Tactile Systems (TCMD) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $91.9M, up 7.1% YoY; 13% lymphedema growth offset lower airway-clearance revenue, while gross margin expanded to 76.7%.

• Net income declined 13% to $7.2M; 9M revenue rose 12% to $252.8M and net income increased 56% to $13.2M.

• Growth priorities include expanding access to care, improving referral-to-shipment conversion, and broadening treatment options.

Financial highlights

• Q3 gross profit rose 8% to $70.5M; operating expenses increased 12.7% to $60.9M, primarily reflecting sales-force annualization and growth investments.

• Q3 operating income was $9.6M vs. $11.0M; net income was $7.2M and diluted EPS was $0.31 vs. $8.2M and $0.36.

• 9M gross profit rose 14% to $193.5M, operating income 42% to $14.9M, and net income 56% to $13.2M.

• Adjusted EBITDA was $14.3M vs. $14.4M in Q3; 9M Adjusted EBITDA increased to $29.5M from $21.8M.

• 9M operating cash flow was $14.9M vs. $25.5M; cash was $75.1M at September 30.

Outlook and guidance

• FY 2026 revenue guidance remains $360M–$366M, representing 9%–11% YoY growth; lymphedema is expected to grow at a low-double-digit rate.

• FY Adjusted EBITDA guidance increased to $50M–$52M from $49M–$51M; 2025 Adjusted EBITDA was $44.8M.

• Q4 revenue is expected to grow meaningfully sequentially, with slower YoY growth against a strong Q4 2025 comparison; results depend partly on referral-to-shipment timing.

• FY airway-clearance revenue is expected to decline mid- to high-single digits; Q4 should improve sequentially but remain below prior year.

• FY modeling assumptions include ~76.5% GAAP gross margin, 10%–12% GAAP operating-expense growth, ~28% tax rate, and ~23M diluted shares.