Kestra Medical Technologies Reports First Quarter Fiscal 2026 Financial Results
KIRKLAND, Wash., Sept. 11, 2025 (GLOBE NEWSWIRE) -- Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a wearable medical device and digital healthcare company, today reported financial results for the first quarter fiscal 2026, which ended July 31, 2025.
Financial Highlights
Generated revenue of $19.4 million in Q1 FY26, an increase of 52% compared to the prior year period.
Expanded gross margin to 45.7% in Q1 FY26 compared to 32.9% in the prior year period.
Increased FY26 revenue guidance to $88 million, representing growth of 47% compared to FY25.
“We had a strong start to fiscal 2026, with our sustained commercial momentum generating revenue growth of over 50% in the first quarter,” said Brian Webster, President and CEO. “We also continued to make progress on several key operational objectives, including growing the commercial organization, enhancing our revenue cycle management capabilities, and expanding gross margin. As we progress on our journey to category leadership, we remain focused on both market share capture and growing the wearable defibrillator market, while executing on our commitments to patients and their prescribers.”
First Quarter Fiscal 2026 Financial Results
Total revenue was $19.4 million, an increase of 52% compared to the prior year period.
4,205 prescriptions were written for the ASSURE® system, an increase of 51% compared to the prior year period.
Revenue growth was driven by higher market share with existing customers and activation of new accounts. Revenue also benefited from a higher mix of in-network patients and improvements in revenue cycle management capabilities.
Gross profit was $8.9 million compared to $4.2 million in the prior year period.
Gross margin expanded to 45.7% compared to 32.9% in the prior year period, driven by volume leverage and a higher mix of in-network patients.
GAAP operating expenses were $37.7 million and included $2.9 million of non-recurring new public company costs. GAAP operating expenses were $22.6 million in the prior year period.
Excluding non-recurring new public company costs and share-based compensation expense, operating expenses were $30.3 million in Q1 FY26. The increase was attributable to growth in expenses related to commercial and revenue cycle resources.
GAAP net loss and comprehensive loss was $25.8 million compared to GAAP net loss and comprehensive loss of $20.3 million in the prior year period.
Adjusted EBITDA* loss was $19.4 million compared to an adjusted EBITDA loss of $15.7 million in the prior year period.
Cash and cash equivalents totaled $201.2 million as of July 31, 2025.
Fiscal Year 2026 Revenue Guidance
Kestra is increasing its FY26 revenue guidance to $88 million, representing growth of 47% compared to FY25. This compares to prior FY26 revenue guidance of $85 million.