Tactile Systems Technology (TCMD) Soars 20.12% on Strong Q2 Revenue Growth

On August 5, 2025, Tactile Systems Technology (TCMD) experienced a significant surge in its stock price, rising by 20.12% in pre-market trading. This substantial increase can be attributed to the company's strong financial performance in the second quarter of 2025.

Tactile Systems Technology reported a 7.8% year-over-year increase in total revenue, reaching $78.9 million. This growth was driven by a 52% increase in sales of the airway clearance product line and a 2% increase in sales of the lymphedema product line. The company's gross margin improved slightly to 75%, up from 74% in the previous year, due to lower manufacturing and warranty costs.

Despite the revenue growth, the company's net income decreased to $3.2 million, or $0.14 per share, compared to $4.3 million, or $0.18 per share, in the same period last year. This decline was primarily due to a 13% increase in operating expenses, which the company attributed to planned strategic investments. The company's adjusted EBITDA also decreased to $7.7 million from $9.1 million in the previous year.

Tactile Systems Technology completed its $30 million share repurchase program during the quarter, with $16.5 million repurchased in Q2. The company also refinanced its debt structure, increasing its revolving credit facility capacity from $25 million to $40 million. Management updated the 2025 guidance, now expecting full-year revenue of $310-315 million and adjusted EBITDA of $33-35 million.