Electromed makes and sells the SmartVest Airway Clearance System, a wearable medical device for patients with compromised lung function. The SmartVest is an inflatable vest connected to a programmable air pulse generator that vibrates the chest wall to loosen mucus — a therapy known as High Frequency Chest Wall Oscillation (HFCWO). Patients self-administer the therapy at home. The SmartVest is prescribed primarily for bronchiectasis, cystic fibrosis, and neuromuscular diseases like ALS. Because these are chronic, irreversible conditions, patients who adopt the SmartVest typically use it for life. Electromed sells almost entirely in the U.S. through a direct-to-patient model: sales reps call on pulmonologists, who prescribe the device, and Electromed manages the entire fulfillment process — insurance paperwork, reimbursement, delivery, and patient training. The company had 55 direct field sales reps as of June 2025. By bypassing traditional distributors, Electromed captures both manufacturer and distributor margin, supporting gross margins in the mid-to-high 70% range. Revenue growth is driven by sales rep headcount, revenue productivity per rep, and deeper penetration of the bronchiectasis market, which Electromed estimates is substantially underpenetrated. Homecare accounts for roughly 90% of revenue, with hospitals and HME distributors making up most of the remainder. Electromed carries no debt and funds operations and buybacks from its own cash flow.