Tactile Medical Lifts Its Adjusted EBITDA Outlook To $50 Million-$52 Million Even As Quarterly Profit Slips
Third-quarter net income fell to $7.2 million as operating spending grew 13%, while lymphedema sales rose 13%.
Tactile Medical, which makes devices patients use at home to treat chronic diseases, raised its full-year adjusted EBITDA forecast to a range of $50 million to $52 million on Monday, even as third-quarter net income fell to $7.2 million from $8.2 million a year earlier. Operating spending grew faster than sales.
Sales up 7%, profit down
Revenue rose 7% to $91.9 million from $85.8 million. Net income came to $0.31 per diluted share, against $0.36 a year earlier.
Operating expenses climbed 13% to $60.9 million, which the company tied to investments supporting long-term growth initiatives. Operating income fell to $9.6 million from $11.0 million. Gross margin widened to 77% from 76%, on lower manufacturing costs and a better product mix.
Adjusted EBITDA, the company's own measure that strips out items such as interest, taxes, depreciation and stock pay, was $14.3 million, against $14.4 million a year earlier. For the first nine months, net income was $13.2 million, up from $8.5 million, and adjusted EBITDA was $29.5 million, up from $21.8 million.
Lymphedema grows, airway clearance shrinks
Tactile Medical's lymphedema line, which uses air-filled garments to treat chronic swelling, rose 13% to $81.8 million. Airway clearance sales, which cover the AffloVest wearable vest for people with chronic lung conditions, fell 25%, or $3.4 million. The company blamed an inventory transition among durable medical equipment providers after the second-quarter launch of its next-generation AffloVest system.
CEO Sheri Dodd said the lymphedema business posted its fifth straight quarter of double-digit revenue growth, and that gross margin expanded for the 12th consecutive quarter. She called the market "significantly underpenetrated."
The company also received FDA clearance expanding the indication of its LymphaTech 3D Scanner, and it named Steve Kiewiet chief operating officer.
Guidance, buybacks and the FDA
Full-year revenue guidance holds at $360 million to $366 million. The new adjusted EBITDA range compares with a prior $49 million to $51 million and $44.8 million in 2025.
The company ended September with $75.1 million in cash, no borrowings, and $12.5 million left under its $25.0 million buyback program, after repurchasing $6.2 million of stock in the quarter. The program expires November 3, 2027.
The company has submitted a 510(k) application to the FDA for Flexitouch Pro, an enhanced version of its advanced pneumatic compression system, and the FDA has not decided.
Management holds its earnings call at 5:00 p.m. Eastern on Monday.
Sources
- 8-K Filing — TACTILE SYSTEMS TECHNOLOGY INC (TCMD) — SEC EDGAR
- Exhibit tcmd-ex99d1.htm — TACTILE SYSTEMS TECHNOLOGY INC 8-K exhibit — SEC EDGAR
- Tactile Systems Technology, Inc. Reports Third Quarter 2026 Financial Results — Yahoo Finance
- Tactile Systems Technology, Inc. Reports Third Quarter 2026 — globenewswire.com
