 FY 2025 with 54 direct sales representatives.

Electromed, Inc. (ELMD) - Marketing Mix: Price

You're looking at the pricing structure for Electromed, Inc. (ELMD) as of late 2025, which is heavily influenced by the reimbursement landscape for their SmartVest Airway Clearance System. The financial results show strong pricing power translating directly to the bottom line.

For the full fiscal year 2025, Electromed, Inc. achieved a record Net Revenue of $64.0 million, up from $54.7 million in the prior fiscal year, representing a 17.0% increase. This top-line performance was supported by a Gross Margin that reached a strong 78.1% of net revenues for FY 2025, an improvement from 76.3% in fiscal 2024. Honestly, that margin profile tells you the market accepts the value proposition at the current price points.

The core of the pricing strategy hinges on securing payment for the device, which is primarily achieved through reimbursement channels. The procedure code is HCPCS E0483, which covers the high-frequency chest wall oscillation (HFCWO) therapy system, with payment coming mainly from Medicare and private insurance payers. This mechanism sets the effective realized price, rather than a simple list price. The estimated average revenue per patient for Electromed, Inc. is approximately $10,000.

Net revenue per device is definitely increasing, which is a key driver of the gross profit growth you see in the numbers. Here's a quick look at how the pricing power is showing up across the business metrics for the fiscal year ended June 30, 2025:

The increase in gross margin rate, from 76.3% to 78.1%, was explicitly attributed to higher net revenue per device, which is a direct reflection of effective pricing realization within the reimbursement structure. Also, the direct homecare business saw its annualized homecare revenue per weighted average direct sales representative hit $1,058,000 in FY 2025, exceeding the target range of $900,000 to $1,000,000. That's a strong indicator of sales efficiency translating price into realized revenue.

The company's capital allocation strategy also reflects confidence in their underlying value, which supports the current pricing structure. You can see this in their use of cash:

• Cash provided by operations totaled a record $11.4 million in FY 2025.
• Electromed, Inc. repurchased $10.0 million of its common stock throughout FY 2025.
• The company had no debt as of June 30, 2025.

Finance: draft 13-week cash view by Friday.