Overview

* Tactile Systems ( TCMD ) Q3 revenue rises 17% yr/yr, beating analyst expectations

* Adjusted EBITDA for Q3 beats analyst estimates, showing operational efficiency

* Company authorizes $25 mln share repurchase program, indicating financial confidence

Outlook

* Company expects 2025 revenue between $317 mln and $321 mln, up from prior $310 mln to $315 mln

* Company raises 2025 adjusted EBITDA forecast to $38 mln-$39.5 mln from $33 mln-$35 mln

Result Drivers

* LYMPHEDEMA PRODUCT LINE - Sales and rentals increased by 11% yr/yr, contributing to revenue growth

* AIRWAY CLEARANCE PRODUCT LINE - Sales surged 71% yr/yr, significantly boosting revenue

* GROSS MARGIN IMPROVEMENT - Gross margin improved to 76% from 75% in Q3 2024, reflecting operational efficiency

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $85.80 $79.40

Revenue mln mln (4

Analysts

)

Q3 EPS $0.36

Q3 Net $8.2 mln

Income

Q3 Beat $14.40 $9.29

Adjusted mln mln (3

EBITDA Analysts

)

Q3 $11 mln

Operatin

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

* Wall Street's median 12-month price target for Tactile Systems Technology Inc ( TCMD ) is $14.00, about 7.6% below its October 31 closing price of $15.07

* The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)