Kestra Medical Technologies (NASDAQ:KMTS) Posts Quarterly Earnings Results, Misses Expectations By $0.08 EPS

Kestra Medical Technologies (NASDAQ:KMTS) posted its quarterly earnings data on Tuesday. The company reported ($0.67) EPS for the quarter, missing the consensus estimate of ($0.59) by ($0.08), FiscalAI reports. Kestra Medical Technologies had a negative return on equity of 65.49% and a negative net margin of 171.87%.The company had revenue of $28.64 million for the quarter.

Here are the key takeaways from Kestra Medical Technologies’ conference call:

• Revenue accelerated sharply in the fourth quarter to $28.6 million, up 66% year over year, and full-year revenue reached $95 million, up 59% from FY2025.
• Gross margin continued to expand to 54.8% in Q4, marking the 10th straight quarter of sequential improvement, and management still sees a path to 70%+ gross margins over the next few years.
• Commercial momentum remained strong with more than 6,300 ASSURE prescriptions in the quarter, 55% growth in new prescribers during FY2026, and sales territories increasing to about 130 from roughly 80 a year earlier.
• FY2027 guidance calls for 44% revenue growth to $137 million, supported by deeper penetration in existing accounts, new account activation, higher in-network mix, and better revenue cycle management.
• The company emphasized clinical evidence and product innovation, including ACE-PAS recognition in a Heart Rhythm publication, a new enhanced detection algorithm now shipping to all patients, and an expanded product pipeline aimed at further differentiating ASSURE.

Kestra Medical Technologies Price Performance

NASDAQ:KMTS opened at $24.18 on Wednesday. The company has a debt-to-equity ratio of 0.15, a current ratio of 7.32 and a quick ratio of 7.32. The company has a 50 day moving average price of $22.09 and a 200-day moving average price of $22.75. Kestra Medical Technologies has a 1-year low of $13.25 and a 1-year high of $30.00. The firm has a market cap of $1.41 billion, a price-to-earnings ratio of -6.11 and a beta of 0.47.

Insider Transactions at Kestra Medical Technologies

In related news, insider Brian Daniel Webster sold 15,000 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $20.81, for a total transaction of $312,150.00. Following the sale, the insider directly owned 395,467 shares of the company’s stock, valued at approximately $8,229,668.27. This represents a 3.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Company insiders own 3.60% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Farther Finance Advisors LLC acquired a new stake in shares of Kestra Medical Technologies during the 4th quarter valued at about $31,000. Russell Investments Group Ltd. raised its holdings in Kestra Medical Technologies by 43.5% in the 4th quarter. Russell Investments Group Ltd. now owns 1,563 shares of the company’s stock worth $41,000 after purchasing an additional 474 shares during the period. BNP Paribas Financial Markets boosted its position in Kestra Medical Technologies by 148.9% during the third quarter. BNP Paribas Financial Markets now owns 2,738 shares of the company’s stock worth $65,000 after purchasing an additional 1,638 shares in the last quarter. Daiwa Securities Group Inc. purchased a new position in Kestra Medical Technologies during the fourth quarter worth approximately $72,000. Finally, Brown Brothers Harriman & Co. grew its holdings in Kestra Medical Technologies by 26.8% in the third quarter. Brown Brothers Harriman & Co. now owns 3,104 shares of the company’s stock valued at $74,000 after purchasing an additional 656 shares during the period.

Kestra Medical Technologies News Summary

Here are the key news stories impacting Kestra Medical Technologies this week:

• Positive Sentiment: Kestra secured up to $200 million in non-dilutive financing through a five-year term loan facility, which should strengthen its balance sheet and support growth without issuing new shares. Article Title
• Positive Sentiment: The company lifted FY2027 revenue guidance to about $137 million, above Wall Street expectations, and said it is targeting 70%+ gross margins over the next few years, signaling a more promising long-term path to profitability. Article Title
• Neutral Sentiment: Kestra reported fourth-quarter revenue of $28.64 million, which topped estimates, showing continued commercial traction even as profitability remains negative. Article Title
• Neutral Sentiment: The company’s Q4 earnings call and transcript may give investors more detail on management’s growth and margin plans, but the main market-moving themes today were the earnings miss, raised outlook, and financing announcement. Article Title
• Negative Sentiment: Kestra posted a quarterly loss of $0.67 per share, wider than the $0.59 loss analysts expected, reinforcing concerns that the company is still burning cash and has yet to reach profitability. Article Title

Analyst Ratings Changes

A number of equities analysts recently issued reports on KMTS shares. The Goldman Sachs Group reduced their target price on Kestra Medical Technologies from $22.00 to $17.00 and set a “neutral” rating for the company in a research note on Thursday, April 9th. Weiss Ratings upgraded Kestra Medical Technologies from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, June 30th. BTIG Research reissued a “buy” rating and issued a $32.00 price objective on shares of Kestra Medical Technologies in a report on Tuesday, April 7th. Finally, Wall Street Zen upgraded Kestra Medical Technologies from a “sell” rating to a “hold” rating in a research note on Saturday, June 27th. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $27.40.

Kestra Medical Technologies Company Profile

We are a commercial-stage, wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease using monitoring and therapeutic intervention technologies that are intuitive, intelligent, and connected. We have developed and are commercializing our Cardiac Recovery System platform, a comprehensive and advanced system that integrates monitoring, therapeutic treatment, digital health, and patient support services into a single, unified solution. The cornerstone of our Cardiac Recovery System platform is the ASSURE WCD, a next generation wearable cardioverter defibrillator (“WCD”) used to protect patients at an elevated risk of sudden cardiac arrest (“SCA”), a major public health problem that accounts for approximately 50% of all cardiovascular deaths in the U.S.