Why did TCMD's Q3 earnings fall short of expectations?

Tactile Systems Technology (TCMD) experienced a shortfall in Q3 earnings compared to expectations due to a combination of factors:

1. Impact of Medicare Documentation Hurdles: Tactile Systems faced challenges related to Medicare documentation requirements, which affected the sales of its Lymphedema products. This policy-related hurdle impacted revenue growth, as reported in Q3 2024.
2. DME Buying Patterns: The company's airway clearance business was influenced by changes in buying patterns from DME (Durable Medical Equipment) suppliers. These shifts in purchasing behavior contributed to the revenue shortfall.

In summary, TCMD's Q3 earnings fell short due to a combination of Medicare documentation hurdles and DME buying patterns. These factors highlight the importance of navigating regulatory environments and market dynamics effectively to sustain revenue growth.