Tactile Systems Technology Reports Revenue Increase to $61.3 Million in Q1 2025

Tactile Systems Technology, Inc. reported a slight increase in revenue for the first quarter of 2025, generating $61.3 million compared to $61.1 million in the same period last year. The growth was primarily driven by a 22% increase in sales of the airway clearance product line, which includes the AffloVest, contributing $10.7 million to total revenue. However, this was partially offset by a 3% decline in sales and rentals of lymphedema products, which accounted for $50.6 million. The company recorded a net loss of $3.0 million, widening from a loss of $2.2 million in the prior year.

In terms of operational metrics, Tactile Systems Technology's gross profit increased to $45.3 million, reflecting a gross margin of 74%, up from 71% in the previous year. The decrease in cost of revenue, which fell by 10% to $15.9 million, was attributed to lower manufacturing and warranty costs. Operating expenses rose by 8% to $49.9 million, driven by a significant increase in reimbursement, general, and administrative expenses, which surged by 23% to $20.0 million.

The company continues to expand its workforce, employing 161 account managers and 103 specialists for lymphedema products, alongside 19 specialists for airway clearance products as of March 31, 2025. This marks a slight increase in personnel compared to the previous year. Tactile Systems Technology also launched the Entre Plus and Nimbl devices, enhancing its product offerings in the lymphedema market. The Nimbl device, which received FDA clearance in June 2024, was commercially launched for upper extremity lymphedema in October 2024 and for lower extremity lymphedema in February 2025.

Looking ahead, Tactile Systems Technology anticipates continued growth in its airway clearance product line, supported by increased placements among durable medical equipment partners. However, the company faces challenges, including potential impacts from inflation, rising interest rates, and supply chain disruptions. The management remains focused on enhancing operational efficiencies and expanding its market presence while navigating these economic conditions. The company believes its current cash reserves and operational cash flows will be sufficient to meet its working capital and capital expenditure needs for at least the next twelve months.