Kestra Medical Technologies Reports Third Quarter Fiscal 2026 Financial Results
Rhea-AI Summary
Kestra Medical Technologies (Nasdaq: KMTS) reported Q3 FY2026 results for the period ended January 31, 2026, with $24.6M revenue (+63% YoY) and gross margin expanding to 52.6% from 43.4%. The company raised FY26 revenue guidance to $93M (up 55% YoY) and reported $291M cash.
Operational highlights included 5,462 ASSURE prescriptions (+58%), an equity offering closed Dec 4, 2025, and adjusted EBITDA loss of $21.2M.
Positive
- Revenue +63% YoY to $24.6M in Q3 FY26
- Gross margin expanded to 52.6% from 43.4%
- FY26 guidance raised to $93M (55% growth vs FY25)
- Cash balance of $291M after December equity offering
- Prescriptions +58% YoY with 5,462 ASSURE prescriptions
Negative
- Operating expenses +76% YoY to $47.7M in Q3 FY26
- GAAP net loss widened to $34.2M from $21.8M
- Adjusted EBITDA loss increased to $21.2M from $16.3M
Market Reaction – KMTS
Following this news, KMTS has declined 6.43%, reflecting a notable negative market reaction. Our momentum scanner has triggered 23 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $19.78. This price movement has removed approximately $85M from the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
Peers show mixed moves: PLSE, BLFS and ATRC were up while STAA was down and EMBC was nearly flat, suggesting this earnings release was more stock-specific than sector-driven.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 11 | Q2 FY26 earnings | Positive | +5.1% | Reported strong Q2 growth and margin expansion, raised FY26 revenue guidance to $91M. |
| Dec 01 | Prelim Q2 results | Positive | -8.5% | Issued preliminary Q2 estimates showing ~52% revenue growth and higher gross margin. |
| Sep 11 | Q1 FY26 earnings | Positive | +18.6% | Delivered 52% revenue growth, higher prescriptions, expanded gross margin, raised FY26 guidance. |
| Jul 15 | FY25 earnings | Positive | -5.8% | Reported strong FY25 and Q4 growth with major gross margin gains and FY26 outlook. |
| Apr 14 | Q3 FY25 earnings | Positive | +1.3% | Announced 82% revenue growth and sharp margin improvement following IPO and network expansion. |
Earnings updates have generally been positive and often led to upside moves, but there are notable instances where strong results or guidance coincided with negative reactions.
Over the past year, Kestra has repeatedly reported strong growth in revenue, prescriptions, and gross margin, while consistently raising FY26 revenue guidance from $85M to $91M and now $93M. Prior earnings events highlighted expanding ASSURE® adoption and improving profitability metrics despite ongoing net losses. Price reactions to earnings have been mixed, with both strong rallies and selloffs on otherwise positive updates. Today’s Q3 FY26 results continue the theme of rapid top-line growth and margin expansion alongside elevated operating expenses and losses.
Historical Comparison
Earnings releases have moved KMTS by an average of 2.14% over the last five similar events, with a mix of strong rallies and occasional selloffs on otherwise positive results.
Earnings updates show a steady progression: revenue rising from $15.1M in Q3 FY25 to $19.4M in Q1 FY26, $22.6M in Q2 FY26, and now $24.6M in Q3 FY26, alongside consistent gross margin expansion and repeated FY26 guidance increases.
Market Pulse Summary
The stock is down -6.4% following this news. A negative reaction despite strong reported growth would fit Kestra’s history of mixed responses to earnings, where some upbeat reports were followed by declines despite fundamentals improving and an average move of 2.14% across recent results. In such scenarios, concerns often center on the scale of ongoing net losses, rising operating expenses tied to commercial expansion, and how quickly margin gains and revenue growth could translate into a clearer path toward reduced cash burn.
Key Terms
wearable cardioverter defibrillator medical
FDA regulatory
post-approval study medical
GAAP financial
non-GAAP financial measures financial
Adjusted EBITDA financial
AI-generated analysis. Not financial advice.
KIRKLAND, Wash., March 17, 2026 (GLOBE NEWSWIRE) -- Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a leading wearable medical device and digital healthcare company, today reported financial results for the third quarter fiscal 2026, which ended January 31, 2026.
Financial Highlights
- Generated revenue of
$24.6 million in Q3 FY26, an increase of63% compared to the prior year period. - Expanded gross margin to
52.6% in Q3 FY26 compared to43.4% in the prior year period. - Increased FY26 revenue guidance to
$93 million , representing growth of55% compared to FY25.
“Kestra delivered another strong quarter of financial performance, generating revenue growth of
Third Quarter Fiscal 2026 Financial Results
- Total revenue was
$24.6 million , an increase of63% compared to the prior year period.- 5,462 prescriptions were written for the ASSURE® system, an increase of
58% compared to the prior year period. - Revenue growth was driven by higher market share and wearable cardioverter defibrillator (WCD) market expansion. Revenue also benefited from a higher mix of in-network patients and improvements in revenue cycle management capabilities.
- 5,462 prescriptions were written for the ASSURE® system, an increase of
- Gross profit was
$12.9 million compared to$6.5 million in the prior year period.- Gross margin expanded to
52.6% compared to43.4% in the prior year period, driven by volume leverage, a higher mix of in-network patients and cost improvement programs.
- Gross margin expanded to
- GAAP operating expenses were
$47.7 million and included$1.5 million of non-recurring costs. GAAP operating expenses were$27.1 million in the prior year period.- Excluding non-recurring costs and share-based compensation expense, operating expenses were
$36.1 million in Q3 FY26 compared to$24.8 million in Q3 FY25. The increase was attributable to growth in expenses related to accelerated commercial expansion and public company costs.
- Excluding non-recurring costs and share-based compensation expense, operating expenses were
- GAAP net loss and comprehensive loss was
$34.2 million compared to GAAP net loss and comprehensive loss of$21.8 million in the prior year period.- Adjusted EBITDA* loss was
$21.2 million compared to an adjusted EBITDA loss of$16.3 million in the prior year period.
- Adjusted EBITDA* loss was
- Cash and cash equivalents totaled
$291 million as of January 31, 2026.- Cash and cash equivalents includes the net proceeds Kestra received from an underwritten public offering of 6.9 million common shares, which closed on December 4, 2025.
- Cash and cash equivalents includes the 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
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 expenses, 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 March 17, 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, 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 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.
| 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 January 31, | Nine Months Ended January 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | 24,552 | $ | 15,090 | $ | 66,488 | $ | 42,582 | ||||||||
| Cost of revenue | 11,646 | 8,543 | 33,307 | 26,005 | ||||||||||||
| Gross profit | 12,906 | 6,547 | 33,181 | 16,577 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 4,972 | 3,353 | 13,850 | 10,266 | ||||||||||||
| Selling, general and administrative | 42,699 | 23,795 | 114,728 | 64,477 | ||||||||||||
| Total operating expenses | 47,671 | 27,148 | 128,578 | 74,743 | ||||||||||||
| Loss from operations | (34,765 | ) | (20,601 | ) | (95,397 | ) | (58,166 | ) | ||||||||
| Other expense (income): | ||||||||||||||||
| Interest expense | 1,888 | 1,783 | 5,702 | 5,974 | ||||||||||||
| Interest income | (2,163 | ) | (628 | ) | (6,125 | ) | (1,543 | ) | ||||||||
| Other expense (income) | (359 | ) | (15 | ) | (2,299 | ) | 73 | |||||||||
| Net loss before provision for income taxes | (34,131 | ) | (21,741 | ) | (92,675 | ) | (62,670 | ) | ||||||||
| Provision for income taxes | 35 | 18 | 102 | 33 | ||||||||||||
| Net loss and comprehensive loss | (34,166 | ) | (21,759 | ) | (92,777 | ) | (62,703 | ) | ||||||||
| Net loss attributable to non-controlling interest | — | (250 | ) | — | (942 | ) | ||||||||||
| Net loss and comprehensive loss attributable to Kestra Medical Technologies, Ltd. | (34,166 | ) | (21,509 | ) | (92,777 | ) | (61,761 | ) | ||||||||
| Less: Undeclared preferred stock dividends | — | 3,324 | — | 9,030 | ||||||||||||
| Net loss attributable to common shareholders, basic and diluted | $ | (34,166 | ) | $ | (24,833 | ) | $ | (92,777 | ) | $ | (70,791 | ) | ||||
| Net loss per share attributable to common shareholders, basic and diluted | $ | (0.61 | ) | $ | (1.25 | ) | $ | (1.76 | ) | $ | (3.56 | ) | ||||
| Weighted-average shares of common shares outstanding, basic and diluted | 55,848,413 | 19,885,382 | 52,843,097 | 19,885,382 | ||||||||||||
| RECONCILIATION OF GAAP NET LOSS AND COMPREHENSIVE LOSS TO ADJUSTED EBITDA (in thousands) (unaudited) | ||||||||||||||||
| Three Months Ended January 31, | Nine Months Ended January 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| GAAP Net loss and comprehensive loss | $ | (34,166 | ) | $ | (21,759 | ) | $ | (92,777 | ) | $ | (62,703 | ) | ||||
| Non-GAAP Adjustments: | ||||||||||||||||
| Interest expense | 1,888 | 1,783 | 5,702 | 5,974 | ||||||||||||
| Interest income | (2,163 | ) | (628 | ) | (6,125 | ) | (1,543 | ) | ||||||||
| Other expense (income) | (359 | ) | (15 | ) | (2,299 | ) | 73 | |||||||||
| Provision for income taxes | 35 | 18 | 102 | 33 | ||||||||||||
| Depreciation expense | 1,984 | 1,888 | 6,384 | 6,132 | ||||||||||||
| Share-based compensation expense | 10,108 | 459 | 23,340 | 1,958 | ||||||||||||
| Non-recurring expenses | 1,482 | 1,927 | 5,396 | 1,927 | ||||||||||||
| Adjusted EBITDA | $ | (21,191 | ) | $ | (16,327 | ) | $ | (60,277 | ) | $ | (48,149 | ) | ||||
| KESTRA MEDICAL TECHNOLOGIES, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited) | ||||||||
| January 31, | April 30, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 291,321 | $ | 237,595 | ||||
| Accounts receivable, net | 12,709 | 8,081 | ||||||
| Disposable medical equipment supplies | 6,829 | 6,572 | ||||||
| Prepaid expenses and other current assets | 3,204 | 3,080 | ||||||
| Total current assets | 314,063 | 255,328 | ||||||
| Right-of-use assets | 3,419 | 2,078 | ||||||
| Deposits | 1,847 | 2,021 | ||||||
| Restricted cash | 334 | 334 | ||||||
| Property and equipment, net | 53,799 | 34,830 | ||||||
| Other long-term assets | 5,880 | 1,153 | ||||||
| Total assets | $ | 379,342 | $ | 295,744 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 24,023 | $ | 23,961 | ||||
| Accrued liabilities | 18,898 | 13,829 | ||||||
| Operating lease liabilities, current portion | 10 | 187 | ||||||
| Total current liabilities | 42,931 | 37,977 | ||||||
| Operating lease liabilities, net of current portion | 4,276 | 3,026 | ||||||
| Warrant liabilities | 1,745 | 8,097 | ||||||
| Other long-term liabilities | 140 | 140 | ||||||
| Long-term debt, net | 42,261 | 41,098 | ||||||
| Total liabilities | 91,353 | 90,338 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity | ||||||||
| Common Shares, | 58,349 | 51,349 | ||||||
| Additional paid-in capital | 842,666 | 674,306 | ||||||
| Accumulated deficit | (613,026 | ) | (520,249 | ) | ||||
| Total shareholders’ equity | 287,989 | 205,406 | ||||||
| Total liabilities and shareholders’ equity | $ | 379,342 | $ | 295,744 | ||||
| KESTRA MEDICAL TECHNOLOGIES, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | ||||||||
| Nine Months Ended January 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (92,777 | ) | $ | (62,703 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 6,384 | 6,132 | ||||||
| Loss on disposal of property and equipment | 727 | 882 | ||||||
| Reserve for lost equipment and supplies | 1,600 | 647 | ||||||
| Provision for uncollectible accounts receivable | 1,515 | 1,883 | ||||||
| Interest paid-in-kind | — | 703 | ||||||
| Amortization of debt discounts and issuance costs | 1,406 | 1,031 | ||||||
| Share-based compensation expense | 23,340 | 1,958 | ||||||
| Non-cash lease expense | 273 | 330 | ||||||
| Change in fair value of warrant liabilities | (2,297 | ) | — | |||||
| Changes in operating assets and liabilities: | ||||||||
| Disposable medical equipment supplies | (466 | ) | (2,823 | ) | ||||
| Prepaid expenses and other current assets | 421 | (431 | ) | |||||
| Accounts receivable | (6,143 | ) | (7,814 | ) | ||||
| Accounts payable | (647 | ) | 3,665 | |||||
| Accrued liabilities | 4,192 | 2,730 | ||||||
| Operating lease liabilities | (541 | ) | 228 | |||||
| Other long-term assets | 30 | 30 | ||||||
| Net cash used in operating activities | (62,983 | ) | (53,552 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchases of property and equipment | (25,228 | ) | (15,547 | ) | ||||
| Deposits for medical rental equipment | (527 | ) | (627 | ) | ||||
| Refund of deposits for medical rental equipment | 184 | 270 | ||||||
| Investment in equity security | (5,000 | ) | — | |||||
| Net cash used in investing activities | (30,571 | ) | (15,904 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from issuance of common stock | 149,291 | — | ||||||
| Payment of equity issuance costs | (1,986 | ) | (3,293 | ) | ||||
| Deemed dividend for payments to third party on behalf of shareholder | (25 | ) | (1,648 | ) | ||||
| Proceeds from issuance of redeemable preferred stock | — | 103,400 | ||||||
| Proceeds from issuance of stock to non-controlling interest | — | 17,100 | ||||||
| Net cash provided by financing activities | 147,280 | 115,559 | ||||||
| Net increase in cash, cash equivalents and restricted cash | 53,726 | 46,103 | ||||||
| Cash, cash equivalents and restricted cash | ||||||||
| Beginning of period | 237,929 | 8,583 | ||||||
| End of period | $ | 291,655 | $ | 54,686 | ||||
Investor contact Neil Bhalodkar neil.bhalodkar@kestramedical.com
FAQ
What were Kestra Medical (KMTS) Q3 FY2026 revenue and growth rates?
How did Kestra (KMTS) margins perform in Q3 FY2026 and why?
What FY26 revenue guidance did Kestra (KMTS) provide on March 17, 2026?
What cash position did Kestra (KMTS) disclose for January 31, 2026?
How did Kestra (KMTS) perform on prescriptions in Q3 FY2026?
What profitability and expense trends did Kestra (KMTS) report in Q3 FY2026?
