Tactile Systems Technology Reports 8% Revenue Growth in Q2 2025, Net Income Declines 25%

Tactile Systems Technology, Inc. reported a revenue increase of 8% for the second quarter of 2025, reaching $78.9 million compared to $73.2 million in the same period of 2024. The growth was driven by a 52% surge in sales of the airway clearance product line, which includes the AffloVest, contributing $12.9 million in revenue. In contrast, sales and rentals of lymphedema products saw a modest increase of 2%, totaling $66.0 million. For the first half of 2025, total revenue rose 4% to $140.2 million, with airway clearance products accounting for 17% of total revenue, up from 13% in the prior year.

Despite the revenue growth, Tactile Systems reported a net income of $3.2 million for the second quarter, down 25% from $4.3 million in the same quarter of 2024. The decline in profitability was attributed to increased operating expenses, which rose by 13% to $54.7 million, primarily due to higher personnel-related compensation and IT-related expenses. For the first half of 2025, net income was $243,000, a significant decrease from $2.1 million in the same period last year.

Operationally, Tactile Systems has expanded its workforce, employing 161 account managers and 132 specialists for lymphedema products, alongside 19 specialists for airway clearance products as of June 30, 2025. This represents an increase in specialists for lymphedema products from 103 in the previous year. The company continues to invest in its commercial infrastructure to enhance market penetration and improve operational efficiencies, particularly in reimbursement functions.

The company has also been active in share repurchases, completing a $30 million program that involved repurchasing 2.3 million shares. As of June 30, 2025, Tactile Systems had cash reserves of $81.5 million, down from $94.4 million at the end of 2024, and net accounts receivable of $33.1 million. The company anticipates that its cash and cash flows from operations will be sufficient to meet its working capital and capital expenditure needs for at least the next twelve months.

Looking ahead, Tactile Systems is focused on expanding its product offerings and enhancing its market presence. The company is evaluating the potential impacts of recent legislative changes, including the One Big Beautiful Bill Act, which may favorably affect its tax position. However, it remains cautious about external factors such as inflation and supply chain disruptions that could impact its operations and financial performance.