Tactile Systems Technology (NASDAQ:TCMD) Sets New 12-Month High Following Better-Than-Expected Earnings

Tactile Systems Technology, Inc. (NASDAQ:TCMD) hit a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $36.20 and last traded at $36.0070, with a volume of 30862 shares changing hands. The stock had previously closed at $28.05.

The company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.02. Tactile Systems Technology had a net margin of 5.83% and a return on equity of 8.84%. The firm had revenue of $103.59 million during the quarter, compared to analysts’ expectations of $93.80 million.

Tactile Systems Technology News Summary

Here are the key news stories impacting Tactile Systems Technology this week:

• Positive Sentiment: Q4 beat — Revenue $103.6M (+21% YoY) and diluted EPS $0.46 beat consensus; gross margin expanded to 78% and adjusted EBITDA rose materially, showing leverage on growth. Tactile Systems Technology, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Upgraded FY‑2026 targets — Management set revenue guidance of $357M–$365M and adjusted EBITDA $49M–$51M, above prior street revenue consensus, signaling continued growth and margin improvement. Tactile Systems Technology, Inc. Reports Strong Q4 and Full Year 2025 Financial Results
• Positive Sentiment: Strategic M&A — Completed acquisition of LymphaTech (3D scanning/digital capabilities) to broaden lymphedema offerings and support R&D and adoption, which can improve product differentiation and addressable market. Tactile Medical Acquires LymphaTech
• Neutral Sentiment: Clinical evidence progress — Publication of two‑month clinical data for Flexitouch Plus™ supports clinical positioning but is a longer‑term commercial catalyst. Q4 Results / Clinical Data Mention
• Neutral Sentiment: Balance sheet & buybacks — Company ended 2025 with $83.4M cash, no outstanding term loan, and repurchased $26.5M of stock (average ~$12.36) — supportive for shareholder returns but cash declined vs. prior year. Quiver: Q4 and Full Year Results
• Negative Sentiment: Guidance implies slower growth — FY‑2026 guidance (8%–11%) represents a deceleration from Q4’s 21% growth and may temper expectations for re-acceleration. Tactile Medical expects 8%-11% revenue growth in 2026
• Negative Sentiment: Rising operating costs & cash dynamics — Operating expenses rose ~20% in Q4, and cash decreased YoY; investors may watch expense trends and free cash flow conversion. Insider sales were also reported, which can be viewed negatively by some investors. Zacks: Q4 Earnings and Revenues Top Estimates

Wall Street Analysts Forecast Growth

TCMD has been the subject of several research analyst reports. Piper Sandler raised their price objective on Tactile Systems Technology from $35.00 to $42.00 and gave the company an “overweight” rating in a research note on Wednesday. B. Riley Financial reissued a “neutral” rating on shares of Tactile Systems Technology in a research note on Wednesday. Lake Street Capital lifted their target price on shares of Tactile Systems Technology from $23.50 to $32.00 and gave the stock a “buy” rating in a research report on Tuesday, November 4th. Raymond James Financial set a $35.00 target price on Tactile Systems Technology in a research note on Monday, January 5th. Finally, Wall Street Zen raised Tactile Systems Technology from a “buy” rating to a “strong-buy” rating in a research report on Saturday, November 1st. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $32.00.

Insider Activity at Tactile Systems Technology

In other news, VP Kristie Burns sold 5,139 shares of the stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $28.85, for a total transaction of $148,260.15. Following the transaction, the vice president directly owned 72,401 shares in the company, valued at $2,088,768.85. This represents a 6.63% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 2.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Russell Investments Group Ltd. grew its stake in shares of Tactile Systems Technology by 1,594.4% in the third quarter. Russell Investments Group Ltd. now owns 2,118 shares of the company’s stock valued at $29,000 after buying an additional 1,993 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in Tactile Systems Technology in the fourth quarter valued at approximately $32,000. Quarry LP raised its stake in shares of Tactile Systems Technology by 302.6% during the third quarter. Quarry LP now owns 2,319 shares of the company’s stock valued at $32,000 after purchasing an additional 1,743 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new stake in shares of Tactile Systems Technology during the fourth quarter valued at approximately $36,000. Finally, Global Retirement Partners LLC acquired a new position in shares of Tactile Systems Technology during the fourth quarter worth $37,000. 83.43% of the stock is owned by hedge funds and other institutional investors.

Tactile Systems Technology Stock Up 20.9%

The firm’s 50 day moving average price is $28.98 and its two-hundred day moving average price is $21.22. The firm has a market capitalization of $757.61 million, a PE ratio of 44.36 and a beta of 0.96.

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.