Tactile Systems Technology, Inc. (TCMD) AI Stock Analysis

Tactile Systems Technology, Inc. is a Minneapolis-based medical technology company focused on developing and delivering advanced medical devices for chronic disease management across the United States. Its primary product is the Flexitouch Plus system, an advanced pneumatic compression device engineered for the treatment of lymphedema by reducing swelling and improving lymphatic circulation. The company also offers the Entre system, a portable pneumatic compression device for at-home treatment of venous disorders like chronic venous insufficiency and venous leg ulcers. Additionally, it provides the AffloVest, a portable high-frequency chest wall oscillation therapy device aiding in airway clearance for conditions such as bronchiectasis and cystic fibrosis.

Between FY2021 and FY2025, annual revenue expanded from $208.1M to $329.5M, reflecting a 5-year revenue CAGR of 12.0% from FY2020 to FY2025. Gross margin expanded from 71.2% in FY2021 to 75.2% in FY2025. Operating performance turned profitable after operating margins of -0.8% in FY2021 and -5.2% in FY2022, reaching 8.9% in FY2025 with net income of $19.1M and diluted EPS of $0.85. Over the trailing twelve months ended June 30, 2026, revenue stood at $350.3M with an operating margin of 8.0% and EPS of $1.08. In the quarter ended June 30, 2026, quarterly revenue grew 8.6% year-over-year while quarterly earnings increased 144.1%.

As of June 30, 2026, Tactile Systems Technology held $69.9M in cash and short-term investments against total debt of $14.4M, resulting in net cash of $55.5M. The company maintains a current ratio of 4.12 and a debt-to-equity ratio of 0.06, supported by shareholders' equity of $223.8M. In FY2025, operating cash flow reached $42.8M and free cash flow was $40.4M. Capital expenditures totaled $2.4M, while the company directed $26.6M toward share buybacks.

At a last close of $22.52, Tactile Systems Technology trades at a trailing P/E of 20.9x and a forward P/E of 19.1x, compared to medians of 24.6x and 17.3x for its US-listed Healthcare peers. Its enterprise value to EBITDA ratio is 9.9x, below the peer median of 12.0x, while its price-to-sales ratio of 1.5x sits below the peer median of 4.1x. Over the past year, the stock returned 53.3%, outperforming the S&P 500 (SPY) return of 16.8%. However, its 5-year return of -36.6% trails the S&P 500 gain of 83.0%.

Wall Street coverage consists of 3 Strong Buy ratings and 1 Buy rating, with no Hold, Sell, or Strong Sell ratings. The mean price target of $37.67 implies an upside of 67.3% over the last close of $22.52. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $1.17 on revenue of $362.4M. For the next fiscal year, 2 analysts project EPS of $1.46 on revenue of $396.6M. The company beat EPS estimates in each of the last 4 quarters, with next earnings scheduled for November 2, 2026.

This page is an AI-written research summary of Tactile Systems Technology, Inc. (TCMD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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