Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Aug 10, 2026
Tactile Systems Technology Inc (TCMD)
A forensic read on Tactile Systems Technology Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Safe
Financial health
16.9
Distress distance
Clean
Earnings quality
4
Forensic signals
32.3
P / E (ttm)
8.7%
ROE
$669M
Market cap
12.5%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Tactile Systems Technology Inc earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 16.9, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by share-count dilution.
What the filings flag
+5.1%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +16% over the last 3 years to FY2025 (+5.1%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~5.1% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~14%.
+10.3%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +10.3% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by payables paid down 12% against +4% in cost of sales. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 18% of net operating assets, diverging from the balance-sheet accrual read.
12.7%
FY2025
Return on invested capital.Return on invested capital is 12.7% in the latest fiscal year and rising from -6% — a modest positive spread over its ~10% cost of capital — growth adds value, though not dramatically.
3% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 3% of revenue and 21% of free cash flow in FY2025 — about $0.36 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count, and there it has run at about 5.4% a year and is falling.
Key fundamentals
Latest Revenue$329.5M
Revenue Growth YoY+12.5%
Revenue CAGR (3yr)+10.1%
Net Margin5.8%
Free Cash Flow$40.4M
Return on Equity8.7%
Debt / Equity0.00x
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