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

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

[email protected]