Free cash flow remains highly sensitive to seasonal insurance patterns, with margins swinging from a peak of 22.4% in 2023Q4 to a negative 1.6% in 2026Q1 due to reimbursement cycle volatility.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | 42.05M | 42.81M | 40.66M | 35.85M | 5.21M | 2.63M | 2.79M | 2.51M | 9.01M | 4.19M | 7.03M | 1.36M | -991K | -425K |
| Operating CF Margin % | - | 12.99% | 13.88% | 13.07% | 2.11% | 1.26% | 1.49% | 1.32% | 6.27% | 3.84% | 8.32% | 2.16% | -2.08% | -1.14% |
| Operating CF Growth % | -162.28% | 5.3% | 13.39% | 588.33% | 97.99% | -5.83% | 11.31% | -72.13% | 114.86% | -40.4% | 417.89% | 237.03% | -133.18% | - |
| Net Income | 20.3M | 0 | 16.96M | 28.52M | -17.87M | -11.81M | -620K | 10.97M | 6.62M | 5.86M | 2.88M | 1.39M | 2.07M | 3.16M |
| Depreciation & Amortization | 6.56M | 0 | 6.8M | 6.5M | 6.27M | 3.7M | 2.79M | 3.54M | 3.63M | 1.85M | 799K | 827K | 706K | 585K |
| Stock-Based Compensation | 5.53M | 0 | 7.82M | 7.55M | 9.6M | 10.17M | 10.69M | 9.82M | 7.97M | 4.24M | 1.89M | 316K | 148K | 132K |
| Deferred Taxes | 6.71M | 0 | 1.07M | -19.38M | -32K | 10.23M | -1.23M | -146K | -6.18M | 143K | -611K | 852K | 1.56M | -941K |
| Other Non-Cash Items | 5.71M | 42.69M | 300K | -2.43M | 11.87M | -199K | 3.92M | 848K | 2.54M | 301K | 568K | 94K | 500K | 325K |
| Working Capital Changes | -2.75M | 119K | 7.71M | 15.1M | -4.63M | -9.46M | -12.76M | -22.52M | -5.58M | -8.19M | 1.51M | -2.12M | -5.97M | -3.68M |
| Change in Receivables | -3.42M | -153K | 9.17M | 23.78M | -15.56M | -9.04M | -15.65M | -11.41M | -5.88M | -3.59M | -2.2M | -1.25M | -5.05M | -4.33M |
| Change in Inventory | 2.29M | 4.64M | 3.86M | 597K | -3.91M | 972K | 318K | -7.87M | -870K | -4.49M | -773K | -2.26M | -608K | -884K |
| Change in Payables | 228K | -758K | -1.09M | -3.85M | 4.96M | 826K | 337K | -1.39M | 690K | 462K | 1.74M | 829K | 547K | 476K |
| Cash from Investing | -9.19M | -2.54M | -2.5M | -2.48M | -1.91M | -82.18M | 20.18M | -2.33M | -14.73M | -14.02M | -11.84M | -615K | -353K | -364K |
| Capital Expenditures | -2.89M | 0 | -2.39M | -2.32M | -1.78M | -2.1M | -2.06M | -5.45M | -9.55M | -3.82M | -833K | -615K | -353K | -364K |
| CapEx % of Revenue | 0.84% | 0.72% | 0.82% | 0.85% | 0.72% | 1.01% | 1.1% | 2.87% | 6.64% | 3.5% | 0.99% | 0.98% | 0.74% | 0.98% |
| Acquisitions | -6.23M | 0 | 0 | 0 | 0 | -79.83M | 0 | 0 | 5.35M | -74K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -74K | -2.54M | -105K | -157K | -129K | -252K | -262K | -542K | -5.85M | -71K | -11.07M | -23K | 0 | 0 |
| Cash from Financing | -41.49M | -51.2M | -4.82M | 5.73M | -9.6M | 59.93M | 2.11M | 2.5M | 1.85M | 3.09M | 28.45M | 901K | 221K | -2.08M |
| Debt Issued (Net) | -25.5M | -26.25M | -3M | -19.75M | -6M | 55M | 0 | 0 | 0 | 0 | 0 | -392K | -9K | -32K |
| Equity Issued (Net) | -15.99M | -24.95M | -3.51M | 34.63M | 0 | 0 | 0 | 0 | 0 | -493K | 36.66M | 914K | 0 | -105K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -8.21M | 0 | 0 | 0 |
| Share Repurchases | -17.62M | -26.56M | -3.51M | 0 | 0 | 0 | 0 | 0 | -2.38M | -493K | 0 | 0 | 0 | -105K |
| Other Financing | 0 | 0 | 1.68M | -9.14M | -3.6M | 4.93M | 2.11M | 2.5M | 1.85M | 3.58M | 0 | 0 | 230K | -1.94M |
| Net Change in Cash | -8.63M | -10.92M | 33.33M | 39.1M | -6.3M | -19.63M | 25.09M | 2.67M | -3.87M | -6.73M | 23.64M | 1.64M | -1.12M | -2.86M |
| Free Cash Flow | 39.22M | 40.43M | 38.15M | 33.37M | 3.29M | 276K | 503K | -3.48M | -539K | 372K | 6.2M | 743K | -1.34M | -789K |
| FCF Margin % | 11.42% | 12.27% | 13.02% | 12.16% | 1.33% | 0.13% | 0.27% | -1.84% | -0.38% | 0.34% | 7.33% | 1.18% | -2.82% | -2.12% |
| FCF Growth % | 3.94% | 5.99% | 14.3% | 914.72% | 1091.67% | -45.13% | 114.46% | -545.27% | -244.89% | -94% | 734.45% | 155.28% | -70.34% | - |
| FCF per Share | 1.74 | 1.74 | 1.58 | 1.44 | 0.16 | 0.01 | 0.03 | -0.18 | -0.03 | 0.02 | 0.37 | 0.06 | -0.10 | -0.33 |
| FCF Conversion (FCF/Net Income) | 1.93x | 2.24x | 2.40x | 1.26x | -0.29x | -0.22x | -4.51x | 0.23x | 1.36x | 0.72x | 2.44x | 0.97x | -0.48x | -0.13x |
| Interest Paid | 774K | 1.22M | 2.11M | 4.56M | 2.19M | 130K | 0 | 0 | -9K | 0 | 0 | 1K | 1K | 6K |
| Taxes Paid | 2.48M | 2.5M | 6.85M | 5.82M | 44K | 1.59M | 543K | 344K | -2.88M | 923K | 2.16M | 240K | 238K | 117K |
Reimbursement cycle volatility
As reported in financial statements, TCMD's operating cash flow frequently decouples from net income, with the OCF/NI ratio reaching an extreme 4.59x in 2025Q2, suggesting that reported earnings are significantly impacted by non-cash charges and timing differences in the complex medical device reimbursement process.
The persistent gap between net income and operating cash flow indicates that TCMD's accounting earnings are a poor proxy for actual liquidity generation. Investors should monitor the high reliance on non-cash adjustments, which may obscure the underlying volatility of the company's cash-generating capacity.
Based on TCMD's reported figures, free cash flow margins exhibit extreme quarterly variance, swinging from a peak of 22.4% in 2023Q4 to a negative 1.6% in 2026Q1, highlighting the company's vulnerability to seasonal insurance deductible patterns and the timing of device placements.
The lack of consistent free cash flow generation suggests that the business model is highly sensitive to the timing of insurance authorizations. This volatility complicates long-term capital planning and warrants caution regarding the sustainability of cash flows during periods of lower seasonal demand.
According to recent SEC filings, working capital changes have been a primary driver of cash flow volatility, with a significant $8.2 million inflow in 2025Q2 followed by a $4.5 million outflow in 2025Q4, reflecting the inherent friction in collecting payments from diverse insurance payers.
The erratic nature of working capital movements suggests that TCMD faces ongoing challenges in managing its accounts receivable cycle. This instability in cash conversion cycles may indicate that the company is susceptible to shifts in payer behavior or increased scrutiny of its billing practices.
As indicated by the company's financial data, TCMD has utilized its cash reserves to fund both share repurchases and strategic acquisitions, such as the $6.2 million net acquisition outflow in 2026Q1, signaling a management focus on inorganic growth despite fluctuating operational cash flows.
The decision to deploy capital toward acquisitions while operating cash flow remains inconsistent suggests a management team prioritizing market expansion over immediate cash preservation. Investors should monitor whether these investments yield sufficient returns to offset the risks associated with the company's high-touch, labor-intensive business model.
Quick answers to the most common questions about buying TCMD stock.
Tactile Systems Technology, Inc. (TCMD) generated $42.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Tactile Systems Technology, Inc. (TCMD) generated $40.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Tactile Systems Technology, Inc. (TCMD) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Tactile Systems Technology, Inc. (TCMD) spent $26.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.