KMTS · KESTRA MEDICAL TECHNOLOGIES, LTD.

Kestra Medical Technologies delivered robust Q4 FY2026 results, with revenue surging 66% year-over-year to $28.6M, driven by a 63% increase in prescriptions for the ASSURE wearable cardioverter defibrillator system. Full-year revenue reached $95.1M, up 59%, supported by market share gains and WCD market expansion. Gross margin improved significantly to 54.8% in Q4 (from 44.3%) and 51.4% for the full year (from 40.5%), reflecting volume leverage, a higher mix of in-network patients, and cost improvement initiatives. GAAP operating expenses remained flat at $55.0M in Q4, but adjusted operating expenses rose to $44.7M from $29.7M due to accelerated commercial expansion. The GAAP net loss narrowed to $38.8M from $51.1M, while adjusted EBITDA loss widened to $26.7M from $20.3M, as the company continues to invest in growth. Kestra ended the year with $262.2M in cash and investments, providing ample runway. Management's FY2027 revenue guidance of $137M (44% growth) signals confidence in sustained momentum, underpinned by recent algorithm updates, a strategic collaboration with Biobeat Technologies, and strong commercial execution. Overall, the results highlight Kestra's successful scaling and market adoption, though adjusted profitability remains pressured by ongoing investments.