InfuSystem: Investments Are Starting To Pay Off

Summary

• InfuSystem offers integrated clinic-to-home healthcare solutions, leveraging strong payer networks, strategic partnerships, and economies of scale to drive recurring revenue and margin expansion.
• Recent growth is fueled by diversification into wound care and biomedical services, with Q1 showing double-digit Patient Services revenue growth and record adjusted EBITDA margins.
• The company’s valuation is attractive, trading at just 5.4x FY25 EV/EBITDA, with limited tariff or economic cycle risk and capital spending expected to moderate.
• While not a rapid growth story, INFU’s entrenched market position, rising profitability, and low valuation support a steady-return investment thesis from current levels.
• The company is now starting to reap the rewards of investments supporting expansion into adjacent segments.
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of INFU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.