Total Revenue

+0.3% (from $61.088M in Q1 2024 to $61.268M in Q1 2025)

The marginal revenue increase indicates near-flat sales performance with only slight incremental gains, likely driven by minor volume or pricing improvements compared to the previous period. " "

Operating Loss

Deepened by ~53% (from $2.964M in Q1 2024 to $4.542M in Q1 2025)

The operating loss widened significantly, largely due to a substantial 23% increase in general and administrative expenses, which were not offset by the nearly flat revenue levels, worsening operational performance compared to the prior period. " "

Net Loss

Increased by ~34% (from $2.209M in Q1 2024 to $2.974M in Q1 2025)

The net loss expansion reflects the compounded impact of higher operating expenses—especially the jump in G&A costs—despite improved cost of revenue performance, indicating that cost pressures outpaced the modest revenue gains seen in Q1 2025. " "

Cost of Revenue

-10% (from $17.659M in Q1 2024 to $15.922M in Q1 2025)

A 10% reduction in cost of revenue suggests operational efficiencies or cost control improvements in manufacturing, contributing to a slight improvement in gross profit even though overall operating performance was negatively affected. " "

General & Administrative Expense

+23% (from $16.261M in Q1 2024 to $19.998M in Q1 2025)

The surge in G&A expenses is critical—likely driven by increased personnel, IT, and occupancy costs—which significantly eroded margins, particularly in an environment of nearly stagnant revenue compared to the previous period. " "

Operating Cash Flow

-55% (from $924K in Q1 2024 to $417K in Q1 2025)

Operating cash flow fell by 55%, largely reflecting the lower operating income and perhaps less favorable working capital changes, which, despite improvements in gross profit from lower cost of revenue, constrained liquidity relative to Q1 2024. " "

Cash and Cash Equivalents

-11% (from $94.367M at Q4 2024 to $83.619M in Q1 2025)

The decline of 11% in cash balances is primarily attributable to significant financing outflows—particularly from share repurchases—and lower operating cash flow generation in Q1 2025 compared to the strong cash position reported at the end of Q4 2024. "

Total Stockholders’ Equity

-5% (from $216.597M at Q4 2024 to $205.631M in Q1 2025)

The 5% contraction in equity results from the combination of a Q1 2025 net loss and substantial share repurchases that reduced additional paid-in capital and retained earnings, undermining the robust equity levels that were established in the previous period. "

Total Revenue

FY 2025

$316 million–$322 million (growth of 8%–10%) "

$309 million–$315 million (growth of 5%–8%) "

lowered

Lymphedema Product Line Growth

FY 2025

8%–10% "

4%–5% " "

lowered

Airway Clearance Product Growth

FY 2025

6%–9% "

20%–23% " "

raised

GAAP Gross Margin

FY 2025

Approximately 74% "

Approximately 74% "

no change

GAAP Operating Expenses

FY 2025

Expected to increase in the mid‐double digits "

Expected to increase 9%–11% year-over-year "

lowered

Net Interest Income

FY 2025

Approximately $2.5 million "

Approximately $2.4 million "

lowered

Tax Rate

FY 2025

28% "

28% "

no change

Fully Diluted Weighted Average Share Count

FY 2025

Approximately 24 million shares "

Approximately 24 million shares "

no change

Adjusted EBITDA

FY 2025

Approximately $35 million–$37 million "

Approximately $32 million–$34 million "

lowered

Stock Compensation Expense

FY 2025

Approximately $8.8 million "

Approximately $8.6 million "

lowered

Intangible Amortization

FY 2025

Approximately $2.4 million "

Approximately $2.4 million "

no change

Depreciation Expense

FY 2025

Approximately $4.3 million "

Approximately $4.3 million "

no change

Tariff Impact

FY 2025

no prior guidance

$1 million cost of goods sold impact; total impact on COGS expected to be less than $5 million "

no prior guidance

Airway Clearance Product Performance

Previously discussed with modest to moderate growth (e.g., Q4 2024 had 3.8% YOY, Q3 2024 noted seasonal and DME buying pattern challenges, and Q2 2024 showed stabilization and market share gains) " " " " " "

Q1 2025 showed strong revenue growth of 22% YOY, emphasized strategic partnerships and competitive market positioning with no market share concerns " " "

Improved sentiment and performance with accelerated growth and clearer market validation.

Sales Organization Enhancement and CRM Integration

Consistently focused on restructuring roles, improving territory balance, and piloting or launching CRM tools across Q2–Q4 2024 with enhancements in redeployment, expanded headcount models, and early CRM integrations " " " " "

Q1 2025 detailed an optimized sales organization, completed territory rebalancing, and launched the Salesforce CRM module with early signs of productivity recovery despite initial disruptions " " " "

Continued focus with a more refined and productive sales structure; sentiment is positive with expectations for long-term efficiency gains.

Nimbl Product Innovation and New Product Pipeline

In Q2–Q4 2024, Nimbl’s launch was discussed with emphasis on its lightweight design, connectivity (with Kylee), phased market introduction for upper and lower extremity treatments, and early clinical or RCT efforts for head & neck solutions " " " " "

Q1 2025 reported strong patient and provider adoption, robust Medicare channel growth, and an active new product pipeline including head & neck clinical evidence, as well as integration with digital platforms (e.g., 25% of orders via Parachute) " " " "

Steady progress from phased launches to robust market adoption with an expanding pipeline, reinforcing product leadership.

Medicare Reimbursement and Documentation Challenges

Q2 2024 focused on increased documentation burdens impacting order processing and revenue guidance, Q3 2024 noted challenges with documentation and transition from LCD to NCD, Q4 2024 highlighted the transition to a more favorable NCD environment with reduced burdens " " " " " " "

Q1 2025 continued to address dynamic reimbursement challenges around undefined “unique characteristics,” though there was an emphasis on successful engagement with MACs and improved alignment "

Consistent challenges remain; however, the narrative shows cautious optimism as the company refines its processes and navigates policy transitions.

Non-Medicare Channel Growth and Diversification

Q2 2024 reported nearly 20% growth in non-Medicare (VA and Commercial), Q3 2024 noted robust double-digit growth and strong performance in both channels, and Q4 2024 highlighted double-digit growth driven by technology improvements " " " "

Q1 2025 mentioned short-term pressures in VA and commercial channels due to bandwidth shifts but expects a rebound following sales organization optimization " "

Solid overall growth with temporary channel pressures in Q1 2025; sentiment remains positive with an expectation of rebalancing efforts restoring growth.

Operating Expenses, Margin Pressure, and Profitability Concerns

Q2 2024 details modest expense increases with improving gross margins and rising EBITDA; Q3 2024 and Q4 2024 pointed to higher investments causing operating expense increases but with steady margin improvements and positive adjusted EBITDA guidance " " " " " " " "

Q1 2025 reported an increase in expenses driven by technology investments with a modest decline in adjusted EBITDA but with improved gross margins and a long-term focus on operational leverage " " "

Investments and growing expenses continue to pressure short-term profitability while gross margins improve; the long-term narrative is one of strategic reinvestment.

Legal Proceedings and Regulatory Risks

Only Q4 2024 referenced a qui tam lawsuit as an ongoing legal matter with limited commentary; Q2 and Q3 2024 had no mention "

Q1 2025 did not mention legal proceedings or regulatory risks at all

The topic appears to have receded from active discussion in Q1 2025, possibly indicating a lower materiality or resolution in focus compared to Q4 2024.

Strategic Uncertainty with New CEO and Long-Range Planning

Q2 2024 featured discussion on the new CEO’s need for time to assess strategy and refine long-range planning; Q4 2024 had positive messaging from the CEO outlining strategic priorities with no expressed uncertainty; Q3 2024 did not address this topic " " "

Q1 2025 did not mention new CEO uncertainty or long-range planning, implying stabilization and clear strategic direction

Initial uncertainty expressed earlier has been resolved, suggesting that leadership is now aligned and the strategy is stabilized.

Adoption of Digital Health Solutions

Across Q2–Q4 2024, there was progressive discussion about e-prescribing tool pilots, national rollouts, AI tool exploration, and integration with CRM systems with generally positive feedback and acknowledged challenges in adoption variability " " " " " "

Q1 2025 emphasized stronger integration of the Parachute platform (contributing to about 25% of new orders), deployment of AI enhancements, and noted transition challenges related to CRM and training but overall remained optimistic about reducing documentation friction " "

Consistent and expanding digital adoption with iterative improvements; while risks remain with adoption rates and training, sentiment is optimistic about future efficiency gains.

Lymphedema Treatment Act Impact

Only Q3 2024 discussed unrealized benefits where the process delays and incremental patient uptake were noted "

Q1 2025 did not mention the Lymphedema Treatment Act, suggesting it is not a current focus

The topic was a one-period discussion and is no longer emphasized, indicating it may have lost short-term prominence as other operational topics take priority.

Robust Financial Position and Capital Allocation

Q2 2024 through Q4 2024 consistently emphasized strong cash positions, free cash flow generation, share repurchase programs, and strategic investments to drive shareholder returns " " " " " "

Q1 2025 continued to highlight a robust cash position with solid buyback activity, a slight sequential cash decline due to repurchases and bonus payments, and a modest reduction in debt, reinforcing commitment to shareholder returns " "

The company maintains a consistently strong financial position with strategic use of capital, reinforcing investor confidence over all periods.