By Robb M. Stewart

Tactile Systems Technology shares rallied after the medical-technology company launched a $25 million share-buyback program and lifted financial guidance for the year.

In morning trading, the shares were 46% higher at $23.02. The stock is now up 34% in 2025.

After the market closed Monday, Tactile Systems said its board authorized a program to buy back stock, either on the open market or through privately negotiated purchases. The program is set to expire Nov. 3, 2027, it said.

The Minneapolis company at the same time said it now expects a rise of between 8% and 10% in revenue for the full year, to $317 million to $321 million, against an earlier target of roughly 6% to 8% growth. Adjusted earnings before interest, taxes, depreciation and amortization is anticipated at between $38 million and $39.5 million in 2025, versus prior guidance for a range of $33 million to $35 million.

For the third quarter, Tactile Systems recorded a rise in net income to $8.2 million, or 36 cents a share, from $5.2 million, or 21 cents a share, a year earlier.

Adjusted Ebitda came in at $14.4 million, up from $10.7 million last year and beating the $9.2 million mean forecast of analysts polled by FactSet.

Revenue was up 17% for the quarter at $85.8 million, topping the $79.3 million that analysts expected. The increase was thanks to higher sales and rentals of the company's lymphedema product line and a jump in sales for its airway-clearance product line, the company said.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

November 04, 2025 10:55 ET (15:55 GMT)

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