Tactile Medical's Q2 2025: Unpacking Contradictions in Sales Growth, Payer Mix, and Medicare Impact

Revenue Growth and Product Performance:
- Tactile Systems Technology, Inc. reported total revenue of $78.9 million for the second quarter of 2025, up 7.8% year-on-year.
- The growth was driven by a 2% year-over-year increase in sales of lymphedema products and a significant 51.6% year-over-year increase in airway clearance product sales, led by the AffloVest.

Lymphedema Market Dynamics:
- Lymphedema revenue increased by 2% year-over-year, with over 30% growth sequentially.
- This performance reflects the adoption of Nimbl and strategic investments in sales and distribution channels, despite the challenges of market disruption due to CRM implementation and sales force optimization.

Airway Clearance Product Momentum:
- Sales of AffloVest increased by 52% year-over-year and 21% sequentially.
- The growth is attributed to secured partnerships with top 10 respiratory DMEs, increased demand due to disease awareness, and strategic product education and training events.

2025 Financial Guidance and Market Outlook:
- The company raised its full-year 2025 revenue guidance to a range of $310 million to $315 million, reflecting a 6% to 8% year-over-year growth.
- This revised guidance considers the sales impact of CRM implementation and highlights the positive momentum in the airway clearance business while anticipating continued market growth.