エレクトロメド (ELMD) 2026年度第4四半期決算説明会：売上高は過去最高の1,940万ドルに達する

主要なポイント

• エレクトロメド（ELMD）が発表した2026年度第4四半期の純売上高は前年同期比11.6%増の1,940万ドルとなり、過去最高を更新するとともに、15四半期連続での増収増益を記録しました。
• 第4四半期の営業利益は前年同期比26%増の380万ドルとなり、希薄化後EPSは四半期として過去最高の0.39ドルに達しました。
• 2026年度通期の売上高は前年比15.3%増の7,380万ドルと過去最高を記録しました。営業利益は43.7%増の1,390万ドルとなり、営業利益率は前年度の15.1%から18.8%へ拡大しました。
• 直販の在宅ケア部門が引き続き主な成長原動力となりました。営業担当者の増員、生産性の向上、承認1件あたりの純売上高増加に支えられ、通期売上高は前年比16.3%増の6,660万ドルとなりました。
• 経営陣は2027年度において2桁の売上成長、更なる営業レバレッジの拡大、および堅調な営業キャッシュフローを見込んでいます。同社は、2名の病院アカウント・リエゾンを含め、67の販売地域に人員を配置することを計画しています。
• 社長兼CEOのジェームズ・カンニフ氏は2027年4月に退任する予定です。取締役会が後任の選定プロセスを主導する一方、カンニフ氏は業務執行とリーダーシップの移行に引き続き専念します。

主要財務データ

事業および業績の動向

第4四半期の成長は主力である在宅ケアチャネルが牽引し、同チャネルの売上高は15%増加しました。代理店経由の売上高は2%増加した一方、病院向け売上高は29%減少しました。経営陣は、病院からの受注は営業サイクルが長く予測可能性が低いものの、病院を在宅治療への参入拠点として引き続き重要視していると説明しています。

エレクトロメドの当四半期末時点の直販営業担当者数は64名となり、第3四半期末から6名増加しました。2026年度の加重平均担当者1人あたりの年換算在宅ケア売上高は114万5,000ドルに達し、従来の目標範囲である100万〜110万ドルを上回りました。

同社は気管支拡張症を最大の戦略的機会と位置付けています。エレクトロメドの試算によると、全米で約100万人の患者が同疾患と診断されているものの、高頻度胸壁振動（HFCWO）療法を利用しているのは約16%にとどまります。また、さらに400万人以上の未診断の気管支拡張症患者が存在すると推計しています。

第4四半期の注文の45%以上が、エレクトロメドの電子処方プラットフォーム「Smart Order」を通じて送信されました。これらの注文は、FAXによる注文よりも平均5日早く出荷されました。経営陣は、本プラットフォームが、対象医療機関に対する2028年5月のFAX廃止期限に先立ち、電子署名および注文処理に関するCMS要件をすでに満たしていると指摘しました。

エレクトロメドは、全米の被保険者数の87%をカバーする契約を結んで2026年度を終了しました。市場アクセスチームは年間で40件の新規保険者契約を締結し、新たに600万人以上の対象者を獲得しました。

同社によると、純売上高の99%が米国内で発生しており、製品も米国内で製造されています。経営陣は、これが信頼性の高い配送と70%台半ば以上の売上総利益率の維持を支えていると考えています。

研究開発（R&D）の優先事項には、サステイニング・エンジニアリング（維持工学）、製品の接続性（コネクティビティ）、および「SmartVest」製品ラインの拡充（特に小さめのベストサイズ）が含まれます。

業績見通し（ガイダンス）

経営陣は、2027年度において2桁の売上高成長、営業レバレッジのさらなる向上、および堅調な営業キャッシュフローの達成を見込んでいます。来年度を2026年度の再現と定義したわけではありませんが、収益性を伴う継続的な成長に自信を示しました。

エレクトロメドは、2027年度の営業担当者1人あたりの年間在宅ケア売上高目標を105万〜115万ドルに引き上げました。この目標数値は、新しく採用された営業担当者の初期習熟期間を考慮しつつ、期待される効率性を反映しています。

同社は2027年度中に67の販売地域に人員を配置する予定であり、これには病院から在宅ケアへ移行する患者を特定するために一部の市場でテスト運用されている2名の病院アカウント・リエゾンポジションが含まれています。

リスクと注目点

• 第4四半期の病院向け売上高は29%減少しました。これは、営業サイクルが長く、予測可能性が低いことを反映しています。
• 新しく採用された営業担当者が全能力を発揮するまでには時間がかかるため、営業人員の拡大に伴い担当者1人あたりの平均売上高が一時的に鈍化する可能性があります。
• エレクトロメドは引き続き単一製品企業です。経営陣は、補完的な製品や機能を追加できる製品革新や買収の機会を評価しています。
• 経営陣は、近く発表される米国の気管支拡張症治療ガイドラインには気道クリアランスが含まれているものの、同社が期待するほど決定的ではなく、明確な治療アルゴリズムを提供していないと述べました。
• 2027年4月に予定されているCEOの退任により経営陣の移行期間が生じますが、取締役会はすでに後任計画に着手しています。

アナリスト質疑応答の要点

資本配分：ブラッド・ナゲルCFOは、優先事項は引き続き事業リスクの低減、販売・マーケティングおよび研究開発（R&D）への再投資、そして株主価値の向上であると述べました。エレクトロメドは2026年度に390万ドルの普通株式を自社株買いしており、今後も機動的な自社株買いを継続する可能性があります。

買収戦略：経営陣は、営業担当者が既存の臨床顧客に提案できる補完的な製品や、エレクトロメドの保険償還および契約インフラを活用できる技術を検討しています。現時点で適切な案件は特定されていません。

保険者構成比：経営陣によると、メディケアと民間保険の過年度構成比は過去3年間、ほぼ50対50で推移しています。保険者契約の拡大により、エレクトロメドがネットワーク外であるために対応できない処方件数が減少する見込みです。

臨床ガイドライン：経営陣は、CHEST（全米胸部疾患学会）の気管支拡張症ガイドラインが今四半期後半に発行されると予想しています。気道クリアランスが含まれているほか、気管支拡張症・NTM財団による新しいケアパスウェイが臨床医に追加の治療指針を提供する可能性があります。

決算説明会 文字起こし全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Greetings, and welcome to the Electromed Fiscal Q4 2026 Earnings Call.

[Operator Instructions]

As a reminder, this conference is being recorded. I would now like to turn the conference over to Mike Cavanaugh, Investor Relations. Thank you, Mike. You may begin.

Mike Cavanaugh

Good afternoon, and thank you for joining the Electromed earnings call. Earlier today, Electromed Inc. released financial results for the fourth 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 because 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 Cunniff, 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 Cunniff, President and Chief Executive Officer of Electromed.

James Cunniff

Thank you, Mike, and thank you all for joining us today. I'm pleased to report on another record quarter for Electromed. Q4 marks our 15th consecutive quarter of year-over-year revenue and profit growth, a track record that reflects the durability of our direct-to-patient model and the growing recognition of SmartVest within the bronchiectasis community.

Net revenue for the fourth quarter was a record $19.4 million, up 12% versus the fourth quarter of last year. We again delivered operating leverage in the quarter. Operating income was $3.8 million in Q4, representing 26% year-over-year growth. Earnings per share was also a quarterly record at $0.39 per share on a fully diluted basis. Growth in the quarter was led by our core home care channel, which grew 15% and our distributor channel, which grew 2%, both reflecting consistent demand for our SmartVest.

Hospital revenue declined 29% in the quarter. As we've discussed on prior calls, hospital orders have a longer sales cycle and are inherently less predictable than our other channels. We are bullish on our hospital as a gateway to the home, and we'll continue to invest in this area of our business. We ended the quarter with 64 direct sales representatives, an increase of 6 reps versus the third quarter. This increase reflects hiring ahead of our planned territory expansions in fiscal 2027, and we're pleased with the caliber of talent we've been able to bring on to the team.

We continue to expand our sales force deliberately, and I continue to be impressed with the revenue growth the team has delivered. As many of you know, the largest strategic opportunity for Electromed is within the underserved bronchiectasis market. Today, approximately 1 million patients in the United States are diagnosed with bronchiectasis, yet only about 16% are currently benefiting from high-frequency chest wall oscillation therapy. That leaves approximately 800,000 patients who have been diagnosed with bronchiectasis that could benefit from SmartVest but have not been prescribed therapy.

We also estimate that more than 4 million additional individuals may have undiagnosed bronchiectasis which underscores the market opportunity and necessity for further patient and provider education. To address this, we initiated our triple down on bronchiectasis campaign last year to raise awareness of our therapy to highlight the integral part airway clearance plays in the treatment of bronchiectasis. The campaign is built around our 3-part treatment approach. Number one, clear airways first with SmartVest to remove the mucus that fuels future infections; second, treat the infection with antibiotics; and third, reduce inflammation. Together, these 3 steps are designed to break the cycle of chronic infection, persistent inflammation and airway damage that drives progressive lung disease and decline in quality of life for these patients.

This year, we've expanded this campaign with a new initiative we're calling Treat Smart from the start, which is designed to help clinicians identify patients whose current airway clearance therapy isn't working and determine whether it's time to reassess treatment. Beyond these campaigns, our clinical team remained active raising awareness among providers this quarter. We presented at 2 regional respiratory conferences reaching a combined audience of more than 200 clinicians.

Additionally, we conducted 3 peer-to-peer webinars this quarter, each with at least 100 clinicians in attendance and attended several national conferences. On the research side, we completed a manuscript, which was accepted for publication in the September issue of the COPD Foundation Journal. Using data from the NTM Bronchiectasis Research Registry, the study found that 58% of qualified patients were not prescribed HFCWO therapy despite meeting all the clinical criteria needed for insurance coverage. That's a meaningful gap we are addressing by engaging physicians who diagnose high volumes of bronchiectasis patients but are not yet prescribing HFCWO therapy.

Separately, the BE NTM Association launched a new educational website for physicians and patients, including a quick guide on airway clearance. We're proud to be a sponsor of their airway clearance resource library helping close the void in patient and provider education. I've talked previously about our smart order e-prescribe solution, which is changing how prescribing clinics submit orders more efficiently to our fulfillment team. Of note, the Centers for Medicare and Medicaid Services finalized its rule on administrative simplification, adopting new standards for health care claims attachment transactions and electronic signatures.

In practice, this means covered entities will need to modernize how they process orders and phase out faxes by May of 2028. Our e-prescribed solution already meets CMS' requirements for electronic signatures and order processing, which positions us well as the industry moves away from faxes. In the fourth quarter, more than 45% of the orders we received came through Smart Order and those orders shipped on average 5 days faster than orders submitted by fax.

Expanding payer coverage remains one of our core strategies because it's what ultimately gives patients in need access to SmartVest. We ended the year with 87% of covered lives in the United States under contract. This is a tremendous accomplishment by our market access team, which ended the year by having executed 40 new payer contracts and expanded our network by more than 6 million covered lives.

I'm also proud that Electromed's products are manufactured here in the United States. Given the supply chain disruptions we've seen across the industry, we believe our U.S.-based operations are competitive advantage. 99% of our net revenue is generated domestically and that concentration gives us confidence in our ability to maintain our strong track record of on-time delivery and our mid-70% or better gross margins.

I also want to recognize the Electromed team, which continues to operate at a high level. Recently, the Minneapolis St. Paul Business Journal named Electromed the eighth fastest-growing public company in Minnesota, and we were named a top workplace in Minnesota this year by the Star Tribune.

In fiscal 2026, 45% of our new hires came through employee referrals. Our employees are engaged and want to bring others like them on to the team. We believe engaged employees lead to engaged customers, and that virtuous cycle is a big part of how we built this business.

Before I turn the call over to Brad, I'd like to take a moment to address an important leadership transition that we also announced today. After considerable thought and discussion with our Board, I have decided to retire as Chief Executive Officer of Electromed with expected timing in April 2027. My decision is accompanied by a thoughtful succession planning process led by our Board, and I believe the timing will be right for the company and for me personally.

I'm extremely proud of what our team has accomplished over the past 3 years. We've built a strong business, established a clear strategy for growth and most importantly, developed a talented leadership team that gives me tremendous confidence in the company's future. Between now and my retirement, my focus will remain exactly where it's been on executing our strategy, delivering against our commitments to shareholders and ensuring a smooth transition of leadership. I have never been more confident in the strength of the organization or in its opportunities. I'm grateful to our employees, customers, shareholders and Board for the opportunity to lead this company, and I look forward to continuing to work with the team over the coming months.

With that, Brad, over to you.

Brad Nagel

Thank you, Jim. I've enjoyed our partnership and your leadership of the Electromed team over the past few years, and I look forward to continuing to work with you until your retirement.

Turning to our financial results. All amounts I'm about to review are for the 12 months ended June 30, 2026, which I will refer to as fiscal 2026 and compared to the 12 months ended June 30, 2025, or fiscal 2025, unless otherwise noted. Net revenues for Q4 grew 11.6% to $19.4 million, bringing net revenues for our full fiscal year 2026 to a record $73.8 million or 15.3% growth from $64 million last year. Annual revenues in our direct home care market increased year-over-year by 16.3% to $66.6 million from $57.3 million in the prior year. The increase in revenue was due to an increase in direct sales representatives, increased sales representative productivity and higher net revenues per approval.

The annualized home care revenue per weighted average direct sales representative in fiscal year 2026 was $1,145,000, exceeding Electromed's target range of $1 million to $1,100,000 per rep. With our strong performance in fiscal 2026 and continued efficiency expected in fiscal 2027, we're increasing our target range for fiscal year 2027 home care revenue per rep to a range of $1,050,000 to $1,150,000 as we balance the record sales rep productivity we saw in fiscal 2026 with the sales team expansion plans for fiscal 2027.

Revenue in our non-home care business grew 6.7% to $7.2 million in fiscal 2026. The increase was primarily due to increased distributor and hospital revenue, which grew 12.7% and 9.6%, respectively. Gross profit increased to $57.9 million or 78.5% of net revenues from $50 million or 78.1% of net revenues in fiscal 2025. 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&A expenses were $42.7 million, representing an increase of $3.4 million or 8.7% from $39.3 million. The increase was primarily due to increased salaries and incentive compensation related to the higher average number of personnel in the sales, sales support, marketing and reimbursement teams to process more patient referrals.

Operating income this year was $13.9 million or 18.8% of net revenues compared to $9.7 million or 15.1% of net revenues last year. The growth of 43.7% in operating income reflects the leverage benefit of mid-teen growth in net revenues and gross profit, balanced with the disciplined investment into the business' operating expenses, which grew about 9%. When putting these full year results together, we're excited to have delivered a record year with pretax income of $14.4 million, net income of $11.3 million and full year EPS of $1.30 per diluted share.

As of June 30, 2026, Electromed had $20.5 million in cash, $29.8 million in accounts receivable and no debt, achieving a working capital of $45.1 million and total shareholders' equity of $54 million. The cash balance reflects an increase of $5.2 million for the year ended June 30, 2026, compared to a decrease in cash of $0.8 million in the same period in the prior year. The increase in cash for the 12 months ended June 30, 2026, was driven primarily by positive operating cash flow of $9.7 million, partially offset by repurchases of Electromed common stock totaling $3.9 million.

I'll close by saying that Jim and I are very encouraged by the commitment and energy of the Electromed team as we continue bringing our innovative SmartVest technology to patient populations that remain significantly underserved. It's rewarding to see how that dedication to the patients and physicians we serve has translated into strong financial performance throughout fiscal 2026, creating meaningful value for Electromed and our shareholders.

As we look forward into fiscal 2027, we continue to see 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 flow in the new year.

Operator, please open the call to questions.

Operator

[Operator Instructions]

Our first question comes from the line of Kyle Bauser with Titan Partners.

質疑応答

Kyle Bauser

But first, Jim, congrats on your retirement next year, we wish you all the best.

James Cunniff

Thank you, Kyle. I appreciate that.

Kyle Bauser

Yes. Glad to see there's some time to make the transition. So thanks for the update there. And maybe for my first question, obviously, another really strong quarter of operating leverage, and you talked a little bit about it. But maybe you could just discuss a bit about your expectations for continued leverage in fiscal '27. And any expectations to kind of add more reps in territories as well?

James Cunniff

Well, as I think Brad said it well, we're expecting this year to be not necessarily a repeat of last fiscal year, but we're certainly projecting that we will be able to deliver double-digit top line growth and operating leverage. And that's been the mantra that we've been beating the drum on for the last 3 years, and we've been able to deliver on that.

So yes, we're confident we'll be able to do that. We have added sales reps, which we're excited about. So as you heard in the prepared remarks, we really ended the year with 64 direct sales reps. A lot of those actually came in, in June of the last fiscal year. But the good news is they were to help fill the void for territory expansions that we have for this fiscal year. So we're kind of hitting the ground running. That includes actually 2 hospital account liaisons. These are folks that we're actually doing a pilot with in a couple of key markets to see if we can capture some of those patients that are in the hospital that then get transitioned to the home and get those referrals.

In addition to that, we also have 3 additional territories that we're looking to fill. So our touch wood, our expectation is to have 67 territories filled this year, including 2 hospital account liaisons. Brad had also mentioned in his comments that we have raised our guidance on the revenue per rep for this year, albeit it's below where we ended up last year. And that's mainly because, as you know, Kyle, some of these reps are going to take some time to ramp up and become productive for us. But yes, we're really bullish on the business and the new talent that we're bringing on to the team.

Kyle Bauser

Got it. Appreciate that. And maybe for my follow-up, obviously, the cash balance continues to grow amid very strong share price. Any thoughts on your capital allocation strategy and how you're thinking about deploying cash going forward?

Brad Nagel

Thanks for the question, Kyle. Yes, the strategy remains the same. We continue to think in terms of priorities with our cash. First, just derisking the business. Second, investing back into the business. And as Jim mentioned, we are adding quite a few sales reps as we come into 2027 and want to support them, not just the headcount, but also with sort of the right marketing support, the right investment into R&D, continuing to reinvest into the business to the extent that we can and still show leveraged growth across the P&L. Beyond that, as we have in the past, we'll continue to look for ways to add shareholder value.

Our key method of operation on that has been through share repurchases, which we've done over the past couple of years. So opportunistically, when we have the option to, we'll continue to find ways to create that shareholder value.

Operator

Our next question comes from the line of Arailym Kanatkyzy with Freedom Broker.

Arailym Kanatkyzy

Before I get to my questions, congratulations on the announcement. 3 years and 15 straight quarters is a good place to hand off from. So I want to say thanks for taking my question.

James Cunniff

Thank you for the kind words.

Arailym Kanatkyzy

So first question is about R&D. Spend was up meaningfully year-over-year in percentage terms. So it's still a small name for the P&L. Can you give us a sense of what that dollar is actually going forward or going forward to? Is it iteration on the Clearway generator? Is it the connectivity and data side of things like smart nodes? Or is it work on something adjacent to the current platform?

James Cunniff

That's a great question. And to your point, it's actually on a really small base, our R&D investment. We are a single product company. And so when you take a look at our R&D spend, it's really bifurcated for sustaining engineering. So we're always looking at upgrading the technology that we have today. That's one element to it. And so we're investing in that.

The other side of it is innovation. And I think I've mentioned this on previous calls in the past. One of the areas that we believe needs a little bit more innovation on our side. There's really 2 areas, one of which is connectivity and we're working on that right now, as you had mentioned. And then the second piece of it is really just expanding our vest line. And so to do that predominantly on the smaller sizes of our vest, that's really where a big focal point of our R&D team is, is to enhance that and expand it.

Arailym Kanatkyzy

Great. And I also have a related question. So acquisition shows up in the deck as one of the 3 main pillars of the growth strategy. I want to know the detail behind it. When you talk about inorganic opportunities, what problem are you trying to solve? Is it adding a second product to the reps are already carrying? Or is it acquiring a capability like monitoring data? Or is it about diversification?

James Cunniff

Yes, it could be all of the above. No, I think those are great questions. So we're always looking at -- we are a single product company. It would be great if we could add another leg to the stool for our sales reps, add something to their bag that complements the call point that they focus on and enhances the customer relationship. And we are constantly on the lookout if there's a 1 plus 1 equals 3, we're interested in it. We just haven't found it yet.

And to your question, we're not pigeonholing ourselves into one inorganic opportunity. If it makes sense for our sales rep and it complements what they're doing, that's something that we're very much open to. Conversely, we've got a terrific reimbursement team and contracting engine. And in the home care space, that's a very valuable asset. And so that's another area where we could see leveraging that capability through an acquisition and bringing somebody on board who may have a technology that fits this space, but they don't have that same type of capability.

Arailym Kanatkyzy

I am really excited for the results.

James Cunniff

Thank you so much.

Operator

Our next question comes from the line of Ben Haynor with Lake Street Capital Markets.

Benjamin Haynor

First off for me, just thinking about payer mix as we get into fiscal 2027, it looks like you had commercial go down a couple of few hundred basis points over the course of fiscal '26. Some of that is probably comps, Medicare and Medicare Advantage up a little bit. How should we think about that tracking? Is it just kind of bounce around? Is there any underlying trends that make things go towards one or the other?

James Cunniff

Yes. No, first off, thanks for the question, Ben, and thanks for being on the call. As you know, when we're going into a clinic and talking to a physician, we're not identifying who the payer type is that the patient has. What we're really looking for is are there patients that could benefit from using our technology. And so from that, it's kind of a black box for us. We really don't find out what type of insurance that patient has until we've gotten a prescription. And so typically and historically, the split has been pretty even between Medicare and commercial pay.

I think the good news and one of the things we want to highlight is the fact that over the course of the last fiscal year, we've added 6 million additional covered lives. So in the past, we might have gotten a prescription. We may have been out of network, and we can't fulfill that because the patient doesn't want to be burdened with a large out-of-pocket expense. And so by continuing to add payer coverage, it just helps our ability to serve our patients and our ability to no longer be out of network.

Benjamin Haynor

Okay. So there's not necessarily a clear trend except for perhaps demographics?

James Cunniff

No. I mean I think the reality is what's the stat? I think there's about 10,000 people per day who turn 65. And so the trend is more towards Medicare. But again, when we look historically over the last 3 years, the Medicare to commercial pay split has been pretty much 50-50.

Benjamin Haynor

Sure. That makes sense. And then secondly for me on the CHEST guidelines, I believe those got published not all that long ago, listing HFCWO kind of across the board, I believe. What does that do for your reps when they're detailing [indiscernible]? Can you give us a sense of how that helps folks out?

James Cunniff

Yes. I think the good news is there's never been care guidelines in the United States on how to treat bronchiectasis patients. And the guidelines truthfully, they're going to be published later on this quarter. And so we're excited about that. It's been on the horizon for a long time, Ben, as you know. And it's not as definitive as we would like. There's not really an algorithm for treatment of bronchiectasis patients. Really what the guidelines point to is what are some of the different things that a provider can use to take care of bronchiectasis patients. And included in that is airway clearance, no surprise.

And as you even heard on my remarks, these patients, they have a chronic irreversible condition. They have fluid that's building up in their lungs, and they need something to remove that mucus, which is the fuel for future infections. And so we're kind of the first point of attack.

The other thing I would just point you to is, and this is exciting is that in conjunction with the CHEST guidelines, the bronchiectasis and NTM Foundation have actually just introduced new BE care pathway. And I think that's going to be a little bit better for health care providers to understand what tools they have in their toolbox to treat bronchiectasis patients. So it's good news for the industry in general, and it's good news for us because airway clearance is included in both of those guidelines.

Benjamin Haynor

Congrats on the retirement going on top.

James Cunniff

Yes, appreciate it Ben. Thank you so much.

Operator

There are no further questions at this time. I'd like to turn the floor back over to Jim Cunniff for closing comments.

James Cunniff

Yes. Thank you, operator. And before we close the call, I just want to leave you with some key takeaways from this past quarter. First, this was our 15th consecutive quarter of year-over-year revenue and profit growth with record revenue and record diluted earnings per share. It's our goal to deliver continued growth and profitability. In line with this goal, we're investing ahead of demand such as adding to our sales force.

The bronchiectasis opportunity remains substantial and our Treat Smart from the Start campaign, together with our clinical, educational and payer initiatives are all designed to help us reach more patients responsibly. Our financial foundation is strong. We have a debt-free balance sheet and strong cash generation, which enable us to keep investing in profitable growth.

As always, I want to thank you for joining us today. If you have questions or would like to schedule a call with the Electromed team after today's report, please reach our Investor Relations partners at ICR Healthcare. Operator, please close the call.

Operator

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.