Kestra Medical Technologies (KMTS) Q3 2026 earnings summary

Executive summary

• Revenue grew 63% year-over-year in Q3 FY26 to $24.6 million, driven by a 58% increase in prescriptions and market share gains in the wearable cardioverter defibrillator market.

• Gross margin expanded to 52.6%, up from 43.4% year-over-year, reflecting cost efficiencies, volume leverage, and longer equipment life.

• Net loss widened to $34.2 million from $21.8 million in the prior year, with adjusted EBITDA loss at $21.2 million versus $16.3 million.

• Cash and cash equivalents stood at $291 million as of January 31, 2026, bolstered by a $149.3 million secondary public offering in December 2025.

• Continued investment in commercial expansion, R&D, and infrastructure, including a strategic collaboration with Biobeat Technologies and FDA post-approval study results.

Financial highlights

• Q3 FY26 revenue: $24.6 million (+63% YoY); nine-month revenue: $66.5 million (+56% YoY).

• Gross profit for the quarter: $12.9 million (+97% YoY); gross margin: 52.6% (up from 43.4% YoY).

• GAAP net loss: $34.2 million; adjusted EBITDA loss: $21.2 million; operating expenses: $47.7 million (includes $1.5 million non-recurring costs).

• Cash and equivalents: $291 million as of January 31, 2026; net cash provided by financing activities for nine months: $147.3 million.

• Operating cash flow for nine months ended Jan 31, 2026: $(63.0) million; cash used in investing: $30.6 million.

Outlook and guidance

• FY26 revenue guidance raised to $93 million, representing 55% growth over FY25, up from prior $91 million and initial $85 million.

• Management expects continued strong prescription growth, higher revenue per script, and further gross margin expansion toward 70%+ in coming years.

• Existing cash and cash equivalents expected to fund operations and capital needs for at least the next 12 months.

• Confident in delivering top-tier med tech growth in 2027 and beyond, with more details at the next earnings call.