Tactile Systems Technology (NASDAQ:TCMD) Issues Earnings Results

Tactile Systems Technology (NASDAQ:TCMD) posted its quarterly earnings results on Monday. The company reported $0.34 EPS for the quarter, beating the consensus estimate of $0.14 by $0.20, FiscalAI reports. Tactile Systems Technology had a net margin of 5.91% and a return on equity of 9.70%. The business had revenue of $85.70 million during the quarter, compared to analyst estimates of $85.52 million.

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

• Q2 revenue rose 9% to $85.7 million, driven by 12% growth in lymphedema revenue to $73.6 million. Adjusted EBITDA increased 49% to $11.4 million as gross margin expanded 180 basis points to 76.3%.
• Lymphedema momentum remained strong, supported by favorable referral trends, improved sales-territory productivity, and increased Flexitouch adoption following Medicare’s updated coverage policy. Management said the initial disruption from Medicare prior authorization is beginning to moderate.
• AffloVest revenue declined 7% year over year to $12.1 million as several large DME partners reduced orders while working through elevated inventory ahead of the next-generation product launch. Management expects the impact to continue through Q3, with ordering patterns normalizing in Q4.
• The company lowered the top end of its 2026 revenue outlook to $360 million-$366 million, reflecting a more conservative airway-clearance forecast that is now roughly flat year over year. Adjusted EBITDA guidance was maintained at $49 million-$51 million despite the temporary AffloVest headwind and continued strategic investments.
• Tactile announced several longer-term growth initiatives, including an exclusive VA and Department of Defense distribution agreement for MyoSleeve, expanded diagnostic applications for LymphaTech targeted for FDA approval in 2027, and new clinical evidence supporting Flexitouch use in head-and-neck lymphedema.

Tactile Systems Technology Stock Down 1.2%

TCMD opened at $29.14 on Tuesday. The company has a market cap of $657.40 million, a P/E ratio of 33.11 and a beta of 0.81. The firm’s 50-day moving average price is $28.13 and its 200-day moving average price is $27.06. Tactile Systems Technology has a 52-week low of $12.01 and a 52-week high of $37.77.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Tactile Systems Technology during the fourth quarter worth $32,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in Tactile Systems Technology in the 4th quarter worth $36,000. Global Retirement Partners LLC purchased a new position in Tactile Systems Technology in the 4th quarter worth $37,000. Russell Investments Group Ltd. lifted its position in Tactile Systems Technology by 1,594.4% during the 3rd quarter. Russell Investments Group Ltd. now owns 2,118 shares of the company’s stock worth $29,000 after acquiring an additional 1,993 shares during the period. Finally, Quarry LP lifted its position in Tactile Systems Technology by 302.6% during the 3rd quarter. Quarry LP now owns 2,319 shares of the company’s stock worth $32,000 after acquiring an additional 1,743 shares during the period. Institutional investors and hedge funds own 83.43% of the company’s stock.

Analyst Ratings Changes

Several brokerages recently issued reports on TCMD. B. Riley Financial raised shares of Tactile Systems Technology from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $32.00 to $36.00 in a report on Thursday, May 7th. BTIG Research restated a “buy” rating and set a $40.00 target price on shares of Tactile Systems Technology in a report on Thursday, May 21st. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Tactile Systems Technology in a research report on Monday, August 3rd. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, Tactile Systems Technology currently has a consensus rating of “Moderate Buy” and an average target price of $38.60.

About Tactile Systems Technology

Tactile Systems Technology, Inc, headquartered in Plymouth, Minnesota, is a medical device company specializing in the design, manufacture and marketing of home-use pneumatic compression therapy systems for the treatment of lymphedema and other chronic edema-related conditions. Using proprietary software and patented pump technologies, the company’s platforms are designed to improve patient outcomes through sequential pressure treatment that promotes fluid mobilization and enhanced lymphatic function.

At the core of Tactile Systems’ product portfolio is the Flexitouch® system, a programmable pneumatic pump and garment system approved for home use, and the Aria® device, which features an intuitive touchscreen interface and advanced garment design.