Tactile Systems Technology (NASDAQ:TCMD) Sets New 1-Year High Following Better-Than-Expected Earnings

Tactile Systems Technology, Inc. (NASDAQ:TCMD) shares hit a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $36.20 and last traded at $36.0070, with a volume of 30862 shares. The stock had previously closed at $28.05.

The company reported $0.46 earnings per share for the quarter, topping the consensus estimate of $0.44 by $0.02. Tactile Systems Technology had a return on equity of 9.46% and a net margin of 5.79%.The business had revenue of $103.59 million during the quarter, compared to the consensus estimate of $93.80 million.

Key Stories Impacting Tactile Systems Technology

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 Analyst Weigh In

A number of research analysts recently weighed in on the stock. Lake Street Capital set a $40.00 price target on shares of Tactile Systems Technology and gave the company a “buy” rating in a research note on Wednesday. BTIG Research lifted their price target on Tactile Systems Technology from $36.00 to $38.00 and gave the stock a “buy” rating in a research note on Wednesday. Raymond James Financial set a $35.00 price target on Tactile Systems Technology in a research report on Monday, January 5th. Piper Sandler raised their price objective on Tactile Systems Technology from $35.00 to $42.00 and gave the company an “overweight” rating in a report on Wednesday. Finally, B. Riley Financial lifted their target price on shares of Tactile Systems Technology from $16.00 to $32.00 and gave the stock a “neutral” rating in a research note on Wednesday. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $37.40.

Insider Buying and Selling at Tactile Systems Technology

In related news, VP Kristie Burns sold 5,139 shares of the company’s 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 completion of the sale, the vice president owned 72,401 shares of the company’s stock, valued at approximately $2,088,768.85. This represents a 6.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders own 2.50% of the company’s stock.

Institutional Trading of Tactile Systems Technology

Institutional investors and hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. boosted its stake in Tactile Systems Technology by 2.1% during the first quarter. Goldman Sachs Group Inc. now owns 186,936 shares of the company’s stock worth $2,471,000 after buying an additional 3,898 shares during the period. Y Intercept Hong Kong Ltd acquired a new position in shares of Tactile Systems Technology in the 2nd quarter worth approximately $497,000. Pinnacle Associates Ltd. boosted its position in shares of Tactile Systems Technology by 5.5% during the 2nd quarter. Pinnacle Associates Ltd. now owns 340,374 shares of the company’s stock worth $3,451,000 after purchasing an additional 17,850 shares during the period. Acadian Asset Management LLC increased its holdings in Tactile Systems Technology by 248.3% in the 2nd quarter. Acadian Asset Management LLC now owns 683,662 shares of the company’s stock valued at $6,930,000 after purchasing an additional 487,392 shares during the last quarter. Finally, Pinnacle Wealth Management Advisory Group LLC purchased a new stake in Tactile Systems Technology in the second quarter valued at approximately $134,000. 83.43% of the stock is currently owned by hedge funds and other institutional investors.

Tactile Systems Technology Price Performance

The business has a 50 day simple moving average of $29.07 and a 200 day simple moving average of $21.30. The company has a market capitalization of $738.34 million, a price-to-earnings ratio of 39.82 and a beta of 0.96.

Tactile Systems Technology Company Profile

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.