Core Insights - Tactile Systems Technology, Inc. will participate in two investor conferences in June 2025, presenting at the William Blair 45th Annual Growth Stock Conference and the Jefferies Global Healthcare Conference [1][2] Company Overview - Tactile Medical specializes in developing and marketing at-home therapies for chronic conditions such as lymphedema, lipedema, chronic venous insufficiency, and chronic pulmonary disease [3] - The company aims to improve the quality of life for patients by collaborating with clinicians to enhance clinical evidence, raise awareness, increase access to care, and reduce overall healthcare costs [3]

Company Performance - Tactile Systems Technology reported a quarterly loss of $0.13 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.07, and compared to a loss of $0.05 per share a year ago, indicating an earnings surprise of -85.71% [1] - The company posted revenues of $61.27 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.16%, and showing a slight increase from year-ago revenues of $61.09 million [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Tactile Systems Technology shares have declined approximately 17.8% since the beginning of the year, while the S&P 500 has only declined by 3.3% [3] - The current consensus EPS estimate for the coming quarter is $0.16 on revenues of $78.64 million, and for the current fiscal year, it is $0.66 on revenues of $317.99 million [7] Industry Outlook - The Medical - Instruments industry, to which Tactile Systems Technology belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the industry outlook can significantly impact stock performance [5][8]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 grew by 0.3% year over year to $61.3 million [5][32] - Lymphedema business line revenue decreased by 3% year over year to $50.6 million, while airway clearance revenue increased by 22% to $10.7 million [5][32] - Gross margins increased by 290 basis points year over year, while adjusted EBITDA decreased by 125% year over year [5][32] Business Line Data and Key Metrics Changes - Lymphedema product sales decreased by $1.8 million or 3% to $50.6 million, while airway clearance product sales increased by $1.9 million or 22% to $10.7 million [32] - Sales headcount in the lymphedema business decreased from 280 to 264, but is expected to increase to over 300 by the end of 2025 [10][25] Market Data and Key Metrics Changes - The company is maintaining a strong number two position in the airway clearance market, with significant growth in the bronchiectasis market [16][84] - The company expects revenue in the second quarter to be in the range of $73 million to $76 million, with full-year revenue guidance revised to $309 million to $315 million [14][34] Company Strategy and Development Direction - The company is focused on three strategic priorities: improving access to care, expanding treatment options, and enhancing lifetime patient value [17][26] - Investments in technology and human capital are aimed at streamlining sales and order management processes, including the launch of a new Salesforce CRM module [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential despite short-term challenges related to sales vacancies and CRM implementation [13][38] - The company anticipates a return to growth in the lymphedema channel as sales optimization strategies take effect [25][70] Other Important Information - The company ended the quarter with $83.6 million in cash, reflecting a decrease due to stock buybacks and annual bonus payments [6][34] - The company is actively monitoring global trade policies and assessing potential tariff impacts on cost of goods sold, expecting a total impact of less than $5 million in 2025 [35][36] Q&A Session Summary Question: Revenue guidance assumptions for the year - Management discussed the importance of hiring speed and sales rep proficiency with the new CRM tool as key drivers for revenue guidance [42][44] Question: Growth expectations for 2026 - Management indicated that while they are not ready to comment on 2026, they expect to exit 2025 with more momentum than in the first half of the year [50][52] Question: Updates on Nimble product launch - Management reported strong adoption of Nimble, with no manufacturing challenges and positive feedback from the market [61][62] Question: Airway clearance business growth sustainability - Management attributed growth in the airway clearance business to strategic partnerships and product placement agreements with DMEs [81][84] Question: Rep productivity and CRM tool impact - Management explained that the new CRM tool is designed to enhance productivity and efficiency for sales reps, which is expected to improve overall performance [92][93]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 increased by 0.3% year over year to $61.3 million [5][31] - Lymphedema business line revenue decreased by 3% year over year to $50.6 million, while airway clearance revenue increased by 22% to $10.7 million [5][31] - Gross margins increased by 290 basis points year over year, while adjusted EBITDA decreased by 125% year over year [5][31] - Net loss increased by 35% to $3 million, or $0.13 per diluted share [33] Business Line Performance Changes - Lymphedema revenue decline was attributed to a strategic optimization of the sales organization and a higher than expected vacancy rate in sales headcount [7][10] - Airway clearance performance showed strong growth, with Aflovest sales increasing by 22% year over year, supported by strategic partnerships with DMEs [14][15] Market Data and Key Metrics Changes - The company expects Q2 revenue to be in the range of $73 million to $76 million, with full-year revenue guidance revised to $309 million to $315 million [14][34] - The growth for the lymphedema product line is now projected at 4% to 5%, while airway clearance products are expected to grow by 20% to 23% [35] Company Strategy and Industry Competition - The company is focused on three strategic priorities: improving access to care, expanding treatment options, and enhancing lifetime patient value [17][26] - Investments in technology and human capital are aimed at streamlining sales and order management processes, with the launch of a new Salesforce CRM module [18][19] - The company aims to maintain its market leadership in medical device lymphatic therapy and deliver clinical effectiveness [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth strategy despite short-term challenges related to sales vacancies and CRM implementation [13][37] - The company is actively monitoring global trade policies and assessing potential impacts of tariffs on its business [35][36] Other Important Information - The company ended Q1 with a strong cash position of $83.6 million, despite a sequential decrease due to stock buybacks [6][33] - The company is committed to enhancing patient engagement through tools like Kiley, which tracks symptoms and therapy sessions [28][30] Q&A Session Summary Question: What assumptions get you to the high and low end of the revenue guidance range? - Management indicated that the speed of hiring planned sales roles and sales rep proficiency with the new tool were key factors in determining guidance [44][50] Question: Does the low end of the guidance assume more delays in hiring? - Management confirmed that the speed of hiring and productivity of the sales team were critical in shaping the guidance range [50][51] Question: Can you provide an update on Nimble's commercial launch progress? - Management reported strong adoption of Nimble, with no manufacturing challenges and positive feedback on its ease of use [61] Question: How sustainable is the growth in the airway clearance business? - Management attributed the growth to strategic partnerships and alignment with DMEs, expecting continued momentum [82][84] Question: How does the new CRM tool fit into the hiring of additional sales reps? - The CRM tool is designed to enhance productivity and efficiency, supporting the overall sales optimization strategy [94]

Company Overview - The company focuses on revealing and treating patients with underserved chronic conditions in the home, including lymphedema and bronchiectasis[4] - The total addressable market (TAM) for these conditions is estimated to be over $10 billion[4] - In 2024, the company served over 79,000 patients[4] Financial Performance (2024) - Total revenue for 2024 was $293.0 million[4] - Gross margin for 2024 was 74.0%[4] - Adjusted EBITDA for 2024 was $37.1 million[4] - Operating cash flow for 2024 was $40.7 million[4] Market Opportunity - Approximately 2.5 million patients are diagnosed with lymphedema and bronchiectasis, while an estimated 25 million remain undiagnosed[4] - The company estimates a $5 billion+ addressable market for lymphedema and another $5 billion+ for bronchiectasis[32] Key Strategies - The company aims to increase access to care, expand treatment options, enhance lifetime patient value, and improve patient experience[70] - A key focus is on removing existing barriers to care through market development, clinical evidence generation, and payer advocacy[70]

Revenue and Sales Performance - Revenue for the three months ended March 31, 2025, was $61.3 million, a slight increase of $0.2 million or 0.3% compared to $61.1 million for the same period in 2024[109] - Sales of airway clearance products increased by $1.9 million, or 22%, to $10.7 million, while lymphedema product sales decreased by $1.8 million, or 3%, to $50.6 million[113] - The AffloVest product line accounted for 17% of total revenue in the three months ended March 31, 2025, up from 14% in the same period in 2024[101] Profitability and Expenses - Gross margin improved to 74% for the three months ended March 31, 2025, compared to 71% for the same period in 2024[116] - Operating expenses rose by $3.5 million, or 8%, to $49.9 million, driven primarily by a $3.7 million increase in reimbursement, general, and administrative expenses[112] - Net loss for the three months ended March 31, 2025, was $3.0 million, compared to a net loss of $2.2 million for the same period in 2024, reflecting a 35% increase in losses[109] Research and Development - Research and development expenses decreased by $0.4 million, or 19%, to $1.7 million, primarily due to lower clinical study-related expenses[119] - The company launched the Entre Plus system in March 2024 and the Nimbl platform for lymphedema in October 2024, indicating ongoing product development[100] Financial Position and Cash Flow - As of March 31, 2025, the company had cash of $83.6 million and net accounts receivable of $35.7 million, compared to cash of $60.7 million and net accounts receivable of $47.4 million at March 31, 2024[124] - Net cash provided by operating activities was $0.4 million for the three months ended March 31, 2025, down from $0.9 million for the same period in 2024[125][126] - Net cash used in investing activities was $0.4 million for the three months ended March 31, 2025, compared to $0.5 million for the same period in 2024[127] - Net cash used in financing activities was $10.8 million for the three months ended March 31, 2025, primarily due to $10.0 million for the repurchase of common stock[128] - The company repurchased 635,603 shares for approximately $10.0 million during the three months ended March 31, 2025, with approximately $16.5 million remaining authorized under the stock repurchase program[140] Debt and Tax - As of March 31, 2025, the company had outstanding borrowings of $25.5 million under the Credit Agreement, with a required quarterly repayment of $750,000[137] - The company recorded an income tax benefit of $1.1 million for the three months ended March 31, 2025, up from $0.6 million in the same period in 2024[123] Interest Income and Expense - Interest income increased by $0.2 million, or 26%, to $0.9 million for the three months ended March 31, 2025, compared to $0.7 million for the same period in 2024[122] - Interest expense decreased by $0.2 million, or 25%, to $0.4 million for the three months ended March 31, 2025, compared to $0.6 million for the same period in 2024[122] Strategic Investments - The company continues to invest in its commercial infrastructure, including a direct sales force and reimbursement capabilities, to support growth[102] - The company estimates potential impacts of tariffs on its cost of goods sold could be up to $5.0 million for the year ended December 31, 2025[145] Workforce - The company employed 161 account managers and 103 specialists for lymphedema products as of March 31, 2025, compared to 158 account managers and 111 specialists a year earlier[104]

Revenue Performance - Total revenue for Q1 2025 increased by $180 thousand, or 0.3%, to $61.3 million compared to Q1 2024[4] - Total revenue for Q1 2025 was $61,268,000, a slight increase of 0.3% compared to $61,088,000 in Q1 2024[24] - Sales revenue decreased to $52,469,000 in Q1 2025 from $53,307,000 in Q1 2024, representing a decline of 1.6%[24] - Rental revenue increased to $8,799,000 in Q1 2025, up 13.1% from $7,781,000 in Q1 2024[24] - Lymphedema products accounted for 83% of total revenue in Q1 2025, down from 86% in Q1 2024[27] - The company expects full year 2025 total revenue in the range of $309 million to $315 million, representing growth of approximately 5% to 8% year-over-year[11] Profitability - Gross profit for Q1 2025 increased by $1.9 million, or 4%, to $45.3 million, with a gross margin of 74% compared to 71% in Q1 2024[5] - Gross profit for Q1 2025 was $45,346,000, an increase of 4.4% compared to $43,429,000 in Q1 2024[24] - Adjusted EBITDA loss for Q1 2025 was $0.3 million, compared to positive Adjusted EBITDA of $1.0 million in Q1 2024[9] - Adjusted EBITDA for Q1 2025 was $(259,000), a decrease of 125% from $1,033,000 in Q1 2024[28] - The company now expects full year 2025 adjusted EBITDA in the range of $32 million to $34 million, compared to adjusted EBITDA of $37.1 million in 2024[12] Expenses and Losses - Net loss for Q1 2025 was $3.0 million, or $(0.13) per diluted share, compared to a net loss of $2.2 million, or $(0.09) per diluted share, in Q1 2024[8] - Net loss for Q1 2025 was $2,974,000, compared to a net loss of $2,209,000 in Q1 2024, reflecting a 34.7% increase in losses[24] - Operating expenses increased by $3.5 million, or 8%, to $49.9 million, primarily due to planned strategic investments[7] - Operating expenses rose to $49,888,000 in Q1 2025, up 7.4% from $46,393,000 in Q1 2024[24] Cash and Stock Repurchase - As of March 31, 2025, the company had $83.6 million in cash and $25.5 million of outstanding borrowings under its credit agreement[10] - Cash at the end of Q1 2025 was $83,619,000, a decrease from $94,367,000 at the beginning of the period[26] - The company repurchased $10.0 million of stock during Q1 2025 under its share repurchase program[6]

Core Insights - Tactile Systems Technology, Inc. reported a total revenue increase of 0.3% year-over-year to $61.3 million for Q1 2025, driven by a 22% increase in airway clearance product sales, while lymphedema product sales decreased by 3% [4][9][12] - The company is focused on strategic growth initiatives, including the launch of Nimbl for lower extremity lymphedema and optimization of its sales organization [3][4] - The net loss for Q1 2025 was $3.0 million, compared to a net loss of $2.2 million in Q1 2024, reflecting ongoing investments in strategic initiatives [7][10] Financial Performance - Gross profit increased by 4% to $45.3 million, with a gross margin of 74%, up from 71% in Q1 2024, primarily due to lower manufacturing and warranty costs [5][9] - Operating expenses rose by 8% to $49.9 million, attributed to planned strategic investments, resulting in an operating loss of $4.5 million [6][9] - Adjusted EBITDA loss was $0.3 million in Q1 2025, compared to a positive Adjusted EBITDA of $1.0 million in Q1 2024 [10][9] Balance Sheet and Cash Flow - As of March 31, 2025, the company had $83.6 million in cash and $25.5 million in outstanding borrowings, down from $94.4 million in cash at the end of 2024 [11] - The company repurchased $10.0 million of its stock during the first quarter, with $16.5 million remaining under its share repurchase program [11][9] 2025 Financial Outlook - The company updated its 2025 revenue guidance to a range of $309 million to $315 million, representing a growth of approximately 5% to 8% year-over-year [12] - Adjusted EBITDA for 2025 is now expected to be in the range of $32 million to $34 million, down from previous expectations of $35 million to $37 million [13]

Core Viewpoint - Tactile Systems Technology, Inc. is set to release its first quarter fiscal year 2025 financial results on May 5, 2025, after market close, indicating ongoing developments in the medical technology sector focused on chronic disorders [1]. Financial Results Announcement - The financial results for the first quarter of fiscal year 2025 will be announced after the market closes on May 5, 2025 [1]. - A conference call will be held at 5:00 p.m. Eastern Time on the same day to discuss the results, with participation details provided [2]. Conference Call Details - Participants can join the conference call by dialing 877-407-3088 (international callers: 201-389-0927) and using access code 13752588 [2]. - A live webcast of the call will be available on the investor relations section of the company's website [2]. Replay Information - For those unable to attend the live call, a replay will be available for two weeks at 877-660-6853 (international callers: 201-612-7415) with the same access code [3]. - The webcast will also be archived on the company's investor relations website [3]. Company Overview - Tactile Medical specializes in developing and marketing at-home therapies for chronic conditions such as lymphedema, lipedema, chronic venous insufficiency, and chronic pulmonary disease [4]. - The company collaborates with clinicians to enhance clinical evidence, raise awareness, improve access to care, reduce healthcare costs, and enhance the quality of life for patients [4].

MINNEAPOLIS, March 05, 2025 (GLOBE NEWSWIRE) -- Tactile Systems Technology, Inc. ("Tactile Medical"; the "Company") (NASDAQ:TCMD), a medical technology company providing therapies for people with chronic disorders, today announced that management will participate in the Oppenheimer 35th Annual Healthcare MedTech & Services Conference, which is being virtually held from March 17th – 20th. Management will participate in a virtual presentation on Tuesday, March 18th at 12:00 p.m. Eastern Time. A live audio web ...