Tactile Systems delivered better-than-expected revenue and margin growth, driving a 5.1% stock increase. Strength in Medicare-driven advanced pump sales and successful operational execution on prior authorization rollout supported upside.

• Total revenue rose 23% year over year to $75.3 million in Q1 2026.
• Lymphedema revenue grew 23% to $62.2 million, led by Flexitouch sales benefiting from updated Medicare NCD policy.
• Medicare channel sales surged 40% year over year, reflecting both policy tailwinds and some order acceleration before new prior authorization rules.
• Gross margin expanded by 250 basis points to 76.5%, supporting adjusted EBITDA growth by $4 million to $3.7 million.
• Management accelerated AI prior authorization technology rollout to address new Medicare requirements, demonstrating operational readiness amid early implementation challenges.