Tactile Raises 2026 Adjusted EBITDA Outlook

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter revenue was $91.9 million as lymphedema sales reached $81.8 million and full-year Adjusted EBITDA guidance moved to $50 million–$52 million.

Tactile Systems Technology (TCMD), a medical technology company providing therapies for people with chronic disorders, reported third-quarter revenue of $91.9 million, up 7% from a year earlier, and raised its full-year 2026 Adjusted EBITDA outlook to $50 million to $52 million from a prior range of $49 million to $51 million.

Year-over-year revenue growth slowed from 9% in the second quarter, after 23% growth in the first quarter. The company said the increase was attributable to a $9.5 million, or 13%, rise in sales and rentals of the lymphedema product line, partially offset by a $3.4 million, or 25%, decrease in airway clearance sales, primarily due to the DME inventory transition associated with the launch of its next-generation AffloVest system in the second quarter.

Lymphedema product-line revenue was $81.8 million, the fifth consecutive quarter of double-digit year-over-year growth, after 12% growth in the second quarter and 23% in the first. Lymphedema products accounted for 89% of total revenue, versus 84% a year earlier; airway clearance fell to 11% from 16%. Airway clearance sales were $10.0 million, a much larger drop than the 7% decline in the second quarter, after a 22% increase in the first.

Gross margin expanded to 77% from 76% in the third quarter of 2025, the 12th consecutive quarter of expansion, after 76% in the second quarter and 76.5% in the first. The company said the improvement reflected lower manufacturing costs and favorable product mix. Gross profit was $70.5 million.

Operating expenses increased 13% to $60.9 million, a faster rise than the 7% increase in the second quarter, after a 19% increase in the first. The company said the increase primarily reflected continued investments to support long-term growth initiatives. Operating income was $9.6 million, compared with $11.0 million a year earlier. Net income decreased to $7.2 million, or $0.31 a share, from $8.2 million, or $0.36 a share, in the third quarter of 2025. Adjusted EBITDA was $14.3 million, essentially unchanged from $14.4 million a year earlier; the company said gross-margin expansion was offset by continued growth investments.

The company received FDA 510(k) clearance expanding the LymphaTech 3D Scanner’s indication to aid in the assessment of lymphedema and submitted a 510(k) application for Flexitouch Pro. It appointed Steve Kiewiet as chief operating officer, with responsibility for order operations and patient services.

Full-year 2026 total revenue guidance remained $360 million to $366 million, representing approximately 9% to 11% growth versus $329.5 million in 2025. The company now expects full-year 2026 Adjusted EBITDA of $50 million to $52 million, compared with $44.8 million in 2025.

Cash was $75.1 million as of September 30, 2026, with no outstanding borrowings under its credit agreement. The company repurchased $6.2 million of stock in the third quarter, leaving $12.5 million available under its $25.0 million program, which expires November 3, 2027.