MINNEAPOLIS, MN — February 17, 2026 — Leads & Copy —
Tactile Systems Technology, Inc. (Nasdaq: TCMD), a medical technology company focused on therapies for chronic disorders, has released its financial results for the fourth quarter and full year ending December 31, 2025.
The company reported a 21% year-over-year increase in total revenue for the fourth quarter, reaching $103.6 million. Gross margin for the quarter was 78%, compared to 75% in the fourth quarter of 2024. Net income for the fourth quarter was $10.6 million, up from $9.7 million in the same period of the previous year. Adjusted EBITDA for the quarter was $22.9 million, compared to $16.2 million in Q4 2024.
For the full year 2025, Tactile Medical reported a 12% increase in total revenue to $329.5 million. The gross margin was 76%, compared to 74% in 2024. Operating cash flow reached $42.8 million, compared to $40.7 million in the prior year. The company repaid the full outstanding principal balance of $26.3 million under its term loan and repurchased $26.5 million of stock at an average price of $12.36 per share. Tactile Medical ended 2025 with $83.4 million in cash, compared to $94.4 million at the end of 2024.
Recent business highlights include the acquisition of LymphaTech, which expands the company’s lymphedema solutions portfolio and strengthens its R&D capabilities with digital 3D scanning technology for chronic swelling detection, measurement, and monitoring. The company also announced the publication of two-month clinical data comparing Flexitouch Plus™ to usual care in the Journal of the Sciences and Specialties of the Head and Neck.
Sheri Dodd, Chief Executive Officer of Tactile Medical, stated that in 2025, the company executed with discipline against its core growth strategies, delivering double-digit revenue growth, expanding gross margin and adjusted EBITDA, and generating strong cash flow, while continuing to strategically invest in people and workflow-related processes to strengthen its business for scale. She added that the company delivered on its goals, advancing its mission of improving the lives of over 95,000 patients with lymphedema and chronic inflammatory lung disease.
Dodd anticipates continued commercial and operational momentum in the company’s lymphedema business to support sustained market leadership and revenue performance in line with overall market growth. She believes the company is entering 2026 from a position of operational and financial strength, alongside increasing depth and breadth of collaboration with its DME partners in its respiratory business.
Total revenue in the fourth quarter of 2025 increased $18.0 million, or 21%, to $103.6 million, compared to $85.6 million in the fourth quarter of 2024. The increase in total revenue was attributable to an increase of $12.4 million, or 16%, in sales and rentals of the lymphedema product line and an increase of $5.6 million, or 66%, in sales of the airway clearance product line.
Gross profit in the fourth quarter of 2025 increased $16.6 million, or 26%, to $81.0 million, compared to $64.4 million in the fourth quarter of 2024. Gross margin was 78% of revenue, compared to 75% of revenue in the fourth quarter of 2024.
Operating expenses in the fourth quarter of 2025 increased $10.4 million, or 20%, to $62.2 million, compared to $51.9 million in the fourth quarter of 2024.
Operating income was $18.8 million in the fourth quarter of 2025, compared to $12.5 million in the fourth quarter of 2024.
Income tax expense was $8.8 million in the fourth quarter of 2025, compared to $3.3 million in the fourth quarter of 2024.
Net income in the fourth quarter of 2025 was $10.6 million, or $0.46 per diluted share, compared to $9.7 million, or $0.40 per diluted share, in the fourth quarter of 2024.
Adjusted EBITDA was $22.9 million in the fourth quarter of 2025, compared to $16.2 million in the fourth quarter of 2024.
Total revenue in the full year of 2025 increased $36.5 million, or 12%, to $329.5 million, compared to $293.0 million in the full year of 2024. The increase in total revenue was attributable to an increase of $19.0 million, or 7%, in sales and rentals of the lymphedema product line and an increase of $17.5 million, or 52%, in sales of the airway clearance product line.
Net income in the full year of 2025 was $19.1 million, or $0.82 per diluted share, compared to $17.0 million, or $0.70 per diluted share, in the full year of 2024.
Adjusted EBITDA was $44.8 million in the full year of 2025, compared to $37.1 million in the full year of 2024.
The Company expects full year 2026 total revenue in the range of $357 million to $365 million, representing growth of approximately 8% to 11% year-over-year, compared to total revenue of $329.5 million in 2025. The Company also expects full year 2026 adjusted EBITDA in the range of $49 million to $51 million, compared to adjusted EBITDA of $44.8 million in 2025.
Management will host a conference call with a question-and-answer session at 5:00 p.m. Eastern Time on February 17, 2026, to discuss the results of the quarter and fiscal year. Those who would like to participate may dial 877-407-3088 (201-389-0927 for international callers) and provide access code 13758303. A live webcast of the call will also be provided on the investor relations section of the Company’s website at investors.tactilemedical.com.
Tactile Medical is a leader in developing and marketing at-home therapies for people suffering from underserved, chronic conditions including lymphedema, lipedema, chronic venous insufficiency and chronic inflammatory lung disease by helping them live better and care for themselves at home. Tactile Medical collaborates with clinicians to expand clinical evidence, raise awareness, increase access to care, reduce overall healthcare costs and improve the quality of life for tens of thousands of patients each year.
Source: Tactile Systems Technology, Inc.
