TCMD · Tactile Systems Technology, Inc.

Tactile Medical delivered a strong first quarter 2026, with revenue growing 23% year-over-year to $75.3 million—driven equally by robust performance across both lymphedema (+23%) and airway clearance (+22%) product lines. This top-line strength was accompanied by meaningful margin expansion: gross margin improved 250 basis points to 76.5%, reflecting favorable product mix, pricing discipline, and operational efficiencies. Operating expenses rose 19%—slightly below revenue growth—contributing to a $1.5 million operating loss, a $3.0 million improvement year-over-year. The shift from an Adjusted EBITDA loss of $0.3 million in Q1 2025 to $3.7 million in Q1 2026 underscores the scalability of the business model and the impact of disciplined cost management. Management attributed the results to 'disciplined execution of strategic priorities,' including a fully resourced sales organization, expanded Medicare access under the NCD, and successful implementation of AI-enabled systems to manage Medicare prior authorizations for PCDs. The company also advanced its portfolio with FDA 510(k) clearance for the next-generation AffloVest and integration of LymphaTech’s diagnostic capabilities. Notably, full-year 2026 revenue guidance was raised to $360–$368 million (9–12% growth), tightening the range and increasing the midpoint, while Adjusted EBITDA guidance remained unchanged at $49–$51 million—implying further margin expansion and operating leverage in the second half. With $75.0 million in cash, no debt, and $23.9 million remaining under its share repurchase program, the company maintains strong financial flexibility to invest in growth and return capital.