TACTILE SYSTEMS TECHNOLOGY INC — Call Transcript 2026

Good morning, everybody. Thank you for joining us. My name is Brandon Vazquez. I am a research analyst here at William Blair, covering Tactile Medical. I cover medical devices and animal health. I'm required to inform you that a complete list of research disclosures or potential conflicts of interest, please visit our website at williamblair.com. With that, I'm excited to have Tactile Medical here. We have the CEO, Sheri Dodd, and Elaine Birkemeyer, CFO, who are going to run us through a presentation, and then we'll go to Burnham B for a breakout after. Thank you, Brandon. Looking forward to spending 30 minutes with you talking about Tactile Medical. Some of you may be familiar with our company. Those of you who aren't, I'm also going to make sure that I'm kind of covering the basics. It's an exciting time to be in medtech. I know it might not feel that way, but I think it's a very exciting time to be here, and I can talk about that specifically as I sit when I get an opportunity of talking about Tactile Medical. As a starting place, the whole purpose of our company, and what we're about is revealing and treating patients with underserved chronic conditions. Specifically, these are in the category of chronic swelling and lymphatic dysfunction as well as chronic inflammatory lung disease. These are really large spaces, and we'll talk about that from a total TAM perspective. Leadership team is strong. I'm very proud to be part of what is a very experienced group of individuals that come not only from some large company experiences but have chosen specifically in wanting to be at Tactile Medical to help with our overall kind of growth and profitability story, but also in a way of going after patients that are currently underserved. Very robust leadership team and a leadership team that is very invested and has participated in actually inking our current strategy. Let's talk about the total opportunity. We sit in a very large, under-penetrated TAM. $100 billion is part of that TAM. Of that, 2.5 million is a diagnosed population, and 25 million is an undiagnosed population. These are patients that currently have the disease, not at risk of the disease, have the disease that are currently not yet diagnosed. Great opportunity. If you're on our side, obviously, it's a great opportunity for patients to get to diagnosis and onto treatment. When we think about our ability to not only have a product portfolio but able to realize that in terms of a revenue standpoint, we are the largest company serving this population and have demonstrated scale as well as a market-leading position. Right now, we participate in number one market position on every category of business that we support, serving 95,000 patients last year and having $330 million in total revenue last year and growing. Profitability, a very attractive profile for us as we hear from all of you, but we also see it ourselves with 76% gross margin last year, $45 million adjusted EBITDA, and $43 million in operating cash flow. This operating cash flow of $43 million takes into account stock repurchase. You can see on the cash balance in general that everything that we've been doing as far as using our cash has been both investing in the company as well as investing in products with our LymphaTech acquisition, but also over the past couple of years, paying down debt, doing a stock buyback, and continuing to see cash grow. A very attractive company portfolio and visual. We think about where we actually sit and what that opportunity is and why I'm excited about Tactile and med tech in general is because we do sit and operate in a market where there is a large number of patients that are just not being served. Again, with $20 million on the lymphedema side, $4.4 million on the bronchiectasis side currently have the condition not yet diagnosed. Of those that have been diagnosed, very small penetration into therapy. This isn't because the therapy doesn't exist. It has a lot to do with classic dynamics involved in market access, where how are you making sure that there's clinician awareness, patient awareness, that the patient gets served as they're moving through their care journey. All opportunities for us and assets that we have to help get those patients that are diagnosed into treatment. When we break it down from the previous slide, which showed a high overview, this is breaking it down into the specific areas of our business. If you remember on the very beginning slide, I talked about our bigger opportunity is in chronic swelling and lymphatic dysfunction. That's a bigger category. Everything I'm going to show you now is kind of a sub within that lymphedema. I'll talk about that as a sub as bronchiectasis as a subcategory of chronic inflammatory lung disease. This is important to share because our indications from our product actually have a much broader indication from population. What is a limiting factor for us and why we discuss specifically, say, lymphedema and bronchiectasis is because that is where the payer coverage is. You have to follow where the money is and where the reimbursement is. Our opportunity for continuing to develop evidence, awareness, and to get a payer for a broader indication or, sorry, a broader coverage, given that we have the indication, is an opportunity for growth. Right now, lymphedema is sitting at the $5 billion. Bronchiectasis also at $5 billion in terms of what that addressable market is what gets us to that $10 billion. Big areas of opportunity how you start to unlock this is in the patient education and access being some of the bigger opportunities for how we unlock this. The other good news for us, bad news for patients, is that this is a chronic progressive disease. These are not patients that are going to be cured. Once you have the disease, it is irreversible. The therapy options for patients are best suited for those that are going to relieve their symptoms on a day-to-day basis, which is then being in the home. Let's talk about lymphedema. Big opportunity here with the $5 billion in the current addressable market. Before you can understand the bigger opportunity here, I think it's important to go back and even understanding what is it that we're talking about. What is lymphedema? Lymphedema is a disease that is usually a secondary diagnosis. It's a secondary condition to something else that has happened for the patient. There's very few patients that are actually born with lymphedema, although there are some in primary. It is a secondary condition. Secondary to what? Secondary to cancer. If you have surgical intervention or radiation, there's different probabilities based on what type of cancer you have, but that you will have lymphedema. For example, 90% of patients with head and neck cancer, so it's about 10% of total cancers, but 90%, nine out of 10 of those patients are going to have lymphedema. It's a known complication associated with the treatment of that disease. The complications for head and neck cancer patients are significant. Lack of range of motion, inability to swallow, inability to speak. There is no cure for head and neck lymphedema. Once you have it, you have it. What you're trying to do is manage the symptoms and restoring that patient back to functionality. We're very proud of our footprint that we have in head and neck cancer, not only being the only manufacturer that has a garment that covers the head and neck, only manufacturer that has IP in the specific area of the body, and having evidence to support that this therapy is highly effective for patients with this condition. Head and neck cancer patients aren't the only patients that are going to require pump therapy. Breast cancer patients, pelvic cancer patients, et cetera, all are going to see the benefits of our therapy. Lymphedema isn't only secondary to cancer, also very secondary to patients that have chronic venous insufficiency, so CVI. CVI usually is the primary, and then secondary after you have chronic venous insufficiency is you've damaged your lymphatic system, and again, irreversible, and now you've got your veins sorted out, and now you need to address what is kind of chronic swelling. These are the most prevalent type of areas where we see our product being used, but obesity and trauma and surgery and infection are also other areas where pump therapy can be highly effective. Here's an example of what some of the swelling actually looks like. Once you see lymphedema, once you understand what it is, you start to see it. You'll see it in grocery stores. You'll see it in people at church. You'll see people at the airports. While you may have thought before that that looks like someone who, especially in legs, that may be obese or maybe it's hereditary, it is quite likely that they have lymphedema associated with some other condition. About 10% of all patients that are diagnosed are actually going to receive a solution. That is appalling. It's appalling that you have that many people that actually have a condition that is impacting their quality of life, that when there is a treatment that's available, that they aren't getting it. What happens when they don't get it is they're going to end up typically with cellulitis, wounds, fibrosis, dysphagia, that's part of the head and neck, and limited range of motion. That could be both in breast cancer as well as in head and neck cancer. The fact that patients are unaware of what they're experiencing and you have clinicians that also have lack of understanding as lymphedema is a big part of what we have to do as the market leader in unlocking what is access to care. It's the education piece. It's having the right field force. It's having the data that supports the benefit as well as having the payer coverage policies that allows access for these patients. The other aspect, just to take us through the patient journey standpoint, you see a lot of red here, is that it is a really complex care journey. I don't say this as a, that this is what makes it not attractive. This actually is what makes our opportunity very attractive. Understanding and thinking about us not only as a product company, but as a disease company, allows us and forces us to take a look at the full care continuum for these patients. Let's start on the side of the undiagnosed. Limited disease awareness. You see here 60% of patients see at least three physicians before diagnosis. I'm often asked, where are these patients? They're in primary care, depending on how they're coming through. If they don't have a cancer diagnosis, they're in primary care. They go from primary care to some sort of a rule-out. They may go to cardiology, and they're trying to rule out heart failure or a DVT. They end up in vascular often, or they end up in a wound clinic, and then they are backing into a diagnosis of lymphedema. By the time then you get to kind of diagnosis, this is a payer policy, not just our policy, but the patients have to have tried a four-week conservative therapy. Conservative therapy is elevation, it's exercise, and it's wearing garments, stockings, pantyhose, sleeves. Many of these patients find it very difficult to use these garments, but from a payer perspective, it has to be documented that they tried and failed. What you can buy over the counter is not medical grade as well, and it is just squeezing, or it is holding basically, but it's not an active type of therapy. Many patients fail this conservative therapy, but what happens is they don't go back to their physician for follow-up. They just think that it doesn't work, and they're just going to live with the condition. 44% of patients have to wait four months between getting that first treatment following diagnosis. Even after you get the diagnosis, having to kind of wait for then what is going to be your therapy option is a really long time, and patients have dropout. It's a leakage problem where I got diagnosed, but now I have to wait for everything to come through. Either I have to fail the conservative therapy trial, I have to do these things, and patients leak. Great opportunity for, again, engaging the patients through the care continuum for us. We see it as an opportunity. There's an order type of process. This is payer-driven, but they want a lot of documentation to show that the patient meets the criteria. These are not inexpensive technologies, and they fall in the category of a DME. We know that DME is often under scrutiny for whether it is appropriate for patients to get the therapy. A lot of documentation is required, and so when we talk about how we're advancing and helping patients and physicians with this, we spend a lot of time in trying to minimize the repetitiveness of documentation, getting it right the first time, and trying to make that process super easy so that physician can diagnose the patient, the patient can go from referral to an order, from an order to a shipment, and to get on therapy as fast as possible. There is a learning curve for the patients in terms of understanding when they should use the therapy, how to incorporate it in their daily life, and so we have been putting a priority on how do we make our therapies more user-friendly. The introduction of Nimbl was a great example of where we took away a lot of the hosing. We made it portable with a battery so the patient could use it in different places in their home or travel with it. We continue to look at ways of how do we actually take and think about that patient experience with the therapy and continue to make that as seamless as possible. Let's talk about the products. As a differentiation for who we are as a company, we are the only manufacturer in this area that has a full suite of products that supports the patients from head to toe. There is no other manufacturer that has this, and this comes in a couple of categories. First is we have both a basic pump as well as an advanced pump. When you see on the legacy systems, our legacy basic pump was called Entre Plus. We introduced Nimbl last year, well, actually in November of 2024, full launch in February of 2025. It's smaller, lighter, portable. Really became a very nice solution for patients that required a basic pump and put us in market leadership in the category of basic pump. In the advanced pump, advanced pump are going to be the pump that has more sequencing of the way that the compression is given so that you can program it around a wound, for example. If a patient has a wound, you do not want to be squeezing it. Typically, patients who are in a basic pump, don't have access to an advanced pump, only have a choice of having it squeeze a wound, and they typically have to stop therapy. Getting the patient in an advanced pump that can be programmed around a wound is a great benefit for patients and for care delivery. Our current product is Flexitouch Plus. We have already shared that we will be submitting in what will be an upgrade to that product that we'll be launching next year, and the focus on that will be new features and product enhancements that are designed to meet the patient's needs. You'll see a very kind of similar value proposition in terms of making it more accessible to patients, making it a better fit and easier to use. That is coming in 2027. Outside of just this, as I mentioned, the only company that has head to toe, we are also the only company that has the head and neck garments. I spoke about that. Being able to have bilateral arm and leg on limb, chest, trunk, and head and neck serves the entire patient, plus having two different type of pumps to support their compression needs. We also have very strong evidence. The evidence here, you'll see where it's not only the value of limb volume reduction, but ability to perform activity of daily living, satisfaction with the product, as well as reduction in total lymphedema-related cost. The evidence is there, and very proud to share that only pneumatic compression therapies are included in the very first U.S. guidelines that were just announced in February and will be published this summer. The evidence that supports pneumatic compression therapies is in guidelines. Majority of that evidence is driven directly from Tactile Medical. I talked a little bit before about head and neck. I'm a little excited about this one because we have made the investments in clinical evidence. That study wrapped up in 2024. We spent 2025 putting together the data as well as getting the publications out, and you'll continue to see more of these. What's super interesting about these data is the study was designed to show Flexitouch as first line for treatment-naive patients. Typically, that patient has to go through the conservative therapy. This study showed patient went directly to Flexitouch, skipping conservative therapy, and showed what those outcomes look like. In all cases, it was as good as the arm that went to manual compression therapy. In some cases, better than, and speed to therapy was faster for Flexitouch. There is a limited number of lymphatic therapists that are out there. Access to this population is really difficult for patients to get to. Having a product that can be used in the home, getting directly to the patient is going to be valuable, and speed to therapy is certainly very important. Very proud of these results and eager to see the six-month manuscript coming out here shortly. Talked about product differentiation, talked about this aspect of the service that we provide in supporting understanding what the documentation is, having the payer coverage across both Medicare and commercial for the suite of our products. Another aspect is how do you keep that patient engaged? Talked about that as part of our strategy. Very proud that we launched the Kylee app, which is a patient engagement application. This is not only for patients on our therapy, it could be for any patients with lymphedema that wants to start monitoring what their symptoms are, be able to take pictures, and be able to share that data directly with their physicians. We have Bluetooth-enabled technology. That was one of the benefits of Nimbl. Now every session that a patient is doing with their therapy can actually be tracked through Bluetooth connectivity in their app, so they could actually see the adherence of the patient on that therapy. Great opportunity for education and information sharing directly with the patient that's on Kylee, as well as just the tracking of overall activity and symptoms. LymphaTech acquisition happened in February, and we're only getting started. The full continuum of care for these patients, when we talked about that TAM, was that huge bucket of patients that are sitting undiagnosed. There's a lot of ways we could have thought about how are we going to get the patients diagnosed, training and education, something that we always do with clinicians, making the patient more aware that they have symptoms and where to go. The big missing piece is actually having a diagnostic, and diagnostics, as we know in other markets, unlock a tremendous amount of opportunity in the TAM. LymphaTech acquisition adds not only a current diagnostic, but capabilities that will allow us to move into personalized delivery of therapy over time on our roadmap. Let me break this down in a couple of ways. First of all, the technology is an FDA-cleared digital platform. It basically is taking a picture of what's going on under the skin for fluid volume and circumference measurements. That's really important because right now, lymphedema is a clinical diagnosis, so it's what you see and what the patient is reporting. You can't see all the fluid that's happening underneath the skin, which is why a lot of patients actually have more advanced disease by the time they're diagnosed because you can't see it. The ability to actually see underneath before you see external is very important, and it delivers this clinical grade 3D body model, which then allows for not only the physician to actually see where the fluid's building up, but the patient gets to see it as well. That identification of you have a disease, and this is what's happening, even though you can't see it, this is what's happening underneath. Very powerful for patients in activating their own engagement for treatment. Anything we can do to help identify patients earlier is going to be good for us and good for the market. We believe that it will accelerate therapy access. Certainly, it isn't going to say patient's going to have lymphedema, but the fact that Tactile is bringing this is in our bag. We expect a lot of attachment with our therapy to happen with this, and I think it, again, proves that we're in it for the long haul for the patient. When you think about from a workflow standpoint, even measuring patients' baseline in oncology centers, which is where LymphaTech currently has some business, has been reported on our financials. Software as a service model, no reimbursement, they pay for it because it's valuable for them as clinicians to actually get a baseline and to measure patients over time. That is something that we have, as much as we enjoy that model today, we know that finding financial incentive for physicians to actually use a diagnostic is an important area of unlocking. We're currently working through the process of category CPT III codes so that there would be payment on the other side. What I share all the time, my background has been with payer and with reimbursement, is be careful what you think you want. The payment for whatever the diagnostic is, it'll be what it will be. If it's $4 or $400, it is what that payment's going to be on the initial time. I don't hang my hat on it's just going to be about the payment. What's most important is the value proposition of a diagnostic in the clinic. $400 means your value proposition pretty low. $4, you better have a high value proposition. I'm just making numbers up for the purpose of this discussion. What I will say is that the value proposition of workflow, where do we use the technology in the flow of the patient? What is the goal of that practice? They want to see more patients more efficiently. They want to get baseline data. They want to use it as part of a treatment plan. They want to take the inefficiency out of measurements of every patient so they can redeploy those resources somewhere else. That's a big part of what we're validating and testing right now. We'll pursue the reimbursement, but in parallel, we're pursuing the value proposition to the individual clinic to make sure that it works in overall workflow. Also very exciting is more of a long-term vision for this. Now you have the sensing technology. Being able to embed that and think about that, how do you use that as part of your overall therapy delivery, will bring us from what is a prescribed technology into a personalized technology for patients with chronic swelling and lymphatic dysfunction. We're very excited about that and also very excited that LymphaTech came with federal grants with the acquisition. The R&D is currently being paid for by the federal government. That helps us with our overall kind of R&D allocation and again, is very in line with our strategy of moving to help support patients from a broader disease standpoint. Slide I showed you about this before showed a lot of red, what all the friction points were, and this is what we're doing to remove that friction. Undiagnosed before, lack of a diagnosis, lack of awareness. Now we're bringing an acquisition that allows earlier diagnosis, as well as being able to monitor and see that patient through their care continuum. Clinical practice guidelines recently released in February, will be published this summer, again, specifically call out pneumatic compression therapies as being within U.S. clinical guidelines. These are the very first U.S. clinical guidelines in lymphedema, and we're glad to be there, and we know we contribute substantially to that evidence. When we think about the overall kind of policy environment, big shift going from what was a Local Coverage Decision that was also concomitant with a National Coverage Decision. Now we have only one policy. It has added a lot of clarity to the pathway for patients. There is a path for a patient who has a disease, has lymphedema, who requires an advanced pump to go directly to an advanced pump after completing conservative care. Before, they were forced into a basic pump, which may not have even covered the area of body that was swelling, and before they could get to an advanced pump. There's a first pass in order for it to get there, and we're supporting that with our own processes. Of course, data that help supports this population that is not only underserved, but in many commercial plans, head and neck garments are considered experimental and investigational, which is the reason we did this study, and we will be overturning those policies and converting them to what should be a typical policy under the NCD. When we think about the order process and our go-to-market, we've made sizable investments into our field organization to make sure that they have the tools and the resources in order for them to do their jobs. We're using AI technology. We have the app, care navigation pilots, all those things that are helping support the patient as they go out. Very strong market leadership and a sales force that helps with a vertically integrated model. We have scalable RCM. We've been able to prove that. That's not something to take for granted. It takes a long time to get that set up in a way that's super efficient, can use technology and get paid at the end of the day. We do that in spades and are very proud of that product innovation and strong IP moat. Overall, number one in the lymphedema space. When you think about bronchiectasis, another very important area for us, also a $5 billion opportunity. Bronchiectasis, chronic inflammatory lung disease. You get damage to the airways, patients unable to breathe, you get a cough, you get mucus, you got to move the mucus. If you don't, you're going to end up with infection and pneumonia. You see 42% of patients with COPD end up having conditions like bronchiectasis and definitely an underserved market. Often left untreated. Cough assist, very kind of basic technology are in place. Current standard of care is using CPT as well as kind of manual positioning and having somebody actually hitting your back to help release the cough. Very archaic. Here we have a technology that truly has revolutionized the care for patients, airway vest clearance has. I'm very proud, in fact, we announced today that we launched yesterday our new next gen AffloVest product. We always were the lightest product that was in the market. What we have now is an even lighter version, size adjustability, so we use SKUs for our DME providers as well as being connected, and that was a piece that we were missing. Very proud to have this and launching this immediately. Already have orders coming in from our DME and very excited to be serving patients in a very different way. With the innovation that we've been doing in Afflo as well as our strategy in working with DMEs, we also sit as number one market share in this category and expect this to continue to be an area of growth and differentiation for us from a vest product than our competitors. We're often asked, "When are you going to start to see progression? When does this business recover?" I would say that over the past two years, we've been in a position of showing that very recovery. We are sitting in an area where we're generating the evidence, where we have been optimizing our order management, where we have refocused our sales organization, where we have brought new technologies to the field, and where we sit right now with an acquisition of LymphaTech. As we think about our next-gen products, not only AffloVest today as well as what we're expecting next year, we're on a roll. We're on a roll that is not going to go backwards. It's going to continue to go forward. We have the policy environment that's very favorable to us right now, and we are prepared if that policy environment changes to adapt and adjust as we've demonstrated. Over time, a CAGR of 16%. I know some of you have been with us in the lower periods and some of you with us are kind of joining on a little bit more of this upswing. What we've committed to is that the market is growing at about 10%. We are largely a big part of that market, so we can and should be driving at least 10% growth and be in a position to drive the growth of the market even faster. We did some slight adjustment on our guidance, which you can see here, showing both a nice uptick in our revenue as well as in our overall EBITDA. Strategic priorities, I discuss them on every earnings call. They're very basic. We have to increase access to care, removing all the barriers that are in the way, whether it's education, diagnostics, as well as the reimbursement. We have to have treatment options to help support the patients in this area and this idea of serving patients over time. These are our core three strategies and ones that we're really proud of, and we will continue to invest in this area, and we'll continue to drive the growth that we expect and our patients expect and our shareholders expect. With that, thank you very much. We'll see you upstairs.

Speaker 1: Good morning, everybody. Thank you for joining us. My name is Brandon Vazquez. I am a research analyst here at William Blair, covering Tactile Medical. I cover medical devices and animal health. I'm required to inform you that a complete list of research disclosures or potential conflicts of interest, please visit our website at williamblair.com. With that, I'm excited to have Tactile Medical here. We have the CEO, Sheri Dodd, and Elaine Birkemeyer, CFO, who are going to run us through a presentation, and then we'll go to Burnham B for a breakout after. Good morning, everybody. good morning everybody Thank you for joining us. thank you for joining us My name is Brandon Vazquez. my name is brandon vazquez I am a research analyst here at William Blair, covering Tactile Medical. i am a research analyst here at william blair covering tactile medical I cover medical devices and animal health. i cover medical devices and animal health I'm required to inform you that a complete list of research disclosures or potential conflicts of interest, please visit our website at williamblair.com. i'm required to inform you that a complete list of research disclosures or potential conflicts of interest please visit our website at williamblair.com With that, I'm excited to have Tactile Medical here. with that i'm excited to have tactile medical here We have the CEO, Sheri Dodd, and Elaine Birkemeyer, CFO, who are going to run us through a presentation, and then we'll go to Burnham B for a breakout after. we have the ceo sheri dodd and elaine birkemeyer cfo who are going to run us through a presentation and then we'll go to burnham b for a breakout after

Speaker 2: Thank you, Brandon. Looking forward to spending 30 minutes with you talking about Tactile Medical. Some of you may be familiar with our company. Those of you who aren't, I'm also going to make sure that I'm kind of covering the basics. It's an exciting time to be in medtech. I know it might not feel that way, but I think it's a very exciting time to be here, and I can talk about that specifically as I sit when I get an opportunity of talking about Tactile Medical. As a starting place, the whole purpose of our company, and what we're about is revealing and treating patients with underserved chronic conditions. Specifically, these are in the category of chronic swelling and lymphatic dysfunction as well as chronic inflammatory lung disease. These are really large spaces, and we'll talk about that from a total TAM perspective. Thank you, Brandon. thank you brandon Looking forward to spending 30 minutes with you talking about Tactile Medical. looking forward to spending 30 minutes with you talking about tactile medical Some of you may be familiar with our company. some of you may be familiar with our company Those of you who aren't, I'm also going to make sure that I'm kind of covering the basics. those of you who aren't i'm also going to make sure that i'm kind of covering the basics It's an exciting time to be in medtech. it's an exciting time to be in medtech I know it might not feel that way, but I think it's a very exciting time to be here, and I can talk about that specifically as I sit when I get an opportunity of talking about Tactile Medical. i know it might not feel that way but i think it's a very exciting time to be here and i can talk about that specifically as i sit when i get an opportunity of talking about tactile medical As a starting place, the whole purpose of our company, and what we're about is revealing and treating patients with underserved chronic conditions. as a starting place the whole purpose of our company and what we're about is revealing and treating patients with underserved chronic conditions Specifically, these are in the category of chronic swelling and lymphatic dysfunction as well as chronic inflammatory lung disease. specifically these are in the category of chronic swelling and lymphatic dysfunction as well as chronic inflammatory lung disease These are really large spaces, and we'll talk about that from a total TAM perspective. these are really large spaces and we'll talk about that from a total tam perspective Leadership team is strong. I'm very proud to be part of what is a very experienced group of individuals that come not only from some large company experiences but have chosen specifically in wanting to be at Tactile Medical to help with our overall kind of growth and profitability story, but also in a way of going after patients that are currently underserved. Very robust leadership team and a leadership team that is very invested and has participated in actually inking our current strategy. Let's talk about the total opportunity. We sit in a very large, under-penetrated TAM. $100 billion is part of that TAM. Of that, 2.5 million is a diagnosed population, and 25 million is an undiagnosed population. These are patients that currently have the disease, not at risk of the disease, have the disease that are currently not yet diagnosed. Great opportunity. Leadership team is strong. leadership team is strong I'm very proud to be part of what is a very experienced group of individuals that come not only from some large company experiences but have chosen specifically in wanting to be at Tactile Medical to help with our overall kind of growth and profitability story, but also in a way of going after patients that are currently underserved. i'm very proud to be part of what is a very experienced group of individuals that come not only from some large company experiences but have chosen specifically in wanting to be at tactile medical to help with our overall kind of growth and profitability story but also in a way of going after patients that are currently underserved Very robust leadership team and a leadership team that is very invested and has participated in actually inking our current strategy. very robust leadership team and a leadership team that is very invested and has participated in actually inking our current strategy Let's talk about the total opportunity. let's talk about the total opportunity We sit in a very large, under-penetrated TAM. $100 billion is part of that TAM. we sit in a very large under-penetrated tam $100 billion is part of that tam Of that, 2.5 million is a diagnosed population, and 25 million is an undiagnosed population. of that 2.5 million is a diagnosed population and 25 million is an undiagnosed population These are patients that currently have the disease, not at risk of the disease, have the disease that are currently not yet diagnosed. these are patients that currently have the disease not at risk of the disease have the disease that are currently not yet diagnosed Great opportunity. great opportunity If you're on our side, obviously, it's a great opportunity for patients to get to diagnosis and onto treatment. When we think about our ability to not only have a product portfolio but able to realize that in terms of a revenue standpoint, we are the largest company serving this population and have demonstrated scale as well as a market-leading position. Right now, we participate in number one market position on every category of business that we support, serving 95,000 patients last year and having $330 million in total revenue last year and growing. Profitability, a very attractive profile for us as we hear from all of you, but we also see it ourselves with 76% gross margin last year, $45 million adjusted EBITDA, and $43 million in operating cash flow. This operating cash flow of $43 million takes into account stock repurchase. If you're on our side, obviously, it's a great opportunity for patients to get to diagnosis and onto treatment. if you're on our side obviously it's a great opportunity for patients to get to diagnosis and onto treatment When we think about our ability to not only have a product portfolio but able to realize that in terms of a revenue standpoint, we are the largest company serving this population and have demonstrated scale as well as a market-leading position. when we think about our ability to not only have a product portfolio but able to realize that in terms of a revenue standpoint we are the largest company serving this population and have demonstrated scale as well as a market-leading position Right now, we participate in number one market position on every category of business that we support, serving 95,000 patients last year and having $330 million in total revenue last year and growing. right now we participate in number one market position on every category of business that we support serving 95,000 patients last year and having $330 million in total revenue last year and growing Profitability, a very attractive profile for us as we hear from all of you, but we also see it ourselves with 76% gross margin last year, $45 million adjusted EBITDA, and $43 million in operating cash flow. profitability a very attractive profile for us as we hear from all of you but we also see it ourselves with 76% gross margin last year $45 million adjusted ebitda and $43 million in operating cash flow This operating cash flow of $43 million takes into account stock repurchase. this operating cash flow of $43 million takes into account stock repurchase You can see on the cash balance in general that everything that we've been doing as far as using our cash has been both investing in the company as well as investing in products with our LymphaTech acquisition, but also over the past couple of years, paying down debt, doing a stock buyback, and continuing to see cash grow. A very attractive company portfolio and visual. We think about where we actually sit and what that opportunity is and why I'm excited about Tactile and med tech in general is because we do sit and operate in a market where there is a large number of patients that are just not being served. Again, with $20 million on the lymphedema side, $4.4 million on the bronchiectasis side currently have the condition not yet diagnosed. Of those that have been diagnosed, very small penetration into therapy. You can see on the cash balance in general that everything that we've been doing as far as using our cash has been both investing in the company as well as investing in products with our LymphaTech acquisition, but also over the past couple of years, paying down debt, doing a stock buyback, and continuing to see cash grow. you can see on the cash balance in general that everything that we've been doing as far as using our cash has been both investing in the company as well as investing in products with our lymphatech acquisition but also over the past couple of years paying down debt doing a stock buyback and continuing to see cash grow A very attractive company portfolio and visual. a very attractive company portfolio and visual We think about where we actually sit and what that opportunity is and why I'm excited about Tactile and med tech in general is because we do sit and operate in a market where there is a large number of patients that are just not being served. we think about where we actually sit and what that opportunity is and why i'm excited about tactile and med tech in general is because we do sit and operate in a market where there is a large number of patients that are just not being served Again, with $20 million on the lymphedema side, $4.4 million on the bronchiectasis side currently have the condition not yet diagnosed. again with $20 million on the lymphedema side $4.4 million on the bronchiectasis side currently have the condition not yet diagnosed Of those that have been diagnosed, very small penetration into therapy. of those that have been diagnosed very small penetration into therapy This isn't because the therapy doesn't exist. It has a lot to do with classic dynamics involved in market access, where how are you making sure that there's clinician awareness, patient awareness, that the patient gets served as they're moving through their care journey. All opportunities for us and assets that we have to help get those patients that are diagnosed into treatment. When we break it down from the previous slide, which showed a high overview, this is breaking it down into the specific areas of our business. If you remember on the very beginning slide, I talked about our bigger opportunity is in chronic swelling and lymphatic dysfunction. That's a bigger category. Everything I'm going to show you now is kind of a sub within that lymphedema. I'll talk about that as a sub as bronchiectasis as a subcategory of chronic inflammatory lung disease. This isn't because the therapy doesn't exist. this isn't because the therapy doesn't exist It has a lot to do with classic dynamics involved in market access, where how are you making sure that there's clinician awareness, patient awareness, that the patient gets served as they're moving through their care journey. it has a lot to do with classic dynamics involved in market access where how are you making sure that there's clinician awareness patient awareness that the patient gets served as they're moving through their care journey All opportunities for us and assets that we have to help get those patients that are diagnosed into treatment. all opportunities for us and assets that we have to help get those patients that are diagnosed into treatment When we break it down from the previous slide, which showed a high overview, this is breaking it down into the specific areas of our business. when we break it down from the previous slide which showed a high overview this is breaking it down into the specific areas of our business If you remember on the very beginning slide, I talked about our bigger opportunity is in chronic swelling and lymphatic dysfunction. if you remember on the very beginning slide i talked about our bigger opportunity is in chronic swelling and lymphatic dysfunction That's a bigger category. that's a bigger category Everything I'm going to show you now is kind of a sub within that lymphedema. everything i'm going to show you now is kind of a sub within that lymphedema I'll talk about that as a sub as bronchiectasis as a subcategory of chronic inflammatory lung disease. i'll talk about that as a sub as bronchiectasis as a subcategory of chronic inflammatory lung disease This is important to share because our indications from our product actually have a much broader indication from population. What is a limiting factor for us and why we discuss specifically, say, lymphedema and bronchiectasis is because that is where the payer coverage is. You have to follow where the money is and where the reimbursement is. Our opportunity for continuing to develop evidence, awareness, and to get a payer for a broader indication or, sorry, a broader coverage, given that we have the indication, is an opportunity for growth. Right now, lymphedema is sitting at the $5 billion. Bronchiectasis also at $5 billion in terms of what that addressable market is what gets us to that $10 billion. This is important to share because our indications from our product actually have a much broader indication from population. this is important to share because our indications from our product actually have a much broader indication from population What is a limiting factor for us and why we discuss specifically, say, lymphedema and bronchiectasis is because that is where the payer coverage is. what is a limiting factor for us and why we discuss specifically say lymphedema and bronchiectasis is because that is where the payer coverage is You have to follow where the money is and where the reimbursement is. you have to follow where the money is and where the reimbursement is Our opportunity for continuing to develop evidence, awareness, and to get a payer for a broader indication or, sorry, a broader coverage, given that we have the indication, is an opportunity for growth. our opportunity for continuing to develop evidence awareness and to get a payer for a broader indication or sorry a broader coverage given that we have the indication is an opportunity for growth Right now, lymphedema is sitting at the $5 billion. right now lymphedema is sitting at the $5 billion Bronchiectasis also at $5 billion in terms of what that addressable market is what gets us to that $10 billion. bronchiectasis also at $5 billion in terms of what that addressable market is what gets us to that $10 billion Big areas of opportunity how you start to unlock this is in the patient education and access being some of the bigger opportunities for how we unlock this. The other good news for us, bad news for patients, is that this is a chronic progressive disease. These are not patients that are going to be cured. Once you have the disease, it is irreversible. The therapy options for patients are best suited for those that are going to relieve their symptoms on a day-to-day basis, which is then being in the home. Let's talk about lymphedema. Big opportunity here with the $5 billion in the current addressable market. Before you can understand the bigger opportunity here, I think it's important to go back and even understanding what is it that we're talking about. What is lymphedema? Lymphedema is a disease that is usually a secondary diagnosis. Big areas of opportunity how you start to unlock this is in the patient education and access being some of the bigger opportunities for how we unlock this. big areas of opportunity how you start to unlock this is in the patient education and access being some of the bigger opportunities for how we unlock this The other good news for us, bad news for patients, is that this is a chronic progressive disease. the other good news for us bad news for patients is that this is a chronic progressive disease These are not patients that are going to be cured. these are not patients that are going to be cured Once you have the disease, it is irreversible. once you have the disease it is irreversible The therapy options for patients are best suited for those that are going to relieve their symptoms on a day-to-day basis, which is then being in the home. the therapy options for patients are best suited for those that are going to relieve their symptoms on a day-to-day basis which is then being in the home Let's talk about lymphedema. let's talk about lymphedema Big opportunity here with the $5 billion in the current addressable market. big opportunity here with the $5 billion in the current addressable market Before you can understand the bigger opportunity here, I think it's important to go back and even understanding what is it that we're talking about. before you can understand the bigger opportunity here i think it's important to go back and even understanding what is it that we're talking about What is lymphedema? what is lymphedema Lymphedema is a disease that is usually a secondary diagnosis. lymphedema is a disease that is usually a secondary diagnosis It's a secondary condition to something else that has happened for the patient. There's very few patients that are actually born with lymphedema, although there are some in primary. It is a secondary condition. Secondary to what? Secondary to cancer. If you have surgical intervention or radiation, there's different probabilities based on what type of cancer you have, but that you will have lymphedema. For example, 90% of patients with head and neck cancer, so it's about 10% of total cancers, but 90%, nine out of 10 of those patients are going to have lymphedema. It's a known complication associated with the treatment of that disease. The complications for head and neck cancer patients are significant. Lack of range of motion, inability to swallow, inability to speak. There is no cure for head and neck lymphedema. Once you have it, you have it. It's a secondary condition to something else that has happened for the patient. it's a secondary condition to something else that has happened for the patient There's very few patients that are actually born with lymphedema, although there are some in primary. there's very few patients that are actually born with lymphedema although there are some in primary It is a secondary condition. it is a secondary condition Secondary to what? secondary to what Secondary to cancer. secondary to cancer If you have surgical intervention or radiation, there's different probabilities based on what type of cancer you have, but that you will have lymphedema. if you have surgical intervention or radiation there's different probabilities based on what type of cancer you have but that you will have lymphedema For example, 90% of patients with head and neck cancer, so it's about 10% of total cancers, but 90%, nine out of 10 of those patients are going to have lymphedema. for example 90% of patients with head and neck cancer so it's about 10% of total cancers but 90% nine out of 10 of those patients are going to have lymphedema It's a known complication associated with the treatment of that disease. it's a known complication associated with the treatment of that disease The complications for head and neck cancer patients are significant. the complications for head and neck cancer patients are significant Lack of range of motion, inability to swallow, inability to speak. lack of range of motion inability to swallow inability to speak There is no cure for head and neck lymphedema. there is no cure for head and neck lymphedema Once you have it, you have it. once you have it you have it What you're trying to do is manage the symptoms and restoring that patient back to functionality. We're very proud of our footprint that we have in head and neck cancer, not only being the only manufacturer that has a garment that covers the head and neck, only manufacturer that has IP in the specific area of the body, and having evidence to support that this therapy is highly effective for patients with this condition. Head and neck cancer patients aren't the only patients that are going to require pump therapy. Breast cancer patients, pelvic cancer patients, et cetera, all are going to see the benefits of our therapy. Lymphedema isn't only secondary to cancer, also very secondary to patients that have chronic venous insufficiency, so CVI. What you're trying to do is manage the symptoms and restoring that patient back to functionality. what you're trying to do is manage the symptoms and restoring that patient back to functionality We're very proud of our footprint that we have in head and neck cancer, not only being the only manufacturer that has a garment that covers the head and neck, only manufacturer that has IP in the specific area of the body, and having evidence to support that this therapy is highly effective for patients with this condition. we're very proud of our footprint that we have in head and neck cancer not only being the only manufacturer that has a garment that covers the head and neck only manufacturer that has ip in the specific area of the body and having evidence to support that this therapy is highly effective for patients with this condition Head and neck cancer patients aren't the only patients that are going to require pump therapy. head and neck cancer patients aren't the only patients that are going to require pump therapy Breast cancer patients, pelvic cancer patients, et cetera, all are going to see the benefits of our therapy. breast cancer patients pelvic cancer patients et cetera all are going to see the benefits of our therapy Lymphedema isn't only secondary to cancer, also very secondary to patients that have chronic venous insufficiency, so CVI. lymphedema isn't only secondary to cancer also very secondary to patients that have chronic venous insufficiency so cvi CVI usually is the primary, and then secondary after you have chronic venous insufficiency is you've damaged your lymphatic system, and again, irreversible, and now you've got your veins sorted out, and now you need to address what is kind of chronic swelling. These are the most prevalent type of areas where we see our product being used, but obesity and trauma and surgery and infection are also other areas where pump therapy can be highly effective. Here's an example of what some of the swelling actually looks like. Once you see lymphedema, once you understand what it is, you start to see it. You'll see it in grocery stores. You'll see it in people at church. You'll see people at the airports. CVI usually is the primary, and then secondary after you have chronic venous insufficiency is you've damaged your lymphatic system, and again, irreversible, and now you've got your veins sorted out, and now you need to address what is kind of chronic swelling. cvi usually is the primary and then secondary after you have chronic venous insufficiency is you've damaged your lymphatic system and again irreversible and now you've got your veins sorted out and now you need to address what is kind of chronic swelling These are the most prevalent type of areas where we see our product being used, but obesity and trauma and surgery and infection are also other areas where pump therapy can be highly effective. these are the most prevalent type of areas where we see our product being used but obesity and trauma and surgery and infection are also other areas where pump therapy can be highly effective Here's an example of what some of the swelling actually looks like. here's an example of what some of the swelling actually looks like Once you see lymphedema, once you understand what it is, you start to see it. once you see lymphedema once you understand what it is you start to see it You'll see it in grocery stores. you'll see it in grocery stores You'll see it in people at church. you'll see it in people at church You'll see people at the airports. you'll see people at the airports While you may have thought before that that looks like someone who, especially in legs, that may be obese or maybe it's hereditary, it is quite likely that they have lymphedema associated with some other condition. About 10% of all patients that are diagnosed are actually going to receive a solution. That is appalling. It's appalling that you have that many people that actually have a condition that is impacting their quality of life, that when there is a treatment that's available, that they aren't getting it. What happens when they don't get it is they're going to end up typically with cellulitis, wounds, fibrosis, dysphagia, that's part of the head and neck, and limited range of motion. That could be both in breast cancer as well as in head and neck cancer. While you may have thought before that that looks like someone who, especially in legs, that may be obese or maybe it's hereditary, it is quite likely that they have lymphedema associated with some other condition. while you may have thought before that that looks like someone who especially in legs that may be obese or maybe it's hereditary it is quite likely that they have lymphedema associated with some other condition About 10% of all patients that are diagnosed are actually going to receive a solution. about 10% of all patients that are diagnosed are actually going to receive a solution That is appalling. that is appalling It's appalling that you have that many people that actually have a condition that is impacting their quality of life, that when there is a treatment that's available, that they aren't getting it. it's appalling that you have that many people that actually have a condition that is impacting their quality of life that when there is a treatment that's available that they aren't getting it What happens when they don't get it is they're going to end up typically with cellulitis, wounds, fibrosis, dysphagia, that's part of the head and neck, and limited range of motion. what happens when they don't get it is they're going to end up typically with cellulitis wounds fibrosis dysphagia that's part of the head and neck and limited range of motion That could be both in breast cancer as well as in head and neck cancer. that could be both in breast cancer as well as in head and neck cancer The fact that patients are unaware of what they're experiencing and you have clinicians that also have lack of understanding as lymphedema is a big part of what we have to do as the market leader in unlocking what is access to care. It's the education piece. It's having the right field force. It's having the data that supports the benefit as well as having the payer coverage policies that allows access for these patients. The other aspect, just to take us through the patient journey standpoint, you see a lot of red here, is that it is a really complex care journey. I don't say this as a, that this is what makes it not attractive. This actually is what makes our opportunity very attractive. The fact that patients are unaware of what they're experiencing and you have clinicians that also have lack of understanding as lymphedema is a big part of what we have to do as the market leader in unlocking what is access to care. the fact that patients are unaware of what they're experiencing and you have clinicians that also have lack of understanding as lymphedema is a big part of what we have to do as the market leader in unlocking what is access to care It's the education piece. it's the education piece It's having the right field force. it's having the right field force It's having the data that supports the benefit as well as having the payer coverage policies that allows access for these patients. it's having the data that supports the benefit as well as having the payer coverage policies that allows access for these patients The other aspect, just to take us through the patient journey standpoint, you see a lot of red here, is that it is a really complex care journey. the other aspect just to take us through the patient journey standpoint you see a lot of red here is that it is a really complex care journey I don't say this as a, that this is what makes it not attractive. i don't say this as a that this is what makes it not attractive This actually is what makes our opportunity very attractive. this actually is what makes our opportunity very attractive Understanding and thinking about us not only as a product company, but as a disease company, allows us and forces us to take a look at the full care continuum for these patients. Let's start on the side of the undiagnosed. Limited disease awareness. You see here 60% of patients see at least three physicians before diagnosis. I'm often asked, where are these patients? They're in primary care, depending on how they're coming through. If they don't have a cancer diagnosis, they're in primary care. They go from primary care to some sort of a rule-out. They may go to cardiology, and they're trying to rule out heart failure or a DVT. They end up in vascular often, or they end up in a wound clinic, and then they are backing into a diagnosis of lymphedema. Understanding and thinking about us not only as a product company, but as a disease company, allows us and forces us to take a look at the full care continuum for these patients. understanding and thinking about us not only as a product company but as a disease company allows us and forces us to take a look at the full care continuum for these patients Let's start on the side of the undiagnosed. let's start on the side of the undiagnosed Limited disease awareness. limited disease awareness You see here 60% of patients see at least three physicians before diagnosis. you see here 60% of patients see at least three physicians before diagnosis I'm often asked, where are these patients? i'm often asked where are these patients They're in primary care, depending on how they're coming through. they're in primary care depending on how they're coming through If they don't have a cancer diagnosis, they're in primary care. if they don't have a cancer diagnosis they're in primary care They go from primary care to some sort of a rule-out. they go from primary care to some sort of a rule-out They may go to cardiology, and they're trying to rule out heart failure or a DVT. they may go to cardiology and they're trying to rule out heart failure or a dvt They end up in vascular often, or they end up in a wound clinic, and then they are backing into a diagnosis of lymphedema. they end up in vascular often or they end up in a wound clinic and then they are backing into a diagnosis of lymphedema By the time then you get to kind of diagnosis, this is a payer policy, not just our policy, but the patients have to have tried a four-week conservative therapy. Conservative therapy is elevation, it's exercise, and it's wearing garments, stockings, pantyhose, sleeves. Many of these patients find it very difficult to use these garments, but from a payer perspective, it has to be documented that they tried and failed. What you can buy over the counter is not medical grade as well, and it is just squeezing, or it is holding basically, but it's not an active type of therapy. Many patients fail this conservative therapy, but what happens is they don't go back to their physician for follow-up. They just think that it doesn't work, and they're just going to live with the condition. By the time then you get to kind of diagnosis, this is a payer policy, not just our policy, but the patients have to have tried a four-week conservative therapy. by the time then you get to kind of diagnosis this is a payer policy not just our policy but the patients have to have tried a four-week conservative therapy Conservative therapy is elevation, it's exercise, and it's wearing garments, stockings, pantyhose, sleeves. conservative therapy is elevation it's exercise and it's wearing garments stockings pantyhose sleeves Many of these patients find it very difficult to use these garments, but from a payer perspective, it has to be documented that they tried and failed. many of these patients find it very difficult to use these garments but from a payer perspective it has to be documented that they tried and failed What you can buy over the counter is not medical grade as well, and it is just squeezing, or it is holding basically, but it's not an active type of therapy. what you can buy over the counter is not medical grade as well and it is just squeezing or it is holding basically but it's not an active type of therapy Many patients fail this conservative therapy, but what happens is they don't go back to their physician for follow-up. many patients fail this conservative therapy but what happens is they don't go back to their physician for follow-up They just think that it doesn't work, and they're just going to live with the condition. they just think that it doesn't work and they're just going to live with the condition 44% of patients have to wait four months between getting that first treatment following diagnosis. Even after you get the diagnosis, having to kind of wait for then what is going to be your therapy option is a really long time, and patients have dropout. It's a leakage problem where I got diagnosed, but now I have to wait for everything to come through. Either I have to fail the conservative therapy trial, I have to do these things, and patients leak. Great opportunity for, again, engaging the patients through the care continuum for us. We see it as an opportunity. There's an order type of process. This is payer-driven, but they want a lot of documentation to show that the patient meets the criteria. These are not inexpensive technologies, and they fall in the category of a DME. 44% of patients have to wait four months between getting that first treatment following diagnosis. 44% of patients have to wait four months between getting that first treatment following diagnosis Even after you get the diagnosis, having to kind of wait for then what is going to be your therapy option is a really long time, and patients have dropout. It's a leakage problem where I got diagnosed, but now I have to wait for everything to come through. even after you get the diagnosis having to kind of wait for then what is going to be your therapy option is a really long time and patients have dropout. it's a leakage problem where i got diagnosed but now i have to wait for everything to come through Either I have to fail the conservative therapy trial, I have to do these things, and patients leak. either i have to fail the conservative therapy trial i have to do these things and patients leak Great opportunity for, again, engaging the patients through the care continuum for us. great opportunity for again engaging the patients through the care continuum for us We see it as an opportunity. we see it as an opportunity There's an order type of process. there's an order type of process This is payer-driven, but they want a lot of documentation to show that the patient meets the criteria. this is payer-driven but they want a lot of documentation to show that the patient meets the criteria These are not inexpensive technologies, and they fall in the category of a DME. these are not inexpensive technologies and they fall in the category of a dme We know that DME is often under scrutiny for whether it is appropriate for patients to get the therapy. A lot of documentation is required, and so when we talk about how we're advancing and helping patients and physicians with this, we spend a lot of time in trying to minimize the repetitiveness of documentation, getting it right the first time, and trying to make that process super easy so that physician can diagnose the patient, the patient can go from referral to an order, from an order to a shipment, and to get on therapy as fast as possible. There is a learning curve for the patients in terms of understanding when they should use the therapy, how to incorporate it in their daily life, and so we have been putting a priority on how do we make our therapies more user-friendly. We know that DME is often under scrutiny for whether it is appropriate for patients to get the therapy. we know that dme is often under scrutiny for whether it is appropriate for patients to get the therapy A lot of documentation is required, and so when we talk about how we're advancing and helping patients and physicians with this, we spend a lot of time in trying to minimize the repetitiveness of documentation, getting it right the first time, and trying to make that process super easy so that physician can diagnose the patient, the patient can go from referral to an order, from an order to a shipment, and to get on therapy as fast as possible. a lot of documentation is required and so when we talk about how we're advancing and helping patients and physicians with this we spend a lot of time in trying to minimize the repetitiveness of documentation getting it right the first time and trying to make that process super easy so that physician can diagnose the patient the patient can go from referral to an order from an order to a shipment and to get on therapy as fast as possible There is a learning curve for the patients in terms of understanding when they should use the therapy, how to incorporate it in their daily life, and so we have been putting a priority on how do we make our therapies more user-friendly. there is a learning curve for the patients in terms of understanding when they should use the therapy how to incorporate it in their daily life and so we have been putting a priority on how do we make our therapies more user-friendly The introduction of Nimbl was a great example of where we took away a lot of the hosing. We made it portable with a battery so the patient could use it in different places in their home or travel with it. We continue to look at ways of how do we actually take and think about that patient experience with the therapy and continue to make that as seamless as possible. Let's talk about the products. As a differentiation for who we are as a company, we are the only manufacturer in this area that has a full suite of products that supports the patients from head to toe. There is no other manufacturer that has this, and this comes in a couple of categories. First is we have both a basic pump as well as an advanced pump. The introduction of Nimbl was a great example of where we took away a lot of the hosing. the introduction of nimbl was a great example of where we took away a lot of the hosing We made it portable with a battery so the patient could use it in different places in their home or travel with it. we made it portable with a battery so the patient could use it in different places in their home or travel with it We continue to look at ways of how do we actually take and think about that patient experience with the therapy and continue to make that as seamless as possible. we continue to look at ways of how do we actually take and think about that patient experience with the therapy and continue to make that as seamless as possible Let's talk about the products. let's talk about the products As a differentiation for who we are as a company, we are the only manufacturer in this area that has a full suite of products that supports the patients from head to toe. as a differentiation for who we are as a company we are the only manufacturer in this area that has a full suite of products that supports the patients from head to toe There is no other manufacturer that has this, and this comes in a couple of categories. there is no other manufacturer that has this and this comes in a couple of categories First is we have both a basic pump as well as an advanced pump. first is we have both a basic pump as well as an advanced pump When you see on the legacy systems, our legacy basic pump was called Entre Plus. We introduced Nimbl last year, well, actually in November of 2024, full launch in February of 2025. It's smaller, lighter, portable. Really became a very nice solution for patients that required a basic pump and put us in market leadership in the category of basic pump. In the advanced pump, advanced pump are going to be the pump that has more sequencing of the way that the compression is given so that you can program it around a wound, for example. If a patient has a wound, you do not want to be squeezing it. Typically, patients who are in a basic pump, don't have access to an advanced pump, only have a choice of having it squeeze a wound, and they typically have to stop therapy. When you see on the legacy systems, our legacy basic pump was called Entre Plus. when you see on the legacy systems our legacy basic pump was called entre plus We introduced Nimbl last year, well, actually in November of 2024, full launch in February of 2025. we introduced nimbl last year well actually in november of 2024 full launch in february of 2025 It's smaller, lighter, portable. it's smaller lighter portable Really became a very nice solution for patients that required a basic pump and put us in market leadership in the category of basic pump. really became a very nice solution for patients that required a basic pump and put us in market leadership in the category of basic pump In the advanced pump, advanced pump are going to be the pump that has more sequencing of the way that the compression is given so that you can program it around a wound, for example. in the advanced pump advanced pump are going to be the pump that has more sequencing of the way that the compression is given so that you can program it around a wound for example If a patient has a wound, you do not want to be squeezing it. if a patient has a wound you do not want to be squeezing it Typically, patients who are in a basic pump, don't have access to an advanced pump, only have a choice of having it squeeze a wound, and they typically have to stop therapy. typically patients who are in a basic pump don't have access to an advanced pump only have a choice of having it squeeze a wound and they typically have to stop therapy Getting the patient in an advanced pump that can be programmed around a wound is a great benefit for patients and for care delivery. Our current product is Flexitouch Plus. We have already shared that we will be submitting in what will be an upgrade to that product that we'll be launching next year, and the focus on that will be new features and product enhancements that are designed to meet the patient's needs. You'll see a very kind of similar value proposition in terms of making it more accessible to patients, making it a better fit and easier to use. That is coming in 2027. Outside of just this, as I mentioned, the only company that has head to toe, we are also the only company that has the head and neck garments. I spoke about that. Getting the patient in an advanced pump that can be programmed around a wound is a great benefit for patients and for care delivery. getting the patient in an advanced pump that can be programmed around a wound is a great benefit for patients and for care delivery Our current product is Flexitouch Plus. our current product is flexitouch plus We have already shared that we will be submitting in what will be an upgrade to that product that we'll be launching next year, and the focus on that will be new features and product enhancements that are designed to meet the patient's needs. we have already shared that we will be submitting in what will be an upgrade to that product that we'll be launching next year and the focus on that will be new features and product enhancements that are designed to meet the patient's needs You'll see a very kind of similar value proposition in terms of making it more accessible to patients, making it a better fit and easier to use. you'll see a very kind of similar value proposition in terms of making it more accessible to patients making it a better fit and easier to use That is coming in 2027. that is coming in 2027 Outside of just this, as I mentioned, the only company that has head to toe, we are also the only company that has the head and neck garments. outside of just this as i mentioned the only company that has head to toe we are also the only company that has the head and neck garments I spoke about that. i spoke about that Being able to have bilateral arm and leg on limb, chest, trunk, and head and neck serves the entire patient, plus having two different type of pumps to support their compression needs. We also have very strong evidence. The evidence here, you'll see where it's not only the value of limb volume reduction, but ability to perform activity of daily living, satisfaction with the product, as well as reduction in total lymphedema-related cost. The evidence is there, and very proud to share that only pneumatic compression therapies are included in the very first U.S. guidelines that were just announced in February and will be published this summer. The evidence that supports pneumatic compression therapies is in guidelines. Majority of that evidence is driven directly from Tactile Medical. I talked a little bit before about head and neck. Being able to have bilateral arm and leg on limb, chest, trunk, and head and neck serves the entire patient, plus having two different type of pumps to support their compression needs. being able to have bilateral arm and leg on limb chest trunk and head and neck serves the entire patient plus having two different type of pumps to support their compression needs We also have very strong evidence. we also have very strong evidence The evidence here, you'll see where it's not only the value of limb volume reduction, but ability to perform activity of daily living, satisfaction with the product, as well as reduction in total lymphedema-related cost. the evidence here you'll see where it's not only the value of limb volume reduction but ability to perform activity of daily living satisfaction with the product as well as reduction in total lymphedema-related cost The evidence is there, and very proud to share that only pneumatic compression therapies are included in the very first U.S. guidelines that were just announced in February and will be published this summer. the evidence is there and very proud to share that only pneumatic compression therapies are included in the very first u.s guidelines that were just announced in february and will be published this summer The evidence that supports pneumatic compression therapies is in guidelines. the evidence that supports pneumatic compression therapies is in guidelines Majority of that evidence is driven directly from Tactile Medical. majority of that evidence is driven directly from tactile medical I talked a little bit before about head and neck. i talked a little bit before about head and neck I'm a little excited about this one because we have made the investments in clinical evidence. That study wrapped up in 2024. We spent 2025 putting together the data as well as getting the publications out, and you'll continue to see more of these. What's super interesting about these data is the study was designed to show Flexitouch as first line for treatment-naive patients. Typically, that patient has to go through the conservative therapy. This study showed patient went directly to Flexitouch, skipping conservative therapy, and showed what those outcomes look like. In all cases, it was as good as the arm that went to manual compression therapy. In some cases, better than, and speed to therapy was faster for Flexitouch. There is a limited number of lymphatic therapists that are out there. Access to this population is really difficult for patients to get to. I'm a little excited about this one because we have made the investments in clinical evidence. i'm a little excited about this one because we have made the investments in clinical evidence That study wrapped up in 2024. that study wrapped up in 2024 We spent 2025 putting together the data as well as getting the publications out, and you'll continue to see more of these. we spent 2025 putting together the data as well as getting the publications out and you'll continue to see more of these What's super interesting about these data is the study was designed to show Flexitouch as first line for treatment-naive patients. what's super interesting about these data is the study was designed to show flexitouch as first line for treatment-naive patients Typically, that patient has to go through the conservative therapy. typically that patient has to go through the conservative therapy This study showed patient went directly to Flexitouch, skipping conservative therapy, and showed what those outcomes look like. this study showed patient went directly to flexitouch skipping conservative therapy and showed what those outcomes look like In all cases, it was as good as the arm that went to manual compression therapy. in all cases it was as good as the arm that went to manual compression therapy In some cases, better than, and speed to therapy was faster for Flexitouch. in some cases better than and speed to therapy was faster for flexitouch There is a limited number of lymphatic therapists that are out there. there is a limited number of lymphatic therapists that are out there Access to this population is really difficult for patients to get to. access to this population is really difficult for patients to get to Having a product that can be used in the home, getting directly to the patient is going to be valuable, and speed to therapy is certainly very important. Very proud of these results and eager to see the six-month manuscript coming out here shortly. Talked about product differentiation, talked about this aspect of the service that we provide in supporting understanding what the documentation is, having the payer coverage across both Medicare and commercial for the suite of our products. Another aspect is how do you keep that patient engaged? Talked about that as part of our strategy. Very proud that we launched the Kylee app, which is a patient engagement application. Having a product that can be used in the home, getting directly to the patient is going to be valuable, and speed to therapy is certainly very important. having a product that can be used in the home getting directly to the patient is going to be valuable and speed to therapy is certainly very important Very proud of these results and eager to see the six-month manuscript coming out here shortly. very proud of these results and eager to see the six-month manuscript coming out here shortly Talked about product differentiation, talked about this aspect of the service that we provide in supporting understanding what the documentation is, having the payer coverage across both Medicare and commercial for the suite of our products. talked about product differentiation talked about this aspect of the service that we provide in supporting understanding what the documentation is having the payer coverage across both medicare and commercial for the suite of our products Another aspect is how do you keep that patient engaged? another aspect is how do you keep that patient engaged Talked about that as part of our strategy. talked about that as part of our strategy Very proud that we launched the Kylee app, which is a patient engagement application. very proud that we launched the kylee app which is a patient engagement application This is not only for patients on our therapy, it could be for any patients with lymphedema that wants to start monitoring what their symptoms are, be able to take pictures, and be able to share that data directly with their physicians. We have Bluetooth-enabled technology. That was one of the benefits of Nimbl. Now every session that a patient is doing with their therapy can actually be tracked through Bluetooth connectivity in their app, so they could actually see the adherence of the patient on that therapy. Great opportunity for education and information sharing directly with the patient that's on Kylee, as well as just the tracking of overall activity and symptoms. LymphaTech acquisition happened in February, and we're only getting started. The full continuum of care for these patients, when we talked about that TAM, was that huge bucket of patients that are sitting undiagnosed. This is not only for patients on our therapy, it could be for any patients with lymphedema that wants to start monitoring what their symptoms are, be able to take pictures, and be able to share that data directly with their physicians. this is not only for patients on our therapy it could be for any patients with lymphedema that wants to start monitoring what their symptoms are be able to take pictures and be able to share that data directly with their physicians We have Bluetooth-enabled technology. we have bluetooth-enabled technology That was one of the benefits of Nimbl. that was one of the benefits of nimbl Now every session that a patient is doing with their therapy can actually be tracked through Bluetooth connectivity in their app, so they could actually see the adherence of the patient on that therapy. now every session that a patient is doing with their therapy can actually be tracked through bluetooth connectivity in their app so they could actually see the adherence of the patient on that therapy Great opportunity for education and information sharing directly with the patient that's on Kylee, as well as just the tracking of overall activity and symptoms. LymphaTech acquisition happened in February, and we're only getting started. great opportunity for education and information sharing directly with the patient that's on kylee as well as just the tracking of overall activity and symptoms. lymphatech acquisition happened in february and we're only getting started The full continuum of care for these patients, when we talked about that TAM, was that huge bucket of patients that are sitting undiagnosed. the full continuum of care for these patients when we talked about that tam was that huge bucket of patients that are sitting undiagnosed There's a lot of ways we could have thought about how are we going to get the patients diagnosed, training and education, something that we always do with clinicians, making the patient more aware that they have symptoms and where to go. The big missing piece is actually having a diagnostic, and diagnostics, as we know in other markets, unlock a tremendous amount of opportunity in the TAM. LymphaTech acquisition adds not only a current diagnostic, but capabilities that will allow us to move into personalized delivery of therapy over time on our roadmap. Let me break this down in a couple of ways. First of all, the technology is an FDA-cleared digital platform. It basically is taking a picture of what's going on under the skin for fluid volume and circumference measurements. There's a lot of ways we could have thought about how are we going to get the patients diagnosed, training and education, something that we always do with clinicians, making the patient more aware that they have symptoms and where to go. there's a lot of ways we could have thought about how are we going to get the patients diagnosed training and education something that we always do with clinicians making the patient more aware that they have symptoms and where to go The big missing piece is actually having a diagnostic, and diagnostics, as we know in other markets, unlock a tremendous amount of opportunity in the TAM. the big missing piece is actually having a diagnostic and diagnostics as we know in other markets unlock a tremendous amount of opportunity in the tam LymphaTech acquisition adds not only a current diagnostic, but capabilities that will allow us to move into personalized delivery of therapy over time on our roadmap. lymphatech acquisition adds not only a current diagnostic but capabilities that will allow us to move into personalized delivery of therapy over time on our roadmap Let me break this down in a couple of ways. let me break this down in a couple of ways First of all, the technology is an FDA-cleared digital platform. first of all the technology is an fda-cleared digital platform It basically is taking a picture of what's going on under the skin for fluid volume and circumference measurements. it basically is taking a picture of what's going on under the skin for fluid volume and circumference measurements That's really important because right now, lymphedema is a clinical diagnosis, so it's what you see and what the patient is reporting. You can't see all the fluid that's happening underneath the skin, which is why a lot of patients actually have more advanced disease by the time they're diagnosed because you can't see it. The ability to actually see underneath before you see external is very important, and it delivers this clinical grade 3D body model, which then allows for not only the physician to actually see where the fluid's building up, but the patient gets to see it as well. That identification of you have a disease, and this is what's happening, even though you can't see it, this is what's happening underneath. Very powerful for patients in activating their own engagement for treatment. That's really important because right now, lymphedema is a clinical diagnosis, so it's what you see and what the patient is reporting. that's really important because right now lymphedema is a clinical diagnosis so it's what you see and what the patient is reporting You can't see all the fluid that's happening underneath the skin, which is why a lot of patients actually have more advanced disease by the time they're diagnosed because you can't see it. you can't see all the fluid that's happening underneath the skin which is why a lot of patients actually have more advanced disease by the time they're diagnosed because you can't see it The ability to actually see underneath before you see external is very important, and it delivers this clinical grade 3D body model, which then allows for not only the physician to actually see where the fluid's building up, but the patient gets to see it as well. the ability to actually see underneath before you see external is very important and it delivers this clinical grade 3d body model which then allows for not only the physician to actually see where the fluid's building up but the patient gets to see it as well That identification of you have a disease, and this is what's happening, even though you can't see it, this is what's happening underneath. that identification of you have a disease and this is what's happening even though you can't see it this is what's happening underneath Very powerful for patients in activating their own engagement for treatment. very powerful for patients in activating their own engagement for treatment Anything we can do to help identify patients earlier is going to be good for us and good for the market. We believe that it will accelerate therapy access. Certainly, it isn't going to say patient's going to have lymphedema, but the fact that Tactile is bringing this is in our bag. We expect a lot of attachment with our therapy to happen with this, and I think it, again, proves that we're in it for the long haul for the patient. When you think about from a workflow standpoint, even measuring patients' baseline in oncology centers, which is where LymphaTech currently has some business, has been reported on our financials. Software as a service model, no reimbursement, they pay for it because it's valuable for them as clinicians to actually get a baseline and to measure patients over time. Anything we can do to help identify patients earlier is going to be good for us and good for the market. anything we can do to help identify patients earlier is going to be good for us and good for the market We believe that it will accelerate therapy access. we believe that it will accelerate therapy access Certainly, it isn't going to say patient's going to have lymphedema, but the fact that Tactile is bringing this is in our bag. certainly it isn't going to say patient's going to have lymphedema but the fact that tactile is bringing this is in our bag We expect a lot of attachment with our therapy to happen with this, and I think it, again, proves that we're in it for the long haul for the patient. we expect a lot of attachment with our therapy to happen with this and i think it again proves that we're in it for the long haul for the patient When you think about from a workflow standpoint, even measuring patients' baseline in oncology centers, which is where LymphaTech currently has some business, has been reported on our financials. when you think about from a workflow standpoint even measuring patients' baseline in oncology centers which is where lymphatech currently has some business has been reported on our financials Software as a service model, no reimbursement, they pay for it because it's valuable for them as clinicians to actually get a baseline and to measure patients over time. software as a service model no reimbursement they pay for it because it's valuable for them as clinicians to actually get a baseline and to measure patients over time That is something that we have, as much as we enjoy that model today, we know that finding financial incentive for physicians to actually use a diagnostic is an important area of unlocking. We're currently working through the process of category CPT III codes so that there would be payment on the other side. What I share all the time, my background has been with payer and with reimbursement, is be careful what you think you want. The payment for whatever the diagnostic is, it'll be what it will be. If it's $4 or $400, it is what that payment's going to be on the initial time. I don't hang my hat on it's just going to be about the payment. What's most important is the value proposition of a diagnostic in the clinic. $400 means your value proposition pretty low. That is something that we have, as much as we enjoy that model today, we know that finding financial incentive for physicians to actually use a diagnostic is an important area of unlocking. that is something that we have as much as we enjoy that model today we know that finding financial incentive for physicians to actually use a diagnostic is an important area of unlocking We're currently working through the process of category CPT III codes so that there would be payment on the other side. we're currently working through the process of category cpt iii codes so that there would be payment on the other side What I share all the time, my background has been with payer and with reimbursement, is be careful what you think you want. what i share all the time my background has been with payer and with reimbursement is be careful what you think you want The payment for whatever the diagnostic is, it'll be what it will be. the payment for whatever the diagnostic is it'll be what it will be If it's $4 or $400, it is what that payment's going to be on the initial time. if it's $4 or $400 it is what that payment's going to be on the initial time I don't hang my hat on it's just going to be about the payment. i don't hang my hat on it's just going to be about the payment What's most important is the value proposition of a diagnostic in the clinic. $400 means your value proposition pretty low. what's most important is the value proposition of a diagnostic in the clinic $400 means your value proposition pretty low $4, you better have a high value proposition. I'm just making numbers up for the purpose of this discussion. What I will say is that the value proposition of workflow, where do we use the technology in the flow of the patient? What is the goal of that practice? They want to see more patients more efficiently. They want to get baseline data. They want to use it as part of a treatment plan. They want to take the inefficiency out of measurements of every patient so they can redeploy those resources somewhere else. That's a big part of what we're validating and testing right now. We'll pursue the reimbursement, but in parallel, we're pursuing the value proposition to the individual clinic to make sure that it works in overall workflow. Also very exciting is more of a long-term vision for this. $4, you better have a high value proposition. $4 you better have a high value proposition I'm just making numbers up for the purpose of this discussion. i'm just making numbers up for the purpose of this discussion What I will say is that the value proposition of workflow, where do we use the technology in the flow of the patient? what i will say is that the value proposition of workflow where do we use the technology in the flow of the patient What is the goal of that practice? what is the goal of that practice They want to see more patients more efficiently. they want to see more patients more efficiently They want to get baseline data. they want to get baseline data They want to use it as part of a treatment plan. they want to use it as part of a treatment plan They want to take the inefficiency out of measurements of every patient so they can redeploy those resources somewhere else. they want to take the inefficiency out of measurements of every patient so they can redeploy those resources somewhere else That's a big part of what we're validating and testing right now. that's a big part of what we're validating and testing right now We'll pursue the reimbursement, but in parallel, we're pursuing the value proposition to the individual clinic to make sure that it works in overall workflow. we'll pursue the reimbursement but in parallel we're pursuing the value proposition to the individual clinic to make sure that it works in overall workflow Also very exciting is more of a long-term vision for this. also very exciting is more of a long-term vision for this Now you have the sensing technology. Being able to embed that and think about that, how do you use that as part of your overall therapy delivery, will bring us from what is a prescribed technology into a personalized technology for patients with chronic swelling and lymphatic dysfunction. We're very excited about that and also very excited that LymphaTech came with federal grants with the acquisition. The R&D is currently being paid for by the federal government. That helps us with our overall kind of R&D allocation and again, is very in line with our strategy of moving to help support patients from a broader disease standpoint. Slide I showed you about this before showed a lot of red, what all the friction points were, and this is what we're doing to remove that friction. Undiagnosed before, lack of a diagnosis, lack of awareness. Now you have the sensing technology. now you have the sensing technology Being able to embed that and think about that, how do you use that as part of your overall therapy delivery, will bring us from what is a prescribed technology into a personalized technology for patients with chronic swelling and lymphatic dysfunction. being able to embed that and think about that how do you use that as part of your overall therapy delivery will bring us from what is a prescribed technology into a personalized technology for patients with chronic swelling and lymphatic dysfunction We're very excited about that and also very excited that LymphaTech came with federal grants with the acquisition. we're very excited about that and also very excited that lymphatech came with federal grants with the acquisition The R&D is currently being paid for by the federal government. the r&d is currently being paid for by the federal government That helps us with our overall kind of R&D allocation and again, is very in line with our strategy of moving to help support patients from a broader disease standpoint. that helps us with our overall kind of r&d allocation and again is very in line with our strategy of moving to help support patients from a broader disease standpoint Slide I showed you about this before showed a lot of red, what all the friction points were, and this is what we're doing to remove that friction. slide i showed you about this before showed a lot of red what all the friction points were and this is what we're doing to remove that friction Undiagnosed before, lack of a diagnosis, lack of awareness. undiagnosed before lack of a diagnosis lack of awareness Now we're bringing an acquisition that allows earlier diagnosis, as well as being able to monitor and see that patient through their care continuum. Clinical practice guidelines recently released in February, will be published this summer, again, specifically call out pneumatic compression therapies as being within U.S. clinical guidelines. These are the very first U.S. clinical guidelines in lymphedema, and we're glad to be there, and we know we contribute substantially to that evidence. When we think about the overall kind of policy environment, big shift going from what was a Local Coverage Decision that was also concomitant with a National Coverage Decision. Now we have only one policy. It has added a lot of clarity to the pathway for patients. Now we're bringing an acquisition that allows earlier diagnosis, as well as being able to monitor and see that patient through their care continuum. now we're bringing an acquisition that allows earlier diagnosis as well as being able to monitor and see that patient through their care continuum Clinical practice guidelines recently released in February, will be published this summer, again, specifically call out pneumatic compression therapies as being within U.S. clinical guidelines. clinical practice guidelines recently released in february will be published this summer again specifically call out pneumatic compression therapies as being within u.s clinical guidelines These are the very first U.S. clinical guidelines in lymphedema, and we're glad to be there, and we know we contribute substantially to that evidence. these are the very first u.s clinical guidelines in lymphedema and we're glad to be there and we know we contribute substantially to that evidence When we think about the overall kind of policy environment, big shift going from what was a Local Coverage Decision that was also concomitant with a National Coverage Decision. when we think about the overall kind of policy environment big shift going from what was a local coverage decision that was also concomitant with a national coverage decision Now we have only one policy. now we have only one policy It has added a lot of clarity to the pathway for patients. it has added a lot of clarity to the pathway for patients There is a path for a patient who has a disease, has lymphedema, who requires an advanced pump to go directly to an advanced pump after completing conservative care. Before, they were forced into a basic pump, which may not have even covered the area of body that was swelling, and before they could get to an advanced pump. There's a first pass in order for it to get there, and we're supporting that with our own processes. There is a path for a patient who has a disease, has lymphedema, who requires an advanced pump to go directly to an advanced pump after completing conservative care. there is a path for a patient who has a disease has lymphedema who requires an advanced pump to go directly to an advanced pump after completing conservative care Before, they were forced into a basic pump, which may not have even covered the area of body that was swelling, and before they could get to an advanced pump. before they were forced into a basic pump which may not have even covered the area of body that was swelling and before they could get to an advanced pump There's a first pass in order for it to get there, and we're supporting that with our own processes. there's a first pass in order for it to get there and we're supporting that with our own processes Of course, data that help supports this population that is not only underserved, but in many commercial plans, head and neck garments are considered experimental and investigational, which is the reason we did this study, and we will be overturning those policies and converting them to what should be a typical policy under the NCD. When we think about the order process and our go-to-market, we've made sizable investments into our field organization to make sure that they have the tools and the resources in order for them to do their jobs. We're using AI technology. We have the app, care navigation pilots, all those things that are helping support the patient as they go out. Very strong market leadership and a sales force that helps with a vertically integrated model. We have scalable RCM. We've been able to prove that. That's not something to take for granted. Of course, data that help supports this population that is not only underserved, but in many commercial plans, head and neck garments are considered experimental and investigational, which is the reason we did this study, and we will be overturning those policies and converting them to what should be a typical policy under the NCD. When we think about the order process and our go-to-market, we've made sizable investments into our field organization to make sure that they have the tools and the resources in order for them to do their jobs. of course data that help supports this population that is not only underserved but in many commercial plans head and neck garments are considered experimental and investigational which is the reason we did this study and we will be overturning those policies and converting them to what should be a typical policy under the ncd. when we think about the order process and our go-to-market we've made sizable investments into our field organization to make sure that they have the tools and the resources in order for them to do their jobs We're using AI technology. we're using ai technology We have the app, care navigation pilots, all those things that are helping support the patient as they go out. we have the app care navigation pilots all those things that are helping support the patient as they go out Very strong market leadership and a sales force that helps with a vertically integrated model. very strong market leadership and a sales force that helps with a vertically integrated model We have scalable RCM. we have scalable rcm We've been able to prove that. we've been able to prove that That's not something to take for granted. that's not something to take for granted It takes a long time to get that set up in a way that's super efficient, can use technology and get paid at the end of the day. We do that in spades and are very proud of that product innovation and strong IP moat. Overall, number one in the lymphedema space. When you think about bronchiectasis, another very important area for us, also a $5 billion opportunity. Bronchiectasis, chronic inflammatory lung disease. You get damage to the airways, patients unable to breathe, you get a cough, you get mucus, you got to move the mucus. If you don't, you're going to end up with infection and pneumonia. You see 42% of patients with COPD end up having conditions like bronchiectasis and definitely an underserved market. Often left untreated. Cough assist, very kind of basic technology are in place. It takes a long time to get that set up in a way that's super efficient, can use technology and get paid at the end of the day. it takes a long time to get that set up in a way that's super efficient can use technology and get paid at the end of the day We do that in spades and are very proud of that product innovation and strong IP moat. we do that in spades and are very proud of that product innovation and strong ip moat Overall, number one in the lymphedema space. overall number one in the lymphedema space When you think about bronchiectasis, another very important area for us, also a $5 billion opportunity. when you think about bronchiectasis another very important area for us also a $5 billion opportunity Bronchiectasis, chronic inflammatory lung disease. bronchiectasis chronic inflammatory lung disease You get damage to the airways, patients unable to breathe, you get a cough, you get mucus, you got to move the mucus. you get damage to the airways patients unable to breathe you get a cough you get mucus you got to move the mucus If you don't, you're going to end up with infection and pneumonia. if you don't you're going to end up with infection and pneumonia You see 42% of patients with COPD end up having conditions like bronchiectasis and definitely an underserved market. you see 42% of patients with copd end up having conditions like bronchiectasis and definitely an underserved market Often left untreated. often left untreated Cough assist, very kind of basic technology are in place. cough assist very kind of basic technology are in place Current standard of care is using CPT as well as kind of manual positioning and having somebody actually hitting your back to help release the cough. Very archaic. Here we have a technology that truly has revolutionized the care for patients, airway vest clearance has. I'm very proud, in fact, we announced today that we launched yesterday our new next gen AffloVest product. We always were the lightest product that was in the market. What we have now is an even lighter version, size adjustability, so we use SKUs for our DME providers as well as being connected, and that was a piece that we were missing. Very proud to have this and launching this immediately. Already have orders coming in from our DME and very excited to be serving patients in a very different way. Current standard of care is using CPT as well as kind of manual positioning and having somebody actually hitting your back to help release the cough. current standard of care is using cpt as well as kind of manual positioning and having somebody actually hitting your back to help release the cough Very archaic. very archaic Here we have a technology that truly has revolutionized the care for patients, airway vest clearance has. here we have a technology that truly has revolutionized the care for patients airway vest clearance has I'm very proud, in fact, we announced today that we launched yesterday our new next gen AffloVest product. i'm very proud in fact we announced today that we launched yesterday our new next gen afflovest product We always were the lightest product that was in the market. we always were the lightest product that was in the market What we have now is an even lighter version, size adjustability, so we use SKUs for our DME providers as well as being connected, and that was a piece that we were missing. what we have now is an even lighter version size adjustability so we use skus for our dme providers as well as being connected and that was a piece that we were missing Very proud to have this and launching this immediately. very proud to have this and launching this immediately Already have orders coming in from our DME and very excited to be serving patients in a very different way. already have orders coming in from our dme and very excited to be serving patients in a very different way With the innovation that we've been doing in Afflo as well as our strategy in working with DMEs, we also sit as number one market share in this category and expect this to continue to be an area of growth and differentiation for us from a vest product than our competitors. We're often asked, "When are you going to start to see progression? When does this business recover?" I would say that over the past two years, we've been in a position of showing that very recovery. We are sitting in an area where we're generating the evidence, where we have been optimizing our order management, where we have refocused our sales organization, where we have brought new technologies to the field, and where we sit right now with an acquisition of LymphaTech. With the innovation that we've been doing in Afflo as well as our strategy in working with DMEs, we also sit as number one market share in this category and expect this to continue to be an area of growth and differentiation for us from a vest product than our competitors. with the innovation that we've been doing in afflo as well as our strategy in working with dmes we also sit as number one market share in this category and expect this to continue to be an area of growth and differentiation for us from a vest product than our competitors We're often asked, "When are you going to start to see progression? we're often asked "when are you going to start to see progression When does this business recover?" I would say that over the past two years, we've been in a position of showing that very recovery. when does this business recover?" i would say that over the past two years we've been in a position of showing that very recovery We are sitting in an area where we're generating the evidence, where we have been optimizing our order management, where we have refocused our sales organization, where we have brought new technologies to the field, and where we sit right now with an acquisition of LymphaTech. we are sitting in an area where we're generating the evidence where we have been optimizing our order management where we have refocused our sales organization where we have brought new technologies to the field and where we sit right now with an acquisition of lymphatech As we think about our next-gen products, not only AffloVest today as well as what we're expecting next year, we're on a roll. We're on a roll that is not going to go backwards. It's going to continue to go forward. We have the policy environment that's very favorable to us right now, and we are prepared if that policy environment changes to adapt and adjust as we've demonstrated. Over time, a CAGR of 16%. I know some of you have been with us in the lower periods and some of you with us are kind of joining on a little bit more of this upswing. What we've committed to is that the market is growing at about 10%. As we think about our next-gen products, not only AffloVest today as well as what we're expecting next year, we're on a roll. as we think about our next-gen products not only afflovest today as well as what we're expecting next year we're on a roll We're on a roll that is not going to go backwards. we're on a roll that is not going to go backwards It's going to continue to go forward. it's going to continue to go forward We have the policy environment that's very favorable to us right now, and we are prepared if that policy environment changes to adapt and adjust as we've demonstrated. we have the policy environment that's very favorable to us right now and we are prepared if that policy environment changes to adapt and adjust as we've demonstrated Over time, a CAGR of 16%. over time a cagr of 16% I know some of you have been with us in the lower periods and some of you with us are kind of joining on a little bit more of this upswing. i know some of you have been with us in the lower periods and some of you with us are kind of joining on a little bit more of this upswing What we've committed to is that the market is growing at about 10%. what we've committed to is that the market is growing at about 10% We are largely a big part of that market, so we can and should be driving at least 10% growth and be in a position to drive the growth of the market even faster. We did some slight adjustment on our guidance, which you can see here, showing both a nice uptick in our revenue as well as in our overall EBITDA. Strategic priorities, I discuss them on every earnings call. They're very basic. We have to increase access to care, removing all the barriers that are in the way, whether it's education, diagnostics, as well as the reimbursement. We have to have treatment options to help support the patients in this area and this idea of serving patients over time. We are largely a big part of that market, so we can and should be driving at least 10% growth and be in a position to drive the growth of the market even faster. we are largely a big part of that market so we can and should be driving at least 10% growth and be in a position to drive the growth of the market even faster We did some slight adjustment on our guidance, which you can see here, showing both a nice uptick in our revenue as well as in our overall EBITDA. we did some slight adjustment on our guidance which you can see here showing both a nice uptick in our revenue as well as in our overall ebitda Strategic priorities, I discuss them on every earnings call. strategic priorities i discuss them on every earnings call They're very basic. they're very basic We have to increase access to care, removing all the barriers that are in the way, whether it's education, diagnostics, as well as the reimbursement. we have to increase access to care removing all the barriers that are in the way whether it's education diagnostics as well as the reimbursement We have to have treatment options to help support the patients in this area and this idea of serving patients over time. we have to have treatment options to help support the patients in this area and this idea of serving patients over time These are our core three strategies and ones that we're really proud of, and we will continue to invest in this area, and we'll continue to drive the growth that we expect and our patients expect and our shareholders expect. With that, thank you very much. We'll see you upstairs. These are our core three strategies and ones that we're really proud of, and we will continue to invest in this area, and we'll continue to drive the growth that we expect and our patients expect and our shareholders expect. these are our core three strategies and ones that we're really proud of and we will continue to invest in this area and we'll continue to drive the growth that we expect and our patients expect and our shareholders expect With that, thank you very much. with that thank you very much We'll see you upstairs. we'll see you upstairs