Next-generation medical device company Tactile Systems Technology (TCMD 1.04%) was the very picture of health on Wednesday, at least as far as its stock was concerned. Investors bid up the company's shares robustly, by nearly 18%, thanks to an impressive earnings report.
Healthy increases
Just after market close on Tuesday, Tactile published its fourth quarter and full-year 2025 figures. The company's total revenue rose by a sturdy 21% to $103.6 million, and net income in accordance with generally accepted accounting principles (GAAP) increased by 9% to $10.6 million ($0.46 per share).
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Both headline numbers beat the average analyst estimates. Prognosticators following Tactile were collectively expecting the company to post revenue below $94 million and per-share profit of $0.44.
Tactile attributed the considerable revenue gain, in part, to a 66% increase in sales of its airway clearance products. It also recorded a 16% rise in both sales and rentals of its devices for treating lymphedema, a disorder of the body's lymphatic system.
NASDAQ: TCMD
Key Data Points
Good guidance
Investors were also cheered by Tactile's rather bullish guidance for the entirety of 2026. Management is expecting revenue to grow by 8% to 11% over the 2025 figure, specifically to $357 million to $365 million. This should shake out into a non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) number between $49 million $51 million. This would compare favorably to 2025's $44.8 million.
I see almost nothing to dislike in both Tactile's quarter and its full-year 2025 results. The company has found more than one niche in which to thrive, and it is clearly effective at selling to those segments. Meanwhile, the medical device market is set to grow robustly, as the population ages and technology improves medical care. I'd consider buying Tactile's stock.
