Core Insights - Tactile Systems Technology Inc reported strong third-quarter earnings, with earnings per share of 36 cents, surpassing the analyst consensus estimate of 17 cents per share [1] - The company achieved quarterly sales of $85.755 million, exceeding the analyst consensus estimate of $79.306 million [1] - Tactile Systems raised its FY2025 sales guidance from a range of $310 million to $315 million to a new range of $317 million to $321 million [1] Company Performance - CEO Sheri Dodd highlighted the strong third-quarter results as a reflection of ongoing business transformation and product innovation initiatives [2] - The company's go-to-market strategies and differentiated products are contributing to market leadership and revenue growth [2] - Tactile Systems is beginning to see operational leverage and is well-positioned to capitalize on improving market conditions [2] Stock Market Reaction - Following the earnings announcement, Tactile Systems shares surged by 38.1%, reaching a trading price of $21.78 [2] Analyst Ratings - Piper Sandler analyst Adam Maeder maintained a Neutral rating on Tactile Systems and raised the price target from $14 to $20 [5] - Lake Street analyst Ben Haynor kept a Buy rating and increased the price target from $23.5 to $32 [5]

Core Insights - The company reported strong third-quarter financial results, with total revenue of $85.8 million, reflecting a 17% year-over-year growth. Lymphedema revenue increased by 11% to $72.4 million, while airway clearance revenue surged by 71% to $13.4 million [2][31]. - The company raised its full-year 2025 revenue guidance to a range of $317 million to $321 million, indicating an expected growth of approximately 8% to 10% year-over-year [1][35]. Financial Performance - Gross margins improved by 80 basis points year-over-year to 76%, and adjusted EBITDA rose by 34% year-over-year to $14.4 million [1][31]. - Operating expenses increased by 13% to $54 million, driven by strategic investments in sales and marketing [32]. - Net income increased by 59% to $8.2 million, or $0.36 per diluted share, compared to $5.2 million, or $0.21 per diluted share, in the previous year [33]. Business Line Performance - The lymphedema business showed a steady recovery, with a 10% sequential growth and a 130% year-over-year increase in Medicare channel sales [7][10]. - The airway clearance product, AfloVest, experienced a 71% year-over-year growth, attributed to strong partnerships with top respiratory DMEs and increased market awareness of bronchiectasis [12][13]. Strategic Priorities - The company is focused on three strategic priorities: improving access to care, expanding treatment options, and enhancing lifetime patient value [6][20]. - Recent initiatives include integrating AI technology into order operations to improve efficiency and launching a care navigation pilot to enhance patient engagement [18][26]. Market Dynamics - The transition from LCD to NCD in Medicare policies is expected to facilitate greater access to advanced pump therapy, positively impacting revenue growth [36][37]. - The market for lymphedema products is projected to grow at approximately 10%, with the company positioned to capture this growth through enhanced sales strategies and product offerings [60][62]. Capital Allocation - The company is generating free cash flow and has initiated a share repurchase program of up to $25 million, reflecting confidence in its growth trajectory [29][28].

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Denny's Corporation (DENN) is up 49% at $6.16 [3] - Cambium Networks Corporation (CMBM) is up 25% at $2.55 [3] - Tactile Systems Technology, Inc. (TCMD) is up 22% at $19.35 [3] - Upwork Inc. (UPWK) is up 19% at $18.60 [3] - Kforce Inc. (KFRC) is up 12% at $27.50 [3] - Super Group (SGHC) Limited (SGHC) is up 12% at $11.91 [3] - Innovex International, Inc. (INVX) is up 10% at $22.62 [3] - Sanmina Corporation (SANM) is up 9% at $154.03 [3] - Exact Sciences Corporation (EXAS) is up 8% at $72.69 [3] - OTG Acquisition Corp. I Class A Ordinary Share (OTGA) is up 7% at $10.77 [3] Premarket Losers - Sarepta Therapeutics, Inc. (SRPT) is down 40% at $14.44 [4] - JELD-WEN Holding, Inc. (JELD) is down 32% at $2.81 [4] - Ichor Holdings, Ltd. (ICHR) is down 29% at $16.05 [4] - Insperity, Inc. (NSP) is down 27% at $32.50 [4] - Prelude Therapeutics Incorporated (PRLD) is down 22% at $3.08 [4] - Forward Industries, Inc. (FORD) is down 20% at $11.11 [4] - Navitas Semiconductor Corporation (NVTS) is down 18% at $10.03 [4] - Diginex Limited (DGNX) is down 17% at $19.51 [4] - Atlas Energy Solutions Inc. (AESI) is down 16% at $10.58 [4] - Chijet Motor Company, Inc. (CJET) is down 15% at $3.24 [4]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $85.8 million, reflecting a 17% year-over-year growth [4][24] - Gross margins increased by 80 basis points year-over-year to 76% [5][24] - Adjusted EBITDA rose 34% year-over-year to $14.4 million [5][24] - Net income increased by 59% year-over-year to $8.2 million, or $0.36 per diluted share [25] Business Line Data and Key Metrics Changes - Lymphedema revenue grew 11% year-over-year to $72.4 million, with a sequential increase of 10% from Q2 [4][24] - Airway clearance revenue surged 71% year-over-year to $13.4 million, with a 3% sequential increase [4][24] - Sales in the Medicare channel for lymphedema increased by 130% year-over-year, while commercial and VA channels declined by 9% [8][10] Market Data and Key Metrics Changes - The payer mix for Q3 2025 indicates a return to a more normalized environment, supporting balanced year-over-year comparisons moving forward [10] - The transition from LCD to NCD is expected to drive continued improvement in Q4 and beyond [10][28] Company Strategy and Development Direction - The company’s strategic priorities include improving access to care, expanding treatment options, and enhancing lifetime patient value [5][16] - Focus on strengthening relationships with DMEs and increasing awareness of bronchiectasis to drive growth in airway clearance products [11][12] - Investments in sales organization and technology are aimed at unlocking total addressable market (TAM) and driving profitable growth [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the business, supported by strong financial performance and operational execution [31] - The favorable Medicare policy environment is seen as a significant tailwind for growth [28] - Expectations for continued growth in both business lines, with a raised full-year revenue guidance to $317-$321 million [5][27] Other Important Information - The company has initiated a share repurchase program of up to $25 million, reflecting confidence in its growth trajectory [23] - The company ended Q3 with $66 million in cash and no outstanding borrowings [26] Q&A Session Summary Question: Insights on AffloVest performance - Management noted strong performance driven by deep relationships with top DMEs and increased awareness of bronchiectasis [34][35] Question: Guidance clarification for lymphedema - Management confirmed no one-time events in Q3 and highlighted the impact of the NCD as a tailwind for future growth [39][42] Question: Market growth rate in lymphedema - Management indicated the lymphedema market is growing at approximately 10%, with expectations to match this growth [44][45] Question: Impact of new NCD on patient access - The NCD allows patients with unique characteristics to access advanced pump therapy directly, streamlining the process [51][52] Question: Drivers of lymphedema revenue growth - Key drivers include expanded headcount, improved productivity, and the successful launch of Nimble [53][55]

Revenue Growth - Revenue increased by $12.7 million, or 17%, to $85.8 million for the three months ended September 30, 2025, compared to $73.1 million for the same period in 2024[124] - For the nine months ended September 30, 2025, revenue increased by $18.5 million, or 9%, to $225.9 million, compared to $207.4 million for the same period in 2024[129] - Sales and rentals of the lymphedema product line contributed $7.1 million, or 11%, to the revenue increase in Q3 2025, while sales of the airway clearance product line increased by $5.6 million, or 71%[128] - The airway clearance product line revenue increased by $11.9 million, or 47%, for the nine months ended September 30, 2025, compared to the same period in 2024[129] - Revenue for the three months ended September 30, 2025, was $85.8 million, a 17% increase from $73.1 million in the same period of 2024[131] - Lymphedema products accounted for 84% of total revenue in Q3 2025, while airway clearance products increased to 16% from 11% in Q3 2024[131] Profitability - Gross profit for the three months ended September 30, 2025, was $65.0 million, a 19% increase from $54.8 million in the same period in 2024[126] - Gross margin improved to 76% in Q3 2025, up from 75% in Q3 2024, and remained stable at 75% for the nine months ended September 30, 2025, compared to 73% in the same period of 2024[133] - Net income for the three months ended September 30, 2025, was $8.2 million, compared to $5.2 million for the same period in 2024, reflecting a 59% increase[124] Operating Expenses - Operating expenses for the three months ended September 30, 2025, totaled $54.0 million, an increase of 13% from $48.0 million in the same period in 2024[126] - Sales and marketing expenses rose by 11% to $29.8 million in Q3 2025, driven by a $2.3 million increase in personnel-related compensation[134] - Research and development expenses decreased by 9% to $2.2 million in Q3 2025, primarily due to lower clinical study-related expenses[137] - Reimbursement, general and administrative expenses increased by 18% to $21.4 million in Q3 2025, mainly due to a $2.8 million rise in personnel-related compensation[139] Cash Flow and Financing - Net cash provided by operating activities was $25.5 million for the nine months ended September 30, 2025, compared to $24.3 million in the same period of 2024[150] - Cash and net accounts receivable as of September 30, 2025, were $66.0 million and $37.3 million, respectively, down from $82.1 million and $43.2 million in 2024[148] - Net cash used in financing activities was $52.0 million for the nine months ended September 30, 2025, primarily due to stock repurchases and term loan payments[154] - The company expects a full-year 2025 cash tax benefit of approximately $4.5 million due to the enactment of the One Big Beautiful Bill Act[147] - The company borrowed $30.0 million through a term loan and $25.0 million from a revolving credit facility to fund the acquisition of the AffloVest business[158] Share Repurchase - The company repurchased a total of 2,338,617 shares of common stock at a total cost of $30.0 million under the share repurchase program[169] - During the nine months ended September 30, 2025, the company repurchased 2,143,099 shares for approximately $26.6 million[170] Financial Agreements - The Second Amendment to the Credit Agreement modified key financial covenants, including a mandatory principal prepayment of $3.0 million on February 22, 2022[159] - The Third Amendment replaced the interest rate benchmark from LIBOR to the term Secured Overnight Financing Rate (SOFR)[160] - The Fourth Amendment provided an additional term loan of $8.25 million and extended the maturity date of loans from September 8, 2024, to August 1, 2026[161] - The 2025 Restated Credit Agreement expanded the revolving credit facility from $25.0 million to $40.0 million and eliminated the minimum consolidated EBITDA financial covenant[163] - As of September 30, 2025, the company had no outstanding borrowings under the 2025 Restated Credit Agreement[166] Other Considerations - The company estimated that tariff impacts on cost of goods sold could be up to $1.0 million for the year ended December 31, 2025[175] - The company believes its cash and cash flows from operations will be sufficient to meet its working capital and other cash requirements for at least the next twelve months[174] - As of September 30, 2025, the company employed 167 account managers and 162 specialists for lymphedema products, compared to 167 account managers and 103 specialists in the previous year[119] - The company launched the Entre Plus system in March 2023 and the Nimbl platform for lymphedema in October 2024, enhancing its product offerings[116]

Exhibit 99.1 Tactile Systems Technology, Inc. Reports Third Quarter 2025 Financial Results MINNEAPOLIS, MN, November 3, 2025 – 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 third quarter ended September 30, 2025 and announced the adoption of a second share repurchase program. Third Quarter 2025 Summary & Recent Business Highlights: "Tactile Medica ...

MINNEAPOLIS, Nov. 03, 2025 (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 third quarter ended September 30, 2025 and announced the adoption of a second share repurchase program. Third Quarter 2025 Summary & Recent Business Highlights: Total revenue increased 17% year-over-year to $85.8 millionGross margin of 76% versus 75% in Q3 ...

Core Insights - Tactile Systems Technology, Inc. presented new six-month clinical data showing sustained benefits of Flexitouch® Plus for treating lymphedema in head and neck cancer patients [1][2] Clinical Data Summary - The six-month analysis from a large randomized controlled trial indicated improvements in lymphedema symptom burden for participants using Flexitouch Plus compared to usual care [2] - Significant reductions in internal swelling were observed at 13 out of 19 anatomical sites, with notable improvements in the base of tongue (p=0.008) and arytenoids (p=0.023) [6] - Both treatment groups maintained initial patient benefits over the six-month study period, demonstrating sustained improvement in symptom burden [6] Expert Commentary - The Principal Investigator highlighted the importance of the findings, noting that up to 90% of head and neck cancer survivors develop lymphedema within a year of treatment, with many experiencing moderate to severe fibrosis [3] - The CEO of Tactile Medical emphasized the need for broader dissemination of study results to inform clinical guidelines and improve access to Flexitouch Plus for patients [4] Company Overview - Tactile Medical focuses on developing at-home therapies for chronic conditions, aiming to improve patient quality of life and reduce healthcare costs [5]

Core Insights - Tactile Systems Technology, Inc. will release its third quarter financial results for fiscal year 2025 on November 3, 2025, after market close [1] - A conference call will be held on the same day at 5:00 p.m. Eastern Time to discuss the quarterly results [2] - The company specializes in at-home therapies for chronic conditions, aiming to improve patient quality of life and reduce healthcare costs [4] Financial Results Announcement - The financial results for the third quarter of fiscal year 2025 will be announced after market close on November 3, 2025 [1] - A live webcast of the conference call will be available on the company's investor relations website [2] Conference Call Details - The conference call will take place at 5:00 p.m. Eastern Time on November 3, 2025, with a question and answer session [2] - Participants can join the call by dialing the provided numbers and using the access code [2] Company Overview - Tactile Medical focuses on developing therapies for chronic conditions such as lymphedema, lipedema, chronic venous insufficiency, and chronic pulmonary disease [4] - The company collaborates with clinicians to enhance clinical evidence and improve patient care access [4]

Core Insights - Tactile Systems Technology, Inc. (TCMD) specializes in developing medical devices for chronic diseases, particularly lymphedema, within the resilient healthcare sector [1] - TCMD has experienced a strong monthly gain of approximately 7.23%, indicating positive investor sentiment and confidence in the company's future prospects [2][6] - Despite a recent 10-day decline of about 3.36%, TCMD's overall trajectory remains positive, presenting potential buying opportunities for investors [3] - The projected growth potential for TCMD is 27.64%, suggesting a target price of $18.75, supported by continuous demand and innovation in the healthcare sector [4] - TCMD's strong Piotroski Score of 8 reflects its robust financial health, indicating profitability, leverage, liquidity, and operational efficiency [5][6]