Tactile Systems Q3 revenue slightly misses estimates on higher operating expenses
TCMD•Tactile Systems' Q3 revenue rose 7% year over year to $91.90 million, slightly below the $91.99 million estimate, while adjusted EBITDA beat estimates at $14.30 million. The company raised its 2026 adjusted EBITDA outlook to $50 million-$52 million and expects revenue of $360 million-$366 million.
1. Quarterly results
Tactile Systems reported Q3 revenue of $91.90 million, up 7% year over year and slightly below the $91.99 million analyst estimate. Adjusted EBITDA was $14.30 million, above the $13.64 million estimate, while net income was $7.20 million and declined year over year.
2. 2026 outlook
The company expects 2026 revenue of $360 million to $366 million and raised its adjusted EBITDA outlook to $50 million-$52 million from $49 million-$51 million. It expects to sustain above-market lymphedema growth in an underpenetrated market.
3. Drivers
Tactile Systems said double-digit growth in lymphedema product sales drove the revenue increase. Gross margin improved due to lower manufacturing costs and favorable product mix, while operating expenses rose as the company continued investing for long-term growth.
