Kestra Medical Technologies Reports First Quarter Fiscal 2027 Financial Results
Kestra combines rapid top-line and margin growth with wider losses, higher spending and an increased full-year revenue outlook.
Rhea-AI Summary
Kestra Medical Technologies (KMTS) reported fiscal first quarter 2027 revenue of $31.0 million, up 60% year over year for the period ended July 31, 2026.
Gross profit rose to $17.5 million and gross margin expanded to 56.5% from 45.7%, driven by higher volumes, a larger share of in-network patients and cost improvement programs. Revenue growth was supported by wearable cardioverter defibrillator market expansion, competitive share gains, new sales territories and improved revenue cycle management.
GAAP operating expenses increased to $55.2 million from $37.7 million, and GAAP net loss widened to $44.1 million from $25.8 million. Adjusted operating expenses were $44.2 million and adjusted EBITDA loss was $24.0 million.
Kestra ended the quarter with $244.7 million in cash, cash equivalents and investments and total liquidity of about $320 million. FY27 revenue guidance was raised to $141 million, up from $137 million and 48% above FY26.
Positive
- Revenue $31.0 million, up 60% year over year in F1Q27
- Gross margin improved to 56.5% from 45.7% year over year
- Gross profit doubled to $17.5 million from $8.9 million
- FY27 revenue guidance raised to $141 million from $137 million, implying 48% growth vs FY26
- Cash, cash equivalents and investments totaled $244.7 million at July 31, 2026
- Total liquidity, including unused term loan capacity, is approximately $320 million
Negative
- GAAP net loss widened to $44.1 million from $25.8 million year over year
- Adjusted EBITDA loss increased to $24.0 million from $19.4 million
- GAAP operating expenses rose to $55.2 million from $37.7 million
- Net cash used in operating activities was $32.3 million in the quarter
- Net cash used in investing activities was $21.4 million, including $8.3 million of capex and security purchases
- Loss on extinguishment of debt totaled $6.3 million in F1Q27
News Explained
As of July 31, 2026, the higher reported share count adds dilution context while operations used $32,295 thousand of cash during the quarter.
Kestra Medical Technologies reported first-quarter fiscal 2027 results for the period ended
The share-count increase is dilution-relevant: the supplied definition states that issuing additional shares increases the total share count and reduces an existing holder’s percentage ownership absent offsetting changes.
The quarter also used
Details
Market reaction after 1Q27 earnings report: KMTS -8.56%
Following this news, KMTS has declined 8.56%, reflecting a notable negative market reaction. Our momentum scanner has triggered 30 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $22.00. Trading volume is elevated at 3.0x the average, suggesting increased selling activity.
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Key Figures
- Revenue
- $31.0 million
- F1Q27; up 60% versus the prior-year period
- Gross Margin
- 56.5%
- F1Q27 versus 45.7% in the prior-year period
- FY27 Revenue Guidance
- $141 million
- Increased guidance; represents 48% growth versus FY26
- Prior FY27 Guidance
- $137 million
- Previous FY27 revenue guidance
- GAAP Net Loss
- $44.1 million
- F1Q27 versus $25.8 million in the prior-year period
- Adjusted EBITDA Loss
- $24.0 million
- F1Q27 versus $19.4 million in the prior-year period
- Cash and Investments
- $244.7 million
- As of July 31, 2026
Previous Earnings Reports
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Revenue and gross margin increased while FY27 revenue guidance was introduced
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Revenue and gross margin increased while FY26 revenue guidance was raised
-
Revenue and prescriptions increased while gross margin and FY26 guidance improved
-
Preliminary revenue and gross margin increased from the prior-year period
-
Revenue, prescriptions, gross margin, and FY26 guidance increased
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
wearable cardioverter defibrillator medical
gaap financial
adjusted ebitda financial
non-gaap financial measures financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
KIRKLAND, Wash., Sept. 14, 2026 (GLOBE NEWSWIRE) -- Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a leading wearable medical device and digital healthcare company, today reported financial results for the first quarter of fiscal year 2027, which ended July 31, 2026.
Financial Highlights
- Generated revenue of
$31.0 million in F1Q27, an increase of60% compared to the prior year period. - Expanded gross margin to
56.5% in F1Q27 compared to45.7% in the prior year period. - Increased FY27 revenue guidance to
$141 million , representing growth of48% compared to FY26.
“Kestra delivered another strong quarter of financial performance, generating revenue growth of
First Quarter Fiscal 2027 Financial Results
- Total revenue was
$31.0 million , an increase of60% compared to the prior year period.- Revenue growth was driven by several factors, including wearable cardioverter defibrillator (WCD) market expansion, competitive share gains, new sales territories, higher mix of in-network patients, and ongoing improvements in revenue cycle management capabilities.
- Gross profit was
$17.5 million compared to$8.9 million in the prior year period.- Gross margin expanded to
56.5% compared to45.7% in the prior year period, driven by volume leverage, a higher mix of in-network patients and execution of planned cost improvement programs.
- Gross margin expanded to
- GAAP operating expenses were
$55.2 million compared to$37.7 million in the prior year period.- Excluding non-recurring costs and share-based compensation expense, adjusted operating expenses* were
$44.2 million compared to$30.3 million in the prior year period. The increase was primarily attributable to growth in expenses related to the company’s commercial expansion and accelerated investment in key R&D programs.
- Excluding non-recurring costs and share-based compensation expense, adjusted operating expenses* were
- GAAP net loss was
$44.1 million compared to GAAP net loss of$25.8 million in the prior year period.- Adjusted EBITDA* loss was
$24.0 million compared to an adjusted EBITDA loss of$19.4 million in the prior year period.
- Adjusted EBITDA* loss was
- Cash and cash equivalents, and investments totaled
$244.7 million as of July 31, 2026.- Including committed unused availability under the company’s term loan agreement, Kestra has total liquidity of approximately
$320 million .
- Including committed unused availability under the company’s term loan agreement, Kestra has total liquidity of approximately
*Adjusted operating expenses and adjusted EBITDA are non-GAAP financial measures. See “Use of Non-GAAP Financial Measures” below for additional information. Reconciliations of adjusted operating expenses and adjusted EBITDA to the most directly comparable GAAP measure are included in this press release.
Fiscal Year 2027 Revenue Guidance
Kestra is increasing its FY27 revenue guidance to
Webcast and Conference Call
Kestra will host a conference call today at 4:30 p.m. Eastern Time to discuss financial results. A live and archived webcast of the event will be available in the “Events” section of the investor relations website.
About Kestra
Kestra Medical Technologies, Ltd. is a leading wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease using monitoring and therapeutic intervention technologies that are intuitive, intelligent, and connected. For more information, visit www.kestramedical.com.
Use of Non-GAAP Financial Measures
This press release contains certain financial information that is not presented in conformity with U.S. generally accepted accounting principles (“GAAP”), including adjusted operating expense and adjusted EBITDA. The non-GAAP financial measures are provided as supplemental information to Kestra’s financial measures presented in this press release that are calculated and presented in accordance with GAAP.
Adjusted operating expense is calculated as operating expenses, as adjusted to exclude share-based compensation expense and non-recurring expenses. Adjusted EBITDA is calculated as net income (loss), as adjusted to exclude other income/expense (including interest), income tax expense (benefit), depreciation and amortization expense, share-based compensation expense, and non-recurring expenses. Both metrics are presented because management believes they will allow investors to view Kestra’s performance in a manner similar to the method used by management to evaluate Kestra’s performance for both strategic and annual operating planning. Management believes that in order to properly understand short-term and long-term financial trends, it is helpful for investors to understand the impact of the items excluded from the calculation of adjusted operating expenses and adjusted EBITDA, in addition to considering Kestra’s GAAP financial measures. The excluded items vary in frequency and/or impact on our results of operations and management believes that the excluded items are not reflective of our ongoing core business operations and financial condition. Excluding such items allows investors and analysts to compare our operating performance to other companies in our industry and to compare our period-over-period results.
The non-GAAP financial measures used by Kestra may not be the same or calculated in the same manner as those used and calculated by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for Kestra’s financial results prepared and reported in accordance with GAAP. We urge investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate our business. A reconciliation of adjusted operating expenses and adjusted EBITDA reported in this press release to the most comparable respective GAAP measure for the respective periods appears in the tables captioned “Reconciliation of GAAP Operating Expenses to Adjusted Operating Expenses” and “Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA” later in this release. Within the accompanying financial tables presented, certain columns and rows may not add due to the use of rounded numbers.
Forward-Looking Statements
Except where otherwise noted, the information contained in this press release is as of September 14, 2026. Statements in this press release and on the related teleconference that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements. Except as required by law, Kestra undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about, among other topics, our anticipated operating and financial performance, including financial guidance and projections; business plans, strategy, goals and prospects, potential growth, and expectations for our products. Given their forward-looking nature, these statements involve substantial risks, uncertainties and potentially inaccurate assumptions, and we cannot ensure that any outcome expressed in these forward-looking statements will be realized in whole or in part. You can identify these statements by the fact that they use future dates or use words such as “will,” “may,” “could,” “likely,” “ongoing,” “continue,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “advance,” “remain,” “believe,” “assume,” “target,” “forecast,” “guidance,” “goal,” “objective,” “aim,” “seek,” “potential,” “hope” and other words and terms of similar meaning. Kestra’s financial guidance is based on estimates and assumptions that are subject to significant uncertainties. Among the factors that could cause actual results to differ materially from past results and future plans and projected future results are the following: risks related to our limited operating history and history of net losses; our ability to successfully achieve substantial market adoption of our products; competitive pressures; our ability to adapt our manufacturing and production capacities to evolving patterns of demand, governmental actions and customer trends; product defects or complaints and related liability; our ability to obtain and maintain adequate coverage and reimbursement levels for our products; our ability to comply with changing laws and regulatory requirements and resulting costs; our dependence on a limited number of suppliers; risks and uncertainties related to market conditions; and other risks and uncertainties, including those described under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended April 30, 2026 and other filings filed or to be filed with the U.S. Securities and Exchange Commission (“SEC”). These filings, when made, are available on the Investor Relations section of our website at https://investors.kestramedical.com/ and on the SEC’s website at https://sec.gov/.
| KESTRA MEDICAL TECHNOLOGIES, LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except share and per share amounts) (unaudited) | ||||||||
| Three Months Ended July 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenue | $ | 30,971 | $ | 19,371 | ||||
| Cost of revenue | 13,473 | 10,520 | ||||||
| Gross profit | 17,498 | 8,851 | ||||||
| Operating expenses: | ||||||||
| Research and development | 6,796 | 4,001 | ||||||
| Selling, general and administrative | 48,359 | 33,728 | ||||||
| Total operating expenses | 55,155 | 37,729 | ||||||
| Loss from operations | (37,657 | ) | (28,878 | ) | ||||
| Other expense (income): | ||||||||
| Interest expense | 1,929 | 1,912 | ||||||
| Interest income | (2,125 | ) | (2,167 | ) | ||||
| Other expense (income), net | 272 | (2,830 | ) | |||||
| Loss on extinguishment of debt | 6,304 | — | ||||||
| Net loss before provision for income taxes | (44,037 | ) | (25,793 | ) | ||||
| Provision for income taxes | 50 | 33 | ||||||
| Net loss attributable to common shareholders, basic and diluted | $ | (44,087 | ) | $ | (25,826 | ) | ||
| Net loss per share attributable to common shareholders, basic and diluted | $ | (0.75 | ) | $ | (0.50 | ) | ||
| Weighted-average common shares outstanding, basic and diluted | 58,566,467 | 51,304,599 | ||||||
| Other comprehensive loss: | ||||||||
| Net loss | $ | (44,087 | ) | $ | (25,826 | ) | ||
| Unrealized loss on marketable securities | (253 | ) | — | |||||
| Comprehensive loss | $ | (44,340 | ) | $ | (25,826 | ) | ||
| KESTRA MEDICAL TECHNOLOGIES, LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited) | ||||||||
| July 31, | April 30, | |||||||
| 2026 | 2026 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 68,558 | $ | 99,710 | ||||
| Short-term investments | 130,353 | $ | 96,724 | |||||
| Accounts receivable, net | 15,406 | 14,542 | ||||||
| Disposable medical equipment supplies | 7,438 | 6,706 | ||||||
| Prepaid expenses and other current assets | 4,518 | 4,677 | ||||||
| Total current assets | 226,273 | 222,359 | ||||||
| Long-term investments | 45,791 | 65,767 | ||||||
| Right-of-use assets | 3,263 | 3,364 | ||||||
| Deposits | 1,842 | 1,761 | ||||||
| Restricted cash | 334 | 334 | ||||||
| Property and equipment, net | 63,656 | 59,090 | ||||||
| Other long-term assets | 6,196 | 5,790 | ||||||
| Total assets | $ | 347,355 | $ | 358,465 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 25,961 | $ | 27,295 | ||||
| Accrued liabilities | 22,285 | 23,046 | ||||||
| Operating lease liabilities, current portion | 23 | 31 | ||||||
| Total current liabilities | 48,269 | 50,372 | ||||||
| Operating lease liabilities, net of current portion | 3,928 | 4,111 | ||||||
| Warrant liabilities | — | 1,369 | ||||||
| Other long-term liabilities | 306 | 306 | ||||||
| Long-term debt, net | 72,495 | 42,649 | ||||||
| Total liabilities | 124,998 | 98,807 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity | ||||||||
| Common Shares, | 59,272 | 58,384 | ||||||
| Additional paid-in capital | 859,504 | 853,353 | ||||||
| Accumulated other comprehensive loss | (471 | ) | (218 | ) | ||||
| Accumulated deficit | (695,948 | ) | (651,861 | ) | ||||
| Total shareholders’ equity | 222,357 | 259,658 | ||||||
| Total liabilities and shareholders’ equity | $ | 347,355 | $ | 358,465 | ||||
| KESTRA MEDICAL TECHNOLOGIES, LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | ||||||||
| Three Months Ended July 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (44,087 | ) | $ | (25,826 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 2,664 | 2,028 | ||||||
| Loss on disposal of property and equipment | 292 | 280 | ||||||
| Reserve for equipment and supplies | 1,464 | 412 | ||||||
| (Recovery) provision for uncollectible accounts receivable | (817 | ) | 613 | |||||
| Amortization (accretion) of premiums (discounts) on securities, net | (890 | ) | — | |||||
| Loss on extinguishment of debt | 6,304 | — | ||||||
| Amortization of debt discounts and issuance costs | 408 | 469 | ||||||
| Share-based compensation expense | 9,517 | 4,579 | ||||||
| Non-cash lease expense | 103 | 61 | ||||||
| Change in fair value of warrant liabilities | 251 | (2,909 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Disposable medical equipment supplies | (908 | ) | (460 | ) | ||||
| Prepaid expenses and other current assets | 246 | 140 | ||||||
| Accounts receivable | (48 | ) | (1,777 | ) | ||||
| Accounts payable | (1,879 | ) | (2,896 | ) | ||||
| Accrued liabilities | (4,727 | ) | (860 | ) | ||||
| Operating lease liabilities | (190 | ) | (138 | ) | ||||
| Other long-term assets | 2 | 10 | ||||||
| Net cash used in operating activities | (32,295 | ) | (26,274 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchases of property and equipment | (8,335 | ) | (8,166 | ) | ||||
| Deposits for medical rental equipment | — | (103 | ) | |||||
| Refund of deposits for medical rental equipment | — | 37 | ||||||
| Purchase of marketable securities | (13,017 | ) | — | |||||
| Net cash used in investing activities | (21,352 | ) | (8,232 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from issuance of long-term debt | 75,000 | — | ||||||
| Payment of debt issuance costs | (3,193 | ) | — | |||||
| Repayment of long-term debt | (46,395 | ) | — | |||||
| Payment of early termination fee on debt repayment | (3,758 | ) | ||||||
| Payment of IPO offering costs | — | (1,875 | ) | |||||
| Payment of equity issuance costs | (415 | ) | — | |||||
| Deemed dividend for payments to third party on behalf of shareholder | (172 | ) | — | |||||
| Proceeds from stock option exercises | 1,140 | — | ||||||
| Proceeds from Employee Stock Purchase Plan | 1,298 | — | ||||||
| Tax withholdings on restricted stock unit vesting | (1,010 | ) | — | |||||
| Net cash provided by (used in) financing activities | 22,495 | (1,875 | ) | |||||
| Net decrease in cash, cash equivalents and restricted cash | (31,152 | ) | (36,381 | ) | ||||
| Cash, cash equivalents and restricted cash | ||||||||
| Beginning of period | 100,044 | 237,929 | ||||||
| End of period | $ | 68,892 | $ | 201,548 | ||||
| RECONCILIATION OF CASH AND CASH EQUIVALENTS TO CASH, CASH EQUIVALENTS, AND INVESTMENTS (in thousands) (unaudited) | ||||||||
| Three Months Ended July 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash and cash equivalents | $ | 68,558 | $ | 201,214 | ||||
| Add: Short-term investments | 130,353 | — | ||||||
| Add: Long-term investments | 45,791 | — | ||||||
| Cash, cash equivalents, and investments | $ | 244,702 | $ | 201,214 | ||||
| RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA (in thousands) (unaudited) | ||||||||
| Three Months Ended July 31, | ||||||||
| 2026 | 2025 | |||||||
| GAAP Net loss | $ | (44,087 | ) | $ | (25,826 | ) | ||
| Non-GAAP Adjustments: | ||||||||
| Interest expense | 1,929 | 1,912 | ||||||
| Interest income | (2,125 | ) | (2,167 | ) | ||||
| Other expense (income) | 272 | (2,830 | ) | |||||
| Provision for income taxes | 50 | 33 | ||||||
| Depreciation expense | 2,664 | 2,028 | ||||||
| Share-based compensation expense | 9,517 | 4,579 | ||||||
| Loss on extinguishment of debt | 6,304 | — | ||||||
| Non-recurring expenses | 1,430 | 2,866 | ||||||
| Adjusted EBITDA | $ | (24,046 | ) | $ | (19,405 | ) | ||
| RECONCILIATION OF GAAP OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES (in thousands) (unaudited) | ||||||||
| Three Months Ended July 31, | ||||||||
| 2026 | 2025 | |||||||
| GAAP Operating Expenses | $ | 55,155 | $ | 37,729 | ||||
| Non-GAAP Adjustments: | ||||||||
| Share-based compensation expense | 9,517 | 4,579 | ||||||
| Non-recurring expenses | 1,430 | 2,866 | ||||||
| Adjusted Operating Expenses | $ | 44,208 | $ | 30,284 | ||||
Investor Relations Neil Bhalodkar neil.bhalodkar@kestramedical.com
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were the main drivers of Kestra’s 60% revenue growth in F1Q27?
Revenue growth was attributed to wearable cardioverter defibrillator market expansion, competitive share gains, the addition of new sales territories, a higher mix of in-network patients and ongoing improvements in revenue cycle management capabilities.
How does Kestra define adjusted operating expenses and adjusted EBITDA?
Adjusted operating expenses are GAAP operating expenses excluding share-based compensation and non-recurring expenses. Adjusted EBITDA is net income (loss) excluding interest income and expense, income tax expense (benefit), depreciation and amortization, share-based compensation and non-recurring expenses, as well as other income/expense and loss on extinguishment of debt.
What is included in Kestra’s reported total liquidity of approximately $320 million?
Total liquidity consists of $244.7 million in cash, cash equivalents and investments as of July 31, 2026, plus committed unused availability under the company’s term loan agreement.
How did Kestra’s balance sheet change during the quarter?
Total assets were $347.4 million at July 31, 2026, compared with $358.5 million at April 30, 2026. Long-term debt, net, increased to $72.5 million from $42.6 million, while total shareholders’ equity declined to $222.4 million from $259.7 million.
When and how can investors access Kestra’s earnings webcast?
Kestra is hosting a conference call at 4:30 p.m. Eastern Time on the announcement date to discuss financial results. A live and archived webcast of the event will be available in the “Events” section of the company’s investor relations website.