## Q4/FY2025: A beat with “quality,” not just timing Tactile’s Q4 2025 print signals real operating leverage: revenue grew 21% Y/Y to **$103.6 million**, while **Adjusted EBITDA expanded to $22.9 million** (vs. $16.2 million prior year) and diluted EPS came in at **$0.46** (vs. $0.40). ["Total revenue increased 21% year-over-year to $103.6 million"](0001104659-26-016370|1) ["Adjusted EBITDA of $22.9 million versus $16.2 million"](0001104659-26-016370|1) ["$0.46 per diluted share"](0001104659-26-016370|1) The “tell” is that the growth was not narrowly concentrated: management attributed the Q4 uplift to **both** lymphedema (+16% Y/Y) and an outsized airway clearance acceleration (+66% Y/Y), which is exactly the kind of breadth that tends to hold up when reimbursement dynamics get noisier. ["increase of $12.4 million, or 16%, in sales and rentals of the lymphedema product line"](0001104659-26-016370|1) ["increase of $5.6 million, or 66%, in sales of the airway clearance product line"](0001104659-26-016370|1) ## FY2026 outlook: resilient growth even as Medicare friction rises The company guided FY2026 revenue to **$357–$365 million** (about **8%–11%** growth) and **Adjusted EBITDA to $49–$51 million** (up from $44.8 million in FY2025). ["expects full year 2026 total revenue in the range of $357 million to $365 million"](0001104659-26-016370|1) ["representing growth of approximately 8% to 11%"](0001104659-26-016370|1) ["expects full year 2026 adjusted EBITDA in the range of $49 million to $51 million"](0001104659-26-016370|1) ["adjusted EBITDA of $44.8 million in 2025"](0001104659-26-016370|1) That’s notable because the same “most recent” 10-K explicitly flags a new CMS administrative gate: **beginning April 13, 2026, CMS will require prior authorization requests (PARs) for pneumatic compression devices**, and the company warns this could create **denials and shipment delays**, particularly early in implementation. ["beginning April 13, 2026, CMS will require prior authorization requests (“PARs”)"](0001104659-26-016380|0) ["increased claim denials, delays in shipments"](0001104659-26-016380|0) ## Hidden alpha: prior authorization is a headwind—but also a structural advantage for TCMD The market risk is obvious (more paperwork, slower throughput). The less obvious read-through is *who is best positioned to win when the process becomes more complex*. Tactile discloses a reimbursement operations engine purpose-built for **benefit verification, prior authorization submissions, follow-up, and appeals**—organizational muscle that tends to matter more when payers raise the bar. ["reimbursement operations function is responsible for… prior authorization submissions… and appeals"](0001104659-26-016380|0) If PARs introduce industry-wide friction, scale players with embedded reimbursement workflows can convert “administrative burden” into a competitive moat—especially given Medicare represented **~24% of 2025 revenue** (i.e., the company is already deeply operationalized around Medicare). ["Medicare represented approximately 24%… of our revenue in 2025"](0001104659-26-016380|0) ## Balance sheet optionality: self-funded execution through policy turbulence Tactile ended 2025 with **$83.4 million of cash** and **no outstanding borrowings**, after repaying **$26.3 million** of term loan principal and buying back **$26.5 million** of stock in 2025. ["Ended 2025 with $83.4 million in cash"](0001104659-26-016370|1) ["no outstanding borrowings"](0001104659-26-016370|1) ["Repaid full outstanding principal balance of $26.3 million"](0001104659-26-016370|1) ["Repurchased $26.5 million of stock"](0001104659-26-016370|1) That capital posture matters because PAR-related delays (if they occur) can temporarily pressure working capital and sales productivity—yet TCMD is entering the change with liquidity and no near-term refinancing overhang (a quiet but meaningful asymmetry versus smaller peers). ## LymphaTech: a low-cost wedge into earlier identification and a more “digital” care pathway The LymphaTech acquisition is structured conservatively—**$6.8 million cash upfront plus milestone-based contingent consideration**—but strategically it extends TCMD beyond therapy delivery into *measurement, identification, and longitudinal monitoring*. ["upfront cash payment at closing of $6.8 million"](0001104659-26-016370|2) ["additional consideration… contingent upon… future milestones"](0001104659-26-016370|2) LymphaTech’s platform is described as a **hand-held, clinically validated** 3D measurement solution that generates a clinical-grade model and supports **longitudinal surveillance**—positioning that can expand the funnel (identify disease earlier), improve workflow, and potentially tighten the loop between diagnosis → prescription → adherence/monitoring over time. ["hand-held, clinically validated solution"](0001104659-26-016370|2) ["immediately generates a clinical grade 3D model"](0001104659-26-016370|2) ["supports longitudinal surveillance"](0001104659-26-016370|2) Put differently: while PARs may slow *units* at the margin in the near term, TCMD is simultaneously buying tools that can increase *certainty and documentation quality* around measurement—exactly the kind of “under the hood” capability that tends to compound when payers demand more structured evidence.

## Q4/FY2025: A beat with “quality,” not just timing Tactile’s Q4 2025 print signals real operating leverage: revenue grew 21% Y/Y to **$103.6 million**, while **Adjusted EBITDA expanded to $22.9 million** (vs. $16.2 million prior year) and diluted EPS came in at **$0.46** (vs. $0.40). ["Total revenue increased 21% year-over-year to $103.6 million"](0001104659-26-016370|1) ["Adjusted EBITDA of $22.9 million versus $16.2 million"](0001104659-26-016370|1) ["$0.46 per diluted share"](0001104659-26-016370|1) The “tell” is that the growth was not narrowly concentrated: management attributed the Q4 uplift to **both** lymphedema (+16% Y/Y) and an outsized airway clearance acceleration (+66% Y/Y), which is exactly the kind of breadth that tends to hold up when reimbursement dynamics get noisier. ["increase of $12.4 million, or 16%, in sales and rentals of the lymphedema product line"](0001104659-26-016370|1) ["increase of $5.6 million, or 66%, in sales of the airway clearance product line"](0001104659-26-016370|1) ## FY2026 outlook: resilient growth even as Medicare friction rises The company guided FY2026 revenue to **$357–$365 million** (about **8%–11%** growth) and **Adjusted EBITDA to $49–$51 million** (up from $44.8 million in FY2025). ["expects full year 2026 total revenue in the range of $357 million to $365 million"](0001104659-26-016370|1) ["representing growth of approximately 8% to 11%"](0001104659-26-016370|1) ["expects full year 2026 adjusted EBITDA in the range of $49 million to $51 million"](0001104659-26-016370|1) ["adjusted EBITDA of $44.8 million in 2025"](0001104659-26-016370|1) That’s notable because the same “most recent” 10-K explicitly flags a new CMS administrative gate: **beginning April 13, 2026, CMS will require prior authorization requests (PARs) for pneumatic compression devices**, and the company warns this could create **denials and shipment delays**, particularly early in implementation. ["beginning April 13, 2026, CMS will require prior authorization requests (“PARs”)"](0001104659-26-016380|0) ["increased claim denials, delays in shipments"](0001104659-26-016380|0) ## Hidden alpha: prior authorization is a headwind—but also a structural advantage for TCMD The market risk is obvious (more paperwork, slower throughput). The less obvious read-through is *who is best positioned to win when the process becomes more complex*. Tactile discloses a reimbursement operations engine purpose-built for **benefit verification, prior authorization submissions, follow-up, and appeals**—organizational muscle that tends to matter more when payers raise the bar. ["reimbursement operations function is responsible for… prior authorization submissions… and appeals"](0001104659-26-016380|0) If PARs introduce industry-wide friction, scale players with embedded reimbursement workflows can convert “administrative burden” into a competitive moat—especially given Medicare represented **~24% of 2025 revenue** (i.e., the company is already deeply operationalized around Medicare). ["Medicare represented approximately 24%… of our revenue in 2025"](0001104659-26-016380|0) ## Balance sheet optionality: self-funded execution through policy turbulence Tactile ended 2025 with **$83.4 million of cash** and **no outstanding borrowings**, after repaying **$26.3 million** of term loan principal and buying back **$26.5 million** of stock in 2025. ["Ended 2025 with $83.4 million in cash"](0001104659-26-016370|1) ["no outstanding borrowings"](0001104659-26-016370|1) ["Repaid full outstanding principal balance of $26.3 million"](0001104659-26-016370|1) ["Repurchased $26.5 million of stock"](0001104659-26-016370|1) That capital posture matters because PAR-related delays (if they occur) can temporarily pressure working capital and sales productivity—yet TCMD is entering the change with liquidity and no near-term refinancing overhang (a quiet but meaningful asymmetry versus smaller peers). ## LymphaTech: a low-cost wedge into earlier identification and a more “digital” care pathway The LymphaTech acquisition is structured conservatively—**$6.8 million cash upfront plus milestone-based contingent consideration**—but strategically it extends TCMD beyond therapy delivery into *measurement, identification, and longitudinal monitoring*. ["upfront cash payment at closing of $6.8 million"](0001104659-26-016370|2) ["additional consideration… contingent upon… future milestones"](0001104659-26-016370|2) LymphaTech’s platform is described as a **hand-held, clinically validated** 3D measurement solution that generates a clinical-grade model and supports **longitudinal surveillance**—positioning that can expand the funnel (identify disease earlier), improve workflow, and potentially tighten the loop between diagnosis → prescription → adherence/monitoring over time. ["hand-held, clinically validated solution"](0001104659-26-016370|2) ["immediately generates a clinical grade 3D model"](0001104659-26-016370|2) ["supports longitudinal surveillance"](0001104659-26-016370|2) Put differently: while PARs may slow *units* at the margin in the near term, TCMD is simultaneously buying tools that can increase *certainty and documentation quality* around measurement—exactly the kind of “under the hood” capability that tends to compound when payers demand more structured evidence.