Financial Data and Key Metrics Changes - Total revenue grew by 7.8% year over year to $78.9 million, exceeding previous Q2 expectations [5][30] - Adjusted EBITDA decreased by 15% year over year to $7.7 million, attributed to planned investments in technology and sales headcount [6][31] - Gross margins increased by 60 basis points year over year to 74.5% [5][30] Business Line Data and Key Metrics Changes - Lymphedema revenue increased by 2% year over year to $66 million and over 30% sequentially [5][7] - Airway clearance revenue surged by 51.6% year over year to $12.9 million [5][30] - Sales headcount increased by 11% to 293 total representatives [8][10] Market Data and Key Metrics Changes - The U.S. lymphedema patient population is estimated to grow at 10% annually, with approximately 145,000 patients currently treated [11][12] - There are about 2 million U.S. patients diagnosed with lymphedema who are not currently receiving treatment, representing a significant market opportunity [12][13] Company Strategy and Development Direction - The company aims to improve access to care, expand treatment options for lymphedema patients, and enhance lifetime patient value [7][16] - Strategic investments are focused on increasing PCD therapy adoption and streamlining workflow processes [17][20] - The company is committed to new product innovation, including the development of a next-generation advanced lymphedema pump [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive consistently improving results despite short-term disruptions from CRM implementation [6][35] - The company anticipates total revenue for 2025 to be in the range of $310 million to $350 million, reflecting growth of approximately 6% to 8% year over year [32][34] - Management highlighted the positive momentum in sales rep productivity and market share growth in both lymphedema and airway clearance segments [40][66] Other Important Information - The company completed an additional $16.5 million stock buyback, concluding the current repurchase program [31] - The implementation of AI tools is expected to enhance operational efficiency and patient engagement [20][28] Q&A Session Summary Question: Guidance clarification regarding Q2 performance - Management noted that while Q2 performance exceeded expectations, the full-year guidance was raised conservatively to account for potential short-term variability in sales rep productivity [38][40] Question: Head and neck data commercialization timeline - Management indicated that the manuscript submission for head and neck lymphedema data is expected in early Q4, with ongoing discussions with payers to improve coverage [42][46] Question: Market share and growth rate expectations - Management expressed confidence in returning to double-digit growth, emphasizing the importance of deeper market penetration and product mix optimization [50][52] Question: Composition of updated guidance - Management explained that the growth in airway clearance is offsetting slower growth in lymphedema, with a focus on executing commercial strategies to capture market share [63][66]

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]