Tactile Systems (TCMD) Stock Forecast & Price Target

Tactile Systems Technology Inc. (TCMD) has shown a positive trajectory in its financial outlook, reflected in the increased fiscal year 2025 revenue guidance by $6.5 million, signaling strong growth prospects in both the AffloVest and lymphedema segments. The company's enhanced sales force productivity, supported by new tools and regulatory improvements, is poised to drive further top-line and bottom-line performance, with gross margins expected to maintain around 75%. Additionally, TCMD's market leadership in pneumatic compression pumps, along with a robust increase in sales performance — exemplified by a 71.2% year-over-year growth in AffloVest revenues — underscores the firm’s capacity to capitalize on favorable market dynamics moving into the next fiscal year.

Tactile Systems Technology Inc. has revised its Lymphedema sales growth expectation downward, leading to a decrease in projected revenue for 4Q25, despite an increase in revenue expectations for Airway Clearance. The company has reported a gross margin of 76% and an operating margin of 12.8%, both above prior estimates, yet this does not mitigate concerns over visibility into future revenue trends, particularly as it relies heavily on Lymphedema sales, which constitute approximately 85% of total revenues. Additional risks include potential sluggishness in commercial uptake, limitations in sales force efficiency, increased competition, and the impact of varying medical opinions regarding the effectiveness of pneumatic compression devices.