Tactile Systems Technology, Inc. Reports Third Quarter 2026 Financial Results
Nine-month net income increased to $13.2 million from $8.5 million, despite the third-quarter earnings decline.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Tactile Systems Technology (Nasdaq: TCMD) reported third-quarter 2026 revenue of $91.9 million, up year over year as lymphedema sales grew. Revenue rose 7%, with lymphedema revenue up 13% to $81.8 million and airway clearance sales down 25%. Gross margin increased to 77% from 76%, but net income fell to $7.2 million, or $0.31 per diluted share, from $8.2 million, or $0.36.
The company maintained its 2026 revenue outlook of $360 million to $366 million and raised adjusted EBITDA guidance to $50 million–$52 million from $49 million–$51 million. Adjusted EBITDA is a non-GAAP earnings measure. Cash totaled $75.1 million at September 30, with no outstanding credit-agreement borrowings. The company received FDA clearance expanding the LymphaTech 3D Scanner indication to aid lymphedema assessment and submitted a 510(k) application for Flexitouch Pro.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA guidance raised to $50 million–$52 million from $49 million–$51 million; 2025 was $44.8 million.
- Moderate pointQ3 revenue increased 7% year over year to $91.9 million.
- Moderate pointQ3 lymphedema revenue increased 13% year over year to $81.8 million.
- Moderate pointQ3 gross profit increased 8% year over year to $70.5 million.
- Moderate pointNine-month revenue increased 12% year over year to $252.8 million.
- Moderate pointNine-month lymphedema sales and rentals increased $28.8 million, or 15%, year over year.
- Moderate pointNine-month net income rose to $13.2 million, or $0.57 per diluted share, from $8.5 million, or $0.36.
- Moderate pointNine-month adjusted EBITDA increased to $29.5 million from $21.8 million a year earlier.
5 minor points
- Minor pointQ3 gross margin expanded to 77% from 76%, reflecting lower manufacturing costs and favorable product mix.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance maintained at $360 million–$366 million, representing approximately 9%–11% year-over-year growth.
- Minor pointLymphaTech 3D Scanner received FDA 510(k) clearance expanding its indication to aid lymphedema assessment.
- Minor pointFlexitouch Pro 510(k) application submitted to the FDA for enhancements to the compression system.
- Minor pointCredit-agreement borrowings remained at zero as of September 30, 2026.
Negative
- Moderate pointQ3 net income fell to $7.2 million, or $0.31 per diluted share, from $8.2 million, or $0.36.
- Moderate pointQ3 operating income decreased to $9.6 million from $11.0 million a year earlier.
- Moderate pointQ3 operating expenses increased 13% year over year to $60.9 million.
- Moderate pointQ3 airway clearance sales decreased $3.4 million, or 25%, year over year.
- Moderate pointCash declined to $75.1 million at September 30, 2026, from $83.4 million at December 31, 2025.
2 minor points
- Minor pointQ3 adjusted EBITDA decreased to $14.3 million from $14.4 million a year earlier.
- Minor pointNine-month airway clearance sales decreased $1.9 million, or 5%, year over year.
News Explained
Tactile repurchased
Key Figures
- Q3 total revenue
- $91.9 million, up 7% year-over-year
- Third quarter 2026
- Lymphedema product line revenue
- $81.8 million, up 13% year-over-year
- Third quarter 2026
- Airway clearance product sales
- Down 25% year-over-year
- Third quarter 2026; decrease of $3.4 million
- Gross margin
- 77%, compared with 76%
- Third quarter 2026 versus Q3 2025
- Net income
- $7.2 million, compared with $8.2 million
- Third quarter 2026 versus Q3 2025
- Adjusted EBITDA
- $14.3 million, compared with $14.4 million
- Third quarter 2026 versus Q3 2025
- FY2026 revenue outlook
- $360 million to $366 million
- Continued expectation; 9% to 11% year-over-year growth
- FY2026 Adjusted EBITDA outlook
- $50 million to $52 million
- Raised from prior guidance of $49 million to $51 million
Previous Earnings Reports
-
Revenue and net income increased, while the company maintained its Adjusted EBITDA guidance.
-
Revenue increased, net income was $8.2 million, and full-year guidance was raised.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
lymphedema medical
510(k) clearance regulatory
pneumatic compression medical
non-gaap financial measure financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
MINNEAPOLIS, Nov. 02, 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 third quarter ended September 30, 2026.
Third Quarter 2026 Summary and Recent Business Highlights:
- Total revenue increased
7% year-over-year to$91.9 million ; revenue from our lymphedema product line increased13% year-over-year to$81.8 million - Gross margin expanded to
77% from76% in Q3 2025 - Net income decreased to
$7.2 million from$8.2 million in Q3 2025 - Adjusted EBITDA was
$14.3 million , compared to$14.4 million in Q3 2025 - Received FDA 510(k) clearance expanding the LymphaTech 3D Scanner’s indication to aid in the assessment of lymphedema
- Submitted a 510(k) application to the FDA for Flexitouch® Pro, featuring enhancements to the Company’s advanced pneumatic compression system
- Appointed Steve Kiewiet as Chief Operating Officer, with responsibility for order operations and patient services
- Repurchased
$6.2 million of stock under the Company’s share repurchase program
“Our results underscore the strength and durability of our core lymphedema business, which delivered its fifth consecutive quarter of double-digit year-over-year revenue growth, while gross margin expanded for the 12th consecutive quarter,” said Sheri Dodd, Chief Executive Officer of Tactile Medical. “As a market leader in both the basic and advanced pneumatic compression categories, we see substantial opportunity ahead in a market that remains significantly underpenetrated.”
Ms. Dodd continued, “We are positioned to capture that opportunity through three connected strategic priorities: expanding access to care, creating value across the patient journey, and broadening treatment options. Together, we believe these priorities provide a clear path toward sustaining above-market lymphedema growth, driving operating leverage, and delivering shareholder value over the long term.”
Third Quarter 2026 Financial Results
Total revenue in the third quarter of 2026 increased
Gross profit in the third quarter of 2026 increased
Operating expenses in the third quarter of 2026 increased
Operating income was
Income tax expense was
Net income in the third quarter of 2026 was
Weighted-average shares used to compute diluted net income per share were 23.0 million and 22.5 million for the third quarters of 2026 and 2025, respectively.
Adjusted EBITDA was
First Nine Months 2026 Financial Results
Total revenue for the nine months ended September 30, 2026, increased
Net income for the nine months ended September 30, 2026, was
Weighted-average shares used to compute diluted net income per share were 23.1 million and 23.3 million for the nine months ended September 30, 2026 and 2025, respectively.
Adjusted EBITDA was
Balance Sheet Summary
As of September 30, 2026, the Company had
2026 Financial Outlook
The Company continues to expect full year 2026 total revenue in the range of
The Company now expects 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 November 2, 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 13762880. 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 13762880. 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 respiratory conditions 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 Securities and Exchange Commission (the “SEC”). Investors and security holders are urged to read these documents, which are available 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, 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, plus acquisition and integration costs, and plus change in fair value of contingent consideration. 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 the Company’s 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 press release. 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.
| Tactile Systems Technology, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Unaudited) | ||||||||
| September 30, | December 31, | |||||||
| (In thousands, except share and per share data) | 2026 | 2025 | ||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 75,110 | $ | 83,446 | ||||
| Accounts receivable, net | 48,304 | 43,876 | ||||||
| Net investment in leases | 14,912 | 15,754 | ||||||
| Inventories | 15,596 | 14,025 | ||||||
| Income taxes receivable | 543 | — | ||||||
| Prepaid expenses and other current assets | 12,314 | 8,066 | ||||||
| Total current assets | 166,779 | 165,167 | ||||||
| Non-current assets | ||||||||
| Property and equipment, net | 5,685 | 5,117 | ||||||
| Right of use operating lease assets | 15,282 | 13,798 | ||||||
| Intangible assets, net | 43,721 | 39,167 | ||||||
| Goodwill | 39,554 | 31,063 | ||||||
| Deferred income taxes | 8,695 | 9,783 | ||||||
| Other non-current assets | 11,578 | 9,847 | ||||||
| Total non-current assets | 124,515 | 108,775 | ||||||
| Total assets | $ | 291,294 | $ | 273,942 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 11,792 | $ | 4,968 | ||||
| Accrued payroll and related taxes | 17,470 | 19,378 | ||||||
| Accrued expenses | 7,881 | 8,531 | ||||||
| Income taxes payable | — | 1,428 | ||||||
| Operating lease liabilities | 3,245 | 3,195 | ||||||
| Other current liabilities | 7,111 | 3,457 | ||||||
| Total current liabilities | 47,499 | 40,957 | ||||||
| Non-current liabilities | ||||||||
| Accrued warranty reserve, non-current | 1,092 | 1,045 | ||||||
| Income taxes payable, non-current | 370 | 275 | ||||||
| Operating lease liabilities, non-current | 13,821 | 12,763 | ||||||
| Other non-current liabilities | 1,260 | — | ||||||
| Total non-current liabilities | 16,543 | 14,083 | ||||||
| Total liabilities | 64,042 | 55,040 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 22 | 22 | ||||||
| Additional paid-in capital | 159,108 | 163,940 | ||||||
| Retained earnings | 68,122 | 54,940 | ||||||
| Total stockholders’ equity | 227,252 | 218,902 | ||||||
| Total liabilities and stockholders’ equity | $ | 291,294 | $ | 273,942 | ||||
| Tactile Systems Technology, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (In thousands, except share and per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenue | ||||||||||||||||
| Sales revenue | $ | 82,329 | $ | 76,890 | $ | 225,784 | $ | 199,890 | ||||||||
| Rental revenue | 9,529 | 8,865 | 27,039 | 26,038 | ||||||||||||
| Total revenue | 91,858 | 85,755 | 252,823 | 225,928 | ||||||||||||
| Cost of revenue | ||||||||||||||||
| Cost of sales revenue | 18,400 | 17,896 | 51,287 | 49,270 | ||||||||||||
| Cost of rental revenue | 2,969 | 2,858 | 8,084 | 7,518 | ||||||||||||
| Total cost of revenue | 21,369 | 20,754 | 59,371 | 56,788 | ||||||||||||
| Gross profit | ||||||||||||||||
| Gross profit - sales revenue | 63,929 | 58,994 | 174,497 | 150,620 | ||||||||||||
| Gross profit - rental revenue | 6,560 | 6,007 | 18,955 | 18,520 | ||||||||||||
| Gross profit | 70,489 | 65,001 | 193,452 | 169,140 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing | 33,042 | 29,809 | 97,786 | 87,364 | ||||||||||||
| Research and development | 2,506 | 2,191 | 7,783 | 5,950 | ||||||||||||
| Reimbursement, general and administrative | 24,657 | 21,442 | 71,061 | 63,474 | ||||||||||||
| Intangible asset amortization and contingent consideration | 693 | 596 | 1,939 | 1,848 | ||||||||||||
| Total operating expenses | 60,898 | 54,038 | 178,569 | 158,636 | ||||||||||||
| Income from operations | 9,591 | 10,963 | 14,883 | 10,504 | ||||||||||||
| Interest income | 560 | 667 | 1,787 | 2,412 | ||||||||||||
| Interest expense | (20 | ) | (193 | ) | (67 | ) | (1,027 | ) | ||||||||
| Other income | — | — | — | 1 | ||||||||||||
| Income before income taxes | 10,131 | 11,437 | 16,603 | 11,890 | ||||||||||||
| Income tax expense | 2,971 | 3,228 | 3,421 | 3,438 | ||||||||||||
| Net income | $ | 7,160 | $ | 8,209 | $ | 13,182 | $ | 8,452 | ||||||||
| Net income per common share | ||||||||||||||||
| Basic | $ | 0.32 | $ | 0.37 | $ | 0.58 | $ | 0.37 | ||||||||
| Diluted | $ | 0.31 | $ | 0.36 | $ | 0.57 | $ | 0.36 | ||||||||
| Weighted-average common shares used to compute net income per common share | ||||||||||||||||
| Basic | 22,632,801 | 22,318,570 | 22,624,676 | 23,035,461 | ||||||||||||
| Diluted | 23,045,862 | 22,513,140 | 23,136,378 | 23,304,900 | ||||||||||||
| Tactile Systems Technology, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (Unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| (In thousands) | 2026 | 2025 | ||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 13,182 | $ | 8,452 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 5,223 | 5,023 | ||||||
| Deferred income taxes | 50 | 1,566 | ||||||
| Stock-based compensation expense | 6,416 | 5,819 | ||||||
| Loss on disposal of property and equipment and intangibles | 73 | 68 | ||||||
| Change in fair value of contingent consideration | 61 | — | ||||||
| Changes in assets and liabilities, net of acquisition: | ||||||||
| Accounts receivable, net | (4,409 | ) | 7,680 | |||||
| Net investment in leases | 842 | (303 | ) | |||||
| Inventories | (1,571 | ) | 2,582 | |||||
| Income taxes payable | (1,876 | ) | 1,025 | |||||
| Prepaid expenses and other assets | (6,481 | ) | (5,971 | ) | ||||
| Right of use operating lease assets | (376 | ) | (322 | ) | ||||
| Accounts payable | 6,773 | 2,117 | ||||||
| Accrued payroll and related taxes | (1,908 | ) | (3,196 | ) | ||||
| Accrued expenses and other liabilities | (1,106 | ) | 975 | |||||
| Net cash provided by operating activities | 14,893 | 25,515 | ||||||
| Cash flows from investing activities | ||||||||
| Payments related to acquisition, net of cash acquired | (6,226 | ) | — | |||||
| Purchases of property and equipment | (2,655 | ) | (1,870 | ) | ||||
| Intangible assets expenditures | (100 | ) | (88 | ) | ||||
| Payment for exclusive distribution agreement | (3,000 | ) | — | |||||
| Net cash used in investing activities | (11,981 | ) | (1,958 | ) | ||||
| Cash flows from financing activities | ||||||||
| Payments on note payable | — | (26,250 | ) | |||||
| Proceeds from exercise of common stock options | 248 | 10 | ||||||
| Proceeds from the issuance of common stock from the employee stock purchase plan | 1,032 | 843 | ||||||
| Payments for repurchases of common stock | (12,528 | ) | (26,562 | ) | ||||
| Net cash used in financing activities | (11,248 | ) | (51,959 | ) | ||||
| Net decrease in cash | (8,336 | ) | (28,402 | ) | ||||
| Cash – beginning of period | 83,446 | 94,367 | ||||||
| Cash – end of period | $ | 75,110 | $ | 65,965 | ||||
| Supplemental cash flow disclosure | ||||||||
| Cash paid for interest | $ | 59 | $ | 836 | ||||
| Cash paid for taxes | $ | 5,238 | $ | 899 | ||||
| Accrued excise tax on stock repurchases | $ | — | $ | 210 | ||||
| Capital expenditures incurred but not yet paid | $ | 129 | $ | 224 | ||||
| Fair value of contingent consideration included in purchase consideration | $ | 4,863 | $ | — | ||||
The following table summarizes revenue by product line for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenue | ||||||||||||||||
| Lymphedema products | $ | 81,838 | $ | 72,381 | $ | 217,689 | $ | 188,905 | ||||||||
| Airway clearance products | 10,020 | 13,374 | 35,134 | 37,023 | ||||||||||||
| Total | $ | 91,858 | $ | 85,755 | $ | 252,823 | $ | 225,928 | ||||||||
| Percentage of total revenue | ||||||||||||||||
| Lymphedema products | 89 | % | 84 | % | 86 | % | 84 | % | ||||||||
| Airway clearance products | 11 | % | 16 | % | 14 | % | 16 | % | ||||||||
| Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
The following table contains a reconciliation of net income to Adjusted EBITDA for the three and nine months ended September 30, 2026 and 2025, as well as the dollar and percentage change between the comparable periods:
| Tactile Systems Technology, Inc. | ||||||||||||||||||||||||||||||
| Reconciliation of Net Income to Non-GAAP Adjusted EBITDA | ||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||
| Three Months Ended | Increase | Nine Months Ended | Increase | |||||||||||||||||||||||||||
| September 30, | (Decrease) | September 30, | (Decrease) | |||||||||||||||||||||||||||
| (Dollars in thousands) | 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | ||||||||||||||||||||||
| Net income | $ | 7,160 | $ | 8,209 | $ | (1,049 | ) | (13 | )% | $ | 13,182 | $ | 8,452 | $ | 4,730 | 56 | % | |||||||||||||
| Interest (income) expense, net | (540 | ) | (474 | ) | (66 | ) | 14 | % | (1,720 | ) | (1,385 | ) | (335 | ) | 24 | % | ||||||||||||||
| Income tax (benefit) expense | 2,971 | 3,228 | (257 | ) | (8 | )% | 3,421 | 3,438 | (17 | ) | (0 | )% | ||||||||||||||||||
| Depreciation and amortization | 1,773 | 1,638 | 135 | 8 | % | 5,223 | 5,023 | 200 | 4 | % | ||||||||||||||||||||
| Stock-based compensation | 2,376 | 1,814 | 562 | 31 | % | 6,416 | 5,819 | 597 | 10 | % | ||||||||||||||||||||
| Change in fair value of contingent consideration | 61 | — | 61 | — | % | 61 | — | 61 | — | % | ||||||||||||||||||||
| Acquisition & integration costs | 159 | — | 159 | — | % | 1,132 | — | 1,132 | — | % | ||||||||||||||||||||
| Litigation-related costs | — | — | — | — | % | 1,000 | — | 1,000 | — | % | ||||||||||||||||||||
| Executive transition costs | 388 | — | 388 | — | % | 748 | 491 | 257 | 52 | % | ||||||||||||||||||||
| Adjusted EBITDA | $ | 14,348 | $ | 14,415 | $ | (67 | ) | (0 | )% | $ | 29,463 | $ | 21,838 | $ | 7,625 | 35 | % | |||||||||||||
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 the 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 | $ | 23,580 | $ | 25,000 | ||||
| Interest (income) expense, net | (2,370 | ) | (2,370 | ) | ||||
| Income tax expense | 9,170 | 9,750 | ||||||
| Depreciation and amortization | 7,250 | 7,250 | ||||||
| Stock-based compensation | 8,640 | 8,640 | ||||||
| Acquisition & integration costs | 1,300 | 1,300 | ||||||
| Change in fair value of contingent consideration | 100 | 100 | ||||||
| Executive transition costs | 1,330 | 1,330 | ||||||
| Litigation-related costs | 1,000 | 1,000 | ||||||
| Adjusted EBITDA | $ | 50,000 | $ | 52,000 | ||||
Investor Inquiries:
Sam Bentzinger
Gilmartin Group
investorrelations@tactilemedical.com
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Tactile Systems Technology's third-quarter 2026 earnings results?
Tactile Systems Technology reported $91.9 million in revenue and net income of $7.2 million, or $0.31 per diluted share. Revenue increased 7% year over year, while net income decreased from $8.2 million, or $0.36 per diluted share.
What is TCMD's updated 2026 financial guidance?
Tactile Systems Technology expects 2026 revenue of $360 million to $366 million and adjusted EBITDA of $50 million to $52 million. Revenue guidance is unchanged and represents approximately 9% to 11% year-over-year growth. The prior adjusted EBITDA outlook was $49 million to $51 million.
Why did Tactile Systems Technology's airway clearance sales fall in the third quarter of 2026?
The company attributed the decline primarily to the durable medical equipment inventory transition associated with the second-quarter launch of its next-generation AffloVest system. Third-quarter airway clearance sales decreased $3.4 million, or 25%, year over year.
How much stock did TCMD repurchase in the third quarter of 2026?
Tactile Systems Technology repurchased $6.2 million of stock during the third quarter under its existing share repurchase program. As of September 30, 2026, $12.5 million remained available under the $25.0 million program, which expires November 3, 2027.