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Tactile Systems Technology
(NASDAQ:TCMD)
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Rating:79Outperform
Price Target:
$34.00
▲(32.14% Upside)
Action:Reiterated
Date:07/14/26
TCMD scores well primarily due to strong financial health (low leverage, solid cash generation, and improved profitability) and supportive technical momentum. The main offsets are a premium valuation (P/E ~33 without a dividend) and execution risks flagged in the latest earnings update, including Medicare prior-authorization cadence uncertainty and higher operating expense levels.
Positive Factors
Conservative balance sheet
Very low leverage and a strengthening balance sheet provide durable financial flexibility. With minimal debt relative to equity, the company can fund working capital, M&A, product investments, and share repurchases without heavy refinancing risk, insulating operations from reimbursement timing volatility.
Negative Factors
Medicare prior-authorization uncertainty
A structural change in Medicare prior-authorization processes creates persistent execution and timing risk. Variable MAC outcomes can delay patient approvals, compress near-term cadence, and complicate forecasting and collections, materially affecting revenue recognition and sales productivity for months ahead.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and a strengthening balance sheet provide durable financial flexibility. With minimal debt relative to equity, the company can fund working capital, M&A, product investments, and share repurchases without heavy refinancing risk, insulating operations from reimbursement timing volatility.
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
$672.85M
Dividend YieldN/A
Average Volume (3M)246.68K
Price to Earnings (P/E)32.3
Beta (1Y)0.64
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. Volume208,411
30 Day Avg. Volume246,677
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 Cap0.78
Enterprise Value/Revenue1.52
Enterprise Value/Gross Profit2.01
Enterprise Value/Ebitda12.59
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)$364.82M
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: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 | 247.70M | 216.69M | 195.13M | 175.98M | 148.21M |
| EBITDA | 41.52M | 39.02M | 32.37M | 26.42M | 1.75M | 1.39M |
| 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 | 39.09M | 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
26.23
Positive
26.46
Positive
25.17
Positive
Market Momentum
1.24
Positive
53.73
Neutral
28.44
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 25.73 is below the 20-day moving average (MA) of 28.75, below the 50-day MA of 26.23, and above the 200-day MA of 25.17, indicating a bullish trend. The MACD of 1.24 indicates Positive momentum. The RSI at 53.73 is Neutral, neither overbought nor oversold. The STOCH value of 28.44 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $672.85M | 32.27 | 9.70% | ― | 17.18% | 34.07% | |
76 Outperform | $471.93M | 31.85 | 10.66% | ― | 23.10% | 22.75% | |
57 Neutral | $100.44M | 6.41 | -450.56% | ― | 22.49% | ― | |
54 Neutral | $82.03M | -1.05 | -55.88% | ― | 2.01% | 85.71% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $254.26M | -3.00 | 162.57% | ― | 39.64% | -25.99% | |
49 Neutral | $742.16M | -11.98 | -38.19% | ― | ― | ― |
* Healthcare Sector Average
TCMD
Tactile Systems Technology
29.04
19.38
200.62%
SNWV
Sanuwave Health
11.26
-22.01
-66.16%
VMD
Viemed Healthcare
12.33
5.71
86.25%
OM
Outset Medical
4.36
-13.72
-75.88%
TLSI
TriSalus Life Sciences
4.23
-0.51
-10.76%
CBLL
Ceribell, Inc.
19.52
3.79
24.09%
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...
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...
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.