Kestra Medical Technologies Q1 FY2027 Results
Kestra Medical Technologies, Ltd. (NASDAQ:KMTS) reported an adjusted loss of $0.75 per share for the quarter ended July 31, 2026, compared with an adjusted loss of $0.50 per share in the same quarter of the prior year. Revenue for the quarter reached $31.0 million, representing a 60% year‑over‑year increase from $19.4 million. The company attributed the revenue growth to expansion in the wearable cardioverter defibrillator market, gains in competitive share, entry into new sales territories, a higher mix of in‑network patients, and enhancements in revenue‑cycle management capabilities.
Gross margin expanded to 56.5% from 45.7% in the prior year period, driven by volume leverage, the higher in‑network patient mix, and cost‑improvement programs. GAAP operating expenses increased to $55.2 million from $37.7 million year‑over‑year, primarily reflecting commercial expansion and accelerated research and development investment. Adjusted EBITDA loss widened to $24.0 million from $19.4 million in the comparable prior period.
President and CEO Brian Webster said, "Kestra delivered another strong quarter of financial performance, generating revenue growth of 60% while expanding gross margin to over 56%." Following the release, Kestra’s shares declined 8%, reflecting investor concern over the widening loss despite the revenue beat.
The company raised its fiscal 2027 revenue guidance to $141 million, up from the previous $137 million target, indicating an expected 48% growth versus fiscal 2026. As of July 31, 2026, Kestra reported cash, cash equivalents, and investments of $244.7 million. Including committed but unused availability under its term‑loan agreement, total liquidity is approximately $320 million.