Tactile Systems Technology, Inc. Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Tactile Systems Technology (Nasdaq: TCMD) reported Q1 2026 results: revenue $75.3M (+23% YoY), gross margin 76.5%, net loss $1.8M (‑$0.08/share), and Adjusted EBITDA $3.7M. The company repurchased $1.1M of stock, closed the LymphaTech acquisition, received FDA 510(k) clearance for a next‑gen AffloVest device, and updated 2026 revenue guidance to $360M–$368M.
Balance sheet: cash $75.0M, no borrowings; $23.9M remains available under the $25M repurchase program.
Positive
- Total revenue +23% YoY to $75.3M
- Gross margin expanded to 76.5% (from 74.0% in Q1 2025)
- Adjusted EBITDA of $3.7M versus a loss of $0.3M in Q1 2025
- Received FDA 510(k) clearance for next‑generation AffloVest
- Acquisition of LymphaTech to expand lymphedema diagnosis and R&D
Negative
- Operating expenses +19% YoY to $59.1M
- Net loss remained $1.8M in Q1 2026 (improved but still negative)
- Cash decreased ~10% to $75.0M from $83.4M at year‑end 2025
Key Figures
Market Reality Check
Peers on Argus
TCMD slipped 0.56% while peers were mixed: SNWV -3.85%, SENS -3.77%, NPCE +1.61%, CBLL +1.69%, CLPT flat. Moves are not uniformly aligned, pointing to company-specific trading.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 17 | Q4/FY 2025 earnings | Positive | +17.8% | Strong Q4 and full-year growth with margin expansion and higher 2026 guidance. |
| Nov 03 | Q3 2025 earnings | Positive | +40.6% | Double‑digit revenue growth, high adjusted EBITDA and guidance raise for 2025. |
| Aug 04 | Q2 2025 earnings | Positive | +26.8% | Revenue growth, strong airway clearance sales and updated higher guidance. |
| May 05 | Q1 2025 earnings | Negative | -29.0% | Minimal revenue growth, higher net loss and downward revision to 2025 outlook. |
| Feb 18 | Q4/FY 2024 earnings | Positive | -13.3% | Solid Q4 and full-year growth and guidance, but shares sold off afterward. |
Earnings have often been strong catalysts, with four of the last five earnings releases followed by sizable stock moves and generally positive reactions to upbeat reports, but with one notable selloff after positive results.
Over the past five earnings cycles, Tactile Medical has delivered consistent revenue growth and margin expansion. Q3 and Q4 2025 results showed strong upside, debt repayment and authorization of a $25M buyback, with sharp positive price reactions. Earlier, Q1 2025 saw flat revenue and a guidance cut, triggering a steep decline. Full-year 2024 results were solid but met with a negative move. Today’s Q1 2026 report, featuring 23% revenue growth and higher guidance, fits the pattern of operational improvement.
Historical Comparison
In the last five earnings releases, TCMD’s stock moved an average of 8.6%, often reacting strongly to revenue growth and guidance changes.
Recent earnings show steady revenue expansion, improving gross margins, and a pattern of raising forward guidance as execution and cash generation strengthen.
Market Pulse Summary
This announcement details a strong Q1 2026 performance, with revenue up 23%, gross margin at 76.5%, a swing to positive Adjusted EBITDA, and a modestly raised full‑year revenue outlook. It also highlights balance sheet strength with $75.0M in cash, continued share repurchases, and FDA 510(k) clearance for an airway device. In context of prior earnings, monitoring future revenue growth, margin trends and execution on guidance remains important for assessing the trajectory.
Key Terms
adjusted ebitda financial
medicare prior authorization regulatory
fda 510(k) clearance regulatory
non-gaap financial measure financial
AI-generated analysis. Not financial advice.
MINNEAPOLIS, May 04, 2026 (GLOBE NEWSWIRE) -- Tactile Systems Technology, Inc. (“Tactile Medical”; the “Company”) (Nasdaq: TCMD), a medical technology company providing therapies for people with chronic disorders, today reported financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Summary and Recent Business Highlights:
- Total revenue increased
23% year-over-year to$75.3 million - Gross margin of
76.5% versus74% in Q1 2025 - Net loss of
$1.8 million versus$3.0 million in Q1 2025 - Adjusted EBITDA of
$3.7 million versus an Adjusted EBITDA loss of$0.3 million in Q1 2025 - Expanded AI-enabled order management platform with the implementation of new operational capabilities to execute the Medicare prior authorization requirement for PCDs
- Repurchased
$1.1 million of stock under the Company’s share repurchase program - Received FDA 510(k) clearance for next-generation AffloVest airway clearance device
“We delivered a strong start to 2026, with first quarter revenue growth of
Ms. Dodd continued, "We also advanced our business transformation technology while demonstrating the operational agility required to respond effectively to an evolving regulatory environment. Further, we have expanded our product portfolio and R&D capabilities through our acquisition of LymphaTech, positioning us to support lymphedema patients across the full continuum of care, beginning with accurate, timely, and objective diagnosis. As we move through 2026 and beyond, we remain confident in the trajectory of our business and the multiple catalysts ahead, and we will continue to invest with intent and execute with discipline.”
First Quarter 2026 Financial Results
Total revenue in the first quarter of 2026 increased
Gross profit in the first quarter of 2026 increased
Operating expenses in the first quarter of 2026 increased
Operating loss was
Income tax expense was
Net loss in the first quarter of 2026 was
Weighted average shares used to compute diluted net income per share were 22.6 million and 23.7 million for the first quarters of 2026 and 2025, respectively.
Adjusted EBITDA was
Balance Sheet Summary
As of March 31, 2026, the Company had
2026 Financial Outlook
The Company is updating its 2026 financial outlook and now expects full year 2026 total revenue in the range of
The Company continues to expect full year 2026 adjusted EBITDA in the range of
Conference Call
Management will host a conference call with a question-and-answer session at 5:00 p.m. Eastern Time on May 4, 2026, to discuss the results of the quarter. Those who would like to participate may dial 877-407-3088 (201-389-0927 for international callers) and provide access code 13759535. A live webcast of the call will also be provided on the investor relations section of the Company's website at investors.tactilemedical.com.
For those unable to participate, a replay of the call will be available for two weeks at 877-660-6853 (201-612-7415 for international callers); access code 13759535. The webcast will be archived at investors.tactilemedical.com.
About Tactile Systems Technology, Inc. (DBA Tactile Medical)
Tactile Medical is a leader in developing and marketing at-home therapies for people suffering from underserved, chronic conditions including lymphedema, lipedema, chronic venous insufficiency and chronic inflammatory lung disease by helping them live better and care for themselves at home. Tactile Medical collaborates with clinicians to expand clinical evidence, raise awareness, increase access to care, reduce overall healthcare costs and improve the quality of life for tens of thousands of patients each year.
Legal Notice Regarding Forward-Looking Statements
This release contains forward-looking statements, including guidance for the full year 2026. Forward-looking statements are generally identifiable by the use of words like “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “continue,” “confident,” “outlook,” “guidance,” “project,” “goals,” “look forward,” “poised,” “designed,” “plan,” “return,” “focused,” “prospects” or “remain” or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties outside of the Company’s control that can make such statements untrue, including, but not limited to, the Company’s ability to obtain reimbursement from third-party payers for its products; adverse economic conditions, including inflation, rising interest rates or a recession; the adequacy of the Company’s liquidity to pursue its business objectives; price increases for supplies and components; wage and component price inflation; loss of a key supplier or other supply chain disruptions; entry of new competitors and/or competitive products; compliance with and changes in federal, state and local government laws and regulations; technological obsolescence of, or quality issues with, the Company’s products; the Company’s ability to expand its business through strategic acquisitions; the Company’s ability to integrate acquisitions and related businesses; the effects of current and future U.S. and foreign trade policy and tariff actions; or the inability to carry out research, development and commercialization plans. In addition, other factors that could cause actual results to differ materially are discussed in the Company’s filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company undertakes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
Use of Non-GAAP Financial Measures
This press release includes the non-GAAP financial measure of Adjusted EBITDA, which differs from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted EBITDA in this release represents net income (loss), plus interest expense, net, or less interest income, net, less income tax benefit or plus income tax expense, plus depreciation and amortization, plus stock-based compensation expense, plus litigation-related costs, plus executive transition costs, and plus acquisition and integration costs. Reconciliation of this non-GAAP financial measure to its most directly comparable GAAP measure is included in this press release.
This non-GAAP financial measure is presented because the Company believes it is a useful indicator of its operating performance. Management uses this measure principally as a measure of the Company’s operating performance and for planning purposes, including the preparation of the Company’s annual operating plan and financial projections. The Company believes this measure is useful to investors as supplemental information and because it is frequently used by analysts, investors and other interested parties to evaluate companies in its industry. The Company also believes this non-GAAP financial measure is useful to its management and investors as a measure of comparative operating performance from period to period. In addition, Adjusted EBITDA is used as a performance metric in the Company’s compensation program.
The non-GAAP financial measure presented in this release should not be considered as an alternative to, or superior to, its respective GAAP financial measure, as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and it should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as tax payments, debt service requirements, capital expenditures and certain other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs and cash costs to replace assets being depreciated and amortized. In evaluating non-GAAP financial measures, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in this presentation. The Company’s presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using non-GAAP financial measures on a supplemental basis. The Company’s definition of these non-GAAP financial measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation.
Investor Inquiries:
Sam Bentzinger
Gilmartin Group
investorrelations@tactilemedical.com
| Tactile Systems Technology, Inc. | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| (Unaudited) | ||||||
| March 31, | December 31, | |||||
| (In thousands, except share and per share data) | 2026 | 2025 | ||||
| Assets | ||||||
| Current assets | ||||||
| Cash | $ | 74,993 | $ | 83,446 | ||
| Accounts receivable, net | 38,219 | 43,876 | ||||
| Net investment in leases | 15,198 | 15,754 | ||||
| Inventories | 16,581 | 14,025 | ||||
| Prepaid expenses and other current assets | 7,851 | 8,066 | ||||
| Total current assets | 152,842 | 165,167 | ||||
| Non-current assets | ||||||
| Property and equipment, net | 5,196 | 5,117 | ||||
| Right of use operating lease assets | 13,310 | 13,798 | ||||
| Intangible assets, net | 42,306 | 39,167 | ||||
| Goodwill | 39,554 | 31,063 | ||||
| Deferred income taxes | 8,721 | 9,783 | ||||
| Other non-current assets | 10,187 | 9,847 | ||||
| Total non-current assets | 119,274 | 108,775 | ||||
| Total assets | $ | 272,116 | $ | 273,942 | ||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 7,124 | $ | 4,968 | ||
| Accrued payroll and related taxes | 11,041 | 19,378 | ||||
| Accrued expenses | 8,545 | 8,531 | ||||
| Income taxes payable | 2,161 | 1,428 | ||||
| Operating lease liabilities | 3,237 | 3,195 | ||||
| Other current liabilities | 3,904 | 3,457 | ||||
| Total current liabilities | 36,012 | 40,957 | ||||
| Non-current liabilities | ||||||
| Accrued warranty reserve, non-current | 1,068 | 1,045 | ||||
| Income taxes payable, non-current | 370 | 275 | ||||
| Operating lease liabilities, non-current | 11,937 | 12,763 | ||||
| Other non-current liabilities | 4,863 | — | ||||
| Total non-current liabilities | 18,238 | 14,083 | ||||
| Total liabilities | 54,250 | 55,040 | ||||
| Stockholders’ equity: | ||||||
| Preferred stock, | — | — | ||||
| Common stock, | 22 | 22 | ||||
| Additional paid-in capital | 164,667 | 163,940 | ||||
| Retained earnings | 53,177 | 54,940 | ||||
| Total stockholders’ equity | 217,866 | 218,902 | ||||
| Total liabilities and stockholders’ equity | $ | 272,116 | $ | 273,942 | ||
| Tactile Systems Technology, Inc. | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| (In thousands, except share and per share data) | 2026 | 2025 | ||||||
| Revenue | ||||||||
| Sales revenue | $ | 66,966 | $ | 52,469 | ||||
| Rental revenue | 8,301 | 8,799 | ||||||
| Total revenue | 75,267 | 61,268 | ||||||
| Cost of revenue | ||||||||
| Cost of sales revenue | 15,259 | 13,891 | ||||||
| Cost of rental revenue | 2,394 | 2,031 | ||||||
| Total cost of revenue | 17,653 | 15,922 | ||||||
| Gross profit | ||||||||
| Gross profit - sales revenue | 51,707 | 38,578 | ||||||
| Gross profit - rental revenue | 5,907 | 6,768 | ||||||
| Gross profit | 57,614 | 45,346 | ||||||
| Operating expenses | ||||||||
| Sales and marketing | 32,732 | 27,516 | ||||||
| Research and development | 2,776 | 1,741 | ||||||
| Reimbursement, general and administrative | 23,044 | 19,998 | ||||||
| Intangible asset amortization and earn-out | 596 | 633 | ||||||
| Total operating expenses | 59,148 | 49,888 | ||||||
| Loss from operations | (1,534 | ) | (4,542 | ) | ||||
| Interest income | 666 | 895 | ||||||
| Interest expense | (28 | ) | (424 | ) | ||||
| Loss before income taxes | (896 | ) | (4,071 | ) | ||||
| Income tax expense (benefit) | 867 | (1,097 | ) | |||||
| Net loss | $ | (1,763 | ) | $ | (2,974 | ) | ||
| Net loss per common share | ||||||||
| Basic | $ | (0.08 | ) | $ | (0.13 | ) | ||
| Diluted | $ | (0.08 | ) | $ | (0.13 | ) | ||
| Weighted-average common shares used to compute net loss per common share | ||||||||
| Basic | 22,561,053 | 23,710,643 | ||||||
| Diluted | 22,561,053 | 23,710,643 | ||||||
| Tactile Systems Technology, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| (In thousands) | 2026 | 2025 | ||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (1,763 | ) | $ | (2,974 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization | 1,639 | 1,726 | ||||||
| Deferred income taxes | 24 | 252 | ||||||
| Stock-based compensation expense | 1,780 | 2,066 | ||||||
| Loss on disposal of property and equipment and intangibles | 73 | 5 | ||||||
| Changes in assets and liabilities, net of acquisition: | ||||||||
| Accounts receivable, net | 5,676 | 9,244 | ||||||
| Net investment in leases | 556 | (310 | ) | |||||
| Inventories | (2,556 | ) | (201 | ) | ||||
| Income taxes payable | 828 | (1,347 | ) | |||||
| Prepaid expenses and other assets | (125 | ) | (2,452 | ) | ||||
| Right of use operating lease assets | (296 | ) | (267 | ) | ||||
| Accounts payable | 2,171 | 1,387 | ||||||
| Accrued payroll and related taxes | (8,337 | ) | (6,994 | ) | ||||
| Accrued expenses and other liabilities | (9 | ) | 282 | |||||
| Net cash (used in) provided by operating activities | (339 | ) | 417 | |||||
| Cash flows from investing activities | ||||||||
| Payments related to acquisition, net of cash acquired | (6,226 | ) | — | |||||
| Purchases of property and equipment | (821 | ) | (379 | ) | ||||
| Intangible assets expenditures | (14 | ) | (28 | ) | ||||
| Net cash used in investing activities | (7,061 | ) | (407 | ) | ||||
| Cash flows from financing activities | ||||||||
| Payments on note payable | — | (750 | ) | |||||
| Proceeds from exercise of common stock options | 20 | 10 | ||||||
| Payments for repurchases of common stock | (1,073 | ) | (10,018 | ) | ||||
| Net cash used in financing activities | (1,053 | ) | (10,758 | ) | ||||
| Net decrease in cash | (8,453 | ) | (10,748 | ) | ||||
| Cash – beginning of period | 83,446 | 94,367 | ||||||
| Cash – end of period | $ | 74,993 | $ | 83,619 | ||||
| Supplemental cash flow disclosure | ||||||||
| Cash paid for interest | $ | 21 | $ | 444 | ||||
| Cash paid for taxes | $ | 14 | $ | 15 | ||||
| Accrued excise tax on stock repurchases | $ | — | $ | 50 | ||||
| Capital expenditures incurred but not yet paid | $ | 63 | $ | 189 | ||||
The following table summarizes revenue by product line for the three months ended March 31, 2026 and 2025:
| Three Months Ended | ||||||||
| March 31, | ||||||||
| (In thousands) | 2026 | 2025 | ||||||
| Revenue | ||||||||
| Lymphedema products | $ | 62,221 | $ | 50,554 | ||||
| Airway clearance products | 13,046 | 10,714 | ||||||
| Total | $ | 75,267 | $ | 61,268 | ||||
| Percentage of total revenue | ||||||||
| Lymphedema products | 83 | % | 83 | % | ||||
| Airway clearance products | 17 | % | 17 | % | ||||
| Total | 100 | % | 100 | % | ||||
The following table contains a reconciliation of net loss to Adjusted EBITDA for the three months ended March 31, 2026 and 2025, as well as the dollar and percentage change between the comparable periods:
| Tactile Systems Technology, Inc. | |||||||||||||||
| Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Increase | ||||||||||||||
| March 31, | (Decrease) | ||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | $ | % | |||||||||||
| Net loss | $ | (1,763 | ) | $ | (2,974 | ) | $ | 1,211 | (41 | )% | |||||
| Interest (income) expense, net | (638 | ) | (471 | ) | (167 | ) | 35 | % | |||||||
| Income tax expense (benefit) | 867 | (1,097 | ) | 1,964 | N.M. | % | |||||||||
| Depreciation and amortization | 1,639 | 1,726 | (87 | ) | (5 | )% | |||||||||
| Stock-based compensation | 1,780 | 2,066 | (286 | ) | (14 | )% | |||||||||
| Acquisition & integration costs | 817 | — | 817 | — | % | ||||||||||
| Litigation-related costs | 1,000 | — | 1,000 | — | % | ||||||||||
| Executive transition costs | — | 491 | (491 | ) | (100 | )% | |||||||||
| Adjusted EBITDA | $ | 3,702 | $ | (259 | ) | $ | 3,961 | N.M. | % | ||||||
“N.M.” Not Meaningful
The following table contains a reconciliation of net income to Adjusted EBITDA for the year ended December 31, 2025:
| Tactile Systems Technology, Inc. | ||||
| Reconciliation of Net Income to Non-GAAP Adjusted EBITDA | ||||
| (Unaudited) | ||||
| Year Ended | ||||
| (Dollars in thousands) | December 31, 2025 | |||
| Net income | $ | 19,086 | ||
| Interest (income) expense, net | (2,059 | ) | ||
| Income tax expense | 12,253 | |||
| Depreciation and amortization | 6,644 | |||
| Stock-based compensation | 8,357 | |||
| Executive transition costs | 491 | |||
| Adjusted EBITDA | $ | 44,772 | ||
The following table contains a reconciliation of GAAP net income guidance range to the Adjusted EBITDA guidance range for the twelve months ending December 31, 2026:
| Tactile Systems Technology, Inc. | ||||||||
| Reconciliation of FY 2026 GAAP Net Income to Adjusted EBITDA Guidance | ||||||||
| (Unaudited) | ||||||||
| Year Ended | ||||||||
| December 31, 2026 | ||||||||
| (Dollars in thousands) | Low | High | ||||||
| Net income | $ | 24,697 | $ | 26,137 | ||||
| Interest (income) expense, net | (2,984 | ) | (2,984 | ) | ||||
| Income tax expense | 9,604 | 10,164 | ||||||
| Depreciation and amortization | 6,803 | 6,803 | ||||||
| Stock-based compensation | 8,587 | 8,587 | ||||||
| Acquisition & integration costs | 1,293 | 1,293 | ||||||
| Litigation-related costs | 1,000 | 1,000 | ||||||
| Adjusted EBITDA | $ | 49,000 | $ | 51,000 | ||||
Investor Inquiries:
Sam Bentzinger
Gilmartin Group
investorrelations@tactilemedical.com
