Third Quarter 2026
Filed Nov 5, 2026Net revenues of $37.6 million increased 3.0% from the prior year, net income was $3.2 million, and Adjusted EBITDA was $9.4 million as the Company reaffirmed full-year 2026 guidance.
Patient Services growth, higher gross profit, margin expansion, and 12.5% Adjusted EBITDA growth more than offset the reported revenue decline in Device Solutions following the GE Healthcare contract restructuring.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenues, three months ended September 30GAAP | $37.59M | – | 3.0% |
| Net revenues, nine months ended September 30GAAP | $108.2M | – | 0.9% |
| Cost of revenues, three months ended September 30GAAP | 15.86M | – | – |
| Cost of revenues, nine months ended September 30GAAP | 45.38M | – | – |
| Gross profit, three months ended September 30GAAP | $21.73M | – | 4.4% |
| Gross margin, three months ended September 30GAAP | 57.8% | – | 0.7% |
| Gross profit, nine months ended September 30GAAP | $62.82M | – | – |
| Selling and marketing expenses, three months ended September 30GAAP | $2.70M | – | 14.3% |
| General and administrative expenses, three months ended September 30GAAP | $14.11M | – | 2.2% decrease |
| Total selling, general and administrative expenses, three months ended September 30GAAP | $16.98M | – | – |
| Operating income, three months ended September 30GAAP | $4.75M | – | – |
| Operating income, nine months ended September 30GAAP | $10.49M | – | – |
| Net income, three months ended September 30GAAP | $3.16M | – | – |
| Net income margin, three months ended September 30GAAP | 8.4% | – | – |
| Net income, nine months ended September 30GAAP | $7.40M | – | – |
| Net income margin, nine months ended September 30GAAP | 6.8% | – | – |
| Basic net income per share, three months ended September 30GAAP | $ 0.16 | – | – |
| Diluted net income per share, three months ended September 30GAAP | $ 0.15 | – | – |
| Basic net income per share, nine months ended September 30GAAP | $ 0.37 | – | – |
| Diluted net income per share, nine months ended September 30GAAP | $ 0.35 | – | – |
| EBITDA, three months ended September 30non-GAAP | $7.92M | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $9.35M | – | 12.5% |
| Adjusted EBITDA margin, three months ended September 30non-GAAP | 24.9% | – | 2.1% |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $24.34M | – | – |
| Adjusted EBITDA margin, nine months ended September 30non-GAAP | 22.5% | – | – |
| Pro-forma net revenue growth, three months ended September 30non-GAAP | 10.2% | – | – |
| Operating cash flow, nine months ended September 30GAAP | $18.1M | – | $0.8 million, or 5%, increase |
| Operating cash flow, three months ended September 30GAAP | $10.4M | – | – |
| Capital expenditures, purchases of medical equipment, nine months ended September 30GAAP | $8.7M | – | $3.4 million, or 63%, higher |
| Cash and cash equivalents, as of September 30, 2026GAAP | $9.1M | – | – |
| Long-term debt, as of September 30, 2026GAAP | $19.7M | – | – |
| Available liquidity, as of September 30, 2026other | $64.1M | – | – |
| Net debt, as of September 30, 2026non-GAAP | $10.6M | – | decrease of $5.9 million |
| Net debt to Adjusted EBITDA ratio, last four quartersnon-GAAP | 0.32 to 1.00 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Patient Services, three months ended September 30Additional treatment volume and increased third-party payer collections in Oncology and Wound Care. Oncology revenue increased $1.4 million, or 7.2%, and Wound Care revenue increased $2.0 million, or 112%. | $25.81M | – | 15.4% |
| Device Solutions, three months ended September 30The decline reflected a $2.4 million reduction in GE Healthcare contract volume and service levels, lower medical equipment sales and lower disposable medical supplies, partly offset by a $0.3 million, or 6.4%, increase in equipment rental revenue. | $11.78M | – | 16.6% decrease |
| Patient Services, nine months ended September 30Reported segment revenue increased by $ 8,049 (in thousands) versus the prior-year nine-month period. | $72.70M | – | – |
| Device Solutions, nine months ended September 30Reported segment revenue decreased by $ 7,049 (in thousands) versus the prior-year nine-month period. | $35.50M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 outlook
- RevenuePro-forma net revenue growth is estimated to be between 6% and 8% for 2026.
- NoteAdjusted EBITDA margin (non-GAAP) is forecast to be in the low-to-mid 20% range.
- NoteGuidance includes implementation expenses for upgraded information technology systems and modest additional investments in workflow automation and software-enabled process improvements within the Patient Services platform, which are expected to begin in the fourth quarter.
Capital returns
- The Company used cash to repurchase $5.0 million in common stock under its ongoing share repurchase program during 2026.
- Common stock repurchased as part of share repurchase program was $ 4,963 (in thousands) for the nine months ended September 30, 2026, compared with $ 8,563 (in thousands) in the prior-year period.
- Common stock repurchased to satisfy statutory withholding on employee stock-based compensation plans was $ 799 (in thousands) for the nine months ended September 30, 2026.
What drove it
- Pro-forma third-quarter revenue growth was 10.2% after adjusting for the GE Healthcare contract restructuring, compared with 1.7% in the first quarter and 7.5% in the second quarter.
- Wound Care growth included approximately $1.6 million from compression therapy product lines focused on lymphedema treatment.
- Device Solutions gross margin was 49.7%, with the GE Healthcare restructuring improving the segment gross margin by 5.4%; procurement cost and biomedical productivity initiatives added 3.4%.
- General and administrative expense declined through a $0.6 million reduction in the management-bonus accrual and a $0.5 million reduction in ERP-related information technology and business application upgrade expenses.
Concerns
- Device Solutions net revenue decreased $2.3 million, or 16.6%, including a $1.9 million, or 41.3%, decrease in biomedical services revenue.
- Patient Services gross margin declined by 3.3% to 61.5% because Wound Care carries a lower average gross margin than other Patient Services revenue categories.
- Selling and marketing expenses increased $0.3 million, or 14.3%, and rose to 7.2% of net revenues from 6.5%.
- The Company cited increased employee wage rates, higher healthcare expenses, a $0.3 million increase in bad debt accrual, and temporary ERP-related billing disruptions.
What to watch
- Conversion of the approximately $5.0 million temporary ERP-related working-capital pressure, of which approximately $1.3 million had converted to cash based on October collection activity.
- The pace of biomedical services revenue replacement following the GE Healthcare contract restructuring.
- Sustained Wound Care growth and the associated product-mix effect on Patient Services gross margin.
- Fourth-quarter workflow automation and software-enabled process investments within the Patient Services platform.
- Delivery of full-year pro-forma net revenue growth of between 6% and 8% and Adjusted EBITDA margin in the low-to-mid 20% range.
Balance sheet and cash flow
- Operating cash flow was $18.1 million during the nine-month period ended September 30, 2026, representing a $0.8 million, or 5%, increase over the same prior-year nine-month period.
- Operating cash flow for the 2026 Third Quarter was $10.4 million despite approximately $5.0 million of temporary working-capital pressure related to ERP invoicing and billing process disruptions. Based on October collection activity, approximately $1.3 million had already converted to cash.
- Cash and cash equivalents were $9.1 million and available borrowing capacity under the revolving line of credit was $55.0 million as of September 30, 2026.
- Accounts receivable, net was $ 29,554 (in thousands) as of September 30, 2026, compared with $ 22,901 (in thousands) as of December 31, 2025.
- Net cash provided by operating activities was $ 18,091 (in thousands), net cash used in investing activities was $ 7,753 (in thousands), and net cash used in financing activities was $ 4,416 (in thousands) for the nine months ended September 30, 2026.
Analysis
InfuSystem reported third-quarter net revenues of $37.6 million, up 3.0% from the prior-year period, while GAAP net income increased to $3.2 million from $2.3 million. Adjusted EBITDA rose 12.5% to $9.4 million and the Adjusted EBITDA margin expanded to 24.9% from 22.8%. The result reflects profitable growth despite the revenue effect of the GE Healthcare biomedical services contract restructuring. Management reported pro-forma revenue growth of 10.2% after adjusting for that impact.
Patient Services was the principal growth engine. Segment revenue increased 15.4% to $25.8 million, supported by additional treatment volume and improved third-party payer collections in Oncology and Wound Care. Wound Care revenue grew $2.0 million, or 112%, including approximately $1.6 million from compression therapy lines. The mix consequence was lower Patient Services gross margin, which declined by 3.3% to 61.5% because Wound Care has a lower average gross margin than other Patient Services revenue categories.
Device Solutions revenue declined 16.6% to $11.8 million. The GE Healthcare restructuring reduced biomedical services revenue by $2.4 million in the quarter, while the prior-year comparison also included a non-recurring $0.6 million price-increase adjustment. The segment's gross margin nevertheless rose to 49.7%, aided by expense reductions that exceeded the related lost contract revenue, as well as procurement and productivity improvements. Overall gross margin improved to 57.8% from 57.1%, driving gross profit up 4.4% to $21.7 million.
Cash generation remained substantial but working capital is a near-term focus. Nine-month operating cash flow was $18.1 million, while third-quarter operating cash flow was $10.4 million despite approximately $5.0 million of temporary ERP-related invoicing and billing pressure. The Company reported $64.1 million of liquidity, including $9.1 million of cash, and net debt of $10.6 million. It used $5.0 million for common-stock repurchases during 2026 and reaffirmed guidance for 6% to 8% pro-forma revenue growth and an Adjusted EBITDA margin in the low-to-mid 20% range.
Management, verbatim
We delivered another strong quarter, achieving record revenue of $37.6 million. After adjusting for the impact of the previously announced GE Healthcare contract restructuring, pro-forma revenue increased 10.2% compared to the prior-year period. Pro-forma growth has accelerated each quarter this year, up from 1.7% in the first quarter and 7.5% in the second quarter.
Carrie Lachance, Chief Executive Officer of InfuSystem
Growth during the quarter was driven by Oncology, where revenue grew 7.2%, and exceptional performance in Wound Care. Wound Care revenue increased $2.0 million, or 112%, compared to the prior-year period, including approximately $1.6 million of growth from our compression therapy product lines focused on lymphedema treatment.
Carrie Lachance, Chief Executive Officer of InfuSystem
Based on our performance through the first nine months of the year, we are reaffirming our full-year guidance. After adjusting for the impact of the GE Healthcare contract restructuring, we continue to expect pro-forma revenue growth of 6% to 8% for 2026 and Adjusted EBITDA margins in the low-to-mid 20% range.
Carrie Lachance, Chief Executive Officer of InfuSystem
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- Absolute full-year 2026 net revenue guidance was not provided.
- Full-year 2026 GAAP profitability, EPS, gross-margin, operating-expense, and tax-rate guidance were not provided.
- Free cash flow was not reported.
- A quarterly dividend was not reported.
- Quarter-over-quarter comparisons were not reported for the presented operating metrics.
- A GAAP reconciliation for future-period non-GAAP guidance was not provided because the Company stated that the exact adjustment amounts are not currently determinable.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.