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Tactile Systems Technology, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results

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Tactile Medical (Nasdaq: TCMD) reported Q4 2025 revenue of $103.6M (+21% YoY) and full-year 2025 revenue of $329.5M (+12% YoY). Gross margin expanded to 78% in Q4 and 76% for the year. Adjusted EBITDA rose to $22.9M in Q4 and $44.8M for 2025.

Key balance-sheet moves: repaid $26.3M term loan, repurchased $26.5M of stock, and ended 2025 with $83.4M cash. 2026 guidance: revenue $357M–$365M and adjusted EBITDA $49M–$51M.

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Positive

  • Q4 revenue +21% YoY to $103.6M
  • Full‑year revenue +12% YoY to $329.5M
  • Gross margin expanded to 78% in Q4 and 76% for 2025
  • Adjusted EBITDA increased to $22.9M in Q4 and $44.8M for 2025
  • Repaid $26.3M term loan, eliminating outstanding borrowing
  • $26.5M share repurchase at $12.36 average price

Negative

  • Cash declined to $83.4M from $94.4M at year-end 2024
  • Operating expenses +20% in Q4, rising to $62.2M
  • Income tax expense increased to $8.8M in Q4 from $3.3M

Market Reaction

+21.60% $34.11
15m delay 21 alerts
+21.60% Since News
+15.7% Peak in 0 min
$34.11 Last Price
$26.57 $37.03 Day Range
+$111M Valuation Impact
$627M Market Cap
0.1x Rel. Volume

Following this news, TCMD has gained 21.60%, reflecting a significant positive market reaction. Argus tracked a peak move of +15.7% during the session. Our momentum scanner has triggered 21 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $34.11. This price movement has added approximately $111M to the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q4 2025 revenue: $103.6M FY 2025 revenue: $329.5M Q4 2025 gross margin: 78% +5 more
8 metrics
Q4 2025 revenue $103.6M Fourth quarter 2025, up 21% year-over-year
FY 2025 revenue $329.5M Full year 2025, 12% year-over-year increase
Q4 2025 gross margin 78% Fourth quarter 2025, vs 75% in Q4 2024
FY 2025 gross margin 76% Full year 2025, vs 74% in 2024
FY 2025 net income $19.1M Full year 2025, vs $17.0M in 2024
2026 revenue outlook $357M–$365M Full year 2026 guidance, 8–11% YoY growth vs $329.5M
2026 Adjusted EBITDA outlook $49M–$51M Full year 2026 guidance vs $44.8M in 2025
2025 share repurchases $26.5M at $12.36 Stock bought under repurchase program in 2025

Market Reality Check

Price: $28.05 Vol: Volume 126,689 vs 20-day ...
low vol
$28.05 Last Close
Volume Volume 126,689 vs 20-day average 248,254 indicates lighter-than-normal trading ahead of the release. low
Technical Shares at $26.45 are trading above the 200-day MA of $17.48 and sit 15.71% below the 52-week high of $31.38.

Peers on Argus

Peers show a mixed picture: names like CLPT and NPCE are up (2.89%, 3.22%), whil...
1 Up

Peers show a mixed picture: names like CLPT and NPCE are up (2.89%, 3.22%), while SENS and CBLL are down (-2.09%, -0.85%). Momentum scanner only flagged BFLY with a modest uptick, suggesting the TCMD earnings event is company-specific rather than a broad medical devices move.

Previous Earnings Reports

5 past events · Latest: Nov 03 (Positive)
Same Type Pattern 5 events
Date Event Sentiment Move Catalyst
Nov 03 Q3 2025 earnings Positive +4.6% Strong Q3 growth, higher margins, guidance raised and debt repaid.
Aug 04 Q2 2025 earnings Neutral +26.8% Moderate growth, airway strength, but mixed profit and guidance update.
May 05 Q1 2025 earnings Negative -29.0% Flat revenue, wider loss and reduced full-year outlook.
Feb 18 FY 2024 earnings Positive -13.3% Strong 2024 growth, margin expansion and upbeat 2025 guidance.
Nov 04 Q3 2024 earnings Negative -11.1% Slower growth and sharply lower net income despite higher EBITDA.
Pattern Detected

Earnings reactions have been volatile: despite an average move of -4.39% around earnings, the company has seen both sharp selloffs and strong rallies, particularly in 2025 as results and guidance improved quarter-to-quarter.

Recent Company History

Over the last five earnings cycles from Q3 2024 through Q3 2025, Tactile Medical has steadily grown revenue and frequently expanded gross margins. 2024 results showed solid top-line growth but were followed by negative share reactions. In 2025, successive quarters delivered stronger earnings, significant airway clearance growth, debt repayment, and multiple share repurchase programs, with mixed but improving price responses that frame today’s 2025 year-end report.

Historical Comparison

-4.4% avg move · Across the last five earnings releases, TCMD’s average one-day move was -4.39%, highlighting a histo...
earnings
-4.4%
Average Historical Move earnings

Across the last five earnings releases, TCMD’s average one-day move was -4.39%, highlighting a history of volatile and often negative reactions around results.

Earnings since late 2024 show consistent revenue growth, improving gross margins, deleveraging via term-loan repayment, and escalating share repurchases, with 2025 results generally stronger than 2024 despite occasionally adverse stock reactions.

Market Pulse Summary

The stock is surging +21.6% following this news. A strong positive reaction aligns with the solid Q4...
Analysis

The stock is surging +21.6% following this news. A strong positive reaction aligns with the solid Q4 and full-year 2025 performance, including 21% Q4 revenue growth, higher gross margins, and increased Adjusted EBITDA. Past earnings days averaged a -4.39% move, so a sharp gain would have stood out versus history. Investors could weigh how sustained revenue growth, debt repayment, and buybacks balance against execution and reimbursement risks.

Key Terms

adjusted ebitda, term loan, stock-based compensation expense, rule 10b5-1(c) trading plan, +2 more
6 terms
adjusted ebitda financial
"Adjusted EBITDA of $22.9 million versus $16.2 million in Q4 2024"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
term loan financial
"Repaid full outstanding principal balance of $26.3 million under the Company’s term loan"
A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.
stock-based compensation expense financial
"Stock-based compensation expense | | 8,357 | | 7,819"
Stock-based compensation expense is the value that a company records when it gives employees or executives shares or options to buy shares as part of their pay. It matters because it shows the true cost of paying employees this way, which can affect the company's profits and how investors see its financial health.
rule 10b5-1(c) trading plan regulatory
"The sale was made pursuant to a Rule 10b5-1(c) trading plan"
A Rule 10b5-1(c) trading plan is a legally defined, pre-set schedule that lets company insiders automatically buy or sell stock at specified times or under set formulas when they are not in possession of undisclosed, sensitive information. Think of it like an automatic payment plan for trades: because the instructions are written in advance, trades under the plan help protect insiders from allegations of trading on secret information and give investors clearer expectations about when insiders will transact, which can affect liquidity and perceived transparency.
schedule 13g/a regulatory
"filed an amended Schedule 13G/A showing passive ownership"
A Schedule 13G/A is an amended public filing with the U.S. securities regulator that updates a previous Schedule 13G, disclosing when an individual or group holds a substantial (typically over 5%) stake in a company and is claiming a passive, non‑controlling intent. Investors monitor these updates because rising or falling holdings can signal changing confidence, potential future moves, or shifts in voting power — like watching a public ledger where large shareholders quietly adjust their positions.
form 4 regulatory
"title": "[Form 4] TACTILE SYSTEMS TECHNOLOGY INC Insider Trading Activity""
Form 4 is a official document that company insiders, such as executives or major shareholders, file with regulators whenever they buy or sell company shares. It provides transparency about how those with inside knowledge are trading, helping investors see if insiders are confident in the company's prospects or may be selling for personal reasons. This information can influence investor decisions by revealing insiders' perspectives on the company's value.

AI-generated analysis. Not financial advice.

MINNEAPOLIS, Feb. 17, 2026 (GLOBE NEWSWIRE) -- Tactile Systems Technology, Inc. (“Tactile Medical”; the “Company”) (Nasdaq: TCMD), a medical technology company providing therapies for people with chronic disorders, today reported financial results for the fourth quarter and full year ended December 31, 2025.

Fourth Quarter 2025 Summary:

  • Total revenue increased 21% year-over-year to $103.6 million
  • Gross margin of 78% versus 75% in Q4 2024
  • Net income of $10.6 million versus $9.7 million in Q4 2024
  • Adjusted EBITDA of $22.9 million versus $16.2 million in Q4 2024

Full Year 2025 Summary:

  • Total revenue increased 12% year-over-year to $329.5 million
  • Gross margin of 76%, compared to 74% in 2024
  • Operating cashflow of $42.8 million, compared to $40.7 million in 2024
  • Repaid full outstanding principal balance of $26.3 million under the Company’s term loan
  • Repurchased $26.5 million of stock at an average price of $12.36 per share
  • Ended 2025 with $83.4 million in cash, compared to $94.4 million at the end of 2024

Recent Business Highlights

  • Acquired LymphaTech, expanding our lymphedema solutions portfolio and strengthening our R&D capabilities with their digital 3D scanning technology for chronic swelling detection, measurement, and monitoring
  • Announced the publication of two-month clinical data comparing Flexitouch Plus™ to usual care in the Journal of the Sciences and Specialties of the Head and Neck

“In 2025, we executed with discipline against our core growth strategies, delivering double-digit revenue growth, expanding gross margin and adjusted EBITDA, and generating strong cash flow, while continuing to strategically invest in people and workflow-related processes to strengthen our business for scale,” said Sheri Dodd, Chief Executive Officer of Tactile Medical. “We delivered on our goals, and in doing so, advanced our mission of improving the lives of over 95,000 patients with lymphedema and chronic inflammatory lung disease.”

Ms. Dodd continued, “Looking ahead, we anticipate continued commercial and operational momentum in our lymphedema business to support sustained market leadership and revenue performance in line with overall market growth. Alongside increasing depth and breadth of collaboration with our DME partners in our respiratory business, we believe we are entering 2026 from a position of operational and financial strength.”

Fourth Quarter 2025 Financial Results

Total revenue in the fourth quarter of 2025 increased $18.0 million, or 21%, to $103.6 million, compared to $85.6 million in the fourth quarter of 2024. The increase in total revenue was attributable to an increase of $12.4 million, or 16%, in sales and rentals of the lymphedema product line and an increase of $5.6 million, or 66%, in sales of the airway clearance product line.

Gross profit in the fourth quarter of 2025 increased $16.6 million, or 26%, to $81.0 million, compared to $64.4 million in the fourth quarter of 2024. Gross margin was 78% of revenue, compared to 75% of revenue in the fourth quarter of 2024.

Operating expenses in the fourth quarter of 2025 increased $10.4 million, or 20%, to $62.2 million, compared to $51.9 million in the fourth quarter of 2024.

Operating income was $18.8 million in the fourth quarter of 2025, compared to $12.5 million in the fourth quarter of 2024.

Income tax expense was $8.8 million in the fourth quarter of 2025, compared to $3.3 million in the fourth quarter of 2024.

Net income in the fourth quarter of 2025 was $10.6 million, or $0.46 per diluted share, compared to $9.7 million, or $0.40 per diluted share, in the fourth quarter of 2024.

Weighted average shares used to compute diluted net income per share were 23.0 million and 24.5 million for the fourth quarters of 2025 and 2024, respectively.

Adjusted EBITDA was $22.9 million in the fourth quarter of 2025, compared to $16.2 million in the fourth quarter of 2024.

Full Year 2025 Financial Results

Total revenue in the full year of 2025 increased $36.5 million, or 12%, to $329.5 million, compared to $293.0 million in the full year of 2024. The increase in total revenue was attributable to an increase of $19.0 million, or 7%, in sales and rentals of the lymphedema product line and an increase of $17.5 million, or 52%, in sales of the airway clearance product line.

Net income in the full year of 2025 was $19.1 million, or $0.82 per diluted share, compared to $17.0 million, or $0.70 per diluted share, in the full year of 2024.

Weighted average shares used to compute diluted net income per share were 23.3 million and 24.1 million in the full year of 2025 and 2024, respectively.

Adjusted EBITDA was $44.8 million in the full year of 2025, compared to $37.1 million in the full year of 2024.

Balance Sheet Summary

As of December 31, 2025, the Company had $83.4 million in cash and no outstanding borrowings under its credit agreement, compared to $94.4 million in cash and $26.3 million of outstanding borrowings under its credit agreement as of December 31, 2024. In 2025, the Company repaid the full outstanding principal balance of $26.3 million under its term loan and repurchased $26.5 million of stock under its original share repurchase program at an average price of $12.36 per share excluding commissions and excise tax.

2026 Financial Outlook

The Company expects full year 2026 total revenue in the range of $357 million to $365 million, representing growth of approximately 8% to 11% year-over-year, compared to total revenue of $329.5 million in 2025. The Company also expects full year 2026 adjusted EBITDA in the range of $49 million to $51 million, compared to adjusted EBITDA of $44.8 million in 2025.

Conference Call

Management will host a conference call with a question-and-answer session at 5:00 p.m. Eastern Time on February 17, 2026, to discuss the results of the quarter and fiscal year. Those who would like to participate may dial 877-407-3088 (201-389-0927 for international callers) and provide access code 13758303. A live webcast of the call will also be provided on the investor relations section of the Company's website at investors.tactilemedical.com.

For those unable to participate, a replay of the call will be available for two weeks at 877-660-6853 (201-612-7415 for international callers); access code 13758303. The webcast will be archived at investors.tactilemedical.com.

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

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

Legal Notice Regarding Forward-Looking Statements

This release contains forward-looking statements, including guidance for the full year 2025. Forward-looking statements are generally identifiable by the use of words like “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “continue,” “confident,” “outlook,” “guidance,” “project,” “goals,” “look forward,” “poised,” “designed,” “plan,” “return,” “focused,” “prospects” or “remain” or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties outside of the Company’s control that can make such statements untrue, including, but not limited to, the Company’s ability to obtain reimbursement from third-party payers for its products; adverse economic conditions, including inflation, rising interest rates or a recession; the adequacy of the Company’s liquidity to pursue its business objectives; price increases for supplies and components; wage and component price inflation; loss of a key supplier or other supply chain disruptions; entry of new competitors and/or competitive products; compliance with and changes in federal, state and local government laws and regulations; technological obsolescence of, or quality issues with, the Company’s products; the Company’s ability to expand its business through strategic acquisitions; the Company’s ability to integrate acquisitions and related businesses; the effects of current and future U.S. and foreign trade policy and tariff actions; or the inability to carry out research, development and commercialization plans. In addition, other factors that could cause actual results to differ materially are discussed in the Company’s filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company undertakes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Measures

This press release includes the non-GAAP financial measure of Adjusted EBITDA, which differs from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted EBITDA in this release represents net income, plus interest expense, net, or less interest income, net, less income tax benefit or plus income tax expense, plus depreciation and amortization, plus stock-based compensation expense, and plus executive transition costs. Reconciliation of this non-GAAP financial measure to its most directly comparable GAAP measure is included in this press release.

This non-GAAP financial measure is presented because the Company believes it is a useful indicator of its operating performance. Management uses this measure principally as a measure of the Company’s operating performance and for planning purposes, including the preparation of the Company’s annual operating plan and financial projections. The Company believes this measure is useful to investors as supplemental information and because it is frequently used by analysts, investors and other interested parties to evaluate companies in its industry. The Company also believes this non-GAAP financial measure is useful to its management and investors as a measure of comparative operating performance from period to period. In addition, Adjusted EBITDA is used as a performance metric in the Company’s compensation program.

The non-GAAP financial measure presented in this release should not be considered as an alternative to, or superior to, its respective GAAP financial measure, as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and it should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as tax payments, debt service requirements, capital expenditures and certain other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs and cash costs to replace assets being depreciated and amortized. In evaluating non-GAAP financial measures, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in this presentation. The Company’s presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using non-GAAP financial measures on a supplemental basis. The Company’s definition of these non-GAAP financial measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation.

Tactile Systems Technology, Inc.
Consolidated Balance Sheets
  December 31, December 31,
(In thousands, except share and per share data) 2025 2024
Assets     
Current assets      
Cash $83,446 $94,367
Accounts receivable, net  43,876  44,937
Net investment in leases  15,754  14,540
Inventories  14,025  18,666
Prepaid expenses and other current assets  8,066  5,053
Total current assets  165,167  177,563
Non-current assets      
Property and equipment, net  5,117  5,603
Right of use operating lease assets  13,798  16,633
Intangible assets, net  39,167  42,789
Goodwill  31,063  31,063
Deferred income taxes  9,783  18,311
Other non-current assets  9,847  5,962
Total non-current assets  108,775  120,361
Total assets $273,942 $297,924
Liabilities and Stockholders' Equity      
Current liabilities      
Accounts payable $4,968 $5,648
Note payable    2,956
Accrued payroll and related taxes  19,378  17,923
Accrued expenses  8,531  7,780
Income taxes payable  1,428  270
Operating lease liabilities  3,195  2,980
Other current liabilities  3,457  3,147
Total current liabilities  40,957  40,704
Non-current liabilities      
Note payable, non-current    23,220
Accrued warranty reserve, non-current  1,045  1,209
Income taxes payable, non-current  275  239
Operating lease liabilities, non-current  12,763  15,955
Total non-current liabilities  14,083  40,623
Total liabilities  55,040  81,327
       
Stockholders’ equity:      
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued and outstanding as of December 31, 2025 and December 31, 2024    
Common stock, $0.001 par value, 300,000,000 shares authorized; 22,438,926 shares issued and outstanding as of December 31, 2025; 23,883,475 shares issued and outstanding as of December 31, 2024  22  24
Additional paid-in capital  163,940  180,719
Retained earnings  54,940  35,854
Total stockholders’ equity  218,902  216,597
Total liabilities and stockholders’ equity $273,942 $297,924
       


Tactile Systems Technology, Inc.
Consolidated Statements of Operations
             
             
  Three Months Ended Year Ended
  December 31, December 31,
(In thousands, except share and per share data) 2025
 2024
 2025
 2024
Revenue            
Sales revenue $92,703  $75,270  $292,593  $256,012 
Rental revenue  10,891   10,315   36,929   36,972 
Total revenue  103,594   85,585   329,522   292,984 
Cost of revenue            
Cost of sales revenue  19,416   18,005   68,686   64,815 
Cost of rental revenue  3,172   3,211   10,690   11,481 
Total cost of revenue  22,588   21,216   79,376   76,296 
Gross profit            
Gross profit - sales revenue  73,287   57,265   223,907   191,197 
Gross profit - rental revenue  7,719   7,104   26,239   25,491 
Gross profit  81,006   64,369   250,146   216,688 
Operating expenses            
Sales and marketing  33,873   29,206   121,237   112,009 
Research and development  2,531   2,038   8,481   8,832 
Reimbursement, general and administrative  25,231   19,977   88,705   71,135 
Intangible asset amortization and earn-out  596   633   2,444   2,531 
Total operating expenses  62,231   51,854   220,867   194,507 
Income from operations  18,775   12,515   29,279   22,181 
Interest income  685   948   3,097   3,384 
Interest expense  (11)  (472)  (1,038)  (2,085)
Other income        1   9 
Income before income taxes  19,449   12,991   31,339   23,489 
Income tax expense  8,815   3,275   12,253   6,529 
Net income $10,634  $9,716  $19,086  $16,960 
Net income per common share            
Basic $0.47  $0.40  $0.83  $0.71 
Diluted $0.46  $0.40  $0.82  $0.70 
Weighted-average common shares used to compute net income per common share            
Basic  22,390,282   24,007,863   22,872,841   23,883,729 
Diluted  23,043,226   24,473,898   23,295,328   24,138,244 
                 


Tactile Systems Technology, Inc.
Consolidated Statements of Cash Flows
   
  Year Ended December 31,
(In thousands) 2025
 2024
Cash flows from operating activities      
Net income $19,086  $16,960 
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization  6,643   6,792 
Deferred income taxes  8,528   1,067 
Stock-based compensation expense  8,357   7,819 
Loss on disposal of property and equipment and intangibles  78   308 
Changes in assets and liabilities, net of acquisition:      
Accounts receivable, net  1,061   (1,764)
Net investment in leases  (1,214)  (345)
Inventories  4,641   3,861 
Income taxes payable  1,194   (1,404)
Prepaid expenses and other assets  (6,898)  (3,929)
Right of use operating lease assets  (142)  187 
Accounts receivable, non-current     10,936 
Accounts payable  (758)  (1,087)
Accrued payroll and related taxes  1,455   1,134 
Accrued expenses and other liabilities  780   120 
Net cash provided by operating activities  42,811   40,655 
Cash flows from investing activities      
Purchases of property and equipment  (2,380)  (2,392)
Proceeds from sale of property and equipment     12 
Intangible assets expenditures  (155)  (117)
Net cash used in investing activities  (2,535)  (2,497)
Cash flows from financing activities      
Payments on note payable  (26,250)  (3,000)
Proceeds from exercise of common stock options  222   24 
Proceeds from the issuance of common stock from the employee stock purchase plan  1,392   1,660 
Payments for repurchases of common stock  (26,561)  (3,508)
Net cash used in financing activities  (51,197)  (4,824)
Net (decrease) increase in cash  (10,921)  33,334 
Cash – beginning of period  94,367   61,033 
Cash – end of period $83,446  $94,367 
       
Supplemental cash flow disclosure      
Cash paid for interest $1,218  $2,106 
Cash paid for taxes $2,500  $6,866 
Accrued excise tax on stock repurchases $191  $ 
Capital expenditures incurred but not yet paid $78  $76 
         

The following table summarizes revenue by product line for the three and twelve months ended December 31, 2025 and 2024:

  Three Months Ended Year Ended
  December 31, December 31,
(In thousands) 2025
 2024
 2025
 2024
Revenue            
Lymphedema products $89,476  $77,083  $278,380  $259,361 
Airway clearance products  14,119   8,502   51,142   33,623 
Total $103,595  $85,585  $329,522  $292,984 
             
Percentage of total revenue            
Lymphedema products  86%  90%  84%  89%
Airway clearance products  14%  10%  16%  11%
Total  100%  100%  100%  100%
                 

The following table contains a reconciliation of net income to Adjusted EBITDA for the three and twelve months ended December 31, 2025 and 2024, as well as the dollar and percentage change between the comparable periods:

Tactile Systems Technology, Inc.
Reconciliation of Net Income to Non-GAAP Adjusted EBITDA
(Unaudited)
                         
  Three Months Ended Increase Year Ended Increase
  December 31, (Decrease) December 31, (Decrease)
(Dollars in thousands) 2025
 2024
 $ % 2025
 2024
 $ %
Net Income $10,634  $9,716  $918  9 % $19,086  $16,960  $2,126  13 %
Interest (income) expense, net  (674)  (476)  (198) 42 %  (2,059)  (1,299)  (760) 59 %
Income tax expense  8,815   3,275   5,540  169 %  12,253   6,529   5,724  88 %
Depreciation and amortization  1,621   1,714   (93) (5)%  6,644   6,793   (149) (2)%
Stock-based compensation  2,538   1,850   688  37 %  8,357   7,819   538  7 %
Executive transition costs     137   (137) (100)%  491   248   243  98 %
Adjusted EBITDA $22,934  $16,216  $6,718  41 % $44,772  $37,050  $7,722  21 %
                                 

The following table contains a reconciliation of GAAP net income guidance range to the Adjusted EBITDA guidance range for the twelve months ending December 31, 2026:

Tactile Systems Technology, Inc.
Reconciliation of FY 2026 GAAP Net Income to Adjusted EBITDA Guidance
(Unaudited)
       
  Year Ended
  December 31, 2026
(Dollars in thousands) Low High
Net income $26,080  $27,519 
Interest income, net  (2,983)  (2,983)
Income tax expense  10,142   10,703 
Depreciation and amortization  6,863   6,863 
Stock-based compensation  8,898   8,898 
Adjusted EBITDA $49,000  $51,000 
         

Investor Inquiries:
Sam Bentzinger
Gilmartin Group
investorrelations@tactilemedical.com


FAQ

What were Tactile Medical (TCMD) Q4 2025 revenue and growth rates?

Tactile Medical reported $103.6 million in Q4 2025 revenue, a 21% year‑over‑year increase. According to the company, growth was driven by a 16% rise in lymphedema sales and a 66% increase in airway clearance product sales.

How did TCMD's profitability change in Q4 2025 and full-year 2025?

Profitability improved, with Q4 gross margin at 78% and full‑year gross margin at 76%. According to the company, adjusted EBITDA rose to $22.9M in Q4 and $44.8M for 2025, reflecting margin expansion and operating leverage.

What balance sheet actions did Tactile Medical (TCMD) take in 2025?

Tactile Medical repaid its full $26.3 million term loan and repurchased $26.5 million of stock in 2025. According to the company, these moves reduced debt and returned capital to shareholders while ending the year with $83.4M cash.

What guidance did TCMD provide for full-year 2026 revenue and adjusted EBITDA?

The company expects full-year 2026 revenue of $357M–$365M, about 8%–11% growth, and adjusted EBITDA of $49M–$51M. According to the company, this guidance reflects anticipated commercial momentum in lymphedema and respiratory businesses.

How did operating expenses and taxes affect TCMD's Q4 2025 results?

Operating expenses rose by 20% to $62.2M in Q4 2025, and income tax expense increased to $8.8M. According to the company, higher expenses reflect investments in people and workflow processes to support scaling the business.

Did Tactile Medical (TCMD) report any strategic acquisitions or clinical updates in 2025?

Yes. The company acquired LymphaTech and published two‑month clinical data comparing Flexitouch Plus to usual care. According to the company, the acquisition enhances lymphedema offerings and adds 3D scanning R&D capabilities.
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Medical Devices
Surgical & Medical Instruments & Apparatus
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