Tactile Systems Technology, Inc. Reports First Quarter 2025 Financial Results

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]