Electromed at 38th Annual Roth Conference: Strategic Growth Insights

On Monday, 23 March 2026, Electromed Inc. (NYSE:ELMD) presented at the 38th Annual Roth Conference, offering a comprehensive view of its strategic focus and financial health. The company emphasized its innovative SmartVest technology, robust financial status, and plans for market expansion, while also addressing competitive challenges and opportunities in the airway clearance market.

Readers are encouraged to refer to the full transcript for a detailed account of Electromed’s presentation at the 38th Annual Roth Conference.

Kyle Bowser, Senior Research Analyst, ROTH: Okay, good morning, and thank you for joining us for our thirty-eighth annual ROTH Conference. My name is Kyle Bowser. I’m a senior research analyst at ROTH, covering the medical device sector. Today we have Electromed, the CEO, Jim Cunniff, and CFO, Brad Nagel. Thank you both for joining. We’re just gonna walk through the story. For anyone that’s new to the story, Jim, maybe you can briefly walk through the history of the company and how it came to be a publicly traded company as ELMD.

Jim Cunniff, CEO, Electromed: Yeah, no, I’d love to, and thanks for having us here. We’re excited to be here and share the Electromed story. You know, we’re a pretty interesting medical device company in that we’re really focused on airway clearance in the respiratory care pulmonary space. We’re based in Minnesota, so Kyle, your stomping grounds.

Kyle Bowser, Senior Research Analyst, ROTH: Me too.

Jim Cunniff, CEO, Electromed: We’re about an hour south of the Twin Cities. We’ve actually been around for quite some time, so next year is gonna be our thirty-fifth anniversary. I think for a lot of the companies that are at this conference that are relatively new, we’re actually a little long in the tooth. We became a publicly traded company in 2010. I think the genesis of that, Kyle, is, I think that the people running the business at that point in time wanted to infuse some capital into the business. We were obviously a much smaller company at that point in time and were hoping to actually have some people actually benefit financially from it. I think we probably went public at a stage within our trajectory that was probably too soon.

We’re roughly about a $70 million company, so that’s, you know, 16 years later from when we went public. We’re generating about $12 million in operating income. We’re not only growing, but we’re also doing so profitably. We’re generating cash, and we have no debt, which I think makes us quite unique in this space.

Kyle Bowser, Senior Research Analyst, ROTH: In the small cap space, definitely. Can you talk a little bit about the SmartVest technology and why it’s important for bronchiectasis patients?

Jim Cunniff, CEO, Electromed: Yeah, no, I’d love to. In fact, before I do that, let me, if it makes sense, Kyle, why don’t I talk about the disease state real quick?

Kyle Bowser, Senior Research Analyst, ROTH: Please. That was the next question.

Jim Cunniff, CEO, Electromed: Oh, that’s perfect.

Kyle Bowser, Senior Research Analyst, ROTH: Let’s do that first.

Jim Cunniff, CEO, Electromed: Yeah. Why don’t we do that, especially for folks tuning in here. This is a really unique challenge that some patients have. It’s really a chronic irreversible condition, and I think that’s really important ’cause as you take a look at the evolution of what’s happened in this market space in particular, it’s been an underserved product or diagnosis as well. Basically what these patients have is they have repeated episodes of infection that impact their lungs. Unlike a lot of things that happen in the human body, actually, instead of having a constriction, this is actually an inflammation of your airways. The consequence of that is that mucus builds up in the airways that these patients have.

This is chronic, it’s irreversible, so once you have been diagnosed with bronchiectasis, it’s not going away. If you have mucus building up in your airways, as you can imagine, it, you have a hard time breathing. Really what we do is we help actually clear the lungs. Our device, the SmartVest, which I’ll click to here, we’ll get that to the slide. Essentially what we do is we clear the airways. Our product provides 360 degrees of therapeutic support to the patients. We have a generator that’s attached to a hose that’s then attached to a vest. That vest then basically gently squeezes and releases the patient’s torso that then focuses and moves the mucus into the major airways so that the patient can then cough it up or swallow it.

What we do is we’re not curing this. We’re basically improving the patient’s quality of life. That’s the first thing you wanna do if you have a bronchiectasis patient. We’re kind of the first line of defense for them. Many of these patients, as you can imagine, if they have mucus that’s built up in their airways, they could also have an infection, so those are treated by antibiotics. In August of last calendar year, Insmed introduced a new drug, which I know you’re familiar with, which is BRINSUPRI, and that’s really to address the third pillar of what we call the vicious vortex, which is this kind of merry-go-round that these patients get on where they have, you know, inflammation, then they have mucus build-up, then they have an infection.

They get their airways cleared, they get their infection treated, and that’s how they have bronchiectasis. What the new drug does, it really treats the third component, which is inflammation. It’s not gonna improve the patient’s quality of life. It’s gonna basically help them maintain their baseline of inflammation within their airways.

Kyle Bowser, Senior Research Analyst, ROTH: Appreciate that. How does this SmartVest compare with other technologies in the HFCWO space?

Jim Cunniff, CEO, Electromed: Yeah. This is a depiction of our product in the space, and the one thing I didn’t talk about on the previous question is that because this is chronic and it’s irreversible, these patients are gonna be using this technology typically twice a day with 30-minute treatments forever. It’s something that, you know, really if they want to improve their quality of life and have free airways where they can get around and, you know, go to the movie theater, spend time with their grandkids, et cetera, this, we enable that. How we differentiate ourselves in this slide, which we have here, is really multiple ways. One of which is we have just an outstanding industrial design on our product. This is a product that’s used in the patient’s home. You wanna have something that looks decent.

Most of our patients are over 65 years of age and don’t wanna have a complicated device, so there’s a touch screen, and there’s really very few settings that they need to put on this device. In fact, when we actually do the initial setup for the patient in their home, we have a respiratory therapist with them that will actually set that up. So all they have to do is kinda tap the button to turn it on. We have one of the newest devices, and because many of our patients are older, many of them are actually frail. You wanna have a product that’s really comfortable. So we have a vest. We have the lightest weight vest in the market. We actually have Velcro enclosures. Many of our competitors have clips, kinda like what you would see on a life preserver.

Kyle Bowser, Senior Research Analyst, ROTH: Mm-hmm.

Jim Cunniff, CEO, Electromed: If you have arthritis, those are many times difficult to manipulate. Velcro is very easy to manipulate, very lightweight, so it’s comfortable. It’s kinda like wearing my sport coat that I have on right now. We’re also unique, Kyle, in that we have a single hose design. When you take a look at two of our competitors, Baxter as well as Philips, they have two hoses, and so you wanna have something that’s comfortable, ergonomic. You’ve got two hoses, you can imagine it’s a little clumsy. We have a single hose. That’s also something that’s patented for us, which kind of differentiates the technology. We feel like because we’re a single product company and really focused on this space, we keep the patients on the technology longer than our competitors.

The last thing I would say about our technology versus our competition is that we have a lifetime warranty. You know, after the patient fulfills their obligation with their copay, and we’ve gone through the insurance cycle, you know, they get to keep the technology, they’re gonna use this forever, and they don’t have to worry about any other additional out-of-pocket expense, which is key.

Kyle Bowser, Senior Research Analyst, ROTH: Mm-hmm

Jim Cunniff, CEO, Electromed: ’Cause many of these patients are on fixed incomes.

Kyle Bowser, Senior Research Analyst, ROTH: This latest generation version is relatively new, and you touched on this. Are the other competitors working on next gen versions or are those that are out there kind of older generation?

Jim Cunniff, CEO, Electromed: Well, you know, I’ve been in the medical device industry. I just ran into a former colleague, and he goes, "Well, you know, Brad was asking how long have you known Sean?" I said, "Well, I think around 30 years." Brad goes, "No, I think it’s more..." This friend of mine said, "I think it’s more like 40 years.

Kyle Bowser, Senior Research Analyst, ROTH: Mm.

Jim Cunniff, CEO, Electromed: I’ve been in this space a long time, and as you know, you know, many times the life cycle of these products is usually a couple of years. That’s really not the case with our product portfolio.

Kyle Bowser, Senior Research Analyst, ROTH: Yeah.

Jim Cunniff, CEO, Electromed: We introduced the Clearway back in late 2022, and we have one of the newest devices on the market. Hillrom came out with a product about a year ago, and so one of the things that they adopted was the Velcro closure, so they now have that. They had clips before. I think that’s, you know, I would say that we’re the two newest techn