Tactile Systems: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Nov. 2, 2026, Tactile Systems (NASDAQ:TCMD) raised its full-year adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) guidance to $50 million to $52 million. Expanding margins and double-digit growth in lymphedema treatments are offsetting temporary inventory delays in the airway clearance business. Three things management said stand out for long-term investors.

1. Core Lymphedema Segment Delivers Double-Digit Revenue Growth

Tactile Systems expanded its sales force reach and increased clinic visits by 19% year over year, driving consistent volume growth across medical provider accounts. Expanding patient access and stabilizing Medicare reimbursement have created a reliable revenue engine that funds investments across the portfolio.

We delivered total revenue of $91.9 million in Q3, led by a 13% year-over-year growth in lymphedema, marking our fifth consecutive quarter of above-market double-digit growth.
-- Sheri Dodd, Chief Executive Officer

2. Operational Enhancements Accelerate Patient Order Conversion Times

The business is streamlining how orders move from clinician referral to patient delivery by deploying artificial intelligence order management systems. Management also appointed Steve Kiewiet as Chief Operating Officer to unite patient services, order operations, and revenue cycle management. Together, those moves create capacity for higher referral volumes.

We are already seeing tangible results in medical record review, one step within the broader order process, where technology-enabled improvements have reduced average review time by approximately 50%.
-- Sheri Dodd, Chief Executive Officer

3. Airway Clearance Headwinds Shift Focus to EBITDA Margin Expansion

Durable medical equipment (DME), or medical device distributor, customers delayed orders while transitioning to the next-generation AffloVest untethered airway clearance system. But higher gross margins and controlled spending allowed management to absorb the temporary sales dip and still raise full-year profit expectations.

DME customers are taking longer than we initially expected to work through existing inventory as they transition to the next-generation AffloVest, so we now assume a more gradual normalization of ordering.
-- Elaine Birkemeyer, Chief Financial Officer

Looking Ahead

Lymphedema demand shows no signs of slowing down, giving executive leadership confidence in the core market opportunity. The business continues to expand through specialized sales teams and technological enhancements that convert referrals into shipments more efficiently.

So we're feeling very good about lymphedema as a core growth driver for our business and the market to be super favorable in that area.
-- Sheri Dodd, Chief Executive Officer

Sustained operational execution across patient services and clinical education reinforces the company's market leadership. And as internal investments mature, management expects top-line growth to outpace operating expenses over time.

We believe Tactile is well positioned to deliver durable growth, expand operating leverage and long-term value for our shareholders.
-- Sheri Dodd, Chief Executive Officer

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