Kestra Medical Technologies Reports Preliminary Second Quarter Fiscal 2026 Financial Results

Rhea-AI Summary

Kestra Medical Technologies (Nasdaq: KMTS) reported preliminary Q2 fiscal 2026 results for the quarter ended October 31, 2025, showing continued commercial momentum in the wearable defibrillator market. Revenue is expected to be $22.2–$22.6M, up ~52% at the midpoint versus prior year. Gross profit is expected to be $11.0–$11.4M and gross margin is expected near 50.0% versus 39.6% prior year. Loss from operations is expected to be $31.6–$32.0M. Cash and cash equivalents are expected to be approximately $175M. Results are preliminary and subject to adjustment; final results will appear in the Form 10-Q filed in December 2025.

Positive

• Revenue expected +52% year-over-year at midpoint
• Gross margin expected improving to 50.0% from 39.6%
• Gross profit expected roughly doubled versus prior year
• Cash and cash equivalents expected ~ $175 million

Negative

• Loss from operations expected ~ $31.6–$32.0 million, up materially
• Operating loss increase versus prior year may pressure near-term profitability

Insights

Equity Analyst

Revenue and margin rose materially, but operating losses widened; cash remains substantial.

Kestra reports preliminary second-quarter fiscal 2026 results showing strong top-line growth: revenue is expected at $22.2 to $22.6 million, about 52% higher at the midpoint versus the prior year, and gross profit is expected at $11.0 to $11.4 million, implying a midpoint gross margin of 50.0% versus 39.6% a year ago. These figures indicate clear commercial traction and improved unit economics within the wearable defibrillator business.

However, loss from operations is expected to widen to $31.6 to $32.0 million from $19.1 million last year, which offsets the positive revenue and margin trends. The company also reports cash and cash equivalents of about $175 million, which provides runway but does not eliminate the need to control operating spend. The preliminary nature of these estimates means finalized results in the Form 10-Q and earnings release in December will be important.

Key dependencies and risks include whether the final GAAP figures confirm the preliminary margins and whether operating costs remain elevated. Watch the filed Form 10-Q and the earnings release for reconciliations, any one-time items affecting operating loss, and updated near-term guidance; expect these items to be resolved when the company files results in December.

KIRKLAND, Wash., Dec. 01, 2025 (GLOBE NEWSWIRE) -- Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a wearable medical device and digital healthcare company, today reported preliminary financial results for the second quarter fiscal 2026 ended October 31, 2025.

“Revenue is expected to grow by over 50% in the second quarter and continues to exceed our FY26 plan, reflecting sustained commercial momentum as Kestra grows and penetrates the wearable defibrillator market,” said Brian Webster, President and Chief Executive Officer of Kestra Medical Technologies. “In addition to our commercial execution, we are encouraged by the meaningful improvement in our gross margin, a result of the attractive unit economics and positive leverage inherent in our business model.”

Preliminary Second Quarter Fiscal 2026 Financial Results

• Revenue is expected to be $22.2 to $22.6 million, an increase of 52% at the midpoint compared to $14.7 million in the prior year period.

• Gross profit is expected to be $11.0 to $11.4 million compared to $5.8 million in the prior year period.
   
  • Based on the midpoints of expected revenue and gross profit, gross margin is expected to be 50.0% compared to 39.6% in the prior year period.

• Loss from operations is expected to be $31.6 to $32.0 million compared to $19.1 million in the prior year period.

• Cash and cash equivalents are expected to be approximately $175 million.
  

These results are preliminary estimates and remain subject to adjustment. These preliminary estimated results should not be viewed as a substitute for financial statements prepared in accordance with U.S. generally accepted accounting principles. Kestra will provide complete financial results in its earnings release and in its quarterly report on Form 10-Q for the second quarter ended October 31, 2025 to be filed in December.

Forward-Looking Statements
Except where otherwise noted, the information contained in this press release is as of December 1, 2025. Statements in this press release 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, we undertake 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, the Kestra’s preliminary estimated financial results for the fiscal quarter ended October 31, 2025, which are preliminary unaudited estimates that are subject to significant uncertainties. 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,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “assume,” “target,” “forecast,” “guidance,” “goal,” “objective,” “aim,” “seek,” “potential,” “hope” and other words and terms of similar meaning. 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; and other risks and uncertainties, including those described under the heading “Risk Factors” in Kestra’s Annual Report on Form 10-K for the fiscal year ended April 30, 2025 filed with the U.S. Securities and Exchange Commission (“SEC”) on July 17, 2025, and in other periodic reports filed by Kestra with the 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/.

About Kestra
Kestra Medical Technologies, Ltd. is a commercial-stage 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, please visit www.kestramedical.com.

Investor contact
Neil Bhalodkar
neil.bhalodkar@kestramedical.com

FAQ

What revenue did Kestra Medical Technologies (KMTS) preliminarily report for Q2 fiscal 2026?

Preliminary revenue is expected to be $22.2–$22.6 million for Q2 fiscal 2026 (quarter ended Oct 31, 2025).

How much did Kestra (KMTS) preliminary revenue increase year-over-year in Q2 fiscal 2026?

At the midpoint, preliminary revenue represents an approximate 52% year-over-year increase versus the prior year period.

What preliminary gross margin did Kestra (KMTS) report for Q2 fiscal 2026 and how does it compare to last year?

Preliminary gross margin is expected to be 50.0%, up from 39.6% in the prior year period.

What is Kestra's (KMTS) expected operating loss for Q2 fiscal 2026?

Loss from operations is expected to be approximately $31.6–$32.0 million for the quarter.

How much cash did Kestra (KMTS) report it expects to hold after Q2 fiscal 2026?

Kestra expects cash and cash equivalents to be approximately $175 million as of the preliminary estimate.

When will Kestra (KMTS) release final Q2 fiscal 2026 results and file the Form 10-Q?

Kestra will provide complete financial results and file its Form 10-Q in December 2025 for the quarter ended October 31, 2025.