Tactile Systems (TCMD) investor relations material

Executive summary

• Q2 2025 revenue grew 7.8%–8% year over year to $78.9M, driven by strong airway clearance sales and modest lymphedema growth.

• Net income declined to $3.2M from $4.3M year over year, reflecting higher operating expenses and strategic investments.

• Adjusted EBITDA fell to $7.7M from $9.1M year over year due to increased tech and sales investments.

• Completed $30M share repurchase program, retiring 2.3M shares, and ended Q2 with $81.5M in cash.

• Paid off $24M–$24.4M term loan and expanded revolving credit facility to $40M.

Financial highlights

• Gross margin improved to 75% from 74% year over year, driven by lower manufacturing and warranty costs.

• Operating expenses rose 13% to $54.7M, mainly from tech and sales/marketing investments.

• Operating income decreased 30% to $4.1M; net income per diluted share was $0.14.

• Cash and equivalents at June 30, 2025: $81.5M; outstanding borrowings: $24.8M.

• Six-month revenue up 4% to $140.2M; net income for six months at $0.2M.

Outlook and guidance

• 2025 revenue guidance raised to $310M–$350M, representing 6%–8% year-over-year growth.

• Adjusted EBITDA guidance increased to $33M–$35M for 2025.

• Lymphedema product line expected to grow 1.5%–3%; airway clearance expected to grow 40%–43%.

• Full-year 2025 cash tax benefit estimated at $4.6M; minimal impact from new tax legislation.

• Tariff impact for 2025 expected at $1M–$1.5M, with ongoing annual impact halved beyond 2025.