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

MINNEAPOLIS, MN, February 17, 2026 – 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.

Investor Inquiries:

Sam Bentzinger

Gilmartin Group

investorrelations@tactilemedical.com


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