Tactile Systems Technology (NASDAQ:TCMD) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Tactile Systems Technology (NASDAQ:TCMD) announced its quarterly earnings results on Tuesday. The company reported $0.46 EPS for the quarter, beating analysts’ consensus estimates of $0.44 by $0.02, FiscalAI reports. Tactile Systems Technology had a return on equity of 8.84% and a net margin of 5.83%.The company had revenue of $103.59 million during the quarter, compared to analysts’ expectations of $93.80 million.

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

• Strong 2025 financial results — Total revenue was $329.5M (+12% YoY), Q4 revenue $103.6M (+21% YoY), full-year gross margin expanded to 75.9%, Adjusted EBITDA rose to $44.8M, and the company repaid its term loan, repurchased stock, and exited the year with $83.4M cash.
• 2026 guidance — Management projects revenue of $357M–$365M (8%–11% growth) and Adjusted EBITDA of $49M–$51M while noting the outlook incorporates a potential short-term impact from a new Medicare prior authorization requirement.
• LymphaTech acquisition — Tactile bought a 3D scanning/digital monitoring technology to strengthen diagnosis, monitoring, and R&D for lymphedema, positioning the company toward an integrated solutions strategy that could expand addressable patients.
• Medicare prior authorization risk — CMS will require prior authorization for pneumatic compression devices beginning April 13, adding administrative steps that could temporarily slow the broader lymphedema market and was explicitly factored into 2026 guidance.
• Commercial and operational leverage — Expanded salesforce with a 1:1 account manager-to-product specialist ratio, CRM adoption, and initial AI rollout for order intake/medical review are improving productivity, speed to therapy, and margins.

Tactile Systems Technology Price Performance

Shares of TCMD stock opened at $28.05 on Wednesday. The stock’s 50-day moving average is $28.98 and its 200 day moving average is $21.22. The company has a market cap of $626.52 million, a P/E ratio of 36.43 and a beta of 0.96. Tactile Systems Technology has a 1-year low of $8.61 and a 1-year high of $31.38.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on TCMD shares. Raymond James Financial set a $35.00 price objective on shares of Tactile Systems Technology in a report on Monday, January 5th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Tactile Systems Technology in a research note on Monday, December 29th. Zacks Research lowered shares of Tactile Systems Technology from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. Piper Sandler reissued an “overweight” rating on shares of Tactile Systems Technology in a report on Wednesday. Finally, Lake Street Capital increased their target price on shares of Tactile Systems Technology from $23.50 to $32.00 and gave the stock a “buy” rating in a research report on Tuesday, November 4th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $28.75.

Insider Transactions at Tactile Systems Technology

In related news, VP Kristie Burns sold 5,139 shares of Tactile Systems Technology stock in a transaction dated Friday, January 2nd. The stock was sold at an average price of $28.85, for a total value of $148,260.15. Following the completion of the transaction, the vice president owned 72,401 shares in the company, valued at $2,088,768.85. The trade was a 6.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 2.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Tactile Systems Technology

Large investors have recently modified their holdings of the business. Bridgeway Capital Management LLC grew its position in Tactile Systems Technology by 55.5% in the 4th quarter. Bridgeway Capital Management LLC now owns 208,158 shares of the company’s stock valued at $6,037,000 after acquiring an additional 74,280 shares in the last quarter. Trexquant Investment LP purchased a new stake in shares of Tactile Systems Technology in the fourth quarter valued at about $4,895,000. Amundi acquired a new position in shares of Tactile Systems Technology during the 4th quarter worth $525,000. Price T Rowe Associates Inc. MD boosted its position in Tactile Systems Technology by 5.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 23,957 shares of the company’s stock worth $695,000 after purchasing an additional 1,215 shares in the last quarter. Finally, Russell Investments Group Ltd. lifted its stake in Tactile Systems Technology by 574.1% in the 4th quarter. Russell Investments Group Ltd. now owns 14,278 shares of the company’s stock valued at $415,000 after buying an additional 12,160 shares in the last quarter. Institutional investors and hedge funds own 83.43% of the company’s stock.

Tactile Systems Technology News Summary

Here are the key news stories impacting Tactile Systems Technology this week:

• Positive Sentiment: Q4 beat on revenue and EPS — revenue $103.6M (+21% YoY) and diluted EPS $0.46 topped estimates; gross margin expanded to 78% and adjusted EBITDA rose materially, signaling improving unit economics. Press Release
• Positive Sentiment: 2026 guidance above consensus — company expects $357M–$365M revenue (≈8–11% growth) and $49M–$51M adjusted EBITDA, which exceeds the prior consensus revenue estimate and gives visibility into full-year profitability improvement. Earnings Highlights
• Positive Sentiment: Strategic acquisition expands addressable market — acquisition of LymphaTech adds 3D scanning/digital monitoring capabilities to lymphedema portfolio and supports clinical adoption and R&D. This strengthens product moat for the higher‑margin lymphedema business. Acquisition Announcement
• Neutral Sentiment: Stronger balance sheet actions — repaid $26.3M term loan, ended year with $83.4M cash and completed $26.5M of share repurchases (low average repurchase price), which reduces leverage but used cash resources. Press Release
• Neutral Sentiment: Analyst / institutional context — several buy ratings and a median price target near $32 signal continued Street interest, while institutional flows have been mixed. These views can amplify moves but aren’t unanimous. Market Reaction
• Negative Sentiment: 2026 growth guidance implies a slowdown from Q4’s 21% surge — full-year guidance (~8–11%) is steady but noticeably lower than the quarterly run-rate, which could temper longer-term growth expectations. Quarter Summary
• Negative Sentiment: Rising operating costs and cash use — operating expenses grew ~20% in Q4 and cash declined vs. year‑end 2024 (reflecting loan repayment and buybacks); higher opex could pressure margins if revenue growth slows. Small insider selling was also reported. Earnings Call Transcript

Tactile Systems Technology Company Profile

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.