Tactile Systems Technology Stock Earnings Reports

Tactile Systems reported a strong start to 2026 with Q1 revenue of $75.3M, up 23% year-over-year driven by lymphedema (+23% to $62.2M) and airway clearance (+22% to $13.0M). Gross margin expanded 250 basis points to 76.5% and adjusted EBITDA improved to $3.7M (from a negative $0.3M prior year). The company closed the Lymphotech acquisition (minimal Q1 contribution aside from grant-related revenue) and accelerated AI-enabled prior-authorization tooling to comply with new Medicare fee-for-service prior authorization rules effective April 13. Management reports early variability across Medicare Administrative Contractors (MACs) but says the business is well-prepared operationally and expects ordering patterns to normalize as processes settle. Management raised full-year 2026 revenue guidance to $360M–$368M (up ~9%–12% YoY) and reiterated adjusted EBITDA guidance of $49M–$51M, while flagging one-time acquisition and legal costs and continued investments in R&D, commercial resources, and IT/automation. Key strategic priorities are: improving access to care (AI/order process automation and payer engagement), expanding treatment options (next-gen AffloVest cleared and planned go-to-market this year; Flexitouch roadmap), and enhancing lifetime patient value (care navigation pilots). The balance sheet remains healthy with ~$75M cash and no debt.