Tactile Systems Technology (NASDAQ:TCMD) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Tactile Systems Technology (NASDAQ:TCMD) posted its quarterly earnings results on Monday. The company reported $0.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.28 by $0.03, FiscalAI reports. The firm had revenue of $91.86 million during the quarter, compared to analyst estimates of $91.99 million. Tactile Systems Technology had a return on equity of 11.49% and a net margin of 7.10%.

Here are the key takeaways from Tactile Systems Technology’s conference call:

• Positive Sentiment: Lymphedema revenue grew 13% year over year to $81.8 million, with Medicare returning to 11% growth after prior-authorization timing disruptions stabilized. Management cited increased clinic visits, referring clinics, and sales-force productivity as drivers of continued momentum.
• Positive Sentiment: Tactile maintained 2026 revenue guidance of $360 million to $366 million and raised adjusted EBITDA guidance to $50 million-$52 million, supported by gross-margin expansion, strong cash generation, and expected operating leverage.
• Negative Sentiment: Airway-clearance revenue fell 25% to $10 million as several DME customers took longer than expected to work through excess inventory during the AffloVest transition. Management expects sequential improvement in Q4 but now projects full-year airway-clearance revenue to decline by mid- to high-single digits.
• Positive Sentiment: The company advanced its growth pipeline through FDA clearance of an expanded LymphaTech 3D Scanner indication, progress toward a Category III CPT code, the Flexitouch Pro 510(k) filing, and plans for a late-Q4 VA pilot of MyoSleeve.
• Neutral Sentiment: Management expects further long-term growth from improving referral-to-shipment conversion through AI-enabled order operations and the newly created COO role, but emphasized that new products, payer wins, and diagnostic reimbursement are likely to build gradually rather than create an immediate acceleration.

Tactile Systems Technology Price Performance

Shares of Tactile Systems Technology stock traded down $0.17 during trading on Monday, hitting $22.87. 233,142 shares of the company’s stock traded hands, compared to its average volume of 301,096. Tactile Systems Technology has a 1 year low of $15.32 and a 1 year high of $37.77. The business has a 50-day simple moving average of $22.74 and a 200-day simple moving average of $25.94. The stock has a market capitalization of $518.05 million, a P/E ratio of 21.18 and a beta of 0.82.

Analyst Ratings Changes

Several research analysts have issued reports on TCMD shares. Wall Street Zen raised shares of Tactile Systems Technology from a “buy” rating to a “strong-buy” rating in a report on Saturday. Weiss Ratings upgraded shares of Tactile Systems Technology from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, October 13th. Finally, BTIG Research cut their price target on shares of Tactile Systems Technology from $39.00 to $35.00 and set a “buy” rating on the stock in a report on Monday, October 12th. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $37.60.

Insiders Place Their Bets

In other Tactile Systems Technology news, CEO Sheri Dodd sold 10,978 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $29.44, for a total transaction of $323,192.32. Following the transaction, the chief executive officer owned 232,907 shares in the company, valued at approximately $6,856,782.08. This represents a 4.50% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 2.10% of the company’s stock.

Tactile Systems Technology Company Profile

Tactile Systems Technology, doing business as Tactile Medical, develops and provides medical devices and services for people with chronic swelling and related conditions. The company focuses primarily on lymphedema and chronic venous insufficiency, conditions that can cause persistent fluid buildup in the limbs and trunk.

Its principal products include advanced pneumatic compression devices, such as the Flexitouch Plus system for the treatment of lymphedema and the Entre Plus system for home treatment of lymphedema and chronic venous insufficiency.