Kestra Medical Technologies (KMTS) Q4 2026: Revenue Soars 66% YoY — Strong Growth Momentum

Kestra Medical Technologies, Ltd. (Nasdaq: KMTS) reported impressive financial results for the fourth quarter and fiscal year ended April 30, 2026. The company achieved a remarkable revenue growth of $11.4 million or +66% year-over-year (YoY), with total revenue reaching $28.6 million compared to $17.2 million in the prior year period.

This quarter's performance is a significant positive for shareholders, showcasing the company's ability to expand its market presence and improve operational efficiency. The substantial revenue increase, coupled with an expansion in gross margin, indicates a strong operational execution and a growing demand for its wearable medical devices.

Key Financial Metrics

• Q4 2026 Revenue: $28.6 million, an increase of $11.4 million or +66% YoY
• FY 2026 Revenue: $95.1 million, an increase of $35.3 million or +59% YoY
• Q4 2026 Gross Margin: 54.8%, up from 44.3% in Q4 2025
• FY 2026 Gross Margin: 51.4%, up from 40.5% in FY 2025
• Q4 2026 GAAP Net Loss: $38.8 million, improved from a net loss of $51.1 million in Q4 2025
• FY 2026 GAAP Net Loss: $131.6 million, compared to a net loss of $113.8 million in FY 2025
• Cash and Cash Equivalents: $262.2 million as of April 30, 2026
• FY 2027 Revenue Guidance: $137 million, an increase of 44% compared to FY 2026

Analysis and Opinion

The fourth quarter results reflect a robust growth trajectory for Kestra Medical Technologies. The 66% revenue growth is particularly noteworthy, driven by an increase in prescriptions for the ASSURE® system, which rose by 63% to 6,357. This growth is indicative of the company's expanding market share and the increasing adoption of its wearable cardioverter defibrillator (WCD) technology.

The improvement in gross margin to 54.8% from 44.3% in the prior year demonstrates effective cost management and operational efficiencies. The company's ability to reduce its GAAP net loss to $38.8 million from $51.1 million in the previous year is also a positive sign, although the overall net loss for the fiscal year increased, reflecting ongoing investments in growth.

Despite the net loss, the substantial cash reserves of $262.2 million provide a solid buffer for continued investment in innovation and market expansion. The guidance for FY 2027 revenue of $137 million, representing a 44% increase, further underscores the company's optimistic outlook and growth potential.

Market Movements and Future Catalysts

Investors should note that Kestra Medical Technologies has not announced any dividend or share buyback programs, which may be expected given the current focus on growth and expansion. The company's strategic collaboration with Biobeat Technologies and the launch of new algorithm updates are also critical developments to watch.

Looking ahead, investors should keep an eye on the following catalysts in the upcoming quarter:

• Continued Growth in Prescriptions: Monitoring the number of prescriptions written for the ASSURE® system will be crucial in assessing ongoing demand and market penetration.
• Operational Efficiency Improvements: Further enhancements in gross margin and cost management will be key indicators of the company's ability to scale effectively.
• FDA Study Results: The release of primary results from the FDA post-approval study could significantly impact investor sentiment and market positioning.
• Strategic Partnerships: Developments from the collaboration with Biobeat Technologies may provide additional growth avenues and technological advancements.

In conclusion, Kestra Medical Technologies has delivered a strong quarter with impressive revenue growth and operational improvements. While challenges remain, particularly regarding net losses, the company's strategic initiatives and market positioning suggest a promising outlook for shareholders.

Here are the extracted tables from the press release:

KESTRA MEDICAL TECHNOLOGIES, LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except share and per share amounts) (unaudited)

Note: The amounts in the following tables are in thousands.

	Three Months Ended	Year Ended
April 30, 2026	2025	2025
Rev…	$28,600	$95,000
Cost of rev…	12,900	46,000
Gro…	15,600	48,000
Res… and dev…	5,634	19,000
Sel… gen… and adm…	49,300	164,000
Tot… ope… exp…	55,000	183,000
Loss from ope…	(39,000)	(131,000)
Oth… Exp…
Int… exp…	1,844	7,546
Int… inc…	(2,200)	(8,300)
Oth…	(319)	(2,600)
Net loss bef… pro… for inc… tax…	(38,000)	(131,000)
Net loss att… to share bas…	(0.67)	(2.00)
Wei… sha… outstanding of… com… loss	58,300	54,000

KESTRA MEDICAL TECHNOLOGIES, LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited)

Assets	April 30, 2026	April 30, 2025
Current assets
Cash and cash equivalents	$99,710	$237,595
Short-term investments	96,724	—
Accounts receivable, net	14,542	8,081
Disposable medical equipment supplies	6,706	6,572
Prepaid expenses and other current assets	4,677	3,080
Total current assets	222,359	255,328
Long-term investments	65,767	—
Right-of-use assets	3,364	2,078
Deposits	1,761	2,021
Restricted cash	334	334
Property and equipment, net	59,090	34,830
Other long-term assets	5,790	1,153
Total assets	$358,465	$295,744
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$27,295	$23,961
Accrued liabilities	23,046	13,829
Operating lease liabilities	31	187
Total current liabilities	50,372	37,977
Operating lease liabilities	4,111	3,026
Long-term debt, net	42,649	41,098
Total liabilities	98,807	90,338
Shareholders’ equity
Common Shares, $1.00 par value;	58,384	51,349
Additional paid-in capital	853,353	674,306
Accumulated other comprehensive loss	(218)	—
Accumulated deficit	(651,861)	(520,249)
Total shareholders’ equity	259,658	205,406
Total liabilities and shareholders’ equity	$358,465	$295,744

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