Earnings release
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Exhibit 99.1 Tactile Systems Technology , Inc. Reports Second Quarter 2026 Financial Results MINNEAPOLIS , MN , August 10th , 2026 - Tactile Systems Technology , Inc. ( “ Tactile Medical " ; the " Company " ) ( Nasdaq : TCMD ) , a medical technology company providing therapies for people with chronic disorders , today reported financial results for the second quarter ended June 30 , 2026 . Second Quarter 2026 Summary and Recent Business Highlights : Total revenue increased 9 % year - over - year to $ 85.7 million . Gross margin expanded to 76 % from 75 % in Q2 2025 • • Net income increased to $ 7.8 million from $ 3.2 million in Q2 2025 Adjusted EBITDA increased to $ 11.4 million from $ 7.7 million in Q2 2025 Entered into an exclusive U.S. distribution agreement with ElastiMed , Inc. to distribute the MyoSleeve ™ Wearable Compression Device to Veterans and active- duty service members and their dependents Commercially launched the next - generation AffloVest Airway Clearance Therapy system Repurchased $ 5.3 million of stock under the Company's share repurchase program Publication of six - month clinical results from the Company's randomized controlled trial evaluating Flexitouch® Plus for the treatment of head and neck cancer - related lymphedema " We are encouraged by our strong momentum in the second quarter . We delivered solid revenue growth , expanded gross margin , and generated meaningful adjusted EBITDA , underscoring the strength of our business model and our team's disciplined execution , " said Sheri Dodd , Chief Executive Officer of Tactile Medical . “ Our core lymphedema business remains healthy and our view of the long - term opportunity for AffloVest to be a leading high frequency chest wall oscillation technology therapy is unchanged despite the impact of a temporary inventory management dynamic related to the launch of our next- generation AffloVest system during the quarter . " Ms. Dodd continued , “ Operationally , we made tangible progress furthering our broader strategy . We advanced integration activities for LymphaTech , which expands our portfolio across the lymphedema care continuum , launched our next - generation AffloVest system , and secured exclusive Department of Veterans Affairs and Department of Defense distribution rights for MyoSleeve . These product and capability investments strengthen and broaden our patient reach and market expansion , enabling diagnostic and therapy options for patients and providers . With a clear growth and leverage strategy and a differentiated portfolio , we believe Tactile Medical is well - positioned for sustainable , profitable growth in the years ahead . " Second Quarter 2026 Financial Results Total revenue in the second quarter of 2026 increased $ 6.8 million , or 9 % , to $ 85.7 million , compared to $ 78.9 million in the second quarter of 2025. The increase in total revenue was attributable to an increase of $ 7.7 million , or 12 % , in sales and rentals of the lymphedema product line , partially offset by a decrease of $ 0.9 million , or 7 % , in sales of the airway clearance product line , due to temporary inventory management dynamics
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associated with the launch of the Company’s next-generation AffloVest system among a few large DME providers during the quarter.
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Gross profit in the second quarter of 2026 increased $6.6 million, or 11%, to $65.3 million, compared to $58.8 million in the second quarter of 2025. Gross margin was 76% of revenue, compared to 75% of revenue in the second quarter of 2025. Gross margin improvement reflected continued operating execution and product cost discipline. Operating expenses in the second quarter of 2026 increased $3.8 million, or 7%, to $58.5 million, compared to $54.7 million in the second quarter of 2025. The increase primarily reflected continued investments to support long-term growth initiatives. Operating income was $6.8 million in the second quarter of 2026, compared to $4.1 million in the second quarter of 2025. Income tax benefit was $0.4 million in the second quarter of 2026, compared to an income tax expense of $1.3 million in the second quarter of 2025. Net income in the second quarter of 2026 was $7.8 million, or $0.34 per diluted share, compared to $3.2 million, or $0.14 per diluted share, in the second quarter of 2025. Weighted average shares used to compute diluted net income per share were 23.1 million and 23.2 million for the second quarters of 2026 and 2025, respectively. Adjusted EBITDA was $11.4 million in the second quarter of 2026, compared to $7.7 million in the second quarter of 2025, reflecting revenue growth, gross margin expansion and disciplined expense management. First Six Months 2026 Financial Results Total revenue for the six months ended June 30, 2026, increased $20.8 million, or 15%, to $161.0 million, compared to $140.2 million for the six months ended June 30, 2025. The increase in total revenue was attributable to an increase of $19.3 million, or 17%, in sales and rentals of the lymphedema product line and an increase of $1.5 million, or 6%, in sales of the airway clearance product line for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. Net income for the six months ended June 30, 2026, was $6.0 million, or $0.26 per diluted share, compared to $0.2 million, or $0.01 per diluted share, for the six months ended June 30, 2025. Weighted average shares used to compute diluted net income per share were 23.1 million and 23.7 million for the six months ended June 30, 2026 and 2025, respectively. Adjusted EBITDA was $15.1 million in the six months ended June 30, 2026, compared to $7.4 million in the six months ended June 30, 2025. Balance Sheet Summary As of June 30, 2026, the Company had $69.9 million in cash and no outstanding borrowings under its credit agreement, compared to $83.4 million in cash and no outstanding borrowings under its credit agreement as of December 31, 2025. The Company repurchased $5.3 million of its stock during the second quarter under its repurchase program. As of June 30, 2026, $18.7 million remained available under the Company’s $25.0 million share repurchase program, which expires November 3, 2027.
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2026 Financial Outlook The Company is updating its 2026 financial outlook and now expects full year 2026 total revenue in the range of $360 million to $366 million, representing growth of approximately 9% to 11% year-over-year, compared to total revenue of $329.5 million in 2025. The Company’s prior 2026 guidance expectation was total revenue in the range of $360 million to $368 million, representing growth of approximately 9% to 12% year-over-year. The Company continues to expect full year 2026 adjusted EBITDA in the range of $49 million to $51 million, compared to adjusted EBITDA of $44.8 million in 2025. The revised revenue outlook reflects continued confidence in the Company's lymphedema product line, partially offset by a more conservative view of airway clearance product line ordering patterns as certain DME providers work through near-term elevated inventory levels related to the launch of the Company’s next-generation AffloVest system. Conference Call Management will host a conference call with a question-and-answer session at 5:00 p.m. Eastern Time on August 10, 2026, to discuss the results of the quarter. Those who would like to participate may dial 877-407-3088 (201-389-0927 for international callers) and provide access code 13761142. A live webcast of the call will also be provided on the investor relations section of the Company's website at investors.tactilemedical.com. For those unable to participate, a replay of the call will be available for two weeks at 877- 660-6853 (201-612-7415 for international callers); access code 13761142. The webcast will be archived at investors.tactilemedical.com. About Tactile Systems Technology, Inc. (DBA Tactile Medical) Tactile Medical is a leader in developing and marketing at-home therapies for people suffering from underserved, chronic conditions including lymphedema, lipedema, chronic venous insufficiency and chronic respiratory conditions by helping them live better and care for themselves at home. Tactile Medical collaborates with clinicians to expand clinical evidence, raise awareness, increase access to care, reduce overall healthcare costs and improve the quality of life for tens of thousands of patients each year. Legal Notice Regarding Forward-Looking Statements This release contains forward-looking statements, including guidance for the full year 2026. Forward-looking statements are generally identifiable by the use of words like “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “continue,” “confident,” “outlook,” “guidance,” “project,” “goals,” “look forward,” “poised,” “designed,” “plan,” “return,” “focused,” “prospects” or “remain” or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties outside of the Company’s control that can make such statements untrue, including, but not limited to, the Company’s ability to obtain reimbursement from third-party payers for its products; adverse economic conditions, including
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inflation, rising interest rates or a recession; the adequacy of the Company’s liquidity to pursue its business objectives; price increases for supplies and components; wage and component price inflation; loss of a key supplier or other supply chain disruptions; entry of new competitors and/or competitive products; compliance with and changes in federal, state and local government laws and regulations; technological obsolescence of, or quality issues with, the Company’s products; the Company’s ability to expand its business through strategic acquisitions; the Company’s ability to integrate acquisitions and related businesses; the effects of current and future U.S. and foreign trade policy and tariff actions; or the inability to carry out research, development and commercialization plans. In addition, other factors that could cause actual results to differ materially are discussed in the Company’s filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company undertakes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise. Use of Non-GAAP Financial Measures This press release includes the non-GAAP financial measure of Adjusted EBITDA, which differs from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted EBITDA in this release represents net income, plus interest expense, net, or less interest income, net, less income tax benefit or plus income tax expense, plus depreciation and amortization, plus stock-based compensation expense, plus litigation-related costs, plus executive transition costs, and plus acquisition and integration costs. Reconciliation of this non-GAAP financial measure to its most directly comparable GAAP measure is included in this press release. This non-GAAP financial measure is presented because the Company believes it is a useful indicator of its operating performance. Management uses this measure principally as a measure of the Company’s operating performance and for planning purposes, including the preparation of the Company’s annual operating plan and financial projections. The Company believes this measure is useful to investors as supplemental information and because it is frequently used by analysts, investors and other interested parties to evaluate companies in its industry. The Company also believes this non-GAAP financial measure is useful to its management and investors as a measure of comparative operating performance from period to period. In addition, Adjusted EBITDA is used as a performance metric in the Company’s compensation program. The non-GAAP financial measure presented in this release should not be considered as an alternative to, or superior to, its respective GAAP financial measure, as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and it should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as tax payments, debt service requirements, capital expenditures and certain other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs and cash costs to replace assets being depreciated and amortized. In evaluating non-GAAP financial measures, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in this presentation. The Company’s presentation of
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non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using non-GAAP financial measures on a supplemental basis. The Company’s definition of these non-GAAP financial measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation. Investor Inquiries: Sam Bentzinger Gilmartin Group investorrelations@tactilemedical.com
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Tactile Systems Technology, Inc. Condensed Consolidated Balance Sheets (Unaudited) June 30, December 31, (In thousands, except share and per share data) 2026 2025 Assets Current assets Cash $ 69,853 $ 83,446 Accounts receivable, net 43,140 43,876 Net investment in leases 14,927 15,754 Inventories 16,845 14,025 Income taxes receivable 912 — Prepaid expenses and other current assets 11,925 8,066 Total current assets 157,602 165,167 Non-current assets Property and equipment, net 5,849 5,117 Right of use operating lease assets 12,553 13,798 Intangible assets, net 44,747 39,167 Goodwill 39,554 31,063 Deferred income taxes 8,703 9,783 Other non-current assets 10,660 9,847 Total non-current assets 122,066 108,775 Total assets $ 279,668 $ 273,942 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 7,923 $ 4,968 Accrued payroll and related taxes 15,615 19,378 Accrued expenses 8,423 8,531 Income taxes payable — 1,428 Operating lease liabilities 3,095 3,195 Other current liabilities 3,197 3,457 Total current liabilities 38,253 40,957 Non-current liabilities Accrued warranty reserve, non-current 1,079 1,045 Income taxes payable, non-current 370 275 Operating lease liabilities, non-current 11,267 12,763 Other non-current liabilities 4,863 — Total non-current liabilities 17,579 14,083 Total liabilities 55,832 55,040 Stockholders’ equity: Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued and outstanding as of June 30, 2026 and December 31, 2025 — — Common stock, $0.001 par value, 300,000,000 shares authorized; 22,701,241 shares issued and outstanding as of June 30, 2026; 22,438,926 shares issued and outstanding as of December 31, 2025 23 22 Additional paid-in capital 162,851 163,940 Retained earnings 60,962 54,940 Total stockholders’ equity 223,836 218,902 Total liabilities and stockholders’ equity $ 279,668 $ 273,942
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Tactile Systems Technology, Inc. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (In thousands, except share and per share data) 2026 2025 2026 2025 Revenue Sales revenue $ 76,489 $ 70,531 $ 143,455 $ 123,000 Rental revenue 9,209 8,374 17,510 17,173 Total revenue 85,698 78,905 160,965 140,173 Cost of revenue Cost of sales revenue 17,628 17,483 32,887 31,374 Cost of rental revenue 2,721 2,629 5,115 4,660 Total cost of revenue 20,349 20,112 38,002 36,034 Gross profit Gross profit - sales revenue 58,861 53,048 110,568 91,626 Gross profit - rental revenue 6,488 5,745 12,395 12,513 Gross profit 65,349 58,793 122,963 104,139 Operating expenses Sales and marketing 32,012 30,039 64,744 57,555 Research and development 2,501 2,018 5,277 3,759 Reimbursement, general and administrative 23,360 22,034 46,404 42,032 Intangible asset amortization and earn-out 650 619 1,246 1,252 Total operating expenses 58,523 54,710 117,671 104,598 Income (loss) from operations 6,826 4,083 5,292 (459) Interest income 561 850 1,227 1,745 Interest expense (19) (410) (47) (834) Other income — 1 — 1 Income before income taxes 7,368 4,524 6,472 453 Income tax (benefit) expense (417) 1,307 450 210 Net income $ 7,785 $ 3,217 $ 6,022 $ 243 Net income per common share Basic $ 0.34 $ 0.14 $ 0.27 $ 0.01 Diluted $ 0.34 $ 0.14 $ 0.26 $ 0.01 Weighted-average common shares used to compute net income per common share Basic 22,676,673 23,092,469 22,620,546 23,399,848 Diluted 23,058,902 23,237,671 23,135,040 23,679,220
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Tactile Systems Technology, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, (In thousands) 2026 2025 Cash flows from operating activities Net income $ 6,022 $ 243 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,450 3,385 Deferred income taxes 42 (22) Stock-based compensation expense 4,040 4,005 Loss on disposal of property and equipment and intangibles 73 68 Changes in assets and liabilities, net of acquisition: Accounts receivable, net 755 11,851 Net investment in leases 827 83 Inventories (2,820) 1,555 Income taxes payable (2,245) (611) Prepaid expenses and other assets (5,174) (4,735) Right of use operating lease assets (351) (289) Accounts payable 2,886 2,319 Accrued payroll and related taxes (3,763) (5,245) Accrued expenses and other liabilities (827) 2,567 Net cash provided by operating activities 2,915 15,174 Cash flows from investing activities Payments related to acquisition, net of cash acquired (6,226) — Purchases of property and equipment (2,102) (748) Intangible assets expenditures (52) (56) Payment for exclusive distribution agreement (3,000) — Net cash used in investing activities (11,380) (804) Cash flows from financing activities Payments on note payable — (1,500) Proceeds from exercise of common stock options 197 10 Proceeds from the issuance of common stock from the employee stock purchase plan 1,032 843 Payments for repurchases of common stock (6,357) (26,562) Net cash used in financing activities (5,128) (27,209) Net decrease in cash (13,593) (12,839) Cash – beginning of period 83,446 94,367 Cash – end of period $ 69,853 $ 81,528 Supplemental cash flow disclosure Cash paid for interest $ 34 $ 828 Cash paid for taxes $ 2,645 $ 892 Accrued excise tax on stock repurchases $ — $ 210 Capital expenditures incurred but not yet paid $ 147 $ 58
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The following table summarizes revenue by product line for the three and six months ended June 30, 2026 and 2025: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2026 2025 2026 2025 Revenue Lymphedema products $ 73,630 $ 65,969 $ 135,851 $ 116,524 Airway clearance products 12,068 12,936 25,114 23,649 Total $ 85,698 $ 78,905 $ 160,965 $ 140,173 Percentage of total revenue Lymphedema products 86% 84% 84% 83% Airway clearance products 14% 16% 16% 17% Total 100% 100% 100% 100% The following table contains a reconciliation of net income to Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025, as well as the dollar and percentage change between the comparable periods: Tactile Systems Technology, Inc. Reconciliation of Net Income to Non-GAAP Adjusted EBITDA (Unaudited) Three Months EndedIncrease Six Months EndedIncrease June 30, (Decrease) June 30, (Decrease) (Dollars in thousands) 2026 2025 $ % 2026 2025 $ % Net income $ 7,785 $ 3,217 $ 4,568 142% $ 6,022 $ 243$ 5,779 N.M.% Interest (income) expense, net (542) (440) (102) 23% (1,180) (911) (269) 30% Income tax (benefit) expense (417) 1,307 (1,724) (132)% 450 210 240 114% Depreciation and amortization 1,811 1,659 152 9% 3,450 3,385 65 2% Stock-based compensation 2,260 1,939 321 17% 4,040 4,005 35 1% Acquisition & integration costs 156 — 156 —% 973 — 973 —% Litigation-related costs — — — —% 1,000 — 1,000 —% Executive transition costs 360 — 360 —% 360 491 (131) (27)% Adjusted EBITDA $ 11,413 $ 7,682 $ 3,731 49% $ 15,115 $ 7,423$ 7,692 104% “N.M.” Not Meaningful
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The following table contains a reconciliation of net income to Adjusted EBITDA for the year ended December 31, 2025: Tactile Systems Technology, Inc. Reconciliation of Net Income to Non-GAAP Adjusted EBITDA (Unaudited) Year Ended (Dollars in thousands) December 31, 2025 Net income $ 19,086 Interest (income) expense, net (2,059) Income tax expense 12,253 Depreciation and amortization 6,644 Stock-based compensation 8,357 Executive transition costs 491 Adjusted EBITDA $ 44,772 The following table contains a reconciliation of GAAP net income guidance range to the Adjusted EBITDA guidance range for the twelve months ending December 31, 2026: Tactile Systems Technology, Inc. Reconciliation of FY 2026 GAAP Net Income to Adjusted EBITDA Guidance (Unaudited) Year Ended December 31, 2026 (Dollars in thousands) Low High Net income $ 23,230 $ 24,670 Interest (income) expense, net (2,380) (2,380) Income tax expense 9,420 9,980 Depreciation and amortization 7,510 7,510 Stock-based compensation 8,550 8,550 Acquisition & integration costs 1,310 1,310 Executive transition costs 360 360 Litigation-related costs 1,000 1,000 Adjusted EBITDA $ 49,000 $ 51,000 Investor Inquiries: Sam Bentzinger Gilmartin Group investorrelations@tactilemedical.com