Group 1: Stock Highlights - Tactile Systems Technology (TCMD) has seen a 29% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Naspers (NPSNY) has experienced a 20.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - SB Financial Group (SBFG) has recorded a 5.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - OP Bancorp (OPBK) has seen a 4.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - Sony (SONY) has experienced a 4.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4]

Core Insights - Tactile Systems Technology, Inc. will participate in the Piper Sandler 37th Annual Healthcare Conference from December 2 to 4, 2025, with a fireside chat scheduled for December 2 at 8:00 a.m. Central Time [1] Company Overview - Tactile Medical is a leader in developing and marketing at-home therapies for chronic conditions such as lymphedema, lipedema, chronic venous insufficiency, and chronic pulmonary disease, aiming to improve patients' quality of life [3] - The company collaborates with clinicians to enhance clinical evidence, raise awareness, increase access to care, reduce healthcare costs, and improve the quality of life for tens of thousands of patients annually [3]

Core Viewpoint - Tactile Systems Technology (TCMD) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily based on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade reflects a positive outlook on Tactile Systems Technology's earnings, which is expected to positively impact its stock price [4][6]. Impact of Earnings Estimate Revisions - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [5][7]. - Rising earnings estimates for Tactile Systems Technology indicate an improvement in the company's underlying business, likely leading to higher stock prices as investors respond to this trend [6]. Performance of Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Tactile Systems Technology's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10][11]. Earnings Estimate Details - For the fiscal year ending December 2025, Tactile Systems Technology is expected to earn $0.80 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 26.5% over the past three months [9].

Group 1 - Tactile Systems Technology, Inc. (TCMD) has seen a 29% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Harmony Gold Mining Company Limited (HMY) has experienced a 12.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Robinhood Markets, Inc. (HOOD) has reported a 21.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Fabrinet (FN) has seen an 8.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - TE Connectivity plc (TEL) has experienced a 7.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Core Insights - Tactile Systems Technology Inc reported strong third-quarter earnings, with earnings per share of 36 cents, surpassing the analyst consensus estimate of 17 cents per share [1] - The company achieved quarterly sales of $85.755 million, exceeding the analyst consensus estimate of $79.306 million [1] - Tactile Systems raised its FY2025 sales guidance from a range of $310 million to $315 million to a new range of $317 million to $321 million [1] Company Performance - CEO Sheri Dodd highlighted the strong third-quarter results as a reflection of ongoing business transformation and product innovation initiatives [2] - The company's go-to-market strategies and differentiated products are contributing to market leadership and revenue growth [2] - Tactile Systems is beginning to see operational leverage and is well-positioned to capitalize on improving market conditions [2] Stock Market Reaction - Following the earnings announcement, Tactile Systems shares increased by 38.1%, trading at $21.78 [2] Analyst Ratings - Piper Sandler analyst Adam Maeder maintained a Neutral rating on Tactile Systems and raised the price target from $14 to $20 [5] - Lake Street analyst Ben Haynor maintained a Buy rating and increased the price target from $23.5 to $32 [5]

Core Insights - Tactile Systems Technology Inc reported strong third-quarter earnings, with earnings per share of 36 cents, surpassing the analyst consensus estimate of 17 cents per share [1] - The company achieved quarterly sales of $85.755 million, exceeding the analyst consensus estimate of $79.306 million [1] - Tactile Systems raised its FY2025 sales guidance from a range of $310 million to $315 million to a new range of $317 million to $321 million [1] Company Performance - CEO Sheri Dodd highlighted the strong third-quarter results as a reflection of ongoing business transformation and product innovation initiatives [2] - The company's go-to-market strategies and differentiated products are contributing to market leadership and revenue growth [2] - Tactile Systems is beginning to see operational leverage and is well-positioned to capitalize on improving market conditions [2] Stock Market Reaction - Following the earnings announcement, Tactile Systems shares surged by 38.1%, reaching a trading price of $21.78 [2] Analyst Ratings - Piper Sandler analyst Adam Maeder maintained a Neutral rating on Tactile Systems and raised the price target from $14 to $20 [5] - Lake Street analyst Ben Haynor kept a Buy rating and increased the price target from $23.5 to $32 [5]

Core Insights - The company reported strong third-quarter financial results, with total revenue of $85.8 million, reflecting a 17% year-over-year growth. Lymphedema revenue increased by 11% to $72.4 million, while airway clearance revenue surged by 71% to $13.4 million [2][31]. - The company raised its full-year 2025 revenue guidance to a range of $317 million to $321 million, indicating an expected growth of approximately 8% to 10% year-over-year [1][35]. Financial Performance - Gross margins improved by 80 basis points year-over-year to 76%, and adjusted EBITDA rose by 34% year-over-year to $14.4 million [1][31]. - Operating expenses increased by 13% to $54 million, driven by strategic investments in sales and marketing [32]. - Net income increased by 59% to $8.2 million, or $0.36 per diluted share, compared to $5.2 million, or $0.21 per diluted share, in the previous year [33]. Business Line Performance - The lymphedema business showed a steady recovery, with a 10% sequential growth and a 130% year-over-year increase in Medicare channel sales [7][10]. - The airway clearance product, AfloVest, experienced a 71% year-over-year growth, attributed to strong partnerships with top respiratory DMEs and increased market awareness of bronchiectasis [12][13]. Strategic Priorities - The company is focused on three strategic priorities: improving access to care, expanding treatment options, and enhancing lifetime patient value [6][20]. - Recent initiatives include integrating AI technology into order operations to improve efficiency and launching a care navigation pilot to enhance patient engagement [18][26]. Market Dynamics - The transition from LCD to NCD in Medicare policies is expected to facilitate greater access to advanced pump therapy, positively impacting revenue growth [36][37]. - The market for lymphedema products is projected to grow at approximately 10%, with the company positioned to capture this growth through enhanced sales strategies and product offerings [60][62]. Capital Allocation - The company is generating free cash flow and has initiated a share repurchase program of up to $25 million, reflecting confidence in its growth trajectory [29][28].

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Denny's Corporation (DENN) is up 49% at $6.16 [3] - Cambium Networks Corporation (CMBM) is up 25% at $2.55 [3] - Tactile Systems Technology, Inc. (TCMD) is up 22% at $19.35 [3] - Upwork Inc. (UPWK) is up 19% at $18.60 [3] - Kforce Inc. (KFRC) is up 12% at $27.50 [3] - Super Group (SGHC) Limited (SGHC) is up 12% at $11.91 [3] - Innovex International, Inc. (INVX) is up 10% at $22.62 [3] - Sanmina Corporation (SANM) is up 9% at $154.03 [3] - Exact Sciences Corporation (EXAS) is up 8% at $72.69 [3] - OTG Acquisition Corp. I Class A Ordinary Share (OTGA) is up 7% at $10.77 [3] Premarket Losers - Sarepta Therapeutics, Inc. (SRPT) is down 40% at $14.44 [4] - JELD-WEN Holding, Inc. (JELD) is down 32% at $2.81 [4] - Ichor Holdings, Ltd. (ICHR) is down 29% at $16.05 [4] - Insperity, Inc. (NSP) is down 27% at $32.50 [4] - Prelude Therapeutics Incorporated (PRLD) is down 22% at $3.08 [4] - Forward Industries, Inc. (FORD) is down 20% at $11.11 [4] - Navitas Semiconductor Corporation (NVTS) is down 18% at $10.03 [4] - Diginex Limited (DGNX) is down 17% at $19.51 [4] - Atlas Energy Solutions Inc. (AESI) is down 16% at $10.58 [4] - Chijet Motor Company, Inc. (CJET) is down 15% at $3.24 [4]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $85.8 million, reflecting a 17% year-over-year growth [4][24] - Gross margins increased by 80 basis points year-over-year to 76% [5][24] - Adjusted EBITDA rose 34% year-over-year to $14.4 million [5][24] - Net income increased by 59% year-over-year to $8.2 million, or $0.36 per diluted share [25] Business Line Data and Key Metrics Changes - Lymphedema revenue grew 11% year-over-year to $72.4 million, with a sequential increase of 10% from Q2 [4][24] - Airway clearance revenue surged 71% year-over-year to $13.4 million, with a 3% sequential increase [4][24] - Sales in the Medicare channel for lymphedema increased by 130% year-over-year, while commercial and VA channels declined by 9% [8][10] Market Data and Key Metrics Changes - The payer mix for Q3 2025 indicates a return to a more normalized environment, supporting balanced year-over-year comparisons moving forward [10] - The transition from LCD to NCD is expected to drive continued improvement in Q4 and beyond [10][28] Company Strategy and Development Direction - The company’s strategic priorities include improving access to care, expanding treatment options, and enhancing lifetime patient value [5][16] - Focus on strengthening relationships with DMEs and increasing awareness of bronchiectasis to drive growth in airway clearance products [11][12] - Investments in sales organization and technology are aimed at unlocking total addressable market (TAM) and driving profitable growth [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the business, supported by strong financial performance and operational execution [31] - The favorable Medicare policy environment is seen as a significant tailwind for growth [28] - Expectations for continued growth in both business lines, with a raised full-year revenue guidance to $317-$321 million [5][27] Other Important Information - The company has initiated a share repurchase program of up to $25 million, reflecting confidence in its growth trajectory [23] - The company ended Q3 with $66 million in cash and no outstanding borrowings [26] Q&A Session Summary Question: Insights on AffloVest performance - Management noted strong performance driven by deep relationships with top DMEs and increased awareness of bronchiectasis [34][35] Question: Guidance clarification for lymphedema - Management confirmed no one-time events in Q3 and highlighted the impact of the NCD as a tailwind for future growth [39][42] Question: Market growth rate in lymphedema - Management indicated the lymphedema market is growing at approximately 10%, with expectations to match this growth [44][45] Question: Impact of new NCD on patient access - The NCD allows patients with unique characteristics to access advanced pump therapy directly, streamlining the process [51][52] Question: Drivers of lymphedema revenue growth - Key drivers include expanded headcount, improved productivity, and the successful launch of Nimble [53][55]

Revenue Growth - Revenue increased by $12.7 million, or 17%, to $85.8 million for the three months ended September 30, 2025, compared to $73.1 million for the same period in 2024[124] - For the nine months ended September 30, 2025, revenue increased by $18.5 million, or 9%, to $225.9 million, compared to $207.4 million for the same period in 2024[129] - Sales and rentals of the lymphedema product line contributed $7.1 million, or 11%, to the revenue increase in Q3 2025, while sales of the airway clearance product line increased by $5.6 million, or 71%[128] - The airway clearance product line revenue increased by $11.9 million, or 47%, for the nine months ended September 30, 2025, compared to the same period in 2024[129] - Revenue for the three months ended September 30, 2025, was $85.8 million, a 17% increase from $73.1 million in the same period of 2024[131] - Lymphedema products accounted for 84% of total revenue in Q3 2025, while airway clearance products increased to 16% from 11% in Q3 2024[131] Profitability - Gross profit for the three months ended September 30, 2025, was $65.0 million, a 19% increase from $54.8 million in the same period in 2024[126] - Gross margin improved to 76% in Q3 2025, up from 75% in Q3 2024, and remained stable at 75% for the nine months ended September 30, 2025, compared to 73% in the same period of 2024[133] - Net income for the three months ended September 30, 2025, was $8.2 million, compared to $5.2 million for the same period in 2024, reflecting a 59% increase[124] Operating Expenses - Operating expenses for the three months ended September 30, 2025, totaled $54.0 million, an increase of 13% from $48.0 million in the same period in 2024[126] - Sales and marketing expenses rose by 11% to $29.8 million in Q3 2025, driven by a $2.3 million increase in personnel-related compensation[134] - Research and development expenses decreased by 9% to $2.2 million in Q3 2025, primarily due to lower clinical study-related expenses[137] - Reimbursement, general and administrative expenses increased by 18% to $21.4 million in Q3 2025, mainly due to a $2.8 million rise in personnel-related compensation[139] Cash Flow and Financing - Net cash provided by operating activities was $25.5 million for the nine months ended September 30, 2025, compared to $24.3 million in the same period of 2024[150] - Cash and net accounts receivable as of September 30, 2025, were $66.0 million and $37.3 million, respectively, down from $82.1 million and $43.2 million in 2024[148] - Net cash used in financing activities was $52.0 million for the nine months ended September 30, 2025, primarily due to stock repurchases and term loan payments[154] - The company expects a full-year 2025 cash tax benefit of approximately $4.5 million due to the enactment of the One Big Beautiful Bill Act[147] - The company borrowed $30.0 million through a term loan and $25.0 million from a revolving credit facility to fund the acquisition of the AffloVest business[158] Share Repurchase - The company repurchased a total of 2,338,617 shares of common stock at a total cost of $30.0 million under the share repurchase program[169] - During the nine months ended September 30, 2025, the company repurchased 2,143,099 shares for approximately $26.6 million[170] Financial Agreements - The Second Amendment to the Credit Agreement modified key financial covenants, including a mandatory principal prepayment of $3.0 million on February 22, 2022[159] - The Third Amendment replaced the interest rate benchmark from LIBOR to the term Secured Overnight Financing Rate (SOFR)[160] - The Fourth Amendment provided an additional term loan of $8.25 million and extended the maturity date of loans from September 8, 2024, to August 1, 2026[161] - The 2025 Restated Credit Agreement expanded the revolving credit facility from $25.0 million to $40.0 million and eliminated the minimum consolidated EBITDA financial covenant[163] - As of September 30, 2025, the company had no outstanding borrowings under the 2025 Restated Credit Agreement[166] Other Considerations - The company estimated that tariff impacts on cost of goods sold could be up to $1.0 million for the year ended December 31, 2025[175] - The company believes its cash and cash flows from operations will be sufficient to meet its working capital and other cash requirements for at least the next twelve months[174] - As of September 30, 2025, the company employed 167 account managers and 162 specialists for lymphedema products, compared to 167 account managers and 103 specialists in the previous year[119] - The company launched the Entre Plus system in March 2023 and the Nimbl platform for lymphedema in October 2024, enhancing its product offerings[116]