Tactile Systems Technology, Inc. reported its financial results for the second quarter ended June 30, 2025, on August 4, 2025. Total revenue for the quarter increased by 7.8% year-over-year to $78.9 million, exceeding previous expectations. Airway clearance revenue surged by 52%, while lymphedema revenue increased by 2%.
Gross profit for Q2 2025 increased by 9% to $58.8 million, with a gross margin of 75%, up from 74% in the prior year. Operating income was $4.1 million, compared to $5.8 million in Q2 2024, reflecting planned strategic investments. Net income for the quarter was $3.2 million, or $0.14 per diluted share, compared to $4.3 million, or $0.18 per diluted share, in Q2 2024. Adjusted EBITDA was $7.7 million, compared to $9.1 million in Q2 2024.
For the first six months of 2025, total revenue grew by 4% to $140.2 million. Airway clearance revenue increased by 37%, partially offset by a 0.5% decrease in lymphedema revenue. Net income for the six months was $0.2 million, or $0.01 per diluted share, compared to $2.1 million, or $0.09 per diluted share, in the prior year period. Adjusted EBITDA for the six months was $7.4 million, compared to $10.1 million in the first half of 2024.
The company updated its full-year 2025 total revenue guidance to a range of $310 million to $315 million, representing 6% to 8% year-over-year growth, slightly raising the lower bound from its previous guidance. Adjusted EBITDA guidance for 2025 was also raised to a range of $33 million to $35 million.
Tactile Medical completed its $30.0 million share repurchase program by June 30, 2025. Furthermore, on July 31, 2025, the company paid off its outstanding $24.0 million term loan and refinanced its revolving credit facility, increasing its capacity from $25.0 million to $40.0 million, enhancing its financial flexibility.
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