Tactile Systems Technology (TCMD)
NASDAQ:TCMD
Top Page
Tactile Systems Technology
(NASDAQ:TCMD)
Select Model
Select Model
Rating:62Neutral
Price Target:
$31.00
▲(14.99% Upside)
Action:ReiteratedDate:03/10/26
The score is driven primarily by mixed financial quality—solid growth and a de-risked balance sheet, but a material red flag in the latest cash flow data (2025 OCF/FCF reported at $0). Earnings-call guidance and commentary are constructive despite a clear near-term Medicare prior-authorization headwind. Technicals are neutral, and valuation is a modest drag due to the high P/E and no dividend.
Positive Factors
Balance-sheet strength
Sharply lower debt and very low leverage provide durable financial flexibility to fund commercial expansion, R&D and withstand reimbursement volatility. A sizable equity cushion and positive ROE reduce refinancing risk and support strategic investments over the next several quarters.
Negative Factors
Cash conversion weakness
A reported collapse to $0 OCF/FCF in 2025 represents a material deterioration versus prior years and raises questions on working‑capital swings, claims adjudication or collections. Poor cash conversion can constrain reinvestment, M&A or shareholder returns until normalized.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Sharply lower debt and very low leverage provide durable financial flexibility to fund commercial expansion, R&D and withstand reimbursement volatility. A sizable equity cushion and positive ROE reduce refinancing risk and support strategic investments over the next several quarters.
Read all positive factors
Tactile Systems Technology (TCMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$613.35M
Dividend YieldN/A
Average Volume (3M)392.63K
Price to Earnings (P/E)34.8
Beta (1Y)0.72
Revenue Growth9.28%
EPS Growth21.00%
CountryUS
Employees1,037
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.46
Shares Outstanding22,750,410
10 Day Avg. Volume269,104
30 Day Avg. Volume392,625
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 Cap0.87
Enterprise Value/Revenue1.62
Enterprise Value/Gross Profit2.15
Enterprise Value/Ebitda13.98
Forecast
1Y Price Target
$38.00Price Target Upside40.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.02
Revenue Forecast (FY)$347.94M
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
Tactile Systems Technology generates revenue primarily through the sale of its medical devices and related products, which are often reimbursed by insurance providers, including Medicare. The company has established key partnerships with various h...
Tactile Systems Technology Key Performance Indicators (KPIs)
Tactile Systems Technology Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call conveyed solid operational and financial momentum—double-digit revenue growth, margin expansion, strong cash generation, successful salesforce buildout, product innovation and a strategic acquisition (LymphaTech). Management is taking prudent steps to address a new Medicare prior authorization requirement, which they expect to cause a temporary short-term drag incorporated into 2026 guidance. While operating expenses and near-term reimbursement uncertainty present modest headwinds, the company emphasized preparedness, clinical evidence progress and long-term growth catalysts.Positive Updates
Full-Year Revenue Growth
Total revenue for FY2025 was $329.5M, up 12% year-over-year.
Negative Updates
Medicare Prior Authorization Headwind
CMS announced a new prior authorization requirement for pneumatic compression device codes effective April 13, 2026; management expects a temporary short-term market impact and added administrative steps that were incorporated into 2026 guidance.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue Growth
Total revenue for FY2025 was $329.5M, up 12% year-over-year.
Read all positive updates
Company Guidance
For 2026 Tactile guided total revenue of $357 million to $365 million (growth of ~8%–11% year‑over‑year), noting lymphedema and airway‑clearance businesses are expected to grow in a similar range with airway clearance modestly faster, and that Q1 growth should be higher than the balance of the year; the company expects GAAP gross margin of ~76%, GAAP operating expenses to rise ~8%–10% YoY, net interest income of about $3 million, a tax rate of 28%, and a fully diluted weighted average share count of ~22–23 million, driving adjusted EBITDA of roughly $49 million to $51 million (assuming noncash items including ~$9 million stock‑based comp, ~$3.6 million intangible amortization and ~$3.2 million depreciation); the outlook incorporates a potential short‑term market impact from CMS’s new Medicare prior‑authorization requirement for basic and advanced pneumatic compression device codes effective April 13, but management expects to navigate the change and return to market growth thereafter.Tactile Systems Technology Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
28
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 329.52M | 292.98M | 274.42M | 246.78M | 208.06M |
| Gross Profit | 223.91M | 216.69M | 195.13M | 175.98M | 148.21M |
| EBITDA | 35.92M | 32.37M | 26.42M | 1.75M | 1.92M |
| Net Income | 19.09M | 16.96M | 28.52M | -17.87M | -11.81M |
Balance Sheet | |||||
| Total Assets | 273.94M | 297.92M | 281.44M | 255.00M | 244.27M |
| Cash, Cash Equivalents and Short-Term Investments | 83.45M | 108.91M | 75.23M | 38.06M | 40.71M |
| Total Debt | 15.96M | 45.11M | 50.38M | 72.23M | 80.61M |
| Total Liabilities | 55.04M | 81.33M | 87.80M | 133.60M | 116.04M |
| Stockholders Equity | 218.90M | 216.60M | 193.64M | 121.40M | 128.23M |
Cash Flow | |||||
| Free Cash Flow | 40.43M | 38.15M | 33.37M | 3.29M | 276.00K |
| Operating Cash Flow | 42.81M | 40.66M | 35.85M | 5.21M | 2.63M |
| Investing Cash Flow | -2.54M | -2.50M | -2.48M | -1.91M | -82.18M |
| Financing Cash Flow | -51.20M | -4.82M | 5.73M | -9.60M | 59.93M |
Tactile Systems Technology Technical Analysis
Neutral
26.96
Price Trends
28.53
Negative
27.47
Negative
19.89
Positive
Market Momentum
-0.57
Positive
43.41
Neutral
48.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCMD, the sentiment is Neutral. The current price of 26.96 is below the 20-day moving average (MA) of 28.07, below the 50-day MA of 28.53, and above the 200-day MA of 19.89, indicating a neutral trend. The MACD of -0.57 indicates Positive momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 48.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $360.93M | 19.35 | 10.87% | ― | 18.90% | 29.22% | |
62 Neutral | $613.35M | 34.75 | 9.26% | ― | 9.28% | 21.00% | |
52 Neutral | $706.53M | -15.08 | -31.77% | ― | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $64.57M | ― | -54.99% | ― | 4.65% | 68.71% | |
48 Neutral | $245.84M | -6.74 | 137.18% | ― | 49.52% | 19.34% | |
42 Neutral | $170.92M | 7.78 | 59.05% | ― | 40.89% | -749.65% |
* Healthcare Sector Average
TCMD
Tactile Systems Technology
26.96
13.66
102.71%
SNWV
Sanuwave Health
19.93
-17.35
-46.54%
VMD
Viemed Healthcare
9.35
2.10
28.97%
OM
Outset Medical
3.53
-8.58
-70.85%
TLSI
TriSalus Life Sciences
4.01
-1.49
-27.09%
CBLL
Ceribell, Inc.
18.77
-1.06
-5.35%
Tactile Systems Technology Corporate Events
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.