Kestra Medical Technologies (KMTS) Q2 2026 earnings summary

Executive summary

• Achieved Q2 FY26 revenue of $22.6M, up 53% year-over-year, driven by a 54% increase in prescriptions and market share gains, with gross margin expanding to 50.6% from 39.6%.

• Net loss for the quarter was $32.8M, compared to $20.6M in the prior year, reflecting higher operating expenses as the company scales commercial operations and transitions to a public company.

• Cash and equivalents were $175.4M as of October 31, 2025, not including $148M in net proceeds from a recent equity offering.

• Clinical evidence from the ACE-PAS study (21,000+ patients) demonstrated the ASSURE system's safety, effectiveness, high wear time, and low false alarm rate, strengthening the case for broader WCD adoption.

• WCD market growth has accelerated to low double digits, with both share capture and market expansion contributing to results.

Financial highlights

• Q2 revenue was $22.6M, up 53% year-over-year; excluding a one-time prior-year item, growth was 60%.

• Gross margin reached 50.6%, up from 39.6% a year ago, driven by improved unit economics, higher in-network patient mix, and a 20% decline in cost per fit.

• Adjusted EBITDA loss was $19.7M, compared to $16.1M in the prior year; GAAP net loss was $32.8M.

• Cash and equivalents were $175.4M as of October 31, 2025, with an accumulated deficit of $578.9M.

• Operating expenses for the quarter increased to $43.2M (including $1.0M non-recurring costs), up from $25.0M in Q2 FY25.

Outlook and guidance

• FY26 revenue guidance raised to $91M (52% growth vs. FY25), up from prior guidance of $88M and initial guidance of $85M.

• Expect continued strong prescription growth, higher revenue per fit from in-network mix, and ongoing gross margin expansion.

• Management expects continued revenue growth as patient adoption increases and supply chain efficiencies are realized.

• Existing cash and cash equivalents are expected to fund operations for at least the next 12 months, but additional funding may be required if cash generation is lower or expenses are higher than planned.

• Guidance philosophy emphasizes consistent quarterly results and building investor trust.