Tactile Medical's Spending Outpaces Sales: Rapid Earnings Reaction

Tactile Systems Technology reported Q3 revenue growth of 7% to $91.9 million, but net income declined to $7.2 million from $8.2 million as operating expenses grew at the same pace as sales. While the core lymphedema business grew 13%, the smaller airway clearance line contracted 25% due to inventory adjustments from a product launch. The company maintained its 2026 revenue guidance but slightly raised profit forecasts, though Q4 adjusted EBITDA is expected to be 2-10% below last year.