Tactile Systems Reports Record Revenue and Profit Growth in 2025

Tactile Systems Reports Record Revenue and Profit Growth in 2025

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Tactile Systems Reports Record Revenue and Profit Growth in 2025

Tactile Systems Technology, Inc. (TCMD) has released its financial results for 2025, showing strong growth in revenue and profitability. The company's quarterly and annual figures highlight increases in earnings, margins, and cash reserves.

In the fourth quarter of 2025, TCMD reported a 21% rise in total revenue, reaching $103.6 million. This compares to $85.5 million in the same period of 2024. For the full year, revenue climbed 12% to $329.5 million.

Profitability also improved. Adjusted EBITDA for Q4 2025 rose to $22.9 million, up from $16.2 million in Q4 2024. The full-year adjusted EBITDA reached $44.8 million, compared to $37.1 million in 2024. Net income for the quarter was $10.6 million, an increase from $9.7 million in the prior year, while annual net income grew to $19.1 million from $17.0 million.

The company's gross margin expanded to 78% in Q4 2025, up from 75% in the previous year. TCMD also strengthened its financial position by repaying the full $26.3 million outstanding principal on its term loan. By the end of 2025, its cash reserves stood at $83.4 million.

During the year, TCMD repurchased $26.5 million of its stock at an average price of $12.36 per share. Looking ahead, the company forecasts 2026 revenue between $357 million and $365 million, representing growth of 8% to 11%.

In early 2026, TCMD acquired LymphaTech for $6.8 million in upfront payments. Details on how this acquisition will impact its market position in lymphedema and chronic lung disease, or its partnerships with US durable medical equipment (DME) providers, have not yet been disclosed.

TCMD's 2025 results show higher revenue, improved margins, and a stronger balance sheet. The company's guidance for 2026 suggests continued growth, while its recent acquisition expands its portfolio. Financial flexibility remains a key focus after debt repayment and share buybacks.

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