Tactile Systems (TCMD) The 44th Annual William Blair Growth Stock Conference summary

Company overview and mission

• Focuses on underserved chronic conditions, specifically lymphedema and bronchiectasis, with a mission to treat patients in the home.

• Achieved nearly $275 million in revenue last year, with gross margins over 70% and adjusted EBITDA close to $30 million.

• Operates as a vertically integrated DME, handling product design, manufacturing, and billing in-house.

• Maintains a large direct sales force for lymphedema and leverages respiratory DME networks for bronchiectasis.

• Demonstrates consistent double-digit top-line growth and strong free cash flow.

Market focus and opportunity

• Lymphedema affects 1.4 million diagnosed patients in the US, with less than 10% receiving device therapy; up to 20 million remain undiagnosed.

• Bronchiectasis impacts about 500,000 diagnosed patients, with evidence suggesting up to 4.5 million undiagnosed.

• Both markets are highly underdiagnosed and underserved, offering significant runway for growth.

• Company holds leading market share in both segments and continues to invest in market development.

Product innovation and clinical initiatives

• Offers a portfolio including entry-level and advanced pneumatic compression devices for lymphedema, plus a patient education app.

• Acquired AffloVest for bronchiectasis, moving to #2 in market share and doubling business since acquisition.

• Recently refreshed the lymphedema product line and is developing a new therapy platform for launch later this year.

• Completed the largest randomized controlled trial for head and neck cancer survivors with lymphedema, with results expected by early next year.