InfuSystem Holdings, Inc. (INFU) released its fourth‑quarter and full‑year 2025 financial results on February 24, 2026, reporting net revenues of $143.4 million for the year, a 6% year‑over‑year increase, and net income of $6.6 million, up 183% from the prior year. Adjusted EBITDA rose to $31.5 million, a 24% gain, while operating cash flow for the year reached $24.4 million, up 19% from 2024. The company’s diluted earnings per share of $0.10 beat analyst expectations of $0.07, a $0.03 or 42.9% beat, driven by strong cost control and a favorable revenue mix.
In the fourth quarter, InfuSystem’s Wound Care segment grew 160% year‑over‑year, contributing to a 12% increase in gross profit to $20.4 million. The quarter’s net revenue of $36.2 million represented a 7% increase from the $33.8 million reported in Q4 2024, underscoring robust demand for the company’s pneumatic compression devices and other wound‑care solutions.
The company also announced a restructuring of its largest biomedical services contract that will reduce 2026 revenue by $7.1 million. Management said the change will generate cost savings that are expected to improve operating income and margin in 2026. In addition, InfuSystem completed an enterprise technology upgrade in the first quarter of 2026; the upgrade incurred a 200‑basis‑point headwind in 2025 but is projected to provide margin tailwinds as the system matures.
On the balance‑sheet side, InfuSystem’s net debt to adjusted EBITDA ratio for the last four quarters of 2025 was 0.52x, and the company reported $58 million in liquidity as of December 31, 2025. The firm continues to pursue a share‑repurchase program, citing confidence in its balance sheet and outlook.
For 2026, InfuSystem guided for pro‑forma net revenue growth of 6% to 8% and adjusted EBITDA margins in the mid‑to‑low 20% range, after accounting for the $7.1 million revenue reduction from the contract restructuring. Management expressed confidence that the company’s shift toward higher‑margin, asset‑light services will sustain profitability and support future growth.
Market reaction to the results was positive, with the company’s stock rising in pre‑market trading. The EPS beat and margin expansion were highlighted as key drivers of the rally, while a slight revenue miss of $0.48 million (actual $36.2 million versus consensus $36.68 million) tempered the enthusiasm. Investors focused on the company’s ability to translate revenue growth into earnings and its strategic initiatives to improve margins.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.