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.
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