Tactile Systems Technology, Inc.

tactilemedical.com

What Do They Do?

Sells at-home compression systems for patients with lymphedema and airway-clearance vests for patients with chronic respiratory conditions.

How Do They Make Money?

For lymphedema systems, patients or the VA buy or rent equipment; Tactile bills insurers, Medicare or the VA, and patients for their shares, generally at shipment, while rental payers are billed monthly. It sells AffloVest to DME providers at shipment.

revenue

Segment	Share	Revenue	How money arrives
Lymphedema products Mix	84% FY2022: 86%		Mix
Airway clearance products Sold outright	16% FY2022: 14%		Sold outright

Who Are Their Customers?

Patients referred by clinicians receive lymphedema systems directly; Tactile bills insurers, Medicare and the VA, and sells AffloVest to DME providers, who handle patient training and payer billing.

Customers above 10% of revenue, FY2025

of revenue from two customers (24%, 2%)

FY2024: 20% from two customers

Do Revenues Turn Into Profits?

Yes. It kept 6 cents of every revenue dollar as net income in FY2025 and turned 12 cents into free cash flow.

Operating income, FY2025

9% of revenue

▲ +32% vs FY2024 ($22.2M, 8%)

Net income, FY2025

6% of revenue

▲ +13% vs FY2024 ($17M, 6%)

Free cash flow, FY2025

12% of revenue

▲ +6% vs FY2024 ($38.3M, 13%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +9%; vs $78.9M in Q2 FY2025
Net income: ▲ +142%; vs $3.2M in Q2 FY2025

Lymphedema products share of revenue vs 83.6% in Q2 FY2025

Aug 10, 2026 Cuts the upper end of its annual revenue guidance The new range is $360 million to $366 million, down from prior guidance of $360 million to $368 million.
Jul 13, 2026 Adds MyoSleeve distribution rights for VA and DoD patients The agreement grants exclusive U.S. distribution rights within VA and DoD systems.

Growing. Revenue grew 58% in 4 years, from $208.1M in FY2021 to $329.5M in FY2025, about 12% a year.

Expanded compression lineup The lymphedema portfolio has added Nimbl and newer Flexitouch Plus and Entre Plus systems to its earlier Flexitouch and Entre offerings.

Revenue over time

Lymphedema products Airway clearance products

$500M$250M$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Bio Compression Systems, Lympha Press USA, Baxter, Philips Medical, and Electromed

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