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Jun 30, 2025
Tactile Systems Q2 2025 Earnings Report
Tactile Systems reported a 7.8% increase in total revenue, reaching $78.9 million, with gross margin improving to 75%. Net income decreased to $3.2 million, and adjusted EBITDA was $7.7 million.
Key Takeaways
Tactile Systems Technology, Inc. delivered strong financial performance in the second quarter of 2025, with total revenue increasing by 7.8% year-over-year to $78.9 million, exceeding expectations. The growth was primarily driven by a significant increase in airway clearance product sales. Despite the revenue growth, net income and adjusted EBITDA saw declines compared to the prior year, attributed to planned strategic investments.
Total revenue for Q2 2025 increased by 7.8% year-over-year, reaching $78.9 million.
Gross margin improved to 75% in Q2 2025, up from 74% in Q2 2024, primarily due to lower manufacturing and warranty costs.
Net income for Q2 2025 was $3.2 million, a decrease from $4.3 million in Q2 2024.
Adjusted EBITDA for Q2 2025 was $7.7 million, down from $9.1 million in Q2 2024, largely due to increased operating expenses from strategic investments.
Revenue by Segment
Forward Guidance
Tactile Systems updated its full-year 2025 financial outlook, expecting total revenue between $310 million and $315 million, representing 6% to 8% year-over-year growth. Adjusted EBITDA is projected to be in the range of $33 million to $35 million.
Positive Outlook
- Updated 2025 total revenue guidance to a higher range of $310 million to $315 million, indicating continued growth.
- Anticipated revenue growth of approximately 6% to 8% year-over-year for full year 2025.
- Confidence in continued momentum through the second half of the year due to a favorable payer policy environment and healthy channel call points.
- Strategic priorities for 2025 are designed to unlock market opportunity and enable scalable, profitable growth.
- Expectation to benefit more meaningfully from key technology and people-related investments in 2026.
Challenges Ahead
- Adjusted EBITDA guidance for full year 2025 is $33 million to $35 million, which is lower than the $37.1 million reported in 2024.
- No specific negative forward-looking statements were explicitly mentioned in the guidance section, but the lower EBITDA guidance implies potential margin pressures or increased investments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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