Tactile Systems Technology, Inc. (TCMD) Stock

Tactile Systems Technology, Inc. (TCMD) is a Healthcare stock trading at $23.43 (as of 2026-08-20), with a market capitalization of $528.49M and a trailing P/E of 21.3. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Tactile Systems Technology, Inc. develops and provides medical devices in the United States for chronic conditions. Its systems include a pneumatic compression device for lymphedema (Flexitouch Plus), portable pneumatic compression for venous disorders and venous leg ulcers treated at home (Entre), and a portable chest wall oscillation device for retained pulmonary secretions (AffloVest).

Understand Tactile Systems Technology, Inc.: how it makes money

Tactile Systems Technology develops and provides pneumatic compression and related medical devices for chronic conditions, including lymphedema and at-home venous disorder treatment, and it makes money through device sales and rental revenue.

The company generates high gross margin (76.5%), but the latest quarter still produced an operating loss (-2.0% operating margin), meaning its profitability depends on translating gross profit from device sales and rentals into operating cost coverage as it scales.

Revenue by segment (latest quarter)
Comml Payers	$0.0B
Medicare	$0.0B
DME Distributors	$0.0B
VA	$0.0B
Rentals	$0.0B

Business quality (Weak): Profitability is challenged in the latest quarter, even though gross margin is strong. Investors will likely focus on whether field sales capacity and channel execution can grow revenue enough to cover operating expenses.

Valuation: At 35× earnings, TCMD trades 8% above the Medical Equipment average (32×). Note: one-time items can distort reported P/E.

Bull case

High gross margin: Gross margin was 76.5% in the latest reported period.
Recurring-like revenue component: The company reports both device sales and Rental Revenue (0.01B).
Broad payer and channel exposure: Sales revenue is attributed across multiple groups, including Commercial Payers (0.04B), Medicare (0.02B), DME Distributors (0.01B), and VA (0.01B).

Bear case

Operating loss: Operating margin was -2.0% in the latest reported period, indicating operating expenses exceeded operating gross profit.
Product mix concentration risk: Lymphedema Product Line Revenue (0.06B) is much larger than Airway Clearance Product Line Revenue (0.01B).
Rental scale is small: Rental Revenue is 0.01B in the latest reported period, so near-term results may be more sensitive to sales rather than rentals.

Valuation — source: SEC EDGAR (first-party)
Price	$23.43
Market Cap	$528.49M
P/E Ratio	21.3
EV / EBITDA	11.0
Price / Book	2.36
Price / Sales	1.51
FCF Yield	5.1%
DCF Value (model)	$18.35
DCF Upside vs Price	-21.7%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$329.52M
Net Margin	5.8%
Revenue Growth (YoY)	8.6%
EPS Growth (YoY)	142.9%
FCF Growth (YoY)	-86.3%

Financial Health — source: SEC EDGAR
Altman Z-Score	8.11 (safe)

Valuation vs Sector & Industry
Stock P/E	21.3
Sector P/E (Healthcare)	21.6
Industry P/E (Medical Equipment)	32.9
vs Sector	-1.6%
vs Industry	-35.4%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($47.88M)
Institutional Holders Tracked	10
Congressional Trades (recent)	2

Company
Sector	Healthcare
Industry	Medical Equipment
CEO	Sheri Louise Dodd
Employees	1,037
Country	US
IPO Date	2016-07-28

Related Companies (Business model: Medical Devices / Life Science Tools; 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.