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Tactile Systems Technology
(NASDAQ:TCMD)
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Rating:74Outperform
Price Target:
$33.00
▲(20.09% Upside)
Action:Reiterated
Date:08/11/26
The score is driven primarily by a strengthened financial foundation (notably very low leverage and solid profitability) and a constructive earnings update (raised revenue guidance and expanding margins/EBITDA). Technicals are supportive with the stock above major moving averages and neutral-to-positive momentum. Valuation is the main restraint given the 26.49 P/E and no indicated dividend yield.
Positive Factors
Low leverage / strong balance sheet
The company’s dramatic deleveraging to about $14.4M TTM and a debt-to-equity near 0.06 materially increases financial flexibility. This durable strength supports multi-year investment in commercialization, clinical programs, and opportunistic M&A without near-term refinancing risk.
Negative Factors
Reimbursement dependence
Revenue realization depends heavily on third-party payor policies and documentation. New Medicare prior authorization requirements are a structural reminder that coverage changes, approvals, and administrative burdens can meaningfully slow adoption and increase sales cycle duration across payors.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
The company’s dramatic deleveraging to about $14.4M TTM and a debt-to-equity near 0.06 materially increases financial flexibility. This durable strength supports multi-year investment in commercialization, clinical programs, and opportunistic M&A without near-term refinancing risk.
Read all positive factors
Tactile Systems Technology Key Performance Indicators (KPIs)
Any
Revenue by Channel
Shows how sales split across distribution routes—such as direct sales, distributors, clinics or online—revealing which channels drive growth, which are most scalable or profitable, and where the company is vulnerable to concentration or partner risk. Trending shifts between channels also indicate how well management can expand reach or control pricing and margins.
Shows how sales split across distribution routes—such as direct sales, distributors, clinics or online—revealing which channels drive growth, which are most scalable or profitable, and where the company is vulnerable to concentration or partner risk. Trending shifts between channels also indicate how well management can expand reach or control pricing and margins.
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The Fly
The FlyTactile Systems Technology (TCMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$557.02M
Dividend YieldN/A
Average Volume (3M)237.52K
Price to Earnings (P/E)22.4
Beta (1Y)0.68
Revenue Growth17.22%
EPS Growth74.89%
CountryUS
Employees1,086
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.10
Shares Outstanding22,652,287
10 Day Avg. Volume209,219
30 Day Avg. Volume237,524
Financial Highlights & Ratios
PEG Ratio2.07
Price to Book (P/B)3.03
Price to Sales (P/S)2.01
P/FCF Ratio16.41
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$39.00Price Target Upside41.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.14
Revenue Forecast (FY)$364.81M
Tactile Systems Technology Business Overview & Revenue Model
Company Description
Tactile Systems Technology, Inc. is a medical technology firm that develops and supplies specialized devices to treat chronic health conditions across the United States. Its product portfolio features the Flexitouch Plus system, a pneumatic compre...
How the Company Makes Money
Tactile Systems Technology generates revenue primarily from selling pneumatic compression devices and the associated consumables used with those systems (including garments, accessories, and replacement components). The company’s sales process is ...
Tactile Systems Technology Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call conveyed solid overall momentum driven by a strong lymphedema business, meaningful margin and profitability expansion, supportive clinical evidence publication, and strategic product and distribution initiatives (LymphaTech, MyoSleeve, next‑gen AffloVest). Near-term headwinds are limited and identifiable—chiefly temporary DME inventory management affecting AffloVest, Medicare prior authorization timing effects, and planned expense and strategic cash deployment—while multiyear fundamentals and guidance were maintained/upgraded. Taken together, positives around revenue growth, margin expansion, durable AffloVest TTM growth, and clinical/regulatory progress outweigh the transitory challenges.Positive Updates
Total Revenue and Lymphedema Strength
Q2 total revenue $85.7M, up 9% year-over-year; lymphedema revenue $73.6M, up 12% year-over-year, driven by referral growth, territory productivity and NCD-driven Flexitouch adoption.
Negative Updates
AffloVest Near-Term Sales Decline
AffloVest Q2 sales $12.1M, down 7% year-over-year due to temporary inventory management among several large DME partners during the next-generation product launch; company expects this dynamic to influence orders through Q3 with normalization beginning in Q4.
Read all updates
Q2-2026 Updates
Positive
Negative
Total Revenue and Lymphedema Strength
Q2 total revenue $85.7M, up 9% year-over-year; lymphedema revenue $73.6M, up 12% year-over-year, driven by referral growth, territory productivity and NCD-driven Flexitouch adoption.
Read all positive updates
Company Guidance
Management updated full‑year 2026 guidance to $360–$366 million in revenue (≈9–11% YoY), projecting lymphedema revenue to grow in the low double‑digit range and airway clearance to be roughly flat YoY; they expect GAAP gross margins of 76.0–76.5%, GAAP operating expenses to increase ~10–12% YoY, net interest income of ~ $2.4M, a tax rate of 28%, and a fully diluted share count of ~23M, with adjusted EBITDA of about $49–$51M (assuming ~$8.6M stock comp, ~$4.2M intangible amortization, ~$3.3M depreciation, ~$1M litigation costs and ~$1.3M one‑time acquisition/integration costs). The outlook incorporates Q2 performance: Q2 revenue $85.7M (+9% YoY) including lymphedema $73.6M (+12%) and AffloVest $12.1M (−7%) while AffloVest trailing‑12‑month revenue remained +32% YoY (≈28% 2‑year TTM CAGR); Q2 gross margin was 76.3% (vs 74.5% prior year), adjusted EBITDA $11.4M (+49%), operating income $6.8M (+67%), net income $7.8M ($0.34 diluted, +142%), and cash of $69.9M with no outstanding borrowings.Tactile Systems Technology Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 350.31M | 329.52M | 292.98M | 274.42M | 246.78M | 208.06M |
| Gross Profit | 260.04M | 247.70M | 216.69M | 195.13M | 175.98M | 148.21M |
| EBITDA | 44.12M | 39.02M | 32.37M | 26.42M | 1.75M | 1.39M |
| Net Income | 24.86M | 19.09M | 16.96M | 28.52M | -17.87M | -11.81M |
Balance Sheet | ||||||
| Total Assets | 279.67M | 273.94M | 297.92M | 281.44M | 255.00M | 244.27M |
| Cash, Cash Equivalents and Short-Term Investments | 69.85M | 83.45M | 108.91M | 75.23M | 38.06M | 40.71M |
| Total Debt | 14.36M | 15.96M | 45.11M | 50.38M | 72.23M | 80.61M |
| Total Liabilities | 55.83M | 55.04M | 81.33M | 87.80M | 133.60M | 116.04M |
| Stockholders Equity | 223.84M | 218.90M | 216.60M | 193.64M | 121.40M | 128.23M |
Cash Flow | ||||||
| Free Cash Flow | 26.72M | 40.43M | 38.15M | 33.37M | 3.29M | 276.00K |
| Operating Cash Flow | 30.55M | 42.81M | 40.66M | 35.85M | 5.21M | 2.63M |
| Investing Cash Flow | -13.11M | -2.54M | -2.50M | -2.48M | -1.91M | -82.18M |
| Financing Cash Flow | -29.12M | -51.20M | -4.82M | 5.73M | -9.60M | 59.93M |
Tactile Systems Technology Technical Analysis
Negative
27.48
Price Trends
27.89
Negative
26.23
Negative
26.85
Negative
Market Momentum
-1.07
Positive
34.39
Neutral
16.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCMD, the sentiment is Negative. The current price of 27.48 is above the 20-day moving average (MA) of 27.21, below the 50-day MA of 27.89, and above the 200-day MA of 26.85, indicating a bearish trend. The MACD of -1.07 indicates Positive momentum. The RSI at 34.39 is Neutral, neither overbought nor oversold. The STOCH value of 16.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TCMD.
Tactile Systems Technology Risk Analysis
Tactile Systems Technology disclosed 74 risk factors in its most recent earnings report. Tactile Systems Technology reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tactile Systems Technology Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $557.02M | 22.35 | 11.49% | ― | 17.22% | 74.89% | |
67 Neutral | $344.70M | 23.99 | 10.30% | ― | 25.21% | 6.14% | |
56 Neutral | $936.43M | -13.86 | -44.85% | ― | 31.70% | -28.13% | |
55 Neutral | $324.50M | -4.05 | 273.71% | ― | 25.25% | -9.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $84.68M | -1.10 | -62.25% | ― | -1.26% | 79.82% | |
42 Neutral | $42.67M | 2.97 | 1728.10% | ― | 12.02% | ― |
* Healthcare Sector Average
TCMD
Tactile Systems Technology
23.60
10.78
84.09%
SNWV
Sanuwave Health
5.12
-34.33
-87.02%
VMD
Viemed Healthcare
8.94
2.08
30.32%
OM
Outset Medical
4.30
-9.04
-67.77%
TLSI
TriSalus Life Sciences
5.49
0.37
7.23%
CBLL
Ceribell, Inc.
24.21
12.63
109.07%
Tactile Systems Technology Corporate Events
Business Operations and StrategyProduct-Related Announcements
Tactile Medical Expands VA and DoD Compression Offering
Positive
Jul 13, 2026
On July 13, 2026, Tactile Medical announced an exclusive U.S. distribution agreement with ElastiMed to supply MyoSleeve, a discreet, wearable non-pneumatic compression device for the lower leg, to patients treated in the Department of Veterans Aff...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.