Tactile Systems Plunges 23.53% on Revised Revenue Guidance

On May 6, 2025, Tactile Systems experienced a significant drop of 23.53% in pre-market trading, reflecting a notable decline in investor sentiment.

Tactile Systems has revised its 2025 revenue guidance, lowering projections from $316-322 million to $309-315 million. This adjustment indicates a growth rate of 5-8%, down from the previously anticipated 8-10%. The company's strategic investments and operational challenges have contributed to this revision, which has likely influenced the recent stock price decline.

In its first quarter of 2025, Tactile Systems reported a loss of $3 million, further impacting investor confidence. The company's GAAP EPS of -$0.13 missed estimates by $0.06, adding to the negative sentiment surrounding the stock. Despite revenue growth and improved gross margins, increased operating losses and strategic investments have posed challenges for the company.