Tactile Medical Reports Q3 2026 Revenue of $91.9 Million

Tactile Systems Technology, Inc. (Nasdaq: TCMD) reported financial results for the third quarter ended September 30, 2026. The company reported total revenue of $91.9 million for the quarter, representing a 7% increase compared to the same period in the prior year.

Revenue growth was driven primarily by the lymphedema product line, which increased 13% year-over-year to $81.8 million. This growth was partially offset by a 25% decrease in sales of the airway clearance product line, which decreased by $3.4 million. The company attributes the decrease in the airway clearance line to a DME inventory transition associated with the launch of its next-generation AffloVest system in the second quarter.

Gross margin for the quarter expanded to 77% from 76% in the prior year. The company attributes this improvement to lower manufacturing costs and a favorable product mix. However, operating expenses increased 13% to $60.9 million due to continued investments in long-term growth initiatives. Consequently, operating income decreased to $9.6 million from $11.0 million in the prior year.

Net income for the third quarter of 2026 was $7.2 million, or $0.31 per diluted share, compared to $8.2 million, or $0.36 per diluted share, in the prior year. Adjusted EBITDA for the quarter was $14.3 million, compared to $14.4 million in the prior year.

For the first nine months of 2026, total revenue increased 12% to $252.8 million. Net income for the nine months was $13.2 million, or $0.57 per diluted share, compared to $8.5 million, or $0.36 per diluted share, in the prior year.

As of September 30, 2026, the company had $75.1 million in cash and no outstanding borrowings under its credit agreement. During the third quarter, the company repurchased $6.2 million of its stock under a $25.0 million share repurchase program, which has $12.5 million remaining available for repurchase.

Looking ahead, the company expects full year 2026 total revenue to be between $360 million and $366 million, representing growth of approximately 9% to 11% year-over-year. The company also updated its full year 2026 Adjusted EBITDA guidance to a range of $50 million to $52 million.