Tactile Systems Technology (NASDAQ:TCMD) Releases Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Tactile Systems Technology (NASDAQ:TCMD) released its quarterly earnings results on Monday. The company reported ($0.08) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.01), FiscalAI reports. Tactile Systems Technology had a return on equity of 9.26% and a net margin of 5.79%.The business had revenue of $75.27 million during the quarter, compared to analyst estimates of $70.57 million.

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

• Q1 revenue $75.3M (+23% YoY) with lymphedema $62.2M and airway clearance $13M, and management raised full‑year revenue guidance to $360–$368M.
• Profitability expanded — gross margin improved 250 basis points to 76.5% and Adjusted EBITDA turned positive at $3.7M (guidance of $49–$51M for 2026), reflecting operating leverage from commercial and operational investments.
• The new Medicare prior authorization rollout is causing short‑term variability and some MAC‑to‑MAC differences; management expects a lighter Q2 cadence with normalization into Q3 and is modestly conservative in modeling until approval data stabilizes.
• Strategic innovation and M&A progress — LymphaTech integration is on track (including a federal GUIDE grant), the company accelerated an AI prior‑authorization module, and won FDA 510(k) clearance for a next‑gen AffloVest slated for the 2026–27 respiratory season.

Tactile Systems Technology Stock Down 2.0%

NASDAQ:TCMD opened at $22.43 on Tuesday. The business’s 50 day moving average is $26.42 and its two-hundred day moving average is $26.04. Tactile Systems Technology has a 52 week low of $8.61 and a 52 week high of $37.77. The company has a market cap of $510.28 million, a PE ratio of 27.02 and a beta of 0.82.

Analyst Ratings Changes

Several research analysts recently commented on the company. Lake Street Capital set a $40.00 price target on Tactile Systems Technology and gave the stock a “buy” rating in a research note on Wednesday, February 18th. Piper Sandler increased their price target on shares of Tactile Systems Technology from $35.00 to $42.00 and gave the stock an “overweight” rating in a research report on Wednesday, February 18th. Raymond James Financial set a $35.00 price target on shares of Tactile Systems Technology in a research report on Monday, January 5th. B. Riley Financial increased their price target on shares of Tactile Systems Technology from $16.00 to $32.00 and gave the stock a “neutral” rating in a research report on Wednesday, February 18th. Finally, BTIG Research increased their target price on Tactile Systems Technology from $36.00 to $38.00 and gave the stock a “buy” rating in a report on Wednesday, February 18th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $37.40.

Insider Buying and Selling

In related news, CEO Sheri Louise Dodd sold 10,993 shares of the stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $28.94, for a total transaction of $318,137.42. Following the sale, the chief executive officer owned 243,885 shares in the company, valued at $7,058,031.90. This represents a 4.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Kristie Burns sold 6,246 shares of the stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $28.94, for a total transaction of $180,759.24. Following the sale, the vice president owned 82,581 shares in the company, valued at approximately $2,389,894.14. This trade represents a 7.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 50,137 shares of company stock worth $1,434,839 over the last quarter. 2.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Tactile Systems Technology

Several institutional investors and hedge funds have recently bought and sold shares of the business. Prudential Financial Inc. raised its stake 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 acquiring an additional 835 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in Tactile Systems Technology during the fourth quarter worth about $32,000. Price T Rowe Associates Inc. MD raised its stake in 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 acquiring an additional 1,215 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new stake in Tactile Systems Technology during the fourth quarter worth about $36,000. Finally, Global Retirement Partners LLC acquired a new stake in Tactile Systems Technology during the fourth quarter worth about $37,000. Institutional investors and hedge funds own 83.43% of the company’s stock.

Tactile Systems Technology Company Profile

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.