ROCHESTER HILLS, Mich. — InfuSystem Holdings, Inc. reported first-quarter net income of $1 million as improved margins helped offset a decline in revenue tied partly to a restructured GE Healthcare contract.
The health care service provider said net revenue was $33.7 million for the quarter ended March 31, down 3% from $34.7 million a year earlier. The company reported earnings of 5 cents per diluted share, compared with a net loss of $300,000, or 1 cent per diluted share, in the first quarter of 2025.
Adjusted EBITDA was $6.4 million, essentially flat from $6.3 million a year earlier. Adjusted EBITDA margin increased to 18.9% from 18.2%.
InfuSystem said Patient Services revenue rose 6% to $22.1 million, driven by higher treatment volume in oncology and wound care. Wound care revenue more than doubled to $2.1 million, helped by growth in compression therapy devices, including pneumatic compression devices and adjustable compression wraps.
Device Solutions revenue declined 17% to $11.6 million, reflecting lower biomedical services revenue, equipment rentals and equipment sales. The company said the decline was partly tied to its restructuring of a biomedical services contract with GE Healthcare, which reduced revenue but also lowered direct expenses.
Carrie Lachance, chief executive officer of InfuSystem, said the quarter reflected disciplined execution and strategic progress.
“Overall, we delivered a solid quarter that reflects both disciplined execution and meaningful strategic progress. While GAAP revenue declined modestly year over year to $33.7 million, that decline was expected and resulted from the strategic decision to restructure our GE Healthcare biomedical services contract. On a pro-forma basis, net revenue grew 1.7%, and just as importantly, profitability held strong. We delivered $6.4 million of Adjusted EBITDA, essentially flat year over year, due to margins improving to 18.9%. As previously discussed, reducing revenue to improve our overall profitability was a deliberate and, we believe, value-accretive decision. The restructuring reduced first-quarter revenue by $1.6 million, but it enabled a significantly larger reduction in direct contract expenses. While GAAP revenue is lower, the economics of the business are better, and that’s clearly showing up in our Adjusted EBITDA performance.”
Lachance also pointed to wound care as a growing business line for the company.
“Wound care continues to be an exciting growth engine for InfuSystem. First-quarter net revenue reached $2.1 million, more than doubling year-over-year. While currently just 6% of total revenue, we believe the growth rate indicative of the new therapy’s potential. Roughly 60% of the year-over-year growth came from compression devices, which we began rolling out last year and expanded further this quarter. We initially introduced Pneumatic Compression Devices, which are highly effective at treating even the most high risk, chronic patient conditions. This quarter, we added Adjustable Compression Wraps, which are less complex and suitable for a much broader group of lymphedema patients. This significantly expands our addressable market and positions us well for sustained growth in the wound care category.”
Gross profit rose 3% to $19.7 million, while gross margin increased to 58.4% from 55.2% a year earlier. Patient Services gross profit increased 9% to $14.3 million, while Device Solutions gross profit declined 10% to $5.4 million.
InfuSystem also said it went live March 1 with a new enterprise resource planning system, which the company expects to improve productivity, cost visibility, pricing insights, medical device fleet utilization and working capital management.
“On March 1, 2026, after nearly two years of intense preparation, we successfully went live on our new ERP system. I would call this transformational. While implementations of this scale always come with early-stage adjustments, the hardest part is behind us. This system completely changes how we operate. Our data is now integrated, workflows are connected, and processes are standardized across the business. The benefits span the entire organization. We expect improved productivity, better cost and margin visibility, stronger pricing insights, more efficient utilization of our medical device fleet, and improved working capital management. Just as important, the ERP gives us a scalable platform to support future growth. We’re already identifying enhancements that offer fast payback and high returns,” Lachance said.
The company ended the quarter with $57.1 million in available liquidity, including $55 million in available borrowing capacity and $2.1 million in cash and cash equivalents. Net debt was $17.5 million as of March 31.
InfuSystem reaffirmed its full-year 2026 guidance. After adjusting for the GE Healthcare contract restructuring, the company expects pro-forma net revenue growth of 6% to 8% and adjusted EBITDA margin in the low- to mid-20% range.
