Tactile Systems Technology, Inc. Reports 10% Revenue Growth in Q4 2024 and Announces Strategic Leadership Changes

Tactile Medical reports 10% revenue growth in Q4 2024, with expanded product launches and improved financial metrics.

Quiver AI Summary

Tactile Systems Technology, Inc. reported its financial results for the fourth quarter and full year of 2024, showcasing a 10% year-over-year revenue increase in Q4 to $85.6 million and a 7% increase for the full year to $293 million. The company's gross margin improved to 75% in Q4, with net income rising to $9.7 million compared to $8.2 million in the prior year. Significant milestones included the expanded launch of its Nimbl platform for lower extremity lymphedema patients and key appointments in management. For 2025, Tactile projects revenue growth of about 8% to 10%, aiming for total revenues between $316 million and $322 million, while adjusted EBITDA is expected to range from $35 million to $37 million. The company emphasizes its commitment to improving patient experiences and expanding treatment options.

Potential Positives

• Total revenue increased 10% year-over-year in Q4 2024 to $85.6 million, indicating strong demand for the company’s products.
• Gross margin improved to 75% in Q4 2024 compared to 72% in Q4 2023, reflecting better cost management and pricing strategies.
• Net income in Q4 2024 was $9.7 million, up from $8.2 million in Q4 2023, showcasing enhanced profitability.
• Appointment of Laura King to the Board of Directors and promotion of Aaron Snodgrass to Senior Vice President of Sales highlight the company’s commitment to strong leadership and strategic growth.

Potential Negatives

• Net income for the full year 2024 decreased significantly to $17.0 million, down from $28.5 million in 2023, indicating a substantial decline in profitability.
• Despite a revenue increase, operating expenses rose by 17% in Q4 2024 compared to Q4 2023, which may signal potential inefficiencies or escalating costs.
• Adjusted EBITDA for 2025 is projected to decrease to a range of $35 million to $37 million, compared to $37.1 million in 2024, which could reflect concerns about future operational performance and profitability.

FAQ

What were Tactile Medical's revenue figures for Q4 2024?

Total revenue for Q4 2024 was $85.6 million, up 10% year-over-year.

How did Tactile Medical's net income change in 2024?

Net income for 2024 was $17.0 million, a decrease from $28.5 million in the previous year.

What are the key highlights from Tactile Medical's business in Q4 2024?

Key highlights include a 10% revenue increase, expanded Nimbl launch, and a new board appointment.

What is Tactile Medical's financial outlook for 2025?

The company projects total revenue between $316 million and $322 million, reflecting an 8-10% growth.

Who is Tactile Medical's new Senior Vice President of Sales?

Aaron Snodgrass has been promoted to Senior Vice President, Sales, effective February 18, 2025.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$TCMD Congressional Stock Trading

Members of Congress have traded $TCMD stock 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $TCMD stock by members of Congress over the last 6 months:

• SENATOR TINA SMITH purchased up to $100,000 on 11/12.

To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.

$TCMD Hedge Fund Activity

We have seen 70 institutional investors add shares of $TCMD stock to their portfolio, and 84 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• FIRST LIGHT ASSET MANAGEMENT, LLC removed 1,338,902 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $19,561,358
• PARADIGM CAPITAL MANAGEMENT INC/NY added 481,000 shares (+40.6%) to their portfolio in Q3 2024, for an estimated $7,027,410
• NEXT CENTURY GROWTH INVESTORS LLC removed 459,166 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $7,865,513
• DEUTSCHE BANK AG\ removed 272,258 shares (-30.6%) from their portfolio in Q4 2024, for an estimated $4,663,779
• PINNACLE ASSOCIATES LTD added 265,241 shares (+463.0%) to their portfolio in Q4 2024, for an estimated $4,543,578
• PUNCH & ASSOCIATES INVESTMENT MANAGEMENT, INC. added 210,000 shares (+inf%) to their portfolio in Q4 2024, for an estimated $3,597,300
• NUVEEN ASSET MANAGEMENT, LLC removed 207,186 shares (-23.4%) from their portfolio in Q4 2024, for an estimated $3,549,096

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

MINNEAPOLIS, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Tactile Systems Technology, Inc. (“Tactile Medical”; the “Company”) (Nasdaq: TCMD), a medical technology company providing therapies for people with chronic disorders, today reported financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Summary & Recent Business Highlights:

• 
  Total revenue increased 10% year-over-year to $85.6 million
  


• 
  Gross margin of 75% versus 72% in Q4 2023
  


• 
  Net income of $9.7 million versus $8.2 million in Q4 2023
  


• 
  Adjusted EBITDA of $16.2 million versus $15.4 million in Q4 2023
  


• 
  Expanded launch of Nimbl to include patients with lower extremity lymphedema
  


• 
  Appointed Laura King to Board of Directors
  


• 
  Promoted Aaron Snodgrass to Senior Vice President, Sales, effective February 18, 2025
  
  
  

Full Year 2024 Summary:

• 
  Total revenue increased 7% year-over-year in 2024 to $293.0 million
  


• 
  Gross margin of 74% in 2024, compared to 71% in 2023
  


• 
  Operating cashflow of $40.7 million in 2024, compared to $35.9 million in 2023
  


• 
  Ended 2024 with $94.4 million in cash, up from $61.0 million at the end of 2023
  

“Our fourth quarter results capped off a dynamic year for Tactile, during which we launched our next-generation lymphedema platform, generated clinical evidence supporting the value of our therapies, deployed new workflow-related tools to enhance speed and efficiency in order operations, and served over 79,000 patients with our lymphedema and airway clearance solutions,” said Sheri Dodd, President and Chief Executive Officer of Tactile Medical. “Financially, we demonstrated a consistent ability to strengthen our balance sheet and expand profitability, while also delivering double-digit revenue growth in the fourth quarter.”

Ms. Dodd concluded, “Our financial and operational progress in 2024, coupled with strong market fundamentals and an innovative portfolio, leaves us confident that we are well-positioned to advance our market leadership this year and over the long-term while delivering sustainable, profitable growth. In 2025, we will also continue investing in our strategic priority to enhance the overall patient experience, including through improving access to care, expanding treatment options, and supporting the end-to-end patient journey.”

Fourth Quarter 2024 Financial Results

Total revenue in the fourth quarter of 2024 increased $7.9 million, or 10%, to $85.6 million, compared to $77.7 million in the fourth quarter of 2023. The increase in total revenue was attributable to an increase of $7.6 million, or 11%, in sales and rentals of the lymphedema product line and an increase of $0.3 million, or 4%, in sales of the airway clearance product line in the quarter ended December 31, 2024, compared to the fourth quarter of 2023.

Gross profit in the fourth quarter of 2024 increased $8.4 million, or 15%, to $64.4 million, compared to $56.0 million in the fourth quarter of 2023. Gross margin was 75.2% of revenue, compared to 72.1% of revenue in the fourth quarter of 2023.

Operating expenses in the fourth quarter of 2024 increased $7.6 million, or 17%, to $51.9 million, compared to $44.2 million in the fourth quarter of 2023.

Operating income was $12.5 million in the fourth quarter of 2024, compared to $11.8 million in the fourth quarter of 2023.

Interest income was $0.9 million in each of the fourth quarters of 2024 and 2023.

Interest expense was $0.5 million in the fourth quarter of 2024, compared to $0.9 million in the fourth quarter of 2023.

Income tax expense was $3.3 million in the fourth quarter of 2024, compared to $3.6 million in the fourth quarter of 2023.

Net income in the fourth quarter of 2024 was $9.7 million, or $0.40 per diluted share, compared to $8.2 million, or $0.35 per diluted share, in the fourth quarter of 2023.

Weighted average shares used to compute diluted net income per share were 24.5 million and 23.8 million for the fourth quarters of 2024 and 2023, respectively.

Adjusted EBITDA was $16.2 million in the fourth quarter of 2024, compared to $15.4 million in the fourth quarter of 2023.

Full Year 2024 Financial Results

Total revenue in the full year of 2024 increased $18.6 million, or 7%, to $293.0 million, compared to $274.4 million in the full year of 2023. The increase in total revenue was attributable to an increase of $17.6 million, or 7%, in sales and rentals of the lymphedema product line and an increase of $0.9 million, or 3%, in sales of the airway clearance product line in the full year of 2024, compared to the full year of 2023.

Net income in the full year of 2024 was $17.0 million, or $0.70 per diluted share, compared to $28.5 million, or $1.23 per diluted share, in the full year of 2023.

Weighted average shares used to compute diluted net income per share were 24.1 million and 23.2 million in the full year of 2024 and 2023, respectively.

Adjusted EBITDA was $37.1 million in the full year of 2024, compared to $29.7 million in the full year of 2023.

Balance Sheet Summary

As of December 31, 2024, the Company had $94.4 million in cash and $26.3 million of outstanding borrowings under its credit agreement, compared to $61.0 million in cash and $29.3 million of outstanding borrowings under its credit agreement as of December 31, 2023. As of December 31, 2024, $26.5 million remained available under the Company’s $30.0 million share repurchase program, which became effective on October 30, 2024, and expires October 31, 2026.

2025 Financial Outlook

The Company expects full year 2025 total revenue in the range of $316 million to $322 million, representing growth of approximately 8% to 10% year-over-year, compared to total revenue of $293.0 million in 2024. The Company also expects full year 2025 adjusted EBITDA in the range of $35 million to $37 million, compared to adjusted EBITDA of $37.1 million in 2024.

Conference Call

Management will host a conference call with a question-and-answer session at 5:00 p.m. Eastern Time on February 18, 2025, to discuss the results of the quarter and fiscal year. Those who would like to participate may dial 877-407-3088 (201-389-0927 for international callers) and provide access code 13751026. A live webcast of the call will also be provided on the investor relations section of the Company's website at investors.tactilemedical.com.

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 13751026. The webcast will be archived at investors.tactilemedical.com.

About Tactile Systems Technology, Inc. (DBA Tactile Medical)

Tactile Medical is a leader in developing and marketing at-home therapies for people suffering from underserved, chronic conditions including lymphedema, lipedema, chronic venous insufficiency and chronic pulmonary disease by helping them live better and care for themselves at home. Tactile Medical collaborates with clinicians to expand clinical evidence, raise awareness, increase access to care, reduce overall healthcare costs and improve the quality of life for tens of thousands of patients each year.

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; the impacts of inflation, rising interest rates or a recession; the adequacy of the Company’s liquidity to pursue its business objectives; adverse economic conditions or intense competition; price increases for supplies and components; wage and component price inflation; loss of a key supplier; entry of new competitors and products; compliance with and changes in federal, state and local government regulation; loss or retirement of key executives, including prior to identifying a successor; technological obsolescence of the Company’s products; technical problems with the Company’s research and 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 U.S. and foreign trade policy and tariff actions; or the inability to carry out research, development and commercialization plans. In addition, other factors that could cause actual results to differ materially are discussed in the Company’s filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company undertakes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

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 U.S. generally accepted accounting principles (“GAAP”). Adjusted EBITDA in this release represents net income, plus interest expense, net, or less interest income, net, less income tax benefit or plus income tax expense, plus depreciation and amortization, plus stock-based compensation expense, plus or minus the change in fair value of earn-out and plus executive transition costs. Reconciliation of this non-GAAP financial measure to its most directly comparable GAAP measure is included in this press release.

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.

The following table summarizes revenue by product line for the three and twelve months ended December 31, 2024 and 2023:

The following table contains a reconciliation of net income to Adjusted EBITDA for the three and twelve months ended December 31, 2024 and 2023, as well as the dollar and percentage change between the comparable periods:

The following table contains a reconciliation of GAAP net income guidance range to the Adjusted EBITDA guidance range for the twelve months ended December 31, 2025:

Investor Inquiries:



Sam Bentzinger


Gilmartin Group


investorrelations@tactilemedical.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.