Compression therapy provider Tactile Systems' Q3 revenue beats estimates

Tactile Systems Technology

03/11/2025 21:21

Overview

Tactile Systems 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/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$85.80 mln
$79.40 mln (4 Analysts)
Q3 EPS
$0.36
Q3 Net Income
$8.2 mln
Q3 Adjusted EBITDA
Beat
$14.40 mln
$9.29 mln (3 Analysts)
Q3 Operating Income
$11 mln


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 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: ID:nGNXfzXbq

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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.)