Q2 2026 Tactile Systems Technology Inc Earnings Call Transcript
Key Points
- Total revenue grew 9% year-over-year to $85.7 million, with lymphedema revenue up 12% to $73.6 million.
- Gross margin improved 180 basis points to 76.3%, driven by lower manufacturing costs and favorable mix.
- Adjusted EBITDA increased 49% to $11.4 million, reflecting strong operating leverage and disciplined expense management.
- The company maintains a strong balance sheet with $69.9 million in cash and no debt, providing flexibility for investments and shareholder returns.
- The launch of the next-generation AffloVest system and the exclusive distribution agreement for Myo Sleeve in the VA channel expand the product portfolio and addressable market.
- Airway clearance revenue declined 7% year-over-year due to temporary inventory management dynamics among large DME partners during the AffloVest launch.
- Medicare prior authorization requirements introduced administrative steps, leading to near-term moderation in Medicare order volumes and longer order-to-shipment times.
- The company lowered its full-year 2026 revenue guidance to $360-$366 million, reflecting a more conservative outlook for airway clearance.
- Cash decreased to $69.9 million from $83.4 million at year-end 2025, primarily due to upfront payments for the Myo Sleeve distribution agreement and share repurchases.
- The company expects airway clearance revenue to be closer to flat for the full year, with inventory management dynamics expected to persist through Q3.
Please stand by. Welcome, ladies and gentlemen, to the second-quarter 2026 earnings conference call for Tactile Medical. At this time, all participants have been placed in a listen-only mode. End of the company's prepared remarks, we will conduct a question-and-answer set. Please note that this conference call is being recorded and will be available on the company's website for replay shortly.
I would now like to turn the call over to Sam Bentzinger, Investor Relations at Gilmartin Group for a few introductory comments. Please go ahead.
Good afternoon and thank you for joining today's call. With me from tactile management team are Sheri Dodd, Chief Executive Officer; and Elaine Birkemeyer, Chief Financial Officer.
Before we begin, I'd like to remind everyone that our remarks and responses to your questions today may contain forward-looking statements that are based on the current expectations of management and involve inherent risks and uncertainties.
This could
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