Core Insights - Tactile Systems Technology reported stronger-than-expected revenue for Q2 2025, driven by growth in the airway clearance business, with GAAP revenue reaching $78.9 million, surpassing the consensus estimate of $73.9 million [1][2] - The company experienced a year-over-year revenue increase of 7.8%, but both GAAP net income and Adjusted EBITDA declined due to rising operating expenses related to strategic investments [1][2] Financial Performance - GAAP revenue for Q2 2025 was $78.9 million, compared to $73.2 million in Q2 2024, reflecting a 7.8% increase [2] - Diluted earnings per share (GAAP) were $0.14, exceeding the expectation of $0.1075, but down 22.2% from $0.18 in Q2 2024 [2] - GAAP net income fell to $3.2 million, a decrease of 25.1% from $4.3 million in Q2 2024 [2] - Adjusted EBITDA was $7.7 million, down 15.4% from $9.1 million in Q2 2024 [2] - Gross margin improved to 75%, up from 74% in Q2 2024, attributed to lower manufacturing and warranty-related costs [2][7] Business Overview - Tactile Systems Technology specializes in medical devices for lymphedema and airway clearance, with key products including Flexitouch, Entre Plus, and AffloVest [3] - The company aims to enhance daily living and clinical outcomes for patients with chronic conditions [3] Strategic Focus - Recent efforts have been directed towards expanding the product lineup, investing in technology, and strengthening the sales force to support long-term growth [4] - Key success factors include timely product launches, adoption by healthcare providers, and securing reimbursement from payers [4] Quarterly Highlights - The AffloVest sales surged by 52% year-over-year in Q2 2025, while lymphedema products accounted for 84% of total revenue [5] - The return to growth in lymphedema products was supported by an optimized sales organization and increased field sales headcount [6] Financial Outlook - The company raised its full-year 2025 revenue guidance to $310–315 million, with slower growth expected from lymphedema products but higher growth projected for airway clearance products at 20–23% [9] - Adjusted EBITDA outlook for FY2025 was raised to $33–35 million, although still below the previous year's results [9] - Management anticipates improved productivity in the latter half of 2025 due to hiring and technology investments [10]

Core Insights - Tactile Systems Technology, Inc. reported strong financial performance in Q2 2025, with total revenue growth of nearly 8% year-over-year, reaching $78.9 million, exceeding previous expectations [3][4] - The company is focused on three strategic priorities for 2025: improving access to care, expanding treatment options for lymphedema patients, and enhancing lifetime patient value [3] - The company expects to benefit from its strategic investments and initiatives starting in 2026 [3] Financial Performance - Total revenue for Q2 2025 increased by $5.7 million, or 7.8%, compared to Q2 2024, driven by a 52% increase in airway clearance product sales and a 2% increase in lymphedema product sales [4] - Gross profit for Q2 2025 rose by $4.7 million, or 9%, to $58.8 million, with a gross margin of 75% compared to 74% in Q2 2024 [5] - Operating expenses increased by $6.5 million, or 13%, to $54.7 million, primarily due to planned strategic investments [6] Income and Earnings - Operating income for Q2 2025 was $4.1 million, down from $5.8 million in Q2 2024 [6] - Net income for Q2 2025 was $3.2 million, or $0.14 per diluted share, compared to $4.3 million, or $0.18 per diluted share, in Q2 2024 [7][8] - Adjusted EBITDA for Q2 2025 was $7.7 million, down from $9.1 million in Q2 2024 [9] Year-to-Date Performance - For the first six months of 2025, total revenue increased by $5.9 million, or 4%, to $140.2 million compared to the same period in 2024 [10] - Net income for the first half of 2025 was $0.2 million, or $0.01 per diluted share, compared to $2.1 million, or $0.09 per diluted share, in the first half of 2024 [11] Balance Sheet and Cash Flow - As of June 30, 2025, the company had $81.5 million in cash and cash equivalents, down from $94.4 million at the end of 2024 [12] - The company repurchased $26.6 million of its stock during the first half of 2025 to complete its share repurchase program [12] - Cash flows from operating activities for the first half of 2025 were $15.2 million, compared to $14.1 million in the same period of 2024 [31] Financial Outlook - The company updated its 2025 financial outlook, now expecting total revenue in the range of $310 million to $315 million, representing growth of approximately 6% to 8% year-over-year [14] - Adjusted EBITDA for 2025 is expected to be in the range of $33 million to $35 million, compared to $37.1 million in 2024 [15]

Core Insights - Tactile Systems Technology, Inc. reported a total revenue increase of 0.3% year-over-year to $61.3 million for Q1 2025, driven by a 22% increase in airway clearance product sales, while lymphedema product sales decreased by 3% [4][9][12] - The company is focused on strategic growth initiatives, including the launch of Nimbl for lower extremity lymphedema and optimization of its sales organization [3][4] - The net loss for Q1 2025 was $3.0 million, compared to a net loss of $2.2 million in Q1 2024, reflecting ongoing investments in strategic initiatives [7][10] Financial Performance - Gross profit increased by 4% to $45.3 million, with a gross margin of 74%, up from 71% in Q1 2024, primarily due to lower manufacturing and warranty costs [5][9] - Operating expenses rose by 8% to $49.9 million, attributed to planned strategic investments, resulting in an operating loss of $4.5 million [6][9] - Adjusted EBITDA loss was $0.3 million in Q1 2025, compared to a positive Adjusted EBITDA of $1.0 million in Q1 2024 [10][9] Balance Sheet and Cash Flow - As of March 31, 2025, the company had $83.6 million in cash and $25.5 million in outstanding borrowings, down from $94.4 million in cash at the end of 2024 [11] - The company repurchased $10.0 million of its stock during the first quarter, with $16.5 million remaining under its share repurchase program [11][9] 2025 Financial Outlook - The company updated its 2025 revenue guidance to a range of $309 million to $315 million, representing a growth of approximately 5% to 8% year-over-year [12] - Adjusted EBITDA for 2025 is now expected to be in the range of $32 million to $34 million, down from previous expectations of $35 million to $37 million [13]