Exhibit 99.1

Tactile Systems Technology, Inc. Reports Second Quarter 2026 Financial Results

MINNEAPOLIS, MN, August 10th, 2026 – Tactile Systems Technology, Inc. (“Tactile Medical”; the “Company”) (Nasdaq: TCMD), a medical technology company providing therapies for people with chronic disorders, today reported financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Summary and Recent Business Highlights:

Total revenue increased 9% year-over-year to $85.7 million
Gross margin expanded to 76% from 75% in Q2 2025
Net income increased to $7.8 million from $3.2 million in Q2 2025
Adjusted EBITDA increased to $11.4 million from $7.7 million in Q2 2025
Entered into an exclusive U.S. distribution agreement with ElastiMed, Inc. to distribute the MyoSleeve™ Wearable Compression Device to Veterans and active-duty service members and their dependents
Commercially launched the next-generation AffloVest Airway Clearance Therapy system
Repurchased $5.3 million of stock under the Company’s share repurchase program
Publication of six-month clinical results from the Company's randomized controlled trial evaluating Flexitouch® Plus for the treatment of head and neck cancer-related lymphedema

“We are encouraged by our strong momentum in the second quarter. We delivered solid revenue growth, expanded gross margin, and generated meaningful adjusted EBITDA, underscoring the strength of our business model and our team’s disciplined execution,” said Sheri Dodd, Chief Executive Officer of Tactile Medical. “Our core lymphedema business remains healthy and our view of the long-term opportunity for AffloVest to be a leading high frequency chest wall oscillation technology therapy is unchanged despite the impact of a temporary inventory management dynamic related to the launch of our next-generation AffloVest system during the quarter.”

Ms. Dodd continued, “Operationally, we made tangible progress furthering our broader strategy. We advanced integration activities for LymphaTech, which expands our portfolio across the lymphedema care continuum, launched our next-generation AffloVest system, and secured exclusive Department of Veterans Affairs and Department of Defense distribution rights for MyoSleeve. These product and capability investments strengthen and broaden our patient reach and market expansion, enabling diagnostic and therapy options for patients and providers.  With a clear growth and leverage strategy and a differentiated portfolio, we believe Tactile Medical is well-positioned for sustainable, profitable growth in the years ahead.”

Second Quarter 2026 Financial Results

Total revenue in the second quarter of 2026 increased $6.8 million, or 9%, to $85.7 million, compared to $78.9 million in the second quarter of 2025. The increase in total revenue was attributable to an increase of $7.7 million, or 12%, in sales and rentals of the lymphedema product line, partially offset by a decrease of $0.9 million, or 7%, in sales of the airway clearance product line, due to temporary inventory management dynamics associated with the launch of the Company’s next-generation AffloVest system among a few large DME providers during the quarter.


Gross profit in the second quarter of 2026 increased $6.6 million, or 11%, to $65.3 million, compared to $58.8 million in the second quarter of 2025. Gross margin was 76% of revenue, compared to 75% of revenue in the second quarter of 2025. Gross margin improvement reflected continued operating execution and product cost discipline.

Operating expenses in the second quarter of 2026 increased $3.8 million, or 7%, to $58.5 million, compared to $54.7 million in the second quarter of 2025. The increase primarily reflected continued investments to support long-term growth initiatives.

Operating income was $6.8 million in the second quarter of 2026, compared to $4.1 million in the second quarter of 2025.

Income tax benefit was $0.4 million in the second quarter of 2026, compared to an income tax expense of $1.3 million in the second quarter of 2025.

Net income in the second quarter of 2026 was $7.8 million, or $0.34 per diluted share, compared to $3.2 million, or $0.14 per diluted share, in the second quarter of 2025.

Weighted average shares used to compute diluted net income per share were 23.1 million and 23.2 million for the second quarters of 2026 and 2025, respectively.

Adjusted EBITDA was $11.4 million in the second quarter of 2026, compared to $7.7 million in the second quarter of 2025, reflecting revenue growth, gross margin expansion and disciplined expense management.

First Six Months 2026 Financial Results

Total revenue for the six months ended June 30, 2026, increased $20.8 million, or 15%, to $161.0 million, compared to $140.2 million for the six months ended June 30, 2025. The increase in total revenue was attributable to an increase of $19.3 million, or 17%, in sales and rentals of the lymphedema product line and an increase of $1.5 million, or 6%, in sales of the airway clearance product line for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.

Net income for the six months ended June 30, 2026, was $6.0 million, or $0.26 per diluted share, compared to $0.2 million, or $0.01 per diluted share, for the six months ended June 30, 2025.

Weighted average shares used to compute diluted net income per share were 23.1 million and 23.7 million for the six months ended June 30, 2026 and 2025, respectively.

Adjusted EBITDA was $15.1 million in the six months ended June 30, 2026, compared to $7.4 million in the six months ended June 30, 2025.

Balance Sheet Summary

As of June 30, 2026, the Company had $69.9 million in cash and no outstanding borrowings under its credit agreement, compared to $83.4 million in cash and no outstanding borrowings under its credit agreement as of December 31, 2025. The Company repurchased $5.3 million of its stock during the second quarter under its repurchase program. As of June 30, 2026, $18.7 million remained available under the Company’s $25.0 million share repurchase program, which expires November 3, 2027.


2026 Financial Outlook

The Company is updating its 2026 financial outlook and now expects full year 2026 total revenue in the range of $360 million to $366 million, representing growth of approximately 9% to 11% year-over-year, compared to total revenue of $329.5 million in 2025. The Company’s prior 2026 guidance expectation was total revenue in the range of $360 million to $368 million, representing growth of approximately 9% to 12% year-over-year.

The Company continues to expect full year 2026 adjusted EBITDA in the range of $49 million to $51 million, compared to adjusted EBITDA of $44.8 million in 2025.

The revised revenue outlook reflects continued confidence in the Company's lymphedema product line, partially offset by a more conservative view of airway clearance product line ordering patterns as certain DME providers work through near-term elevated inventory levels related to the launch of the Company’s next-generation AffloVest system.

Conference Call

Management will host a conference call with a question-and-answer session at 5:00 p.m. Eastern Time on August 10, 2026, to discuss the results of the quarter. Those who would like to participate may dial 877-407-3088 (201-389-0927 for international callers) and provide access code 13761142. A live webcast of the call will also be provided on the investor relations section of the Company's website at investors.tactilemedical.com.

For those unable to participate, a replay of the call will be available for two weeks at 877-660-6853 (201-612-7415 for international callers); access code 13761142. The webcast will be archived at investors.tactilemedical.com.

About Tactile Systems Technology, Inc. (DBA Tactile Medical)

Tactile Medical is a leader in developing and marketing at-home therapies for people suffering from underserved, chronic conditions including lymphedema, lipedema, chronic venous insufficiency and chronic respiratory conditions by helping them live better and care for themselves at home. Tactile Medical collaborates with clinicians to expand clinical evidence, raise awareness, increase access to care, reduce overall healthcare costs and improve the quality of life for tens of thousands of patients each year.

Legal Notice Regarding Forward-Looking Statements

This release contains forward-looking statements, including guidance for the full year 2026. Forward-looking statements are generally identifiable by the use of words like “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “continue,” “confident,” “outlook,” “guidance,” “project,” “goals,” “look forward,” “poised,” “designed,” “plan,” “return,” “focused,” “prospects” or “remain” or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties outside of the Company’s control that can make such statements untrue, including, but not limited to, the Company’s ability to obtain reimbursement from third-party payers for its products; adverse economic conditions, including


inflation, rising interest rates or a recession; the adequacy of the Company’s liquidity to pursue its business objectives; price increases for supplies and components; wage and component price inflation; loss of a key supplier or other supply chain disruptions; entry of new competitors and/or competitive products; compliance with and changes in federal, state and local government laws and regulations; technological obsolescence of, or quality issues with, the Company’s products; the Company’s ability to expand its business through strategic acquisitions; the Company’s ability to integrate acquisitions and related businesses; the effects of current and future U.S. and foreign trade policy and tariff actions; or the inability to carry out research, development and commercialization plans. In addition, other factors that could cause actual results to differ materially are discussed in the Company’s filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company undertakes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Measures

This press release includes the non-GAAP financial measure of Adjusted EBITDA, which differs from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted EBITDA in this release represents net income, plus interest expense, net, or less interest income, net, less income tax benefit or plus income tax expense, plus depreciation and amortization, plus stock-based compensation expense, plus litigation-related costs, plus executive transition costs, and plus acquisition and integration costs. Reconciliation of this non-GAAP financial measure to its most directly comparable GAAP measure is included in this press release.

This non-GAAP financial measure is presented because the Company believes it is a useful indicator of its operating performance. Management uses this measure principally as a measure of the Company’s operating performance and for planning purposes, including the preparation of the Company’s annual operating plan and financial projections. The Company believes this measure is useful to investors as supplemental information and because it is frequently used by analysts, investors and other interested parties to evaluate companies in its industry. The Company also believes this non-GAAP financial measure is useful to its management and investors as a measure of comparative operating performance from period to period. In addition, Adjusted EBITDA is used as a performance metric in the Company’s compensation program.

The non-GAAP financial measure presented in this release should not be considered as an alternative to, or superior to, its respective GAAP financial measure, as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and it should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as tax payments, debt service requirements, capital expenditures and certain other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs and cash costs to replace assets being depreciated and amortized. In evaluating non-GAAP financial measures, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in this presentation. The Company’s presentation of


non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using non-GAAP financial measures on a supplemental basis. The Company’s definition of these non-GAAP financial measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation.

Investor Inquiries:

Sam Bentzinger

Gilmartin Group

investorrelations@tactilemedical.com


Tactile Systems Technology, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

  ​ ​ ​

June 30,

  ​ ​ ​

December 31,

(In thousands, except share and per share data)

  ​ ​ ​

2026

  ​ ​ ​

2025

Assets

Current assets

Cash

$

69,853

$

83,446

Accounts receivable, net

 

43,140

 

43,876

Net investment in leases

 

14,927

 

15,754

Inventories

 

16,845

 

14,025

Income taxes receivable

 

912

 

Prepaid expenses and other current assets

 

11,925

 

8,066

Total current assets

 

157,602

 

165,167

Non-current assets

Property and equipment, net

 

5,849

 

5,117

Right of use operating lease assets

 

12,553

 

13,798

Intangible assets, net

 

44,747

 

39,167

Goodwill

39,554

31,063

Deferred income taxes

 

8,703

 

9,783

Other non-current assets

 

10,660

 

9,847

Total non-current assets

 

122,066

 

108,775

Total assets

$

279,668

$

273,942

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable

$

7,923

$

4,968

Accrued payroll and related taxes

 

15,615

 

19,378

Accrued expenses

 

8,423

 

8,531

Income taxes payable

 

 

1,428

Operating lease liabilities

 

3,095

 

3,195

Other current liabilities

 

3,197

 

3,457

Total current liabilities

 

38,253

 

40,957

Non-current liabilities

Accrued warranty reserve, non-current

 

1,079

 

1,045

Income taxes payable, non-current

 

370

 

275

Operating lease liabilities, non-current

11,267

 

12,763

Other non-current liabilities

4,863

Total non-current liabilities

 

17,579

 

14,083

Total liabilities

 

55,832

 

55,040

Stockholders’ equity:

Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued and outstanding as of June 30, 2026 and December 31, 2025

 

 

Common stock, $0.001 par value, 300,000,000 shares authorized; 22,701,241 shares issued and outstanding as of June 30, 2026; 22,438,926 shares issued and outstanding as of December 31, 2025

 

23

 

22

Additional paid-in capital

 

162,851

 

163,940

Retained earnings

 

60,962

 

54,940

Total stockholders’ equity

 

223,836

 

218,902

Total liabilities and stockholders’ equity

$

279,668

$

273,942


Tactile Systems Technology, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

(In thousands, except share and per share data)

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2026

  ​ ​ ​

2025

Revenue

Sales revenue

$

76,489

$

70,531

$

143,455

$

123,000

Rental revenue

 

9,209

 

8,374

 

17,510

 

17,173

Total revenue

 

85,698

 

78,905

 

160,965

 

140,173

Cost of revenue

Cost of sales revenue

 

17,628

 

17,483

 

32,887

 

31,374

Cost of rental revenue

 

2,721

 

2,629

 

5,115

 

4,660

Total cost of revenue

 

20,349

 

20,112

 

38,002

 

36,034

Gross profit

Gross profit - sales revenue

 

58,861

 

53,048

 

110,568

 

91,626

Gross profit - rental revenue

 

6,488

 

5,745

 

12,395

 

12,513

Gross profit

 

65,349

 

58,793

 

122,963

 

104,139

Operating expenses

Sales and marketing

 

32,012

 

30,039

 

64,744

 

57,555

Research and development

 

2,501

 

2,018

 

5,277

 

3,759

Reimbursement, general and administrative

 

23,360

 

22,034

 

46,404

 

42,032

Intangible asset amortization and earn-out

650

619

1,246

1,252

Total operating expenses

 

58,523

 

54,710

 

117,671

 

104,598

Income (loss) from operations

 

6,826

 

4,083

 

5,292

 

(459)

Interest income

561

850

1,227

1,745

Interest expense

(19)

(410)

(47)

(834)

Other income

 

 

1

 

 

1

Income before income taxes

 

7,368

 

4,524

 

6,472

 

453

Income tax (benefit) expense

 

(417)

 

1,307

 

450

 

210

Net income

$

7,785

$

3,217

$

6,022

$

243

Net income per common share

Basic

$

0.34

$

0.14

$

0.27

$

0.01

Diluted

$

0.34

$

0.14

$

0.26

$

0.01

Weighted-average common shares used to compute net income per common share

Basic

22,676,673

23,092,469

22,620,546

23,399,848

Diluted

23,058,902

23,237,671

23,135,040

23,679,220


Tactile Systems Technology, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Six Months Ended June 30, 

(In thousands)

  ​ ​ ​

2026

  ​ ​ ​

2025

Cash flows from operating activities

Net income

$

6,022

$

243

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

3,450

3,385

Deferred income taxes

42

(22)

Stock-based compensation expense

4,040

4,005

Loss on disposal of property and equipment and intangibles

73

68

Changes in assets and liabilities, net of acquisition:

Accounts receivable, net

755

11,851

Net investment in leases

827

83

Inventories

(2,820)

1,555

Income taxes payable

(2,245)

(611)

Prepaid expenses and other assets

(5,174)

(4,735)

Right of use operating lease assets

(351)

(289)

Accounts payable

2,886

2,319

Accrued payroll and related taxes

(3,763)

(5,245)

Accrued expenses and other liabilities

(827)

2,567

Net cash provided by operating activities

2,915

15,174

Cash flows from investing activities

Payments related to acquisition, net of cash acquired

(6,226)

Purchases of property and equipment

(2,102)

(748)

Intangible assets expenditures

(52)

(56)

Payment for exclusive distribution agreement

(3,000)

Net cash used in investing activities

(11,380)

(804)

Cash flows from financing activities

Payments on note payable

(1,500)

Proceeds from exercise of common stock options

197

10

Proceeds from the issuance of common stock from the employee stock purchase plan

1,032

843

Payments for repurchases of common stock

(6,357)

(26,562)

Net cash used in financing activities

(5,128)

(27,209)

Net decrease in cash

(13,593)

(12,839)

Cash – beginning of period

83,446

94,367

Cash – end of period

$

69,853

$

81,528

Supplemental cash flow disclosure

Cash paid for interest

$

34

$

828

Cash paid for taxes

$

2,645

$

892

Accrued excise tax on stock repurchases

$

$

210

Capital expenditures incurred but not yet paid

$

147

$

58


The following table summarizes revenue by product line for the three and six months ended June 30, 2026 and 2025:

Three Months Ended

Six Months Ended

June 30,

June 30,

(In thousands)

  ​ ​ ​

2026

2025

2026

2025

Revenue

Lymphedema products

$

73,630

$

65,969

$

135,851

$

116,524

Airway clearance products

12,068

12,936

25,114

23,649

Total

$

85,698

$

78,905

$

160,965

$

140,173

Percentage of total revenue

Lymphedema products

 

86%

 

84%

 

84%

 

83%

Airway clearance products

14%

16%

16%

17%

Total

 

100%

 

100%

 

100%

 

100%

The following table contains a reconciliation of net income to Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025, as well as the dollar and percentage change between the comparable periods:

Tactile Systems Technology, Inc.

Reconciliation of Net Income to Non-GAAP Adjusted EBITDA

(Unaudited)

Three Months Ended

Increase

Six Months Ended

Increase

June 30,

(Decrease)

June 30,

(Decrease)

(Dollars in thousands)

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

$

  ​ ​ ​

%

  ​ ​ ​

2026

  ​ ​ ​

2025

$

  ​ ​ ​

%

Net income

 

$

7,785

$

3,217

$

4,568

 

142

%

$

6,022

$

243

$

5,779

 

N.M.

%

Interest (income) expense, net

(542)

(440)

(102)

 

23

%

(1,180)

(911)

(269)

 

30

%

Income tax (benefit) expense

(417)

1,307

(1,724)

 

(132)

%

450

210

240

 

114

%

Depreciation and amortization

1,811

1,659

152

 

9

%

3,450

3,385

65

 

2

%

Stock-based compensation

2,260

1,939

321

 

17

%

4,040

4,005

35

 

1

%

Acquisition & integration costs

156

156

%

973

973

%

Litigation-related costs

%

1,000

1,000

%

Executive transition costs

360

360

%

360

491

(131)

(27)

%

Adjusted EBITDA

$

11,413

$

7,682

$

3,731

 

49

%

$

15,115

$

7,423

$

7,692

 

104

%

“N.M.” Not Meaningful


The following table contains a reconciliation of net income to Adjusted EBITDA for the year ended December 31, 2025:

Tactile Systems Technology, Inc.

Reconciliation of Net Income to Non-GAAP Adjusted EBITDA

(Unaudited)

Year Ended

(Dollars in thousands)

  ​ ​ ​

December 31, 2025

Net income

 

$

19,086

Interest (income) expense, net

(2,059)

Income tax expense

12,253

Depreciation and amortization

6,644

Stock-based compensation

8,357

Executive transition costs

491

Adjusted EBITDA

$

44,772

The following table contains a reconciliation of GAAP net income guidance range to the Adjusted EBITDA guidance range for the twelve months ending December 31, 2026:

Tactile Systems Technology, Inc.

Reconciliation of FY 2026 GAAP Net Income to Adjusted EBITDA Guidance

(Unaudited)

Year Ended

December 31, 2026

(Dollars in thousands)

  ​ ​ ​

Low

  ​ ​ ​

High

Net income

 

$

23,230

$

24,670

Interest (income) expense, net

(2,380)

(2,380)

Income tax expense

9,420

9,980

Depreciation and amortization

7,510

7,510

Stock-based compensation

8,550

8,550

Acquisition & integration costs

1,310

1,310

Executive transition costs

360

360

Litigation-related costs

1,000

1,000

Adjusted EBITDA

$

49,000

$

51,000

Investor Inquiries:

Sam Bentzinger

Gilmartin Group

investorrelations@tactilemedical.com