Tactile Systems Technology (TCMD)
NASDAQ:TCMD
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Tactile Systems Technology
(NASDAQ:TCMD)
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Rating:72Outperform
Price Target:
$28.00
▲(8.82% Upside)
Action:UpgradedDate:05/09/26
The score is driven primarily by strong financial quality (deleveraged balance sheet and solid cash generation) and a positive earnings-call setup with raised 2026 revenue guidance and margin progress. The main offsets are weak valuation signals (negative P/E and no dividend yield provided) and mixed technicals with a slightly negative MACD and the stock below its 50- and 100-day averages.
Positive Factors
Balance Sheet Strength
Very low leverage and minimal debt provide durable financial flexibility to fund M&A, R&D, repurchases, and working‑capital needs. This reduces refinancing risk and helps the company absorb reimbursement volatility and invest through multi‑quarter integration or market shifts.
Negative Factors
Medicare Prior Authorization Risk
The new Medicare prior‑authorization process introduces a structural execution and cash‑flow headwind while MAC variability persists. Authorization delays and administrative burden can slow patient starts, reduce predictability of collections, and compress near‑term revenue cadence until processes stabilize.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low leverage and minimal debt provide durable financial flexibility to fund M&A, R&D, repurchases, and working‑capital needs. This reduces refinancing risk and helps the company absorb reimbursement volatility and invest through multi‑quarter integration or market shifts.
Read all positive factors
Tactile Systems Technology (TCMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$578.57M
Dividend YieldN/A
Average Volume (3M)247.64K
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue Growth17.18%
EPS Growth34.07%
CountryUS
Employees1,037
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.90
Shares Outstanding22,556,260
10 Day Avg. Volume229,559
30 Day Avg. Volume247,641
Financial Highlights & Ratios
PEG Ratio2.06
Price to Book (P/B)3.03
Price to Sales (P/S)2.01
P/FCF Ratio16.41
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue1.51
Enterprise Value/Gross Profit2.00
Enterprise Value/Ebitda12.70
Forecast
1Y Price Target
$39.50Price Target Upside53.52% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.14
Revenue Forecast (FY)$360.52M
Tactile Systems Technology Business Overview & Revenue Model
Company Description
Tactile Systems Technology, Inc., a medical technology company, engages in the development and provision of medical devices for chronic diseases in the United States. The company offers Flexitouch Plus system, a pneumatic compression device for th...
How the Company Makes Money
TCMD generates revenue primarily by selling its pneumatic compression therapy systems and associated garments/consumable components used with those systems. The typical model involves (1) identifying appropriate patients via referral and prescript...
Tactile Systems Technology Key Performance Indicators (KPIs)
Tactile Systems Technology Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call showed broad-based commercial strength (23% YoY revenue growth), margin expansion (gross margin +250 bps) and a turnaround to adjusted EBITDA profitability, supported by product clearances (next-gen AffloVest), AI deployment, and strategic M&A (Lymphotech). Management tempered near-term cadence expectations due to the new Medicare prior authorization process and flagged incremental expense and lower-margin grant revenue from the recent acquisition. On balance, operational and financial progress, upgraded guidance, and a strong product and innovation roadmap outweigh the manageable short-term execution and margin composition risks.Positive Updates
Strong Top-Line Growth
Q1 total revenue of $75.3M, up 23% year-over-year; lymphedema revenue $62.2M (+23% YoY); airway clearance revenue $13.0M (+22% YoY).
Negative Updates
Medicare Prior Authorization Uncertainty and Execution Risk
New Medicare fee-for-service prior authorization for PCDs effective April 13; only three weeks of experience with early variability across MACs. Company is managing administrative complexity and expects near-term cadence impacts (lighter Q2 step-up, catch-up in Q3).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q1 total revenue of $75.3M, up 23% year-over-year; lymphedema revenue $62.2M (+23% YoY); airway clearance revenue $13.0M (+22% YoY).
Read all positive updates
Company Guidance
Management updated 2026 guidance to total revenue of $360–368 million (≈+9% to +12% YoY) — with both lymphedema and airway clearance expected to grow in a similar range (airway modestly faster) and the inclusion of Lymphotech — and reiterated adjusted EBITDA of $49–51 million; they expect GAAP gross margins of 76–77%, GAAP operating expenses up ~10–12% YoY, net interest income of ~ $3 million, an effective tax rate of 28%, and a fully diluted share count of ~22–23 million, with the outlook assuming noncash and one‑time items including ≈$9M stock‑based comp, ≈$3.6M intangible amortization, ≈$3.2M depreciation, ≈$1M litigation expense and ≈$1.3M acquisition/integration costs, while noting discipline as Medicare prior‑authorization outcomes continue to mature; the guide is supported by Q1 results of $75.3M revenue (+23% YoY; lymphedema $62.2M +23%, airway $13.0M +22%), cash of ≈$75M with no borrowings, gross margin 76.5% (+250 bps), operating expenses $59.1M (+19%), operating loss $1.5M (down $3.0M), net loss $1.8M ($0.08/diluted), and adjusted EBITDA $3.7M (vs. a $0.3M loss prior year; margin 4.9% vs. –0.4%).Tactile Systems Technology Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 343.52M | 329.52M | 292.98M | 274.42M | 246.78M | 208.06M |
| Gross Profit | 259.97M | 223.91M | 216.69M | 195.13M | 175.98M | 148.21M |
| EBITDA | 40.84M | 35.92M | 32.37M | 26.42M | 1.75M | 1.92M |
| Net Income | 20.30M | 19.09M | 16.96M | 28.52M | -17.87M | -11.81M |
Balance Sheet | ||||||
| Total Assets | 272.12M | 273.94M | 297.92M | 281.44M | 255.00M | 244.27M |
| Cash, Cash Equivalents and Short-Term Investments | 74.99M | 83.45M | 108.91M | 75.23M | 38.06M | 40.71M |
| Total Debt | 15.17M | 15.96M | 45.11M | 50.38M | 72.23M | 80.61M |
| Total Liabilities | 54.25M | 55.04M | 81.33M | 87.80M | 133.60M | 116.04M |
| Stockholders Equity | 217.87M | 218.90M | 216.60M | 193.64M | 121.40M | 128.23M |
Cash Flow | ||||||
| Free Cash Flow | 39.22M | 40.43M | 38.15M | 33.37M | 3.29M | 276.00K |
| Operating Cash Flow | 42.05M | 42.81M | 40.66M | 35.85M | 5.21M | 2.63M |
| Investing Cash Flow | -9.19M | -2.54M | -2.50M | -2.48M | -1.91M | -82.18M |
| Financing Cash Flow | -41.49M | -51.20M | -4.82M | 5.73M | -9.60M | 59.93M |
Tactile Systems Technology Technical Analysis
Positive
25.73
Price Trends
27.17
Negative
27.90
Negative
21.09
Positive
Market Momentum
-0.70
Negative
49.03
Neutral
82.45
Negative
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 25.73 is above the 20-day moving average (MA) of 25.39, below the 50-day MA of 27.17, and above the 200-day MA of 21.09, indicating a neutral trend. The MACD of -0.70 indicates Negative momentum. The RSI at 49.03 is Neutral, neither overbought nor oversold. The STOCH value of 82.45 is Negative, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $578.57M | -83.60 | 9.70% | ― | 17.18% | 34.07% | |
70 Outperform | $342.73M | 34.27 | 10.66% | ― | 23.10% | 22.75% | |
52 Neutral | $765.02M | -15.08 | -31.77% | ― | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $133.81M | 10.46 | -141.56% | ― | 34.98% | ― | |
50 Neutral | $68.42M | -0.93 | -55.88% | ― | 2.01% | 85.71% | |
50 Neutral | $272.07M | -8.38 | 137.18% | ― | 53.41% | -37.31% |
* Healthcare Sector Average
TCMD
Tactile Systems Technology
25.65
15.93
163.89%
SNWV
Sanuwave Health
15.57
-14.98
-49.03%
VMD
Viemed Healthcare
8.94
2.43
37.33%
OM
Outset Medical
3.70
-12.59
-77.32%
TLSI
TriSalus Life Sciences
4.43
-0.68
-13.31%
CBLL
Ceribell, Inc.
20.20
3.04
17.72%
Tactile Systems Technology Corporate Events
Executive/Board ChangesShareholder Meetings
Tactile Systems Technology Shareholders Approve Governance and Leadership
Positive
May 7, 2026
On May 6, 2026, Tactile Systems Technology stockholders elected nine directors, including William W. Burke, Valerie L. Asbury, and others, to serve until the 2027 annual meeting or until successors are duly elected and qualified. Shareholders also...
Business Operations and StrategyExecutive/Board Changes
Tactile Systems Adds Growth Strategist Andrea Pearson to Board
Positive
Mar 9, 2026
On March 4, 2026, Tactile Systems Technology, Inc. elected healthcare growth strategist Andrea A. Pearson to its board of directors and set the board size at nine, with her appointment and committee roles effective March 9, 2026. Pearson, who has ...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Tactile Systems Posts Strong Q4 Results and 2026 Outlook
Positive
Feb 17, 2026
On February 17, 2026, Tactile Medical reported that fourth-quarter 2025 revenue rose 21% year over year to $103.6 million, with gross margin improving to 78% and net income reaching $10.6 million as both lymphedema and airway clearance product lin...
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.