Key Highlights

  • Revenue for the third quarter of 2026 came to $91.9 million, a 7.1% rise over the year-earlier figure.
  • Lymphedema sales grew 13.1%, reaching $81.8 million, whereas airway clearance receipts declined 25.1%, landing at $10.0 million.
  • Quarterly Net Income came in at $7.2 million, which equals $0.31 per diluted share, down from $8.2 million, which equaled $0.36 a share.
  • Gross profit as a share of Revenue improved to 76.7% versus 75.8%, while adjusted EBITDA came to $14.3 million.
  • The company now expects adjusted EBITDA of $50 million to $52 million for 2026, following an upgrade.

Lymphedema Expansion of 13.1% Overshadows an AffloVest Revenue Drop of 25.1%

Tactile Systems Technology (NASDAQ:TCMD), trading as Tactile Medical, published third-quarter 2026 results for the period ended Sep 30, 2026, and talked through them on Nov 3, 2026. Total revenue came to $91.9 million, an increase of $6.1 million, equal to 7.1%, relative to the prior year.

Its product portfolio includes at-home pneumatic compression devices for lymphedema, such as the Flexitouch and Nimbl systems, along with the AffloVest airway clearance unit. Lymphedema sales rose $9.5 million, reaching $81.8 million, a 13.1% gain and roughly 11% above the second quarter.

Within that line, Medicare and commercial sales rose about 11% and 17%, respectively. Airway clearance receipts fell $3.4 million, landing at $10.0 million, as certain durable medical equipment buyers drew down surplus stock during the switch to the newer AffloVest model.

Costs Up 12.7% Bring Net Income Down to $7.2 Million Despite Better Gross Margin

The gross Margin moved up to 76.7%, compared with 75.8%, marking the twelfth consecutive period of annual gains. Operating outlays grew by 12.7%, or $6.9 million, reaching $60.9 million, driven by a full-year effect from last year's sales recruiting and spending on technology.

Operating Earnings landed at $9.6 million, down from $11.0 million a year ago. Net income stood at $7.2 million, or $0.31 a diluted share, against $8.2 million, equal to $0.36, previously.

Adjusted EBITDA came to $14.3 million, close to the $14.4 million of a year earlier, and its margin was 15.6% against 16.8%.

Flexitouch Pro Submission and LymphaTech Clearance Set Up the Next Growth Phase

A 510(k) submission for Flexitouch Pro, an upgraded version of its advanced compression system, was lodged in October, with commercialization planned for the back half of 2027 and contingent upon regulators' sign-off. The FDA also signed off on a broader use for the LymphaTech 3D Scanner, now usable for lymphedema evaluation.

Clinic visits increased 19% during the period. A new COO will supervise order fulfillment and patient care operations. A MyoSleeve trial with the VA is set to begin late in the fourth quarter and is excluded from the 2026 outlook.

Revenue Target Between $360 Million and $366 Million Remains Unchanged as Airway Forecast Softens

Cash stood at $75.1 million with no borrowings outstanding. Operating Cash Flow reached $12 million, while Buybacks absorbed $6.2 million in the quarter. The residual capacity under the $25 million repurchase plan stands near $12.5 million.

The company maintained 2026 revenue guidance between $360 million and $366 million, which equals growth of 9% to 11%, and raised its adjusted EBITDA target to $50 million through $52 million compared with $44.8 million in 2025. The airway line is now projected to decline by a mid-to-high single-digit percentage for the full year; earlier the view was roughly unchanged. The fourth quarter, traditionally the strongest, should bring sequential gains in both lines, though lymphedema growth slows against a tough prior-year base.