Tactile Systems Technology, Inc. (“Tactile Medical”; Nasdaq: TCMD), a medical technology company providing therapies for people with chronic disorders, today reported financial results for the first quarter ended March 31, 2025.
First Quarter 2025 Financial Highlights
- Total revenue increased 0.3% year-over-year to $61.3 million
- Gross margin of 74% versus 71% in Q1 2024
- Net loss of $3.0 million versus $2.2 million in Q1 2024
- Adjusted EBITDA loss of $0.3 million versus positive Adjusted EBITDA of $1.0 million in Q1 2024
- Repurchased $10.0 million of stock under the Company’s share repurchase program
- Expanded launch of Nimbl to include patients with lower extremity conditions
- Completed launch of a new customer relationship management (CRM) tool and optimization of sales organization
“Through the first quarter our team executed on several highly strategic, growth-oriented priorities,” said Sheri Dodd, Chief Executive Officer of Tactile Medical. “While these efforts have had a temporary impact on sales force productivity, we are thrilled with the progress made and firmly believe these transformational actions are essential to positioning Tactile for consistent, long-term growth.”
Financial Results Details
Total revenue in Q1 2025 increased $180 thousand to $61.3 million, compared to $61.1 million in Q1 2024. The increase was attributable to a $1.9 million (22%) rise in airway clearance product line sales, offset by a $1.8 million (3%) decrease in lymphedema product line sales and rentals.
Gross profit increased $1.9 million (4%) to $45.3 million, with a gross margin of 74% compared to 71% in Q1 2024. Operating expenses rose $3.5 million (8%) to $49.9 million due to planned strategic investments.
Net loss was $3.0 million, or $(0.13) per diluted share, compared to $2.2 million, or $(0.09) per diluted share, in Q1 2024. Adjusted EBITDA loss was $0.3 million versus positive Adjusted EBITDA of $1.0 million in Q1 2024.
Balance Sheet Summary
As of March 31, 2025, the Company had $83.6 million in cash and $25.5 million of outstanding borrowings. The Company repurchased $10.0 million of its stock during Q1 2025, with $16.5 million remaining available under its $30.0 million share repurchase program.
2025 Financial Outlook
Tactile Medical updated its 2025 financial outlook, now expecting total revenue in the range of $309 million to $315 million (5-8% growth) and adjusted EBITDA in the range of $32 million to $34 million.
Conference Call Information
Management will host a conference call with Q&A at 5:00 p.m. Eastern Time on May 5, 2025. The call can be accessed by dialing 877-407-3088 (201-389-0927 for international callers) with access code 13752588. A live webcast will be available on the investor relations section of the Company’s website.
About Tactile Medical Tactile Medical is a leader in developing and marketing at-home therapies for people with chronic conditions including lymphedema, lipedema, and chronic pulmonary disease. The company collaborates with clinicians to expand clinical evidence and improve patient quality of life.
