Kestra Medical Technologies Q4 Earnings Call Highlights

Kestra Medical Technologies Q4 Earnings Call Highlights Written by MarketBeat July 14, 2026 Share Link copied to clipboard. Image from MarketBeat Media, LLC. Key Points 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. MarketBeat previews top five stocks to own in August . 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. Get KMTS alerts: Sign Up 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.” Margins Expand as Rental Model Scales 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. 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. Company Guides for 44% Revenue Growth in Fiscal 2027 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, a