Tactile Medical stock: Q3 revenue rises as net income falls
Published on 11/03/2026 at 02:04 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSQuarterly results and outlook
- Third-quarter revenue rose 7% year over year, while net income and adjusted EBITDA were broadly lower.
- Lymphedema revenue increased 13%, offsetting a 25% decline in airway clearance revenue.
- Management lifted the adjusted EBITDA outlook while maintaining its full-year revenue range.
Tactile Systems Technology reported third-quarter results on Monday, November 2, for the period ended September 30. According to StockTitan, revenue increased 7% year over year to USD 91.9 million, while net income fell to USD 7.2 million from USD 8.2 million.
Revenue growth meets rising investment
Lymphedema sales and rentals climbed 13% to USD 81.8 million. That increase more than offset a 25% decline in airway clearance revenue to USD 10.0 million, which the company linked to a durable medical equipment inventory transition connected with the launch of its next-generation AffloVest system.
Gross margin expanded to 77% from 76% a year earlier, helped by lower manufacturing costs and product mix. Operating expenses rose 13% to USD 60.9 million as Tactile Medical continued investing in long-term growth initiatives. Operating income consequently declined to USD 9.6 million from USD 11.0 million, while diluted earnings per share decreased to USD 0.31 from USD 0.36.
Higher adjusted EBITDA outlook
For the first nine months, revenue rose 12% to USD 252.8 million and net income increased to USD 13.2 million from USD 8.5 million. Adjusted EBITDA reached USD 29.5 million, compared with USD 21.8 million in the same period last year.
Tactile Medical maintained its full-year revenue outlook of USD 360 million to USD 366 million, representing growth of 9% to 11% from 2025. The company raised its adjusted EBITDA range to USD 50 million to USD 52 million from USD 49 million to USD 51 million. The change improves the earnings outlook, but the quarterly decline in net income keeps operating cost control in focus.
Tactile Medical business profile
Tactile Medical develops and markets at-home therapies for chronic conditions including lymphedema, lipedema, chronic venous insufficiency and chronic respiratory conditions. Its products are sold or provided through sales and rental arrangements, with lymphedema products the larger reported product line. The company is headquartered in Minneapolis, Minnesota, and operates in the medical technology sector.
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Tactile Medical at a glance
- Company: Tactile Systems Technology, Inc. DBA Tactile Medical
- ISIN: US87357P1003
- Ticker: TCMD
- Home exchange: Nasdaq
- Reporting period: Third quarter ended September 30, 2026
- Revenue: USD 91.9 million
- Net income: USD 7.2 million
- Full-year 2026 revenue outlook: USD 360 million to USD 366 million
- Full-year 2026 adjusted EBITDA outlook: USD 50 million to USD 52 million
