KMTS

Phibro Animal Health (PAHC) came out with quarterly earnings of $0.85 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +18.06%. A quarter ago, it was expected that this maker of animal health products and nutritional supplements would post earnings of $0.72 per share when it actually produced earnings of $0.76, delivering a surprise of +5.56%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Phibro, which belongs to the Zacks Medical - Products industry, posted revenues of $396.7 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.35%. This compares to year-ago revenues of $378.7 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Phibro shares have lost about 3.8% since the beginning of the year versus the S&P 500's gain of 12.2%. While Phibro has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Phibro was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.79 on $375.96 million in revenues for the coming quarter and $3.33 on $1.54 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Kestra Medical Technologies, Ltd. (KMTS), has yet to report results for the quarter ended July 2026. This company is expected to post quarterly loss of $0.61 per share in its upcoming report, which represents a year-over-year change of -32.6%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. Kestra Medical Technologies, Ltd.'s revenues are expected to be $29.04 million, up 49.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report Kestra Medical Technologies, Ltd. (KMTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 66% revenue growth in Q4, driven by a 63% increase in prescriptions and successful activation of new accounts. Expanded gross margin for the 10th consecutive quarter to 54.8%, reflecting the strong unit economics of the rental model and improved revenue per fit. Reduced sales rep ramp-up time through enhanced commercial training, allowing new territory managers to reach productivity milestones faster. Expanded the commercial team to approximately 130 sales territories, which helped drive a 55% increase in new prescribers and a 65% increase in ordering facilities for the ASSURE system during fiscal 2026. Observed low- to mid-teens growth in the overall WCD market, suggesting the category is expanding beyond the legacy incumbent's reach. Implemented standardized care pathways within large cardiovascular organizations, embedding the ASSURE system into hospital discharge and outpatient workflows. Projected fiscal 2027 revenue of $137 million, representing 44% growth based on deeper account penetration and regional expansion. Anticipate adding approximately 40 new sales territories in FY 2027 to reach approximately 170 total, focusing on high-volume geographies with strong payer coverage. Targeting 70%+ gross margins over the next few years, supported by a projected 7 percentage point increase in FY 2027 through volume leverage and cost improvements. Plans to publish multiple clinical abstracts and manuscripts over the next 12 months to influence medical guidelines and support broader WCD adoption. Expects to see accelerating revenue growth in the second half of FY 2027 as the territory managers added in FY 2026—bringing the total to 130—complete their productivity ramps. Secured a new $200 million term loan facility with Pharmakon, reducing the cost of capital by 24% compared to the previous debt structure. Maintained a strong liquidity position of approximately $357 million to support commercial investment and potential opportunistic M&A. Released an enhanced detection algorithm in April designed to further reduce false alarm rates and differentiate the product from competitors. Reported a year-over-year decline in operating cash burn, signaling a shift toward improved operating leverage as the business scales. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted the guide is supported by starting the year with 130 territories versus 80 in the prior year and maintaining an in-network mix in the low-to-mid 80% range. The guidance was characterized as a 'rational' starting point that accounts for the absorption of a large number of new sales reps. Management views the incumbent's recent product launch as incremental rather than transformative, noting the competitor's fleet replacement cycle will take 3 to 5 years. Regarding a competitor's warning letter, management clarified it appeared directed at AED and ventilator divisions but noted they are monitoring for any 'contagion' in the WCD space. The financing was described as opportunistic to lower capital costs and provide flexibility for 'tuck-in' deals that could leverage their direct cardiology sales force. Management confirmed there is no immediate transaction, but they are interested in technologies that add clinical value to their existing channel. Current 130 territories provide roughly 70% geographic coverage in the U.S., but management plans to split territories in high-volume areas like Chicago to improve penetration. The company expects to reach 'full coverage' of the WCD prescribing universe within the next two years.

This article first appeared on GuruFocus. Revenue: $28.6 million for Q4, a 66% increase year-over-year; $95 million for FY26, a 59% increase compared to FY25. Gross Margin: 54.8% for Q4, expanded by over 10 points year-over-year and 200 basis points sequentially; 51.4% for FY26, increased by approximately 11 points compared to FY25. Operating Expenses: $55 million GAAP operating expenses for Q4; $44.7 million excluding nonrecurring costs and stock-based compensation. Net Loss: $38.8 million GAAP net loss for Q4, compared to $51.1 million in the prior-year period. Adjusted EBITDA Loss: $26.7 million for Q4, compared to $20.3 million in the prior-year period. Cash and Investments: $262 million as of April 30. Operating Cash Burn: $18.7 million net cash used in operating activities for Q4, reduced from $24.1 million in the prior-year period. Sales Territories: Approximately 130 active sales territories at the end of FY26, up from about 80 at the end of FY25. FY27 Revenue Guidance: Expected revenue of $137 million, a 44% increase compared to FY26. Warning! GuruFocus has detected 4 Warning Sign with KMTS. Is KMTS fairly valued? Test your thesis with our free DCF calculator. Release Date: July 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Kestra Medical Technologies Ltd (NASDAQ:KMTS) reported a 66% increase in revenue for the fourth quarter, reaching $28.6 million, driven by a 63% year-over-year increase in prescriptions. The company achieved a gross margin of 54.8%, marking the tenth consecutive quarter of sequential gross margin expansion. KMTS expanded its sales territories from 80 to 130, enhancing its market penetration and sales force productivity. The ASSURE system's clinical evidence and innovation, including a new detection algorithm, have strengthened its competitive position in the wearable cardioverter defibrillator (WCD) market. KMTS secured a $200 million term loan facility, providing financial flexibility to invest in growth opportunities and potential acquisitions. Despite strong revenue growth, KMTS reported a GAAP net loss of $38.8 million for the fourth quarter. Operating expenses increased to $55 million, primarily due to investments in the commercial organization and revenue cycle management capabilities. The company's adjusted EBITDA loss widened to $26.7 million in the fourth quarter compared to the prior-year period. KMTS's operating cash burn, although reduced, remains significant at $18.7 million for the fourth quarter. The company faces challenges in fully penetrating existing territories, with some sales reps managing an unmanageable number of accounts. Q: Can you provide more details on the assumptions behind the fiscal '27 guidance, particularly regarding the $137 million revenue target? A: Our revenue growth is driven by prescription volume growth, in-network mix, revenue cycle management improvements, and field team expansion. We expect 44% growth in fiscal year 2027, supported by deeper penetration in existing accounts and market expansion. Our sales territories have increased to 130, up from 80 at the start of fiscal year 2026, which gives us confidence in our guidance. - Vaseem Mahboob, CFO Q: What are your thoughts on guideline recommendations and stronger support from societies following the Heart Rhythm publication? A: The recent paper is a positive step towards guideline recommendations. We will publish our ACE-PAS manuscript soon and continue working with clinical advisers to engage in discussions about timelines. The paper highlights the potential of WCD therapy for both post-MI and heart failure patients, which is promising for future guideline development. - Brian Webster, CEO Q: How should we think about the share gains you've been achieving, and can this be accelerated in '27? A: The share gain in 2026 doesn't fully reflect the benefits of our hiring efforts. We expect more share gain as new reps come up the curve, especially in territories where we were previously absent. Additionally, market growth is exciting, and we will continue to develop the WCD category. - Brian Webster, CEO Q: Why did you decide to raise more money through the recent financing, and does this indicate a more acquisitive approach? A: The refinancing aimed to reduce our cost of capital, achieving a 24% reduction. We sought financial flexibility to invest in our business and explore potential M&A opportunities. The M&A tranche is prospective, and while there's nothing immediate, we are interested in leveraging our sales force for new technologies. - Vaseem Mahboob, CFO and Brian Webster, CEO Q: Can you elaborate on your sales territory goals and the potential for further expansion? A: We plan to add about 40 more reps in fiscal year 2027, focusing on both new territories and deeper penetration in existing ones. We aim to cover approximately 70% of the geographic market with our current reps, but full coverage will require more reps to manage account loads effectively. - Brian Webster, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

KIRKLAND, Wash., July 14, 2026 (GLOBE NEWSWIRE) -- Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a leading wearable medical device and digital healthcare company, today reported financial results for the fourth quarter and fiscal year ended April 30, 2026. Financial Highlights Fiscal 4Q26 revenue of $28.6 million, an increase of 66% compared to the prior year period. FY26 revenue of $95.1 million, an increase of 59% compared to FY25. Fiscal 4Q26 gross margin of 54.8% compared to 44.3% in the prior year period. FY26 gross margin of 51.4% compared to 40.5% in FY25. FY27 revenue guidance of $137 million, an increase of 44% compared to fiscal year 2026. “Kestra concluded fiscal year 2026 with another strong quarter of financial performance, generating revenue growth of 66% while expanding gross margin to 55%,” said Brian Webster, President and CEO. “In fiscal year 2026, the ASSURE® system protected 18,000 patients from sudden cardiac arrest, a testament to the dedication of our mission-driven team. We also made significant progress on key operational objectives, including rapid growth of our commercial organization, release of compelling primary results from our FDA post-approval study, launch of our latest algorithm update, fortification of our balance sheet, and entrance into a strategic collaboration with Biobeat Technologies. We remain confident that our focus on innovation and executing on our commitments to prescribers and their patients will continue to drive market expansion and advance Kestra on its path to market leadership.” Fourth Quarter Fiscal 2026 Financial Results Total revenue was $28.6 million, an increase of 66% compared to the prior year period. Gross profit was $15.7 million compared to $7.6 million in the prior year period. GAAP operating expenses were $55.0 million compared to $55.8 million in the prior year period. GAAP net loss was $38.8 million compared to GAAP net loss of $51.1 million in the prior year period. Cash and cash equivalents, and investments totaled $262.2 million as of April 30, 2026. Fiscal Year 2026 Financial Results Total revenue was $95.1 million, an increase of 59% compared to FY25. Gross profit was $48.9 million compared to $24.2 million in FY25. GAAP operating expenses were $183.6 million compared to $130.6 million in FY25. GAAP net loss was $131.6 million compared to GAAP net loss of $113.8 million in FY25. *Adjusted operating expenses and adjusted EBITDA are non-GAAP financial measures. See “Use of Non-GAAP Financial Measures” below for additional information. Reconciliations of adjusted operating expenses and adjusted EBITDA to the most directly comparable GAAP measure are included in this press release. Fiscal Year 2027 Revenue GuidanceKestra expects revenue of $137 million in FY27, which would represent growth of 44% compared to FY26. Webcast and Conference CallKestra will host a conference call today at 4:30 p.m. Eastern Time to discuss financial results. A live and archived webcast of the event will be available in the “Events” section of the investor relations website. About KestraKestra 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. Use of Non-GAAP Financial MeasuresThis press release contains certain financial information that is not presented in conformity with U.S. generally accepted accounting principles (“GAAP”), including adjusted operating expense and 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 operating expense is calculated as operating expenses, as adjusted to exclude share-based compensation expense and non-recurring expenses. Adjusted EBITDA 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. Both metrics are presented because management believes they will allow investors to view Kestra’s performance in a manner similar to the method used by management to evaluate Kestra’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 operating expenses and adjusted EBITDA, in addition to considering Kestra’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 operating expenses and adjusted EBITDA reported in this press release to the most comparable respective GAAP measure for the respective periods appears in the tables captioned “Reconciliation of GAAP Operating Expenses to Adjusted Operating Expenses” and “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 StatementsExcept where otherwise noted, the information contained in this press release is as of July 14, 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, Kestra 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,” “continue,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “advance,” “remain,” “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, 2026 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/. CONTACT: Investor Relations Neil Bhalodkar [email protected]

Interested in Kestra Medical Technologies, Ltd.? Here are five stocks we like better. Revenue surged in Q4, with Kestra posting $28.6 million in revenue, up 66% year over year, while full-year fiscal 2026 revenue rose 59% to $95 million. The company also accepted more than 6,300 ASSURE prescriptions in the quarter. Margins continued to improve as the rental model scaled, with Q4 gross margin rising to 54.8% from 44.3% a year earlier. Management said it expects further margin expansion and still sees a path to gross margins above 70% over the next few years. Fiscal 2027 guidance calls for continued growth, with revenue projected at $137 million, or 44% growth versus fiscal 2026. Kestra said growth should be driven by new account wins, deeper penetration at existing customers, and an expanding sales force. Kestra Medical Technologies (NASDAQ:KMTS) reported a sharp increase in fourth-quarter revenue and issued fiscal 2027 guidance calling for continued growth, as executives said demand for the company’s ASSURE wearable cardioverter defibrillator system is being driven by new accounts, deeper penetration of existing customers and expansion of its commercial team. On the company’s fiscal fourth-quarter earnings call, President and Chief Executive Officer Brian Webster said Kestra accepted more than 6,300 prescriptions written for the ASSURE system during the quarter. Revenue rose 66% from the prior-year period to $28.6 million. For fiscal 2026, Kestra generated $95 million in revenue, up 59% from fiscal 2025. → The SK Hynix IPO and 2027’s AI Memory Squeeze Webster said the ASSURE cardiac recovery system was used to protect 18,000 patients at risk of sudden cardiac arrest during fiscal 2026. He opened the call by describing a patient case in which the system delivered 12 successful therapies during a prolonged period of cardiac instability. “Every patient’s recovery is different, and some emergencies are far more complex than anyone could predict,” Webster said. “That level of sustained protection isn’t simply a feature. It reflects a deliberate design philosophy centered on supporting patients through even the most demanding clinical scenarios.” → This Dividend ETF Choice Could Shape Your Income Strategy Through 2026 Kestra reported fourth-quarter gross margin of 54.8%, up from 44.3% in the prior-year period and 200 basis points above the prior quarter. Webster said it marked the company’s 10th consecutive quarter of sequential gross margin expansion. Full-year gross margin was 51.4%, up about 11 percentage points from fiscal 2025. Chief Financial Officer Vaseem Mahboob said the margin improvement was driven by the company’s rental model, higher revenue per fit from more in-network patients, volume leverage and cost improvement projects. He said Kestra expects “steady and consistent increases” in gross margin in the quarters ahead and reiterated the company’s confidence in reaching gross margins above 70% over the next few years. → Microsoft Bets on In-House AI to Cut OpenAI and Anthropic Costs GAAP operating expenses were $55 million in the fourth quarter, compared with $55.8 million in the prior-year period. Excluding non-recurring costs and stock-based compensation, operating expenses were $44.7 million, up from $29.7 million a year earlier. Mahboob attributed the increase primarily to investments in the commercial organization, support resources and revenue cycle management capabilities. Kestra posted a GAAP net loss of $38.8 million in the quarter, compared with a GAAP net loss of $51.1 million in the prior-year period. Adjusted EBITDA loss was $26.7 million, compared with an adjusted EBITDA loss of $20.3 million a year earlier. Mahboob said operating cash burn declined year over year. Net cash used in operating activities was $18.7 million in the fourth quarter, down from $24.1 million in the prior-year period. Kestra issued fiscal 2027 revenue guidance of $137 million, representing 44% growth from fiscal 2026. Mahboob said the forecast assumes higher prescriptions driven by new account wins, deeper penetration of existing accounts and regional coverage investments. He also said higher revenue per fit is expected to come from a higher mix of in-network patients and continued revenue cycle management improvements. During the question-and-answer session, Mahboob said Kestra expects its in-network mix to remain in the “low mid-eighties” and said the company began fiscal 2027 with 137 sales territories, up from 80 at the start of fiscal 2026. Asked about the phasing of growth during fiscal 2027, Mahboob said Kestra expects accelerating growth from the first half to the second half as recently hired sales representatives continue to ramp. Webster said Kestra ended fiscal 2026 with approximately 130 active sales territories, up from about 80 at the end of fiscal 2025. He said the company is likely to add about 40 representatives in fiscal 2027, at a pace that may be slower than fiscal 2026 as it absorbs hires made late in the year. Webster said Kestra’s commercial expansion is aimed at geographies where high volumes of wearable cardioverter defibrillator prescriptions are being written and where the company has strong in-network payer coverage. He said the number of new prescribers for ASSURE grew 55% in fiscal 2026, while ordering facilities increased 65%. The company estimated that the wearable cardioverter defibrillator market grew in the low- to mid-teens based on its financial results and those of the incumbent competitor. Webster said Kestra believes the market remains underutilized, with six out of seven indicated patients not protected by a wearable cardioverter defibrillator. Webster highlighted several examples of account growth, including a Southwest academic medical center that had not prescribed ASSURE when Kestra entered in March 2025 but grew to more than 60 prescriptions over 15 months. He also cited a Midwest territory where a hospital’s wearable defibrillator prescriptions grew from about 20 annually to 50 in fiscal 2026, and a Southeast cardiovascular organization where prescribing increased by about 40% after ASSURE post-approval study data were presented at the American Heart Association meeting. In response to an analyst question about share gains, Webster said fiscal 2026 results did not yet fully reflect hiring during the year and said he expects additional share gains as representatives ramp. He added that Kestra is also focused on expanding the overall category, not only taking share. Webster said Kestra continues to build clinical evidence for ASSURE, including through its ACE-PAS study, which he described as the largest real-world prospective wearable cardioverter defibrillator study to date, with more than 21,000 patients enrolled and protected. He said the study showed low false alarm rates, high wear-time compliance and 100% successful conversion of dangerous arrhythmias. He also noted that a paper published in Heart Rhythm cited ACE-PAS as contemporary evidence of persistent ventricular arrhythmia risk in patients with ischemic and non-ischemic cardiomyopathy. Webster said Kestra plans to publish multiple abstracts and manuscripts over the next 12 months related to ACE-PAS, an enhanced algorithm and pipeline innovation. On product development, Webster said Kestra’s collaboration with Biobeat Technologies to expand diagnostic insight for hypertensive patients prescribed ASSURE is progressing as planned. He said Kestra released an enhanced ASSURE detection algorithm in April that the company projects will further reduce its already low false alarm rate, and that the algorithm is now shipping to all patients. Kestra ended the quarter with $262 million in cash, cash equivalents and investments. Mahboob said the company also entered into a new $200 million term loan facility with Pharmakon, with $75 million funded at closing and a large portion used to retire the company’s existing term loan. Mahboob described the financing as non-dilutive and said it lowers Kestra’s cost of capital. Including unused availability under the new term loan agreement and excluding an uncommitted M&A tranche, he said Kestra has approximately $357 million of total liquidity. Asked whether the financing signals a more acquisitive strategy, Webster said the M&A tranche is prospective and “there’s not something right in front of us.” He said Kestra remains interested in technologies that could be additive for clinical partners as it builds a direct-to-cardiology sales force. “FY 2026 was indeed a year of investment for Kestra,” Webster said in closing remarks. “We think FY 2027 affords us new opportunities for investment as we see the opportunity to win.” We are 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. We have developed and are commercializing our Cardiac Recovery System platform, a comprehensive and advanced system that integrates monitoring, therapeutic treatment, digital health, and patient support services into a single, unified solution. The cornerstone of our Cardiac Recovery System platform is the ASSURE WCD, a next generation wearable cardioverter defibrillator (“WCD”) used to protect patients at an elevated risk of sudden cardiac arrest (“SCA”), a major public health problem that accounts for approximately 50% of all cardiovascular deaths in the U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Kestra Medical Technologies Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Kestra reported strong Q3 commercial momentum with more than 5,400 ASSURE prescriptions, revenue of $24.6 million (up 63% YoY) and raised fiscal 2026 revenue guidance to $93 million, while ending the quarter with $291 million in cash despite a GAAP net loss of $34.2 million and adjusted EBITDA loss of $21.2 million. Management highlighted the ninth consecutive quarter of sequential gross margin improvement to about 52.6% and reiterated a multi-year plan to reach >70% gross margins, citing rental unit economics, a higher in‑network mix, and cost/volume leverage. Clinical and commercial catalysts include the ACE‑PAS post‑approval study (21,000+ patients) and an FDA‑approved ASSURE algorithm update to reduce false alarms, plus reimbursement wins (Florida managed Medicaid, VA Federal Supply Schedule and a 2% Medicare rate increase), which support market expansion in a still‑underutilized WCD category. Interested in Kestra Medical Technologies, Ltd.? Here are five stocks we like better. Kestra Medical Technologies (NASDAQ:KMTS) reported what management described as a strong third quarter of fiscal 2026, highlighted by higher prescriptions, accelerating revenue growth, and continued gross margin expansion as the company scales its wearable cardioverter defibrillator (WCD) business around the ASSURE System. President and CEO Brian Webster said Kestra accepted more than 5,400 prescriptions written for the ASSURE System during the quarter. CFO Vaseem Mahboob said total revenue was $24.6 million, up 63% from the prior-year period, and attributed the increase primarily to a 58% year-over-year rise in prescriptions. Management said prescription growth reflected market share gains with existing customers, activation of new accounts, expansion of the field organization, and higher revenue per fit. → Dollar Tree Planted the Seeds for Triple-Digit Gains in Q4 Webster also pointed to operating leverage as growth and margin improvements support continued investment in “key growth drivers.” Mahboob added that Kestra is investing in revenue cycle, AI tools, and automation projects intended to improve conversion rate drivers, including prescription fill rate, bill rate, and collections performance. Kestra highlighted sequential gross margin improvement for the ninth straight quarter. Webster reported gross margin of 52.6%, up nine points year-over-year and 200 basis points sequentially, and reiterated management’s view that the business is on a path to 70%+ gross margins over the next few years. → Why Credo and Astera Soared After Oracle and Broadcom's Earnings During prepared remarks, Mahboob cited gross margin of 32.6% for the quarter versus 43.4% a year ago, though he also emphasized the same message of nine consecutive quarters of sequential improvement and a long-term 70%+ gross margin outlook. He said margin expansion has been driven by the unit economics of Kestra’s rental model, higher revenue per fit from a growing mix of in-network patients, and lower cost per fit from volume leverage and cost improvement projects. On the Q&A, Mahboob said some cost improvement initiatives on the disposable side (not hardware) are beginning to show their full benefit as older inventory is worked through and newer inventory comes in at a lower cost. → Members of Congress Bought These 5 Stocks—Should You? Management reiterated its view that WCD therapy remains underutilized, with Webster stating that six out of seven patients indicated for a WCD are not protected by one. Based on Kestra’s financial results and those of the incumbent, the company estimated the WCD market grew in the low-to-mid-teens percentage range on a dollar basis in calendar 2025. In response to analyst questions about an apparent acceleration in market growth versus prior commentary, Webster cited several factors: Kestra’s expanded commercial footprint and increased “voice” in the market Clinical studies, including a large competitor study and Kestra’s own ACE-PAS results, highlighting elevated risk in the patient population An expectation that the incumbent will need to focus on expanding the overall category as Kestra takes share When asked what it will take to materially expand the market (including “doubling” or “tripling”), Webster said it would likely require updates to clinical guidelines. He said Kestra is working to get the ACE-PAS study published and views publication as an important next step before deeper engagement with clinical societies on guideline changes. Kestra again discussed ACE-PAS, its FDA post-approval study that management described as the largest real-world prospective WCD study to date, enrolling and protecting more than 21,000 patients. Webster said ACE-PAS findings supported what patients experience with ASSURE, including low false alarm rates, comfort that supports higher wear-time compliance, and 100% successful conversion of dangerous arrhythmias. He also said clinicians have focused on the study’s finding that patients were at elevated risk in the first 90 days post-hospitalization. Webster announced FDA approval of a new ASSURE algorithm update, which he said is intended to further reduce false alarms and inappropriate shocks. On the Q&A, he said the company identified opportunities for improvement after seeing data from more than 10,000 to 15,000 patients and viewed the update as a step to improve patient compliance (by lowering false alarms) and patient safety (by reducing inappropriate shocks). Webster said Kestra plans to roll out the update around the Heart Rhythm Society (HRS) meeting. Kestra continues to build out its sales organization, targeting geographies with high WCD prescription volumes and strong in-network payer coverage. Webster said the company ended calendar 2025 with about 100 active sales territories and is tracking toward approximately 130 territories by the end of its fiscal year in April. In the Q&A, he said the company is in its fiscal 2027 planning process and is weighing whether it can and should expand faster, noting capital is not currently the key constraint. Webster also provided updates on market access and reimbursement: Florida managed Medicaid: Kestra became an approved provider and signed contracts with two of Florida’s four largest managed Medicaid plans, with efforts ongoing for the remainder. Webster said this removes a major barrier for sales reps trying to fully convert prescribers, and Mahboob noted it could also benefit gross margin in the state over time. Veterans Affairs: Kestra was added to the Federal Supply Schedule for the U.S. Department of Veterans Affairs. Webster said this enables reps to pursue VA hospitals more effectively and that the company has already seen early wins in the weeks following the approval. Medicare rate: Webster said the monthly Medicare reimbursement rate for WCDs increased 2% to $3,589 on Jan. 1. Webster said in-network fittings have risen from about 70% at the time of the IPO to the low 80s currently, which management said improves revenue cycle efficiency and related metrics. On profitability and cash, Mahboob reported GAAP operating expenses of $47.7 million, including $1.5 million of non-recurring professional fees tied mainly to the Biobeat transaction and a recent equity offering. GAAP net loss was $34.2 million and adjusted EBITDA loss was $21.2 million. Kestra ended the quarter with $291 million in cash and cash equivalents, which includes net proceeds from a December public equity offering. Mahboob also said the company plans to file a shelf registration statement in early April once eligible, describing it as a corporate governance best practice and stating the company has no need for additional capital at this time. Looking ahead, Kestra raised fiscal 2026 revenue guidance to $93 million, representing 55% growth versus fiscal 2025, up from prior guidance of $91 million and its initial fiscal 2026 outlook of $85 million. Management said the updated guidance assumes continued prescription growth, further benefits to revenue per script from a higher in-network mix, and improving revenue cycle management performance. We are 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. We have developed and are commercializing our Cardiac Recovery System platform, a comprehensive and advanced system that integrates monitoring, therapeutic treatment, digital health, and patient support services into a single, unified solution. The cornerstone of our Cardiac Recovery System platform is the ASSURE WCD, a next generation wearable cardioverter defibrillator (“WCD”) used to protect patients at an elevated risk of sudden cardiac arrest (“SCA”), a major public health problem that accounts for approximately 50% of all cardiovascular deaths in the U.S. The article "Kestra Medical Technologies Q3 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Revenue: $24.6 million, a 63% increase compared to the prior year period. Gross Margin: 52.6%, up 9 points year over year and 200 basis points sequentially. Prescriptions: 5,400 prescriptions for the Essure system, a 58% year-over-year increase. GAAP Operating Expenses: $47.7 million, including $1.5 million of non-recurring costs. GAAP Net Loss: $34.2 million, compared to $21.8 million in the prior year period. Adjusted EBITDA Loss: $21.2 million, compared to $16.3 million in the prior year period. Cash Reserves: $291 million as of January 31. Fiscal Year 2026 Revenue Guidance: Increased to $93 million, representing 55% growth compared to fiscal year 2025. Warning! GuruFocus has detected 3 Warning Sign with KMTS. Is KMTS fairly valued? Test your thesis with our free DCF calculator. Release Date: March 17, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Kestra Medical Technologies Ltd (NASDAQ:KMTS) reported a strong financial performance in the third quarter of fiscal 2026, with revenue reaching $24.6 million, marking a 63% increase compared to the prior year period. The company achieved a gross margin of 52.6%, up 9 percentage points year over year, and has seen sequential gross margin expansion for nine consecutive quarters. KMTS is on track to achieve 70% plus gross margins over the next few years, supported by the attractive unit economics of its business model. The company has expanded its sales organization, aiming to increase market penetration and has set a goal of having about 130 sales territories by the end of the fiscal year. KMTS has made significant progress in market access and reimbursement, becoming an approved Florida managed Medicaid provider and being added to the federal supply schedule for the US Department of Veterans Affairs. Despite the strong revenue growth, KMTS reported a GAAP net loss of $34.2 million in the third quarter, compared to a GAAP net loss of $21.8 million in the prior year period. The adjusted EBITDA loss was $21.2 million in the third quarter, indicating ongoing financial challenges. The company faces underutilization in the WCD market, with 6 out of 7 patients indicated for a WCD not being protected by one. KMTS's operating expenses increased to $47.7 million in the third quarter, up from $27.1 million in the prior year period, driven by investments in commercial expansion and public company costs. The company is still working to bring a long tail of regional and local payers under contract, indicating ongoing challenges in achieving comprehensive market access. Q: As you look into next year, are you comfortable with the $133 million that the street is modeling for fiscal 2027? A: Vaseem Mahboob, Chief Financial Officer: We only comment on full-year guidance for 2027 at the end of the Q4 call. However, we feel confident in delivering top-tier MedTech growth in 2027 and beyond. Q: Can you explain the acceleration in the WCD market growth and its durability? A: Brian Webster, President and CEO: The market growth has accelerated due to an expanded commercial team and clinical results highlighting elevated risks in the patient population. Both our study and a competitor's study have driven awareness, and we expect continued market growth as we expand our commercial footprint. Q: Can you deconstruct the sequential bump in prescriptions? Is it market acceleration or share shift? A: Brian Webster, President and CEO: The growth is primarily from productivity improvements in existing territories and new territory managers coming up the productivity curve. About 70-75% of growth is from market share shift, with 25% from new prescribers. Q: Are there any competitive or pricing headwinds affecting fiscal Q4? A: Brian Webster, President and CEO: There are no pricing headwinds or competitive issues. We are growing the business by mid-50% year-over-year, which is significant, and we feel good about our trajectory. Q: What impact does the recent FDA approval of your new algorithm have? A: Brian Webster, President and CEO: The new algorithm reduces false alarms and inappropriate shocks, enhancing patient compliance and safety. This update further differentiates our product and validates its clinical performance. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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 of 63% compared to the prior year period. Expanded gross margin to 52.6% in Q3 FY26 compared to 43.4% in the prior year period. Increased FY26 revenue guidance to $93 million, representing growth of 55% compared to FY25. “Kestra delivered another strong quarter of financial performance, generating revenue growth of 63% while expanding gross margin to over 52%,” said Brian Webster, President and CEO. “We also continued to execute on several key operational objectives, including rapid growth of the commercial organization, release of compelling primary results from our FDA post-approval study, fortification of our balance sheet with an equity offering, and entrance into a strategic collaboration with Biobeat Technologies. 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.” Third Quarter Fiscal 2026 Financial Results Total revenue was $24.6 million, an increase of 63% 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. Gross profit was $12.9 million compared to $6.5 million in the prior year period. Gross margin expanded to 52.6% compared to 43.4% in the prior year period, driven by volume leverage, a higher mix of in-network patients and cost improvement programs. 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. 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. 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. *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 $93 million, which would represent growth of 55% compared to FY25. This compares to prior FY26 revenue guidance of $91 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 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. CONTACT: Investor contact Neil Bhalodkar [email protected]