Key Highlights

  • Shares are trading up 9.12% at $24.96 versus a prior close of $22.87.
  • Lymphedema Revenue rose 13.1% to $81.8 million, the fifth straight double-digit quarter.
  • 2026 adjusted EBITDA guidance was raised to $50 million to $52 million.

Tactile Systems Technology (NASDAQ:TCMD) shares are trading up 9.12% at $24.96 today, recovering from an early gap down after third-quarter results mixed double-digit lymphedema growth with weakness in airway clearance. The stock opened near $21.54 after an after-hours drop of roughly 8% and sits within a 52-week range of $20.53 to $37.77, outpacing a roughly flat healthcare sector ETF.

Tactile Systems Technology, which does Business as Tactile Medical, is a Minneapolis-based company that develops and sells at-home medical devices for underserved chronic conditions. Its main products are the Flexitouch Plus, Entre Plus and Nimbl pneumatic compression systems for lymphedema and chronic venous insufficiency, plus the AffloVest high-frequency chest wall oscillation vest for airway clearance. The company has about 1,086 employees.

Lymphedema Strength Offsets a 25% Decline in Airway Clearance

Total revenue rose 7.1% to $91.9 million, slightly below the $92 million estimate, driven by lymphedema revenue of $81.8 million, up 13.1%. Medicare was up about 11% and commercial up about 17%. Airway clearance revenue fell 25.1% to $10 million on distributor inventory transitions tied to the next-generation AffloVest launch.

Gross Margin expanded 90 basis points to 76.7%, the twelfth consecutive quarter of expansion, but operating expenses rose 12.7% to $60.9 million. Adjusted EBITDA was flat at $14.3 million, a 15.6% margin, and Net Income was $7.2 million, or $0.31 per diluted share, ahead of the $0.30 estimate.

Guidance Holds on Revenue and Rises on EBITDA

Full-year revenue guidance was maintained at $360 million to $366 million, about 9% to 11% growth, while adjusted EBITDA guidance was raised to $50 million to $52 million. Airway clearance is now expected to decline mid to high single digits, and lymphedema is expected to grow low double digits for the year.

The company ended the quarter with $75.1 million in cash, no Debt and $12.5 million remaining on its buyback authorization. Management tempered expectations for 2027 by committing to Operating Leverage without a hockey stick acceleration. BTIG cut its target to $31 from $35.

Clinic Visits and New Products Support Growth Drivers

Growth drivers include clinic visits up 19%, referring clinics up over 10% year to date, a new strategic accounts team and a new chief operating officer for order operations. A 510(k) filing for FlexiTouch Pro is targeted for a launch in the second half of 2027, and expanded Lymphatec FDA clearance with a Category III CPT code review is planned for February 2027. A MyoSleeve VA pilot starts late in the fourth quarter.

Buyers Stepped In After the Selloff

The Reversal from an early drop suggests buyers are focusing on lymphedema growth and the higher EBITDA outlook. February 2027 CPT decisions and early payer coverage gains in head and neck lymphedema are the next items to follow.