Electromed, Inc.

and welcome to the Electromed first quarter fiscal 2026 earnings call. At this time, participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce you to your host, Mike Kavanagh, Investor Relations. Thank you, Mike. You may begin.

Good afternoon and thank you for joining the ElectroMed earnings call. Earlier today, ElectroMed Inc. released financial results for the first quarter of fiscal 2026. The press release is currently available on the company's website at www.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 Kniff, Electromed's President and Chief Executive Officer, and Brad Nagel, Chief Financial Officer. As on previous calls, Jim will provide operational highlights of 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.

Thank you, Mike, and thank you to everyone joining our call today. I'm proud to share that we started the fiscal year with strong momentum, delivering our 12th consecutive quarter of year-over-year revenue and profit growth. This consistency reflects the strength of our business fundamentals the dedication of our team, and the growing recognition of our SmartVest therapy as a critical element in the effective treatment of patients with bronchiectasis, a non-curable and chronic disease. In addition, I'm excited to announce that we have been recognized by Time Magazine in their inaugural ranking of America's top 100 growth leaders. This list rounds up the top performing publicly listed companies in the United States and characterized by revenue growth as well as financial security. We are proud to be part of this select group of companies across a wide range of industries. Starting with our key financials in Q1, we generated $16.9 million in revenue, representing a 15% year-over-year increase. I'm happy to report that growth was broad-based across our three primary channels. Our core home care channel grew 13% year-over-year, reflecting consistent Salesforce productivity gains and a continued thoughtful expansion of our sales team. Distributor sales increased 41% with continued demand from our carefully curated home medical equipment partners. Our hospital sales surged 52%, underscoring the early success for strategic investments in this emerging channel. We've long recognized that hospitals represent a critical point of intervention for patients with chronic respiratory conditions, particularly those with bronchiectasis. Hospitals are where many of these patients first present with symptoms and where early diagnosis and treatment decisions are made. As such, we will continue to invest in this market. Operating income rose to 2.7 million, a 38% increase year over year. and represented 16% of revenue, a strong indicator of our operational efficiency and disciplined cost management, which helped to drive ElectroMed's operating leverage. The strength across our P&L enabled us to deliver fully diluted EPS of 25 cents, a significant improvement over the prior year. As previously announced in fiscal 2026 Q1, our board authorized a $10 million stock repurchase program. This reinforces our belief that ElectroMed remains a compelling investment and continues our commitment to returning value to shareholders. With that backdrop of strong top-line growth, I'd like to discuss some of our ongoing commercial initiatives, which have helped to drive our strong results. As in previous quarters, we continue to invest in our commercial infrastructure to support long-term growth. In fiscal 2026 Q1, We expanded our direct home care sales force to 57 representatives, up from 55 in Q4 fiscal year 2025. This is the team who will continue to make Electromed the leader in the home care market. As we've discussed in previous calls, one of the most compelling opportunities for Electromed lies in addressing the large and underserved market for bronchiectasis treatment. Today, it's estimated that 923,000 patients in the United States are diagnosed with bronchiectasis Yet only 16% are using high-frequency chest wall oscillation therapy. That leaves an immediate addressable group of nearly 800,000 diagnosed patients who we believe could benefit from our SmartVest system. Even more astonishing, it is estimated that there may be over 4 million additional individuals who have undiagnosed bronchiectasis, highlighting the urgent need for education. To address this gap, we launched the Triple Down on Bronchiectasis campaign. which promotes a three-pronged treatment paradigm. Number one, clear airways first with SmartVest to remove mucus. Number two, treat the patient's infection. And number three, help reduce inflammation. The messaging to emphasize clear airways first is a concept that's resonating strongly with both physicians and patients. We've reached over 18,000 individuals with this message, and more than 3,000 have actively engaged with our content. We also continue to invest in clinical education and advocacy to support early diagnosis and appropriate prescribing of SmartVest therapy. In fiscal 2026 Q1, we hosted three CEU webinars for medical professionals, including two sessions on the ABCs of bronchiectasis and one session on bronchiectasis overlap syndromes. Additionally, during this quarter, we'll be attending three national trade shows and and numerous regional events to showcase our technology and reinforce the importance of airway clearance in bronchiectasis management. In another example, we completed a manuscript based on data from the NTM Bronchiectasis Research Registry, which found that 58% of qualifying patients were not prescribed HFCWO therapy, despite meeting clinical criteria. This gap represents a significant opportunity for early intervention and our team is working to close. Operationally, Q1 was a milestone quarter. We successfully launched a new CRM system on time and on budget with no disruptions to our sales team's activity. This platform is already improving field productivity, delivering better market insights, and enhancing coordination with our fulfillment teams. On previous calls, I've shared with you our Smart Order ePrescribe solution to support our prescribers which replaces outdated fax-based workflows. This move greatly enhances efficiency for our clinics by seamlessly providing ElectroMed with complete prescription documentation, enabling us to ship SmartVest to our patients sooner so they can breathe easier. In Q1, over a third of our orders were submitted electronically, enabling faster fulfillment and improved patient outcomes. We also completed our manufacturing optimization plan that began in fiscal 2025, which was executed flawlessly by our operations team. Among other things, this initiative physically restructured our manufacturing facility with the goal of improving production efficiency. Despite the complexity of the transition, there were no disruptions to patient deliveries. And speaking of manufacturing, I'd like to emphasize that ElectraMed is a U.S.-based company with our operations and product assembly located in the U.S., and 99% of our net revenues are generated in the U.S. Given the concentration of our business operations in the U.S., we feel we are well positioned to maintain our strong track record of on-time delivery to our customers and maintain our mid-70s or better gross margins. However, we remain vigilant for possible issues with our primarily domestic suppliers who may have tariff exposure within their upstream supply chains. Overall, I'm extremely pleased with Electromed's team's execution and expect this to continue throughout fiscal 2026 and beyond. This concludes my prepared remarks, and I'd now like to turn the call over to Brad for a review of our financials. Brad?