Tactile Systems Technology, Inc. (NASDAQ:TCMD), a medical device company specializing in the treatment of chronic diseases at home, has announced the approval of a new equity incentive plan following a recent stockholder vote. The company, currently valued at $221 million, has seen its stock decline about 43% year-to-date, though InvestingPro analysis suggests the stock is currently undervalued. The company maintains strong financial health with a "GREAT" overall score, supported by robust metrics including a current ratio of 4.52. The Tactile Systems Technology, Inc. 2025 Equity Incentive Plan (the "2025 Plan") was approved on May 7, 2025, after being greenlit by the company’s Board of Directors on March 25, 2025.
The 2025 Plan allows for the issuance of up to 1,850,000 shares of the company’s common stock. It also provides that any shares not issued due to the expiration, forfeiture, or cancellation of an award, or if an award is settled for cash, will become available for future awards under the 2025 Plan. Following the approval, the company will no longer grant awards under the 2016 Plan. According to InvestingPro data, management has been actively buying back shares, demonstrating confidence in the company’s future prospects.
The 2025 Plan is designed to grant awards in various forms, including stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based awards. The plan will be administered by the company’s Compensation and Organization Committee. The 2025 Plan aims to incentivize employees, consultants, advisors, and non-employee directors of the company.
In addition to the approval of the 2025 Plan, stockholders elected directors to serve until the 2026 Annual Meeting and ratified the appointment of Grant Thornton LLP as the company’s independent auditor for the year ending December 31, 2025. An advisory vote also approved the compensation of the company’s named executive officers, and an advisory vote determined the frequency of future advisory votes on executive compensation to be held every year.
The approval of the 2025 Plan and other voting outcomes were disclosed in a recent SEC filing by Tactile Systems Technology, Inc. The company is headquartered in Minneapolis, Minnesota, and is incorporated in Delaware. For investors seeking deeper insights, InvestingPro offers a comprehensive research report on TCMD, along with 13 additional ProTips and detailed financial metrics that can help inform investment decisions.
In other recent news, Tactile Systems Technology reported its financial results for the first quarter of 2025, which did not meet analyst expectations. The company posted an earnings per share (EPS) loss of $0.13, falling short of the anticipated $0.08 loss. Revenue for the quarter was $61.3 million, below the expected $64.49 million. Consequently, Tactile Systems revised its full-year 2025 revenue forecast downward to a range of $309 million to $315 million, compared to the previous range of $316 million to $322 million. Piper Sandler analysts responded to these developments by downgrading the company’s stock from Overweight to Neutral, citing concerns about future business visibility and lowering the price target from $25.00 to $14.00. Despite a gross margin improvement to 74% from 71% year-over-year, operating expenses increased by 8%, leading to an operating loss of $4.5 million. Tactile Systems also announced a stock repurchase program, with $10 million in shares bought back during the first quarter. The company ended the quarter with $83.6 million in cash and $25.5 million in outstanding borrowings.
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