Tactile Systems Technology(US:TCMD)2025-11-03 23:00Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $85.8 million, reflecting a 17% year-over-year growth [4][24] - Gross margins increased by 80 basis points year-over-year to 76% [5][24] - Adjusted EBITDA rose 34% year-over-year to $14.4 million [5][24] - Net income increased by 59% year-over-year to $8.2 million, or $0.36 per diluted share [25] Business Line Data and Key Metrics Changes - Lymphedema revenue grew 11% year-over-year to $72.4 million, with a sequential increase of 10% from Q2 [4][24] - Airway clearance revenue surged 71% year-over-year to $13.4 million, with a 3% sequential increase [4][24] - Sales in the Medicare channel for lymphedema increased by 130% year-over-year, while commercial and VA channels declined by 9% [8][10] Market Data and Key Metrics Changes - The payer mix for Q3 2025 indicates a return to a more normalized environment, supporting balanced year-over-year comparisons moving forward [10] - The transition from LCD to NCD is expected to drive continued improvement in Q4 and beyond [10][28] Company Strategy and Development Direction - The company’s strategic priorities include improving access to care, expanding treatment options, and enhancing lifetime patient value [5][16] - Focus on strengthening relationships with DMEs and increasing awareness of bronchiectasis to drive growth in airway clearance products [11][12] - Investments in sales organization and technology are aimed at unlocking total addressable market (TAM) and driving profitable growth [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the business, supported by strong financial performance and operational execution [31] - The favorable Medicare policy environment is seen as a significant tailwind for growth [28] - Expectations for continued growth in both business lines, with a raised full-year revenue guidance to $317-$321 million [5][27] Other Important Information - The company has initiated a share repurchase program of up to $25 million, reflecting confidence in its growth trajectory [23] - The company ended Q3 with $66 million in cash and no outstanding borrowings [26] Q&A Session Summary Question: Insights on AffloVest performance - Management noted strong performance driven by deep relationships with top DMEs and increased awareness of bronchiectasis [34][35] Question: Guidance clarification for lymphedema - Management confirmed no one-time events in Q3 and highlighted the impact of the NCD as a tailwind for future growth [39][42] Question: Market growth rate in lymphedema - Management indicated the lymphedema market is growing at approximately 10%, with expectations to match this growth [44][45] Question: Impact of new NCD on patient access - The NCD allows patients with unique characteristics to access advanced pump therapy directly, streamlining the process [51][52] Question: Drivers of lymphedema revenue growth - Key drivers include expanded headcount, improved productivity, and the successful launch of Nimble [53][55]