First Quarter 2025 Summary & Recent Business 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, the largest segment of the lymphedema market
- Completed launch of a new customer relationship management (CRM) tool and previously announced optimization of sales organization
“Through the first quarter our team executed on several highly strategic, growth-oriented priorities. We launched Nimbl for lower extremity lymphedema, completed efforts to optimize our sales organization for scale and efficiency, and implemented a new CRM tool that equips our team with best-in-class resources to more efficiently reach lymphedema patients,” said
“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. Our underlying business fundamentals remain firmly in place and we are meaningfully advancing each of our three 2025 strategic priorities to remain the competitive market share leader in medical device lymphatic therapy.”
First Quarter 2025 Financial Results
Total revenue in the first quarter of 2025 increased
Gross profit in the first quarter of 2025 increased
Operating expenses in the first quarter of 2025 increased
Operating loss was
Other income was
Income tax benefit was
Net loss in the first quarter of 2025 was
Weighted average shares used to compute diluted net loss per share were 23.7 million in each of the first quarters of 2025 and 2024.
Adjusted EBITDA loss was
Balance Sheet Summary
As of
2025 Financial Outlook
The Company is updating its 2025 financial outlook and now expects full year 2025 total revenue in the range of
The Company now also expects full year 2025 adjusted EBITDA in the range of
Conference Call
Management will host a conference call with a question-and-answer session at
For those unable to participate, a replay of the call will be available for two weeks at 877-660-6853 (201-612-7415 for international callers); access code 13752588. The webcast will be archived at investors.tactilemedical.com.
About
Legal Notice Regarding Forward-Looking Statements
This release contains forward-looking statements, including guidance for the full year 2025. Forward-looking statements are generally identifiable by the use of words like “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “continue,” “confident,” “outlook,” “guidance,” “project,” “goals,” “look forward,” “poised,” “designed,” “plan,” “return,” “focused,” “prospects” or “remain” or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties outside of the Company’s control that can make such statements untrue, including, but not limited to, the Company’s ability to obtain reimbursement from third-party payers for its products; adverse economic conditions, including inflation, rising interest rates or a recession; the adequacy of the Company’s liquidity to pursue its business objectives; price increases for supplies and components; wage and component price inflation; loss of a key supplier or other supply chain disruptions; entry of new competitors and/or competitive products; compliance with and changes in federal, state and local government regulation; technological obsolescence of, or quality issues with, the Company’s products; the Company’s ability to expand its business through strategic acquisitions; the Company’s ability to integrate acquisitions and related businesses; the effects of current and future
Use of Non-GAAP Financial Measures
This press release includes the non-GAAP financial measure of Adjusted EBITDA, which differs from financial measures calculated in accordance with
This non-GAAP financial measure is presented because the Company believes it is a useful indicator of its operating performance. Management uses this measure principally as a measure of the Company’s operating performance and for planning purposes, including the preparation of the Company’s annual operating plan and financial projections. The Company believes this measure is useful to investors as supplemental information and because it is frequently used by analysts, investors and other interested parties to evaluate companies in its industry. The Company also believes this non-GAAP financial measure is useful to its management and investors as a measure of comparative operating performance from period to period. In addition, Adjusted EBITDA is used as a performance metric in the Company’s compensation program.
The non-GAAP financial measure presented in this release should not be considered as an alternative to, or superior to, its respective GAAP financial measure, as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and it should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as tax payments, debt service requirements, capital expenditures and certain other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs and cash costs to replace assets being depreciated and amortized. In evaluating non-GAAP financial measures, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in this presentation. The Company’s presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using non-GAAP financial measures on a supplemental basis. The Company’s definition of these non-GAAP financial measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation.
| Condensed Consolidated Balance Sheets | ||||||
| (Unaudited) | ||||||
| (In thousands, except share and per share data) | 2025 | 2024 | ||||
| Assets | ||||||
| Current assets | ||||||
| Cash | $ | 83,619 | $ | 94,367 | ||
| Accounts receivable, net | 35,693 | 44,937 | ||||
| Net investment in leases | 14,850 | 14,540 | ||||
| Inventories | 18,867 | 18,666 | ||||
| Income taxes receivable | 1,193 | — | ||||
| Prepaid expenses and other current assets | 5,900 | 5,053 | ||||
| Total current assets | 160,122 | 177,563 | ||||
| Non-current assets | ||||||
| Property and equipment, net | 5,391 | 5,603 | ||||
| Right of use operating lease assets | 16,174 | 16,633 | ||||
| Intangible assets, net | 41,866 | 42,789 | ||||
| 31,063 | 31,063 | |||||
| Deferred income taxes | 18,059 | 18,311 | ||||
| Other non-current assets | 7,567 | 5,962 | ||||
| Total non-current assets | 120,120 | 120,361 | ||||
| Total assets | $ | 280,242 | $ | 297,924 | ||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 7,224 | $ | 5,648 | ||
| Note payable | 2,956 | 2,956 | ||||
| Accrued payroll and related taxes | 10,929 | 17,923 | ||||
| Accrued expenses | 7,177 | 7,780 | ||||
| Income taxes payable | — | 270 | ||||
| Operating lease liabilities | 3,036 | 2,980 | ||||
| Other current liabilities | 4,079 | 3,147 | ||||
| Total current liabilities | 35,401 | 40,704 | ||||
| Non-current liabilities | ||||||
| Note payable, non-current | 22,481 | 23,220 | ||||
| Accrued warranty reserve, non-current | 1,201 | 1,209 | ||||
| Income taxes payable, non-current | 355 | 239 | ||||
| Operating lease liabilities, non-current | 15,173 | 15,955 | ||||
| Total non-current liabilities | 39,210 | 40,623 | ||||
| Total liabilities | 74,611 | 81,327 | ||||
| Stockholders’ equity: | ||||||
| Preferred stock, |
— | — | ||||
| Common stock, |
24 | 24 | ||||
| Additional paid-in capital | 172,727 | 180,719 | ||||
| Retained earnings | 32,880 | 35,854 | ||||
| Total stockholders’ equity | 205,631 | 216,597 | ||||
| Total liabilities and stockholders’ equity | $ | 280,242 | $ | 297,924 | ||
| Condensed Consolidated Statements of Operations | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| (In thousands, except share and per share data) | 2025 |
2024 |
||||||
| Revenue | ||||||||
| Sales revenue | $ | 52,469 | $ | 53,307 | ||||
| Rental revenue | 8,799 | 7,781 | ||||||
| Total revenue | 61,268 | 61,088 | ||||||
| Cost of revenue | ||||||||
| Cost of sales revenue | 13,891 | 14,944 | ||||||
| Cost of rental revenue | 2,031 | 2,715 | ||||||
| Total cost of revenue | 15,922 | 17,659 | ||||||
| Gross profit | ||||||||
| Gross profit - sales revenue | 38,578 | 38,363 | ||||||
| Gross profit - rental revenue | 6,768 | 5,066 | ||||||
| Gross profit | 45,346 | 43,429 | ||||||
| Operating expenses | ||||||||
| Sales and marketing | 27,516 | 27,357 | ||||||
| Research and development | 1,741 | 2,143 | ||||||
| Reimbursement, general and administrative | 19,998 | 16,261 | ||||||
| Intangible asset amortization and earn-out | 633 | 632 | ||||||
| Total operating expenses | 49,888 | 46,393 | ||||||
| Loss from operations | (4,542 | ) | (2,964 | ) | ||||
| Interest income | 895 | 713 | ||||||
| Interest expense | (424 | ) | (567 | ) | ||||
| Other income | — | 9 | ||||||
| Loss before income taxes | (4,071 | ) | (2,809 | ) | ||||
| Income tax benefit | (1,097 | ) | (600 | ) | ||||
| Net loss | $ | (2,974 | ) | $ | (2,209 | ) | ||
| Net loss per common share | ||||||||
| Basic | $ | (0.13 | ) | $ | (0.09 | ) | ||
| Diluted | $ | (0.13 | ) | $ | (0.09 | ) | ||
| Weighted-average common shares used to compute net loss per common share | ||||||||
| Basic | 23,710,643 | 23,665,829 | ||||||
| Diluted | 23,710,643 | 23,665,829 | ||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended |
||||||||
| (In thousands) | 2025 | 2024 | ||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (2,974 | ) | $ | (2,209 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 1,726 | 1,634 | ||||||
| Deferred income taxes | 252 | 84 | ||||||
| Stock-based compensation expense | 2,066 | 2,039 | ||||||
| Loss on disposal of property and equipment and intangibles | 5 | — | ||||||
| Changes in assets and liabilities, net of acquisition: | ||||||||
| Accounts receivable, net | 9,244 | 2,682 | ||||||
| Net investment in leases | (310 | ) | (129 | ) | ||||
| Inventories | (201 | ) | 1,683 | |||||
| Income taxes | (1,347 | ) | (693 | ) | ||||
| Prepaid expenses and other assets | (2,452 | ) | (787 | ) | ||||
| Right of use operating lease assets | (267 | ) | 2 | |||||
| Accounts receivable, non-current | — | 3,983 | ||||||
| Accounts payable | 1,387 | (1,396 | ) | |||||
| Accrued payroll and related taxes | (6,994 | ) | (5,766 | ) | ||||
| Accrued expenses and other liabilities | 282 | (203 | ) | |||||
| Net cash provided by operating activities | 417 | 924 | ||||||
| Cash flows from investing activities | ||||||||
| Purchases of property and equipment | (379 | ) | (482 | ) | ||||
| Intangible assets expenditures | (28 | ) | (20 | ) | ||||
| Net cash used in investing activities | (407 | ) | (502 | ) | ||||
| Cash flows from financing activities | ||||||||
| Payments on note payable | (750 | ) | (750 | ) | ||||
| Proceeds from exercise of common stock options | 10 | 1 | ||||||
| Payments for repurchases of common stock | (10,018 | ) | — | |||||
| Net cash used in financing activities | (10,758 | ) | (749 | ) | ||||
| Net decrease in cash | (10,748 | ) | (327 | ) | ||||
| Cash – beginning of period | 94,367 | 61,033 | ||||||
| Cash – end of period | $ | 83,619 | $ | 60,706 | ||||
| Supplemental cash flow disclosure | ||||||||
| Cash paid for interest | $ | 444 | $ | 583 | ||||
| Cash paid for taxes | $ | 15 | $ | 54 | ||||
| Accrued excise tax on stock repurchases | $ | 50 | $ | — | ||||
| Capital expenditures incurred but not yet paid | $ | 189 | $ | 225 | ||||
The following table summarizes revenue by product line for the three months ended
| Three Months Ended | ||||||||
| (In thousands) | 2025 | 2024 | ||||||
| Revenue | ||||||||
| Lymphedema products | $ | 50,554 | $ | 52,313 | ||||
| Airway clearance products | 10,714 | 8,775 | ||||||
| Total | $ | 61,268 | $ | 61,088 | ||||
| Percentage of total revenue | ||||||||
| Lymphedema products | 83 | % | 86 | % | ||||
| Airway clearance products | 17 | % | 14 | % | ||||
| Total | 100 | % | 100 | % | ||||
The following table contains a reconciliation of net loss to Adjusted EBITDA for the three months ended
| Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Increase | ||||||||||||||
| (Decrease) | |||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | $ | % | |||||||||||
| Net loss | $ | (2,974 | ) | $ | (2,209 | ) | $ | (765 | ) | 35 | % | ||||
| Interest (income) expense, net | (471 | ) | (146 | ) | (325 | ) | N.M. | % | |||||||
| Income tax benefit | (1,097 | ) | (600 | ) | (497 | ) | 83 | % | |||||||
| Depreciation and amortization | 1,726 | 1,634 | 92 | 6 | % | ||||||||||
| Stock-based compensation | 2,066 | 2,039 | 27 | 1 | % | ||||||||||
| Executive transition costs | 491 | 315 | 176 | 56 | % | ||||||||||
| Adjusted EBITDA | $ | (259 | ) | $ | 1,033 | $ | (1,292 | ) | (125 | )% | |||||
The following table contains a reconciliation of net income to Adjusted EBITDA for the year ended
| Reconciliation of Net income to Non-GAAP Adjusted EBITDA | ||||
| (Unaudited) | ||||
| Year Ended | ||||
| (Dollars in thousands) | ||||
| Net income | $ | 16,960 | ||
| Interest (income) expense, net | (1,299 | ) | ||
| Income tax expense | 6,529 | |||
| Depreciation and amortization | 6,793 | |||
| Stock-based compensation | 7,819 | |||
| Executive transition costs | 248 | |||
| Adjusted EBITDA | $ | 37,050 | ||
The following table contains a reconciliation of GAAP net income guidance range to the Adjusted EBITDA guidance range for the twelve months ended
| Reconciliation of FY 2025 GAAP Net Income to Adjusted EBITDA Guidance | ||||||||
| (Unaudited) | ||||||||
| Twelve Months Ended | ||||||||
| (Dollars in thousands) | Low | High | ||||||
| Net income | $ | 13,400 | $ | 14,800 | ||||
| Interest income, net | (2,400 | ) | (2,400 | ) | ||||
| Income tax expense | 5,200 | 5,800 | ||||||
| Depreciation and amortization | 6,700 | 6,700 | ||||||
| Stock-based compensation | 8,600 | 8,600 | ||||||
| Executive transition costs | 500 | 500 | ||||||
| Adjusted EBITDA | $ | 32,000 | $ | 34,000 | ||||
Investor Inquiries:
[email protected]
Source: Tactile Systems Technology, Inc.