Tactile Systems Technology (NASDAQ:TCMD) Announces Quarterly Earnings Results, Beats Estimates By $0.20 EPS

Tactile Systems Technology (NASDAQ:TCMD) released its quarterly earnings data on Monday. The company reported $0.34 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.20, FiscalAI reports. The firm had revenue of $85.70 million during the quarter, compared to the consensus estimate of $85.52 million. Tactile Systems Technology had a return on equity of 9.70% and a net margin of 5.91%.

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

• Q2 revenue rose 9% to $85.7 million, driven by 12% growth in lymphedema revenue to $73.6 million. Adjusted EBITDA increased 49% to $11.4 million as gross margin expanded 180 basis points to 76.3%.
• Lymphedema momentum remained strong, supported by favorable referral trends, improved sales-territory productivity, and increased Flexitouch adoption following Medicare’s updated coverage policy. Management said the initial disruption from Medicare prior authorization is beginning to moderate.
• AffloVest revenue declined 7% year over year to $12.1 million as several large DME partners reduced orders while working through elevated inventory ahead of the next-generation product launch. Management expects the impact to continue through Q3, with ordering patterns normalizing in Q4.
• The company lowered the top end of its 2026 revenue outlook to $360 million-$366 million, reflecting a more conservative airway-clearance forecast that is now roughly flat year over year. Adjusted EBITDA guidance was maintained at $49 million-$51 million despite the temporary AffloVest headwind and continued strategic investments.
• Tactile announced several longer-term growth initiatives, including an exclusive VA and Department of Defense distribution agreement for MyoSleeve, expanded diagnostic applications for LymphaTech targeted for FDA approval in 2027, and new clinical evidence supporting Flexitouch use in head-and-neck lymphedema.

Tactile Systems Technology Price Performance

NASDAQ:TCMD traded down $0.36 during trading hours on Monday, reaching $29.14. 629,975 shares of the company traded hands, compared to its average volume of 305,523. The firm’s 50-day moving average is $28.03 and its 200-day moving average is $27.07. The stock has a market cap of $657.40 million, a P/E ratio of 33.11 and a beta of 0.81. Tactile Systems Technology has a 1-year low of $12.01 and a 1-year high of $37.77.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on the company. Weiss Ratings restated a “hold (c-)” rating on shares of Tactile Systems Technology in a research report on Monday, August 3rd. B. Riley Financial upgraded shares of Tactile Systems Technology from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $32.00 to $36.00 in a research report on Thursday, May 7th. Finally, BTIG Research reissued a “buy” rating and issued a $40.00 price objective on shares of Tactile Systems Technology in a research note on Thursday, May 21st. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, Tactile Systems Technology currently has an average rating of “Moderate Buy” and an average target price of $38.60.

Institutional Trading of Tactile Systems Technology

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Prudential Financial Inc. increased its position in Tactile Systems Technology by 3.5% during the second quarter. Prudential Financial Inc. now owns 24,360 shares of the company’s stock worth $247,000 after purchasing an additional 835 shares during the last quarter. Caitong International Asset Management Co. Ltd purchased a new position in shares of Tactile Systems Technology in the 4th quarter valued at $32,000. Price T Rowe Associates Inc. MD lifted its stake in shares of 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. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in Tactile Systems Technology in the 4th quarter worth approximately $36,000. Finally, Global Retirement Partners LLC purchased a new position in shares of Tactile Systems Technology in the fourth quarter valued at $37,000. 83.43% of the stock is currently owned by hedge funds and other institutional investors.

About Tactile Systems Technology

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.