Tactile Systems (TCMD) investor relations material

Executive summary

• Q2 2026 revenue reached $85.7 million, up 9% year-over-year, driven by 12% growth in lymphedema products and offset by a 7% decline in airway clearance (AffloVest) sales due to inventory management during a new product launch.

• Net income rose 142% to $7.8 million, or $0.34 per diluted share, reflecting strong operational execution and profitability expansion.

• Adjusted EBITDA increased 49% to $11.4 million, reflecting operational leverage and margin expansion.

• Key product launches, including AffloVest Gen 6 and exclusive distribution agreements for MyoSleeve, expanded market reach.

• The company completed the acquisition of LymphaTech, enhancing digital measurement and monitoring capabilities.

Financial highlights

• Gross margin improved to 76.3% in Q2 2026, up from 74.5% in Q2 2025, driven by lower manufacturing costs and favorable mix.

• Operating income increased 67% to $6.9 million; operating expenses rose 7% to $58.5 million, reflecting strategic investments.

• Six-month revenue reached $161.0 million, a 15% increase year-over-year; six-month net income was $6.0 million, up from $0.2 million.

• Cash and cash equivalents stood at $69.9 million at quarter end, with no outstanding borrowings.

• Share repurchases totaled $5.3 million in Q2 and $6.4 million for the first half of 2026; $18.7 million remains under the repurchase program.

Outlook and guidance

• Full-year 2026 revenue guidance updated to $360–$366 million, representing 9–11% year-over-year growth.

• Adjusted EBITDA guidance for 2026 is $49–$51 million, up from $44.8 million in 2025.

• Lymphedema revenue expected to grow in the low double digits; airway clearance revenue expected to be flat year-over-year due to inventory normalization.

• GAAP gross margin expected at 76–76.5%; operating expenses to increase 10–12% year-over-year.

• Cash and cash flows from operations are expected to be sufficient for at least the next twelve months.