Revenue growth has accelerated to 22.8% in 2026Q1, yet the company continues to struggle with operating leverage, as evidenced by a negative 2.0% operating margin in the same period.
| 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 | 343.52M | 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 % | 17.18% | 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 | 83.55M | 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 | 259.97M | 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 % | 75.68% | 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 | 227.68M | 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 | 218.2M | 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 | 9.52M | 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 | 811K | 0 | 2.53M | 76K | 14.43M | 739K | 197K | 194K | 486K | 292K | 38K | -194K | -4K | 4K |
| Operating Income | 32.29M | 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 % | 9.4% | 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 | 38.84M | 35.92M | 28.98M | 24.54M | 1.67M | 1.92M | -834K | 14.04M | 6.63M | 5.75M | 5.07M | 4.28M | 4.5M | 2.96M |
| EBITDA Margin % | 11.31% | 10.9% | 9.89% | 8.94% | 0.68% | 0.92% | -0.45% | 7.41% | 4.61% | 5.26% | 6% | 6.8% | 9.44% | 7.98% |
| EBITDA Growth % | 41.27% | 23.95% | 18.09% | 1366.01% | -12.77% | 330.1% | -105.94% | 111.86% | 15.28% | 13.33% | 18.54% | -5.04% | 51.94% | - |
| D&A (Non-Cash Add-back) | 6.56M | 6.64M | 6.8M | 6.5M | 14.43M | 3.68M | 2.79M | 3.54M | 3.63M | 1.85M | 799K | 827K | 706K | 585K |
| EBIT | 34.28M | 29.28M | 25.57M | 19.92M | -12.69M | -1.76M | -3.63M | 10.5M | 3.48M | 4.19M | 4.31M | 3.45M | 3.79M | 2.38M |
| Net Interest Income | 2.23M | 2.06M | 1.3M | -2.27M | -2.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 2.67M | 3.1M | 3.38M | 1.87M | 60K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 449K | 1.04M | 2.08M | 4.15M | 2.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 2.23M | 2.06M | 1.31M | -2.27M | -2.71M | -531K | 1.37M | 631K | 486K | 292K | 38K | -194K | -4K | 4K |
| Pretax Income | 34.51M | 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 % | 10.05% | 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 | 14.22M | 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 % | 41.19% | 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 | 20.3M | 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 % | 5.91% | 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 % | 25.33% | 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) | 20.3M | 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) | 0.90 | 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 % | 33.33% | 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 | 22.56M | 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 | 22.56M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
CMS reimbursement policy volatility
According to the latest quarterly filings, TCMD achieved a 22.8% year-over-year revenue growth in 2026Q1, marking a significant departure from the single-digit growth rates observed throughout 2024, suggesting that recent strategic efforts to expand the respiratory health segment are beginning to gain meaningful market traction.
The acceleration in top-line performance appears to be driven by a combination of core lymphedema demand and the integration of the AffloVest product line. Investors should monitor whether this growth trajectory remains sustainable or if it is merely a reflection of aggressive channel expansion that may eventually face diminishing returns.
As reported in financial statements, TCMD has maintained a robust gross margin profile averaging approximately 75% over the last ten quarters, which underscores the premium value placed on the company's specialized clinical support and reimbursement navigation services despite the inherent variability in quarterly device placement volumes.
This high gross margin suggests significant pricing power within the lymphedema niche, yet the consistency of these figures may be vulnerable to future shifts in Medicare reimbursement codes. The company's ability to sustain these levels while integrating new product lines warrants further investigation into potential cost-of-goods-sold pressures.
Based on TCMD's reported figures, operating expenses frequently outpace gross profit growth, as evidenced by the 2026Q1 operating margin of -2.0%, indicating that the company's high-touch sales model requires substantial ongoing investment that prevents the realization of meaningful operating leverage during periods of aggressive revenue expansion.
The persistent reliance on heavy SG&A spending to drive referrals suggests that the business model is not yet optimized for scale. Analysts should evaluate whether the current level of operating expenditure is a permanent structural requirement or a temporary phase of investment in the respiratory health segment.
Data from recent income statements indicates that stock-based compensation remains a recurring expense, often exceeding $1.8 million per quarter, which effectively suppresses net income and complicates the assessment of the company's true cash-generating potential during periods of operational volatility and fluctuating quarterly profitability.
The presence of these non-cash charges suggests that reported EPS may not fully capture the underlying economic performance of the business. Investors should monitor the relationship between SBC levels and long-term shareholder dilution to determine if management's compensation structure aligns with sustainable margin expansion.
While TCMD demonstrates strong top-line growth, the historical trend of negative operating margins in several quarters suggests that the company's reliance on complex insurance authorization processes may create significant earnings risk if private payers increase utilization management or if reimbursement rates face downward regulatory pressure.
The disconnect between high gross margins and thin operating profitability implies that the company is highly sensitive to administrative friction. A shift in payer behavior could rapidly erode the bottom line, suggesting that the current valuation may be overlooking the fragility of the reimbursement-dependent business model.
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.