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Tactile Systems Technology Inc. (TCMD) Stock Fundamental Analysis & AI Rating 2026

TCMD Nasdaq Surgical & Medical Instruments & Apparatus MN CIK: 0001027838
Recently Updated • Analysis: Apr 17, 2026 • SEC Data: 2025-12-31
HOLD
65% Conf
Pending
Analysis scheduled

📊 TCMD Key Takeaways

Revenue: $329.5M
Net Margin: 5.8%
Free Cash Flow: $40.4M
Current Ratio: 4.03x
Debt/Equity: 0.00x
EPS: $0.82
AI Rating: HOLD with 65% confidence
Tactile Systems Technology Inc. (TCMD) receives a HOLD rating with 65% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $329.5M, net profit margin of 5.8%, and return on equity (ROE) of 8.7%, Tactile Systems Technology Inc. demonstrates mixed fundamentals in the Healthcare sector. Below is our complete TCMD stock analysis for 2026.

Is Tactile Systems Technology Inc. (TCMD) a Good Investment?

Claude

TCMD demonstrates fortress-like financial strength with zero debt, $83.4M cash, and exceptional free cash flow generation ($40.4M), but profitability momentum has stalled with net income flat YoY despite 12.5% revenue growth, indicating margin compression and operational expense challenges. Strong balance sheet and cash position mitigate risk, but weak ROE (8.7%) and deteriorating profitability trends warrant cautious monitoring.

Why Buy Tactile Systems Technology Inc. Stock? TCMD Key Strengths

Claude
  • + Exceptional balance sheet: zero debt, $83.4M cash (30% of assets), 4.03x current ratio provides fortress-like financial stability
  • + Strong free cash flow generation: $40.4M FCF represents 212% of net income, indicating high-quality earnings with minimal capex requirements
  • + Excellent gross margins at 75.9% demonstrate pricing power and efficient manufacturing in medical device sector
  • + Consistent revenue growth at 12.5% YoY shows market demand for products

TCMD Stock Risks: Tactile Systems Technology Inc. Investment Risks

Claude
  • ! Profitability stalled: net income flat (+0.0% YoY) despite 12.5% revenue growth signals margin compression or unchecked expense growth
  • ! Operating leverage deteriorating: 70.1 percentage point gap between gross margin (75.9%) and net margin (5.8%) indicates high SG&A burden not scaling efficiently
  • ! Low capital efficiency: ROE of 8.7% and ROA of 7.0% indicate weak returns on shareholder capital deployment
  • ! EPS growth driven by buybacks: 17.1% EPS growth masks underlying operational weakness in net income growth

Key Metrics to Watch

Claude
  • * Operating expense ratio trends - determine if SG&A is controllable or structural drag
  • * Revenue growth sustainability - assess competitive positioning and market conditions
  • * Net income trajectory - critical inflection point; watch for return to profitable growth
  • * Free cash flow to net income ratio - monitor if cash generation remains decoupled from earnings

Tactile Systems Technology Inc. (TCMD) Financial Metrics & Key Ratios

Revenue
$329.5M
Net Income
$19.1M
EPS (Diluted)
$0.82
Free Cash Flow
$40.4M
Total Assets
$273.9M
Cash Position
$83.4M

💡 AI Analyst Insight

Strong liquidity with a 4.03x current ratio provides a solid financial cushion.

TCMD Profit Margin, ROE & Profitability Analysis

Gross Margin 75.9%
Operating Margin 8.9%
Net Margin 5.8%
ROE 8.7%
ROA 7.0%
FCF Margin 12.3%

TCMD vs Healthcare Sector: How Tactile Systems Technology Inc. Compares

How Tactile Systems Technology Inc. compares to Healthcare sector averages

Net Margin
TCMD 5.8%
vs
Sector Avg 12.0%
TCMD Sector
ROE
TCMD 8.7%
vs
Sector Avg 15.0%
TCMD Sector
Current Ratio
TCMD 4.0x
vs
Sector Avg 2.0x
TCMD Sector
Debt/Equity
TCMD 0.0x
vs
Sector Avg 0.6x
TCMD Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Tactile Systems Technology Inc. Stock Overvalued? TCMD Valuation Analysis 2026

Based on fundamental analysis, Tactile Systems Technology Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.

Return on Equity
8.7%
Sector avg: 15%
Net Profit Margin
5.8%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.6x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Tactile Systems Technology Inc. Balance Sheet: TCMD Debt, Cash & Liquidity

Current Ratio
4.03x
Quick Ratio
3.69x
Debt/Equity
0.00x
Debt/Assets
20.1%
Interest Coverage
N/A
Long-term Debt
$0.0

TCMD Revenue & Earnings Growth: 5-Year Financial Trend

TCMD 5-year financial data: Year 2021: Revenue $208.1M, Net Income $11.0M, EPS $0.56. Year 2022: Revenue $246.8M, Net Income -$620.0K, EPS $-0.03. Year 2023: Revenue $274.4M, Net Income -$11.8M, EPS $-0.60. Year 2024: Revenue $293.0M, Net Income -$17.9M, EPS $-0.89. Year 2025: Revenue $329.5M, Net Income $28.5M, EPS $1.23.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Tactile Systems Technology Inc.'s revenue has grown significantly by 58% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.23 reflects profitable operations.

TCMD Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
12.3%
Free cash flow / Revenue

TCMD Quarterly Earnings & Performance

Quarterly financial performance data for Tactile Systems Technology Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $73.1M $5.2M $0.21
Q2 2025 $73.2M $243.0K $0.01
Q1 2025 $61.1M -$2.2M $-0.09
Q3 2024 $69.6M $5.2M $0.21
Q2 2024 $68.3M -$100.0K $0.00
Q1 2024 $58.8M -$1.9M $-0.09
Q3 2023 $65.3M -$2.3M $-0.11
Q2 2023 $59.6M -$100.0K $0.00

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Tactile Systems Technology Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$42.8M
Cash generated from operations
Stock Buybacks
$26.6M
Shares repurchased (TTM)
Capital Expenditures
$2.4M
Investment in assets
Dividends
None
No dividend program

TCMD SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Tactile Systems Technology Inc. (CIK: 0001027838)

📋 Recent SEC Filings

Date Form Document Action
Mar 25, 2026 DEF 14A tcmd-20260506xdef14a.htm View →
Mar 11, 2026 4 xslF345X05/form4-03112026_080348.xml View →
Mar 9, 2026 8-K tm268267d1_8k.htm View →
Feb 26, 2026 4 xslF345X05/form4-02262026_090218.xml View →
Feb 26, 2026 4 xslF345X05/form4-02262026_090201.xml View →

Frequently Asked Questions about TCMD

What is the AI rating for TCMD?

Tactile Systems Technology Inc. (TCMD) has an AI rating of HOLD with 65% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TCMD's key strengths?

Claude: Exceptional balance sheet: zero debt, $83.4M cash (30% of assets), 4.03x current ratio provides fortress-like financial stability. Strong free cash flow generation: $40.4M FCF represents 212% of net income, indicating high-quality earnings with minimal capex requirements.

What are the risks of investing in TCMD?

Claude: Profitability stalled: net income flat (+0.0% YoY) despite 12.5% revenue growth signals margin compression or unchecked expense growth. Operating leverage deteriorating: 70.1 percentage point gap between gross margin (75.9%) and net margin (5.8%) indicates high SG&A burden not scaling efficiently.

What is TCMD's revenue and growth?

Tactile Systems Technology Inc. reported revenue of $329.5M.

Does TCMD pay dividends?

Tactile Systems Technology Inc. does not currently pay dividends.

Where can I find TCMD SEC filings?

Official SEC filings for Tactile Systems Technology Inc. (CIK: 0001027838) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is TCMD's EPS?

Tactile Systems Technology Inc. has a diluted EPS of $0.82.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is TCMD a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Tactile Systems Technology Inc. has a HOLD rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is TCMD stock overvalued or undervalued?

Valuation metrics for TCMD: ROE of 8.7% (sector avg: 15%), net margin of 5.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

Should I buy TCMD stock in 2026?

Our dual AI analysis gives Tactile Systems Technology Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is TCMD's free cash flow?

Tactile Systems Technology Inc.'s operating cash flow is $42.8M, with capital expenditures of $2.4M. FCF margin is 12.3%.

How does TCMD compare to other Healthcare stocks?

Vs Healthcare sector averages: Net margin 5.8% (avg: 12%), ROE 8.7% (avg: 15%), current ratio 4.03 (avg: 2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 17, 2026 | Data as of: 2025-12-31 | Powered by Claude AI