Revenue reached $91.9M in 2026Q3 with a 76.0% gross margin, but a 10.5% operating margin and 7.8% net margin indicate that gross profitability is only partially converting to earnings, warranting further investigation of SG&A efficiency.
Tactile Systems Technology, Inc. (TCMD) annual income statement — 13-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 356.42M | 329.52M | 292.98M | 274.42M | 246.78M | 208.06M | 187.13M | 189.49M | 143.75M | 109.28M | 84.54M | 62.87M | 47.74M | 37.18M |
| Revenue Growth % | 14.41% | 12.47% | 6.76% | 11.2% | 18.61% | 11.18% | -1.25% | 31.82% | 31.54% | 29.26% | 34.47% | 31.71% | 28.41% | - |
| Cost of Goods Sold | 91.52M | 81.82M | 76.3M | 79.29M | 70.81M | 59.84M | 54.32M | 55.26M | 41.49M | 29.02M | 22.94M | 16.91M | 12.71M | 9.77M |
| COGS % of Revenue | - | 24.83% | 26.04% | 28.89% | 28.69% | 28.76% | 29.03% | 29.16% | 28.86% | 26.55% | 27.13% | 26.89% | 26.64% | 26.29% |
| Gross Profit | 264.89M | 247.7M | 216.69M | 195.13M | 175.98M | 148.21M | 132.81M | 134.24M | 102.26M | 80.27M | 61.6M | 45.96M | 35.02M | 27.4M |
| Gross Margin % | 74.32% | 75.17% | 73.96% | 71.11% | 71.31% | 71.24% | 70.97% | 70.84% | 71.14% | 73.45% | 72.87% | 73.11% | 73.36% | 73.71% |
| Gross Profit Growth % | - | 14.31% | 11.05% | 10.89% | 18.73% | 11.6% | -1.06% | 31.27% | 27.4% | 30.3% | 34.02% | 31.25% | 27.8% | - |
| Operating Expenses | 231.18M | 218.42M | 194.51M | 177.09M | 188.73M | 149.97M | 136.44M | 123.74M | 99.27M | 76.37M | 57.33M | 42.51M | 31.22M | 25.02M |
| OpEx % of Revenue | - | 66.28% | 66.39% | 64.53% | 76.48% | 72.08% | 72.91% | 65.3% | 69.06% | 69.88% | 67.81% | 67.62% | 65.41% | 67.31% |
| Selling, General & Admin | 204.59M | 209.94M | 183.14M | 169.19M | 167.21M | 143.58M | 130.98M | 118.37M | 93.98M | 71.31M | 52.85M | 38.2M | 28.38M | 22.58M |
| SG&A % of Revenue | - | 63.71% | 62.51% | 61.65% | 67.76% | 69.01% | 69.99% | 62.47% | 65.38% | 65.25% | 62.52% | 60.76% | 59.45% | 60.74% |
| Research & Development | 10.31M | 8.48M | 8.83M | 7.82M | 7.09M | 5.66M | 5.26M | 5.17M | 5.29M | 5.06M | 4.48M | 4.31M | 2.84M | 2.44M |
| R&D % of Revenue | - | 2.57% | 3.01% | 2.85% | 2.87% | 2.72% | 2.81% | 2.73% | 3.68% | 4.63% | 5.29% | 6.86% | 5.96% | 6.57% |
| Other Operating Expenses | 596K | 0 | 2.53M | 76K | 14.43M | 739K | 197K | 194K | 486K | 292K | 38K | -194K | -4K | 4K |
| Operating Income | 33.72M | 29.28M | 22.18M | 18.04M | -12.76M | -1.76M | -3.63M | 10.5M | 2.99M | 3.9M | 4.27M | 3.45M | 3.8M | 2.38M |
| Operating Margin % | 9.46% | 8.89% | 7.57% | 6.57% | -5.17% | -0.85% | -1.94% | 5.54% | 2.08% | 3.57% | 5.05% | 5.49% | 7.96% | 6.4% |
| Operating Income Growth % | - | 32% | 22.95% | 241.41% | -624.06% | 51.43% | -134.56% | 251.1% | -23.29% | -8.75% | 23.79% | -9.16% | 59.62% | - |
| EBITDA | 40.56M | 35.92M | 28.98M | 24.54M | -6.49M | 1.94M | -834K | 14.04M | 6.63M | 5.75M | 5.07M | 4.28M | 4.5M | 2.96M |
| EBITDA Margin % | 11.38% | 10.9% | 9.89% | 8.94% | -2.63% | 0.93% | -0.45% | 7.41% | 4.61% | 5.26% | 6% | 6.8% | 9.44% | 7.98% |
| EBITDA Growth % | 36.28% | 23.95% | 18.09% | 478.14% | -434.88% | 332.37% | -105.94% | 111.86% | 15.28% | 13.33% | 18.54% | -5.04% | 51.94% | - |
| D&A (Non-Cash Add-back) | 6.84M | 6.64M | 6.8M | 6.5M | 6.27M | 3.7M | 2.79M | 3.54M | 3.63M | 1.85M | 799K | 827K | 706K | 585K |
| EBIT | 35.63M | 32.38M | 25.57M | 19.92M | -12.69M | -2.29M | -3.63M | 10.5M | 3.48M | 4.19M | 4.31M | 3.45M | 3.79M | 2.38M |
| Net Interest Income | 2.39M | 2.06M | 1.3M | -2.27M | -2.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 2.47M | 3.1M | 3.38M | 1.87M | 60K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 78K | 1.04M | 2.08M | 4.15M | 2.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 2.33M | 2.06M | 1.31M | -2.27M | -2.71M | -531K | 1.37M | 631K | 486K | 292K | 38K | -194K | -4K | 4K |
| Pretax Income | 36.05M | 31.34M | 23.49M | 15.77M | -15.47M | -2.29M | -2.26M | 11.13M | 3.48M | 4.19M | 4.31M | 3.26M | 3.79M | 2.38M |
| Pretax Margin % | 10.12% | 9.51% | 8.02% | 5.75% | -6.27% | -1.1% | -1.21% | 5.87% | 2.42% | 3.83% | 5.1% | 5.18% | 7.95% | 6.41% |
| Income Tax | 12.24M | 12.25M | 6.53M | -12.74M | 2.39M | 9.52M | -1.64M | 158K | -3.15M | -1.67M | 1.43M | 1.86M | 1.73M | -772K |
| Effective Tax Rate % | 33.94% | 39.1% | 27.8% | -80.82% | -15.47% | -415.09% | 72.58% | 1.42% | -90.54% | -39.74% | 33.2% | 57.23% | 45.45% | -32.38% |
| Net Income | 23.82M | 19.09M | 16.96M | 28.52M | -17.87M | -11.81M | -620K | 10.97M | 6.62M | 5.86M | 2.88M | 1.39M | 2.07M | 3.16M |
| Net Margin % | 6.68% | 5.79% | 5.79% | 10.39% | -7.24% | -5.68% | -0.33% | 5.79% | 4.61% | 5.36% | 3.41% | 2.22% | 4.34% | 8.49% |
| Net Income Growth % | 31.09% | 12.54% | -40.52% | 259.6% | -51.27% | -1805% | -105.65% | 65.65% | 13.12% | 103.37% | 106.68% | -32.71% | -34.41% | - |
| Net Income (Continuing) | 23.82M | 19.09M | 16.96M | 28.52M | -17.87M | -11.81M | -620K | 10.97M | 6.62M | 5.86M | 2.88M | 1.39M | 2.07M | 3.16M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.03 | 0.82 | 0.70 | 1.23 | -0.89 | -0.60 | -0.03 | 0.56 | 0.34 | 0.31 | 0.17 | -0.03 | 0.01 | 1.32 |
| EPS Growth % | 33.77% | 17.14% | -43.09% | 238.2% | -48.33% | -1900% | -105.36% | 64.71% | 9.68% | 82.35% | 601.47% | - | -99.47% | - |
| EPS (Basic) | - | 0.83 | 0.71 | 1.24 | -0.89 | -0.60 | -0.03 | 0.58 | 0.34 | 0.34 | 0.18 | -0.03 | 0.01 | 1.33 |
| Diluted Shares Outstanding | 23.05M | 23.3M | 24.14M | 23.18M | 20.07M | 19.72M | 19.35M | 19.64M | 19.35M | 18.88M | 16.86M | 13.35M | 13.35M | 2.4M |
| Basic Shares Outstanding | 22.63M | 22.87M | 23.88M | 22.93M | 20.07M | 19.72M | 19.35M | 18.92M | 19.35M | 17.36M | 8.91M | 13.35M | 13.35M | 2.37M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying TCMD stock.
For fiscal year 2025, Tactile Systems Technology, Inc. (TCMD) reported total revenue of $329.5M. This represents a 786.4% increase compared to $37.2M in 2013.
Tactile Systems Technology, Inc. (TCMD) is profitable, generating $19.1M in net income for the fiscal year ending 2025 with a net profit margin of 5.8%.
Tactile Systems Technology, Inc. (TCMD) reported an operating income of $29.3M, resulting in an operating profit margin of 8.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Tactile Systems Technology, Inc. (TCMD) generated $247.7M in gross profit for the year, representing a gross profit margin of 75.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Thin operating conversion from gross profit
Metrics are mathematically derived from official filings.
Revenue Growth Decelerating From Peak Rates
Based on reported quarterly figures, TCMD's revenue reached $91.9M in 2026Q3 with year-over-year growth of 7.1%, a clear moderation from the 21.0% and 22.8% readings in earlier periods of the dataset.
The sequence of year-over-year growth rates has been uneven, ranging from 0.3% to above 20%, which suggests top-line momentum is not compounding steadily. The recent slowdown may partly reflect normalization after a strong 2025 Q4, while the 2026Q1 rebound appears to have been partly base-effect driven. Investors should monitor whether the AffloVest respiratory expansion can sustain growth as the lymphedema franchise matures.
Gross Margin Resilience Versus Thin Operating Conversion
As reported in the income statement, TCMD sustained gross margins between 68.7% and 76.5% across the ten quarters, yet trailing operating margin of roughly 8.9% indicates that gross profitability is not reaching the bottom line.
Stability of gross margin in the mid-70s range points to durable pricing and a favorable product mix within lymphedema devices. The wide gap between gross and operating margin, however, suggests the high-touch sales and reimbursement model absorbs most of the gross profit. Margin structure therefore appears more dependent on operating expense discipline than on manufacturing efficiency.
Volatile Earnings Masking Underlying Profitability
Based on TCMD's reported figures, quarterly net income moved from a $1.5M operating loss in 2026Q1 to a $10.6M profit in 2025Q4, with 2026Q3 EPS of $0.31 falling short of the consensus expectation cited in the company context.
The magnitude of quarterly swings in net income relative to operating income suggests non-operating items and tax effects may be contributing meaningfully to reported earnings. Stock-based compensation of roughly $2M per quarter is modest but should be considered when assessing true earnings power. The reported EPS miss in the most recent quarter warrants further investigation into whether the shortfall reflects timing or structural cost pressure.
Limited Operating Leverage Despite Scale
According to reported quarterly data, SG&A consumed roughly 63% to 78% of gross profit across recent periods, and the failure of operating income to scale proportionally with gross profit suggests limited operating leverage.
Gross profit has grown more steadily than operating income, implying that incremental revenue is being absorbed by commercial and administrative spending. This pattern may indicate the sales force model still requires continued investment to support growth. Operating leverage would likely improve only if SG&A growth decelerates below revenue growth over a sustained period.
Margin Gap Could Persist Despite Growth
As reported in recent filings, the 2026Q3 EPS shortfall against a maintained outlook and the 8.9% trailing operating margin raise the possibility that revenue growth alone will not close the gap between gross profit and earnings.
A bear case would argue that continued sales force and market development spending may prevent operating leverage from materializing even if top-line growth persists. Slowing year-over-year revenue growth, now near 7%, could further compress the cushion that absorbs fixed commercial costs. Investors should monitor upcoming quarters for evidence that SG&A growth falls below revenue growth before assuming earnings conversion will improve.