Kestra Medical Technologies Reports Second Quarter Fiscal 2026 Financial Results

Rhea-AI Summary

Kestra Medical Technologies (Nasdaq: KMTS) reported Q2 FY2026 results for the period ended October 31, 2025: revenue $22.6M (+53% YoY), ASSURE prescriptions 4,696 (+54% YoY), and gross margin 50.6% (vs 39.6% prior year). GAAP net loss was $32.8M and adjusted EBITDA loss was $19.7M. Kestra raised FY26 revenue guidance to $91M (+52% vs FY25). Cash and cash equivalents were $175M as of Oct 31, 2025; the company also received $148M net proceeds from a Dec 4, 2025 public offering.

The company cited commercial expansion, improved revenue cycle management, and a stronger in-network mix as drivers of performance.

Positive

• Revenue $22.6M in Q2, up 53% YoY
• Gross margin 50.6%, improved from 39.6% YoY
• ASSURE prescriptions 4,696, up 54% YoY
• FY26 revenue guidance raised to $91M (+52% vs FY25)
• Balance sheet strengthened with $175M cash plus $148M net offering proceeds

Negative

• GAAP net loss $32.8M, wider than prior-year $20.6M
• Adjusted EBITDA loss $19.7M, increased from $16.1M
• GAAP operating expenses $43.2M, up from $25.0M prior year

Key Figures

Q2 FY26 revenue $22.6M Up 53% vs prior-year period

Q2 FY26 gross margin 50.6% Up from 39.6% in prior-year period

FY26 revenue guidance $91M Represents 52% growth vs FY25; raised from $88M and $85M

ASSURE prescriptions 4,696 Q2 FY26 prescriptions, up 54% vs prior-year period

GAAP operating expenses $43.2M Includes $1.0M of non-recurring costs; above prior-year $25.0M

GAAP net loss $32.8M Q2 FY26 net and comprehensive loss vs $20.6M prior-year

Adjusted EBITDA loss $19.7M Q2 FY26, vs $16.1M Adjusted EBITDA loss prior-year

Cash & equivalents $175M As of Oct 31, 2025; excludes $148M net proceeds from Dec 4 offering

Market Reality Check

$24.91 Last Close

Volume Volume 299,236 is about 0.8x the 20-day average of 375,225, indicating subdued trading activity ahead of the release. normal

Technical Shares at $24.52 are trading above the 200-day MA of $21.57 and about 18.3% below the 52-week high of $30.00.

Peers on Argus

KMTS slipped 0.89% while several close peers such as EMBC, PLSE, STAA and ATRC gained between about 1.5–4%, suggesting today’s action was more company-specific than sector-driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 03	Earnings date notice	Neutral	+12.2%	Scheduled the Q2 FY26 earnings release and conference call details.
Dec 02	Equity offering pricing	Negative	-6.8%	Priced upsized 6,000,000-share primary offering at $23 for $138M gross.
Dec 01	Equity offering launch	Negative	-8.5%	Announced proposed primary offering to fund commercialization and R&D.
Dec 01	Preliminary earnings	Positive	-8.5%	Preliminary Q2 FY26 results showed ~52% revenue growth and margin expansion.
Nov 10	Clinical study data	Positive	+0.8%	ACE-PAS real-world study confirmed strong effectiveness and safety of ASSURE.

Pattern Detected

Earnings and clinical news have generally seen the stock move sharply, with offerings drawing negative reactions and at least one positive-news earnings update selling off.

Recent Company History

Over the last few months, KMTS combined rapid growth with repeated capital markets activity. The July and September earnings reports highlighted strong revenue expansion and rising gross margins, but also sizable net losses. November’s ACE-PAS study results underscored clinical strength, while early December brought a primary offering that weighed on the share price. Preliminary Q2 FY26 results on Dec 1 projected the same ranges now confirmed in this release, framing today’s announcement as a finalization rather than a surprise.

Market Pulse Summary

The stock is down -9.7% following this news. A negative reaction despite solid revenue growth and margin expansion would be consistent with prior instances where good news coincided with selling, such as the preliminary Q2 update that saw shares fall 8.49%. The widening GAAP net loss of $32.8M and higher operating expenses could reinforce concerns about the path to profitability, and recent equity financing may also influence sentiment as the market reassesses valuation after strong top-line gains.

Key Terms

adjusted EBITDA financial

"Adjusted EBITDA* loss was $19.7 million compared to an adjusted EBITDA loss..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-GAAP financial measures financial

"This press release contains certain financial information that is not presented..."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

GAAP financial

"This press release contains certain financial information that is not presented in conformity with U.S. generally accepted accounting principles (“GAAP”)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

AI-generated analysis. Not financial advice.

KIRKLAND, Wash., Dec. 11, 2025 (GLOBE NEWSWIRE) -- Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a wearable medical device and digital healthcare company, today reported financial results for the second quarter fiscal 2026, which ended October 31, 2025.

Financial Highlights

• Generated revenue of $22.6 million in Q2 FY26, an increase of 53% compared to the prior year period.
• Expanded gross margin to 50.6% in Q2 FY26 compared to 39.6% in the prior year period.
• Increased FY26 revenue guidance to $91 million, which would represent growth of 52% compared to FY25.

“Kestra delivered another strong quarter of financial performance, generating revenue growth of 53% while expanding gross margin to over 50%, an important milestone for the company,” said Brian Webster, President and CEO. “We also continued to make progress on several key operational objectives, including growing the commercial organization, announcing compelling primary results from our post-approval study at the American Heart Association annual meeting, and fortifying our balance sheet with an equity offering earlier this month. As we progress on our journey to category leadership, our team remains focused on growing the wearable defibrillator market and executing on our commitments to patients and their prescribers.”

Second Quarter Fiscal 2026 Financial Results

• Total revenue was $22.6 million, an increase of 53% compared to the prior year period.
  • 4,696 prescriptions were written for the ASSURE^® system, an increase of 54% compared to the prior year period.
  • Revenue growth was driven by higher market share and continuing WCD market expansion. Revenue also benefited from a higher mix of in-network patients and continued improvements in revenue cycle management capabilities.
• Gross profit was $11.4 million compared to $5.8 million in the prior year period.
  • Gross margin expanded to 50.6% compared to 39.6% in the prior year period, driven by volume leverage and a higher mix of in-network patients.
• GAAP operating expenses were $43.2 million and included $1.0 million of non-recurring costs. GAAP operating expenses were $25.0 million in the prior year period.
  • Excluding non-recurring costs and share-based compensation expense, operating expenses were $33.5 million in Q2 FY26 compared to $23.8 million in Q2 FY25. The increase was attributable to growth in expenses related to commercial expansion and public company costs.
• GAAP net loss and comprehensive loss was $32.8 million compared to GAAP net loss and comprehensive loss of $20.6 million in the prior year period.
  • Adjusted EBITDA^* loss was $19.7 million compared to an adjusted EBITDA loss of $16.1 million in the prior year period.
• Cash and cash equivalents totaled $175 million as of October 31, 2025.
  • The above cash and cash equivalents balance does not include the $148 million of net proceeds Kestra received from an underwritten public offering of 6.9 million common shares, which closed on December 4, 2025.
     

^{*Adjusted EBITDA is a non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” below for additional information. A reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure is included in this press release.}

Fiscal Year 2026 Revenue Guidance
Kestra is increasing its FY26 revenue guidance to $91 million, which would represent growth of 52% compared to FY25. This compares to prior FY26 revenue guidance of $88 million and initial FY26 guidance of $85 million.

Webcast and Conference Call
Kestra will host a conference call today at 4:30 p.m. ET to discuss financial results. A live and archived webcast of the event will be available in the “Events” section of the investor relations website.

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 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 EBITDA, which 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 new public company costs, is presented because management believes it allows investors to view the Company’s performance in a manner similar to the method used by management to evaluate the Company’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 EBITDA, in addition to considering the Company’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 EBITDA reported in this press release to the most comparable GAAP measure for the respective periods appears in the table captioned “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 December 11, 2025. 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, the Company 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; 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,” “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. 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, 2025 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/.

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, visit www.kestramedical.com.

KESTRA MEDICAL TECHNOLOGIES, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share amounts)
(unaudited)
	Three Months Ended October 31,								Six Months Ended October 31,
	2025				2024				2025				2024
Revenue	$	22,565			$	14,710			$	41,937			$	27,492
Cost of revenue		11,141				8,880				21,661				17,462
Gross profit		11,424				5,830				20,276				10,030
Operating expenses:
Research and development		4,878				3,509				8,878				6,913
Selling, general and administrative		38,301				21,455				72,029				40,682
Total operating expenses		43,179				24,964				80,907				47,595
Loss from operations		(31,755	)			(19,134	)			(60,631	)			(37,565	)
Other expense (income):
Interest expense		1,901				2,317				3,814				4,191
Interest income		(1,796	)			(878	)			(3,962	)			(915	)
Other expense (income)		891				40				(1,939	)			88
Net loss before provision for income taxes		(32,751	)			(20,613	)			(58,544	)			(40,929	)
Provision for income taxes		34				8				67				15
Net loss and comprehensive loss		(32,785	)			(20,621	)			(58,611	)			(40,944	)
Net loss attributable to non-controlling interest		—				(253	)			—				(692	)
Net loss and comprehensive loss attributable to Kestra Medical Technologies, Ltd.		(32,785	)			(20,368	)			(58,611	)			(40,252	)
Less: Undeclared preferred stock dividends		—				3,323				—				5,706
Net loss attributable to common shareholders, basic and diluted	$	(32,785	)		$	(23,691	)		$	(58,611	)		$	(45,958	)
Net loss per share attributable to common shareholders, basic and diluted	$	(0.64	)		$	(1.19	)		$	(1.14	)		$	(2.31	)
Weighted-average shares of common shares outstanding, basic and diluted		51,376,278				19,885,382				51,340,438				19,885,382

RECONCILIATION OF GAAP NET LOSS AND COMPREHENSIVE LOSS TO ADJUSTED EBITDA
(in thousands)
(unaudited)
	Three Months Ended October 31,								Six Months Ended October 31,
	2025				2024				2025				2024
GAAP Net loss and comprehensive loss	$	(32,785	)		$	(20,621	)		$	(58,611	)		$	(40,944	)
Non-GAAP Adjustments:
Interest expense		1,901				2,317				3,814				4,191
Interest income		(1,796	)			(878	)			(3,962	)			(915	)
Other expense (income)		891				40				(1,939	)			88
Provision for income taxes		34				8				67				15
Depreciation expense		2,372				1,869				4,401				4,244
Share-based compensation expense		8,653				1,122				13,232				1,499
Non-recurring expenses		1,048				—				3,914				—
Adjusted EBITDA	$	(19,682	)		$	(16,143	)		$	(39,084	)		$	(31,822	)

KESTRA MEDICAL TECHNOLOGIES, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(unaudited)
	October 31,				April 30,
	2025				2025
Assets
Current assets
Cash and cash equivalents	$	175,424			$	237,595
Accounts receivable, net		10,413				8,081
Disposable medical equipment supplies		6,918				6,572
Prepaid expenses and other current assets		2,659				3,080
Total current assets		195,414				255,328
Right-of-use assets		1,960				2,078
Deposits		1,858				2,021
Restricted cash		334				334
Property and equipment, net		45,932				34,830
Other long-term assets		1,203				1,153
Total assets	$	246,701			$	295,744
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	20,209			$	23,961
Accrued liabilities		15,494				13,829
Operating lease liabilities, current portion		53				187
Total current liabilities		35,756				37,977
Operating lease liabilities, net of current portion		2,874				3,026
Warrant liabilities		1,977				8,097
Other long-term liabilities		140				140
Long-term debt, net		41,873				41,098
Total liabilities		82,620				90,338
Commitments and contingencies
Shareholders’ equity
Common shares, $1.00 par value; 100,000,000 shares authorized as of October 31, 2025 and April 30, 2025; 51,449,053 issued and outstanding as of October 31, 2025 and 51,348,656 shares issued and outstanding as of April 30, 2025		51,449				51,349
Additional paid-in capital		691,492				674,306
Accumulated deficit		(578,860	)			(520,249	)
Total shareholders’ equity		164,081				205,406
Total liabilities and shareholders’ equity	$	246,701			$	295,744

KESTRA MEDICAL TECHNOLOGIES, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
	Six Months Ended October 31,
	2025				2024
Cash flows from operating activities
Net loss	$	(58,611	)		$	(40,944	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		4,401				4,244
Loss on disposal of property and equipment		560				580
Reserve for lost equipment and supplies		901				477
Provision for uncollectible accounts receivable		1,150				1,074
Interest paid-in-kind		—				467
Amortization of debt discounts and issuance costs		937				861
Share-based compensation expense		13,232				1,499
Non-cash lease expense		148				242
Change in fair value of warrant liabilities		(2,065	)			—
Changes in operating assets and liabilities:
Disposable medical equipment supplies		(596	)			(1,117	)
Prepaid expenses and other current assets		953				(53	)
Accounts receivable		(3,482	)			(4,470	)
Accounts payable		(2,372	)			(345	)
Accrued liabilities		520				1,786
Operating lease liabilities		(313	)			124
Other long-term assets		20				20
Net cash used in operating activities		(44,617	)			(35,555	)
Cash flows from investing activities
Purchases of property and equipment		(15,431	)			(11,484	)
Deposits for medical rental equipment		(338	)			(197	)
Refund of deposits for medical rental equipment:		117				227
Net cash used in investing activities		(15,652	)			(11,454	)
Cash flows from financing activities
Proceeds from issuance of redeemable preferred stock		—				103,400
Proceeds from issuance of stock to non-controlling interest		—				17,100
Deemed dividend for payments to third party on behalf of shareholder		—				(1,598	)
Payment of equity issuance costs:		(1,902	)			(3,224	)
Net cash provided by (used in) financing activities		(1,902	)			115,678
Net increase (decrease) in cash, cash equivalents and restricted cash		(62,171	)			68,669
Cash, cash equivalents and restricted cash
Beginning of period		237,929				8,583
End of period	$	175,758			$	77,252
Reconciliation of cash, cash equivalents and restricted cash reported in the condensed consolidated balance sheets
Cash and cash equivalents	$	175,424			$	76,918
Restricted cash:		334				334
Cash, cash equivalents and restricted cash	$	175,758			$	77,252
Non-cash investing and financing activities:
Purchases of property and equipment in accrued liabilities and accounts payable	$	8,313				7,914
Exercise of liability classified warrant		4,055				—
Supplemental disclosure of cash flow information
Income taxes paid (refunds received)	$	(18	)		$	43
Interest paid		2,846				2,451

Investor contact
Neil Bhalodkar
neil.bhalodkar@kestramedical.com

FAQ

What were Kestra Medical (KMTS) Q2 FY2026 revenue and growth rates?

Q2 FY2026 revenue was $22.6M, representing 53% year-over-year growth.

How did Kestra's gross margin change in Q2 FY2026 for KMTS?

Gross margin expanded to 50.6% in Q2 FY2026 from 39.6% in the prior-year period.

What guidance did Kestra (KMTS) issue for FY2026 revenue on Dec 11, 2025?

Kestra raised FY2026 revenue guidance to $91 million, up from prior guidance of $88 million.

What were KMTS cash and financing updates reported for Q2 FY2026?

Cash and cash equivalents were $175M as of Oct 31, 2025; the company also received $148M net proceeds from a Dec 4, 2025 public offering.

How did Kestra's profitability metrics look in Q2 FY2026?

GAAP net loss was $32.8M and adjusted EBITDA loss was $19.7M for Q2 FY2026.

What drove Kestra's revenue growth in Q2 FY2026 (KMTS)?

Management attributed growth to higher market share, WCD market expansion, a higher in-network patient mix, and improved revenue cycle management.