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Tactile Systems Technology
(NASDAQ:TCMD)
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Rating:74Outperform
Price Target:
$24.50
▲(3.90% 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
Revenue and Profitability Growth
Strong lymphedema demand is translating into both revenue growth and operating leverage. The combination of higher sales, gross-margin expansion, and faster EBITDA and net-income growth supports a more durable earnings base and funds continued investment.
Negative Factors
Medicare Authorization Friction
The new authorization process can create persistent friction between prescription and shipment, slowing revenue conversion and increasing administrative work. Lower Medicare order volumes also expose the business to reimbursement-policy execution risk within a meaningful payer channel.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profitability Growth
Strong lymphedema demand is translating into both revenue growth and operating leverage. The combination of higher sales, gross-margin expansion, and faster EBITDA and net-income growth supports a more durable earnings base and funds continued investment.
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
$532.78M
Dividend YieldN/A
Average Volume (3M)240.70K
Price to Earnings (P/E)21.4
Beta (1Y)0.71
Revenue Growth17.22%
EPS Growth74.89%
CountryUS
Employees1,086
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.09
Shares Outstanding22,652,287
10 Day Avg. Volume202,111
30 Day Avg. Volume240,697
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 Cap1.18
Enterprise Value/Revenue1.80
Enterprise Value/Gross Profit2.43
Enterprise Value/Ebitda14.31
Forecast
1Y Price Target
$35.00Price Target Upside48.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.1
Revenue Forecast (FY)$362.38M
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 primarily makes money by selling pneumatic compression therapy systems (e.g., Flexitouch) and related consumable and replacement items such as garments, wraps, and accessories used with its devices. Revenue is generally ...
Tactile Systems Technology Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 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 | -6.42M | 1.41M |
| 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
Positive
23.58
Price Trends
22.79
Positive
25.36
Negative
26.10
Negative
Market Momentum
0.02
Negative
55.13
Neutral
74.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCMD, the sentiment is Positive. The current price of 23.58 is above the 20-day moving average (MA) of 22.55, above the 50-day MA of 22.79, and below the 200-day MA of 26.10, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.13 is Neutral, neither overbought nor oversold. The STOCH value of 74.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $532.78M | 21.36 | 11.49% | ― | 17.22% | 74.89% | |
73 Outperform | $227.40M | 19.94 | 23.38% | ― | 15.28% | 53.24% | |
72 Outperform | $279.84M | 33.43 | 14.81% | ― | 2.47% | 75.23% | |
56 Neutral | $1.19B | -1.07 | -68.17% | ― | 4.89% | -30.14% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $49.91M | -3.70 | -142.02% | ― | 6.14% | -50.86% | |
46 Neutral | $831.70M | -3.63 | -15.16% | ― | -0.43% | -408.09% |
* Healthcare Sector Average
TCMD
Tactile Systems Technology
23.54
8.59
57.46%
ENOV
Enovis
21.59
-10.95
-33.65%
ELMD
Electromed
26.87
2.18
8.83%
INFU
InfuSystem Holdings
14.14
4.08
40.56%
MYO
Myomo
1.22
0.17
16.19%
AHCO
AdaptHealth
6.17
-3.06
-33.15%
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.