Tactile Systems Technology (NASDAQ:TCMD) Shares Up 5.9% on Strong Earnings

Tactile Systems Technology, Inc. (NASDAQ:TCMD) traded up 5.9% during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $27.88 and last traded at $28.01. 124,301 shares traded hands during trading, a decline of 56% from the average session volume of 283,561 shares. The stock had previously closed at $26.45.

The company reported $0.46 EPS for the quarter, topping analysts’ consensus estimates of $0.44 by $0.02. The business had revenue of $103.59 million for the quarter, compared to analyst estimates of $93.80 million. Tactile Systems Technology had a net margin of 5.79% and a return on equity of 9.46%.

Key Tactile Systems Technology News

Here are the key news stories impacting Tactile Systems Technology this week:

• Positive Sentiment: Q4 2025 beat — Revenue grew 21% YoY to $103.6M and diluted EPS of $0.46 topped consensus; gross margin expanded to 78% and Adjusted EBITDA rose sharply, signaling improving unit economics and operating leverage. GlobeNewswire: Q4 and FY2025 Results
• Positive Sentiment: Forward guidance raised — Management guided 2026 revenue to $357M–$365M (≈8–11% growth) and Adjusted EBITDA to $49M–$51M, giving investors a clear, profitable growth trajectory for the year ahead. Yahoo Finance: Earnings Highlights
• Positive Sentiment: Strategic M&A expands addressable market — Completed acquisition of LymphaTech adds 3D scanning/digital capabilities to the lymphedema portfolio, supporting better disease identification, adoption and future product integration. This bolsters the company’s growth and innovation story. GlobeNewswire: Acquires LymphaTech
• Neutral Sentiment: Clinical evidence published — Two‑month clinical data comparing Flexitouch Plus™ to usual care was published, which supports commercial differentiation but typically has a longer-term impact on adoption. MSN: Earnings Call / Clinical Data
• Negative Sentiment: 2026 growth rate decelerates vs. Q4 strength — Guidance implies 8–11% revenue growth for 2026, a step down from the 21% Q4 run‑rate; investors looking for sustained high‑teens/20% growth may view this as slowed momentum. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Rising operating expenses and cash use — Operating expenses rose ~20% in Q4 (outpacing some revenue categories) and cash declined year-over-year after share repurchases and term‑loan paydown, which could pressure near-term free cash flow. Quiver: Q4 & FY2025 Results Summary
• Negative Sentiment: Minor insider sale noted — Recent small insider sale was reported; not large in isolation but worth monitoring for any further insider activity. Quiver: Insider Trading & Institutional Activity

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on TCMD shares. Lake Street Capital set a $40.00 target price on Tactile Systems Technology and gave the stock a “buy” rating in a report on Wednesday. Piper Sandler upped their price objective on Tactile Systems Technology from $35.00 to $42.00 and gave the stock an “overweight” rating in a research note on Wednesday. BTIG Research raised their target price on shares of Tactile Systems Technology from $36.00 to $38.00 and gave the company a “buy” rating in a research note on Wednesday. Raymond James Financial set a $35.00 price target on shares of Tactile Systems Technology in a research report on Monday, January 5th. Finally, Wall Street Zen raised shares of Tactile Systems Technology from a “buy” rating to a “strong-buy” rating in a research report on Saturday, November 1st. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $37.40.

Insider Activity at Tactile Systems Technology

In other Tactile Systems Technology news, VP Kristie Burns sold 5,139 shares of the stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $28.85, for a total value of $148,260.15. Following the transaction, the vice president directly owned 72,401 shares of the company’s stock, valued at $2,088,768.85. This represents a 6.63% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 2.50% of the company’s stock.

Institutional Trading of Tactile Systems Technology

Several institutional investors have recently added to or reduced their stakes in the company. Acadian Asset Management LLC increased its position in Tactile Systems Technology by 248.3% during the 2nd quarter. Acadian Asset Management LLC now owns 683,662 shares of the company’s stock worth $6,930,000 after buying an additional 487,392 shares during the period. Next Century Growth Investors LLC acquired a new stake in Tactile Systems Technology in the 4th quarter worth about $11,309,000. Marshall Wace LLP acquired a new stake in Tactile Systems Technology in the 4th quarter worth about $7,700,000. Janus Henderson Group PLC bought a new stake in Tactile Systems Technology in the 4th quarter valued at about $5,503,000. Finally, LSV Asset Management grew its position in shares of Tactile Systems Technology by 119.8% during the 4th quarter. LSV Asset Management now owns 323,004 shares of the company’s stock worth $9,367,000 after purchasing an additional 176,059 shares in the last quarter. 83.43% of the stock is currently owned by institutional investors.

Tactile Systems Technology Stock Up 17.8%

The company’s fifty day moving average price is $29.07 and its 200 day moving average price is $21.30. The company has a market capitalization of $738.34 million, a P/E ratio of 39.82 and a beta of 0.96.

About Tactile Systems Technology

Tactile Systems Technology, Inc, headquartered in Plymouth, Minnesota, is a medical device company specializing in the design, manufacture and marketing of home-use pneumatic compression therapy systems for the treatment of lymphedema and other chronic edema-related conditions. Using proprietary software and patented pump technologies, the company’s platforms are designed to improve patient outcomes through sequential pressure treatment that promotes fluid mobilization and enhanced lymphatic function.

At the core of Tactile Systems’ product portfolio is the Flexitouch® system, a programmable pneumatic pump and garment system approved for home use, and the Aria® device, which features an intuitive touchscreen interface and advanced garment design.