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1. Company Snapshot

1.a. Company Description

InfuSystem Holdings, Inc., through its subsidiaries, provides infusion pumps, and related products and services in the United States and Canada.The company operates in two segments, Integrated Therapy Services (ITS) and Durable Medical Equipment Services (DME Services).It supplies electronic ambulatory infusion pumps and associated disposable supply kits to oncology, infusion, and hospital outpatient chemotherapy clinics for the treatment of various cancers, including colorectal cancer, pain management, and other disease states.


The company also sells, rents, and leases new and pre-owned pole-mounted and ambulatory infusion pumps, and other durable medical equipment; sells treatment-related consumables; and provides biomedical recertification, maintenance, and repair services for oncology practices, as well as other alternate site settings comprising home care and home infusion providers, skilled nursing facilities, pain centers, hospital market, and others.In addition, it offers local and field-based customer support, as well as operates pump service and repair centers.The company was incorporated in 2005 and is headquartered in Rochester Hills, Michigan.

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1.b. Last Insights on INFU

InfuSystem Holdings, Inc.'s recent performance was driven by double-digit Patient Services revenue growth in Q1, fueled by diversification into wound care and biomedical services. The company's strategic partnerships and economies of scale have enabled recurring revenue and margin expansion. Additionally, InfuSystem's investments in integrated clinic-to-home healthcare solutions are starting to pay off, with record adjusted EBITDA margins achieved in Q1. The company's valuation remains attractive, trading at 5.4x FY25 EV/EBITDA, with limited tariff or economic cycle risk and moderate capital spending expected.

1.c. Company Highlights

2. InfuSystem's Q3 2025 Earnings: A Strong Performance

InfuSystem reported a robust third quarter, with net revenue reaching a record $36.2 million, a 3.3% increase from the prior year. The company's gross profit also hit a quarterly high of $20.8 million, a 9.3% rise from the same period last year. Adjusted EBITDA increased by 5.6% to $8.3 million. Earnings per share (EPS) came in at $0.11, beating estimates of $0.08. The company's financial performance was driven by growth in Patient Services, particularly in Oncology and Wound Care, with revenue increasing by 7.6% year-over-year.

Publication Date: Nov -19

📋 Highlights
  • Revenue Growth:: Q3 net revenue reached $36.2M, +3.3% YoY; Patient Services grew $1.6M (+7.6%) from higher treatment volumes in Oncology and Wound Care.
  • Gross Profit Expansion:: Gross profit hit $20.8M, a record and +9.3% YoY increase, driven by operational efficiencies.
  • Adjusted EBITDA Growth:: Increased to $8.3M, +5.6% YoY, with cash flow from operations exceeding $17M year-to-date (+$4.8M YoY).
  • Strategic Acquisitions & Automation:: Integrated Apollo for streamlined billing and AI/automation upgrades, enhancing revenue cycle efficiency and targeting Wound Care expansion.
  • Contract Adjustments & Cost Management:: A renegotiated biomedical contract reduced revenue by $6–7M but improved economics, while a major insurer's multiyear extension provided stable pricing and service expansion opportunities.

Segment Performance

The Patient Services segment was a key driver of growth, with revenue increasing by $1.6 million or 7.6% year-over-year. The company also secured a significant new contract with a large hospital system for its Oncology business and a multiyear contract extension with one of its largest national insurance payers. Additionally, InfuSystem began accepting patient referrals and booking revenue for pneumatic compression devices through a new relationship with a device manufacturer.

Operational Highlights

Carrie Lachance mentioned that the company is focused on leveraging strategic competencies in its Patient Solutions segment beyond existing therapies. The company is also investing in AI and automation enhancements to improve efficiencies. As Carrie Lachance stated, "We have a new system that we implemented for the revenue cycle aspect over the past few months. That's working tremendously well." The company expects these enhancements to drive further growth and margin expansion.

Outlook and Valuation

InfuSystem reaffirmed its full-year outlook, targeting adjusted EBITDA margin to be 20% or greater and revenue growth between 6% to 8%. Analysts estimate revenue growth to be 2.9% next year. With a current P/E Ratio of 35.02 and EV/EBITDA of 14.19, the market is pricing in a certain level of growth. The company's ROIC of 15.23% and ROE of 9.92% indicate a strong return on invested capital. The Net Debt / EBITDA ratio of 1.58x suggests a manageable debt burden.

Cash Flow and Returns

InfuSystem generated operating cash flow totaling over $17 million for the first 9 months, a $4.8 million increase from the prior year-to-date period. The company plans to continue returning cash to investors through stock buybacks and debt repayment. With a Free Cash Flow Yield of 10.39%, the company's cash generation capabilities are attractive.

3. NewsRoom

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Connor Clark & Lunn Investment Management Ltd. Acquires 19,554 Shares of InfuSystem Holdings, Inc. $INFU

Nov -21

Source: defenseworld.net

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InfuSystem Stock: Margin Expansion And Growth Strategy To Drive Strong Gains

Nov -11

Source: seekingalpha.com

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InfuSystem to Participate at 16th Annual Craig-Hallum Alpha Select Conference on November 18, 2025

Nov -10

Source: businesswire.com

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InfuSystem Set To Be A Cash Cow In 2026

Nov -10

Source: seekingalpha.com

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Wall Street Analysts Predict a 40% Upside in InfuSystems Holdings (INFU): Here's What You Should Know

Nov -06

Source: zacks.com

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InfuSystem Holdings, Inc. (INFU) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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InfuSystems Holdings, Inc. (INFU) Tops Q3 Earnings Estimates

Nov -04

Source: zacks.com

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InfuSystem Reports Third Quarter 2025 Financial Results

Nov -04

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.78%)

6. Segments

Patient Services

Expected Growth: 7%

InfuSystem Holdings, Inc.'s 7% growth in Patient Services is driven by increasing demand for ambulatory infusion services, expansion into new markets, and strategic partnerships with healthcare providers. Additionally, the company's focus on improving patient outcomes and reducing healthcare costs through its proprietary technology and clinical expertise contributes to its growth.

Device Solutions

Expected Growth: 9%

InfuSystem Holdings' Device Solutions segment growth is driven by increasing demand for portable infusion devices, expansion into new markets, and strategic partnerships. The company's focus on rental and sales of infusion pumps, as well as its comprehensive service offerings, contribute to its growth. Additionally, the rising need for ambulatory infusion therapy and home healthcare services further fuels the segment's growth.

7. Detailed Products

Infusion Pumps

Portable medical devices that deliver fluids, medications, and nutrients to patients in a controlled manner

Pump Management Services

Comprehensive management of infusion pumps, including maintenance, repair, and replacement

Biologics and Pharmaceuticals

Specialty pharmaceuticals and biologics used to treat various diseases and conditions, such as cancer, rheumatoid arthritis, and multiple sclerosis

Nursing Services

Skilled nursing services provided in patients' homes, clinics, or hospitals, including infusion therapy and medication management

Durable Medical Equipment (DME)

Medical equipment and supplies used in the home or clinical settings, such as wheelchairs, hospital beds, and oxygen therapy equipment

8. InfuSystem Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for InfuSystem Holdings, Inc. is medium due to the presence of alternative medical equipment and services that can replace the company's offerings.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of InfuSystem Holdings, Inc.'s medical equipment and services, which limits customers' ability to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of medical equipment and services, which gives InfuSystem Holdings, Inc. some negotiating power.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the medical equipment and services industry, which makes it easier for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established companies in the medical equipment and services industry, which leads to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.89%
Debt Cost 10.42%
Equity Weight 63.11%
Equity Cost 10.42%
WACC 10.42%
Leverage 58.46%

11. Quality Control: InfuSystem Holdings, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
InfuSystem Holdings

A-Score: 4.6/10

Value: 4.6

Growth: 5.7

Quality: 5.7

Yield: 0.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Atrion

A-Score: 3.5/10

Value: 3.5

Growth: 3.0

Quality: 6.2

Yield: 1.0

Momentum: 5.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
NEXGEL

A-Score: 3.3/10

Value: 7.4

Growth: 4.9

Quality: 4.2

Yield: 0.0

Momentum: 1.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
STAAR Surgical

A-Score: 3.2/10

Value: 8.0

Growth: 4.1

Quality: 3.8

Yield: 0.0

Momentum: 1.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Femasys

A-Score: 2.7/10

Value: 6.0

Growth: 2.8

Quality: 3.1

Yield: 0.0

Momentum: 4.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Harvard Bioscience

A-Score: 2.2/10

Value: 9.2

Growth: 1.1

Quality: 2.6

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.89$

Current Price

8.89$

Potential

-0.00%

Expected Cash-Flows