Tactile Systems (TCMD) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $75.3 million, up 23% year-over-year, driven by strong lymphedema and airway clearance product sales and strategic execution.

• Gross margin expanded to 76.5% from 74% in Q1 2025, reflecting improved operating leverage and lower manufacturing costs.

• Net loss narrowed to $1.8 million from $3.0 million in Q1 2025, with adjusted EBITDA improving to $3.7 million from a loss of $0.3 million.

• Completed the acquisition of LymphaTech, expanding digital measurement and diagnostic capabilities for lymphedema care.

• Operational highlights include the launch of an AI-enabled prior authorization/order management platform and FDA clearance for a next-generation airway clearance device.

Financial highlights

• Total revenue increased by $14 million or 23% year-over-year to $75.3 million in Q1.

• Gross margin rose to 76.5%–77% from 74% in Q1 2025, driven by lower manufacturing costs and favorable mix.

• Operating expenses increased 19% to $59.1 million, reflecting higher sales, marketing, R&D, and administrative costs.

• Net loss per share improved to $0.08 from $0.13 year-over-year; weighted-average shares outstanding were 22.6 million.

• Cash and equivalents at quarter-end were $75 million, down from $83.4 million at year-end 2025.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $360 million–$368 million, representing 9%–12% growth over 2025.

• Adjusted EBITDA for 2026 projected at $49 million–$51 million.

• Guidance incorporates LymphaTech contribution, commercial execution, and early confidence in prior authorization processes.

• Cash and cash flows from operations expected to be sufficient for at least the next twelve months.

• Both lymphedema and airway clearance businesses expected to grow at similar rates, with airway clearance slightly faster.