Core Insights - Tactile Systems Technology, Inc. reported strong financial results for Q4 and full year 2025, highlighting double-digit revenue growth and improved profitability metrics [3][4][9]. Financial Performance - Q4 2025 total revenue increased by $18.0 million, or 21%, reaching $103.6 million compared to $85.6 million in Q4 2024 [4][7]. - Full year 2025 total revenue rose by $36.5 million, or 12%, to $329.5 million from $293.0 million in 2024 [9][10]. - Q4 2025 gross profit increased by $16.6 million, or 26%, to $81.0 million, with a gross margin of 78% compared to 75% in Q4 2024 [5][7]. - Full year 2025 net income was $19.1 million, or $0.82 per diluted share, up from $17.0 million, or $0.70 per diluted share in 2024 [10][8]. Product Line Performance - In Q4 2025, sales and rentals of the lymphedema product line increased by $12.4 million, or 16%, while airway clearance product line sales surged by $5.6 million, or 66% [4][9]. - For the full year 2025, lymphedema product line sales rose by $19.0 million, or 7%, and airway clearance product line sales increased by $17.5 million, or 52% [9]. Cash Flow and Balance Sheet - Operating cash flow for 2025 was $42.8 million, compared to $40.7 million in 2024 [7]. - As of December 31, 2025, the company had $83.4 million in cash and no outstanding borrowings, down from $94.4 million in cash and $26.3 million in borrowings at the end of 2024 [11]. Strategic Developments - The company acquired LymphaTech, enhancing its lymphedema solutions portfolio and R&D capabilities with digital 3D scanning technology [7]. - Tactile Medical anticipates continued growth in its lymphedema business and deeper collaborations with DME partners in the respiratory sector as it enters 2026 [3]. 2026 Financial Outlook - The company expects total revenue for 2026 to be between $357 million and $365 million, representing an 8% to 11% year-over-year growth [12]. - Adjusted EBITDA for 2026 is projected to be in the range of $49 million to $51 million, compared to $44.8 million in 2025 [12].
Tactile Systems Technology, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results