KIRKLAND, Wash., March 25, 2026 (GLOBE NEWSWIRE) -- Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a leading wearable medical device and digital healthcare company, today announced it has been named a finalist in the “Deal of the Year” category for the 2026 GeekWire Awards. Now in its 15th year, the annual awards recognize companies and leaders shaping the Pacific Northwest technology ecosystem, where Kestra continues to expand its presence. The “Deal of the Year” category recognizes impactful transactio ...

Because early detection was matched with clinician engagement, and because protection traveled with them across every transition of care, this vulnerable patient survived a rapidly declining clinical episode. This story represents more than a single intervention and illustrates how the cardiac recovery system supports patients across the recovery journey. What differentiates KESTRA MEDICAL TECHNOLOGIES, LTD. is not just the therapy we deliver, but the system we surround it with: intelligent detection and pr ...

Financial Data and Key Metrics Changes - Total revenue for the third quarter was $24.6 million, representing a 63% increase compared to the prior year period [9][20] - Gross margin improved to 52.6%, up 9 percentage points year-over-year and 200 basis points sequentially, marking the ninth consecutive quarter of sequential gross margin expansion [9][20] - GAAP net loss was $34.2 million, compared to a GAAP net loss of $21.8 million in the prior year period [24] Business Line Data and Key Metrics Changes - The company accepted over 5,400 prescriptions for the ASSURE System, reflecting a 58% year-over-year increase in prescriptions [9][20] - The conversion rate improved to approximately 46%, up from an adjusted conversion rate of 43% in the prior year period [21] Market Data and Key Metrics Changes - The wearable cardioverter defibrillator (WCD) market is estimated to have grown in the low to mid-teens percentage on a dollar basis in calendar year 2025 [10][11] - The company believes the WCD market will expand into a multi-billion-dollar market in the coming years [10] Company Strategy and Development Direction - The company aims to achieve gross margins of 70% or more over the next few years, supported by strong revenue growth and margin expansion [10][20] - A strategic collaboration with Biobeat Technologies was announced to enhance diagnostic insights for patients, integrating their technology into the product portfolio [13][14] - The company is expanding its sales organization to penetrate existing accounts and attract new prescribers, targeting geographies with high volumes of WCD prescriptions [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong performance and the foundation built for durable growth [18][19] - The management highlighted the importance of clinical data from the ACE-PAS study in driving clinician engagement and market expansion [12][48] Other Important Information - The company became an approved Florida managed Medicaid provider, which is expected to enhance market share in Florida [16][60] - The monthly Medicare reimbursement rate for WCDs increased by 2% to $3,589 as of January 1 [17] Q&A Session Summary Question: Thoughts on early 2027 model and $133 million consensus - Management is confident in delivering top-tier med tech growth in 2027 and will provide more details at the next earnings call [29] Question: Acceleration in WCD market growth - Management noted that increased commercial team size and clinical results are driving market growth, with expectations for continued acceleration [31][34] Question: Prescription growth sources - Approximately 70%-75% of prescription growth is attributed to market share shift, with 25% from new prescribers [38] Question: Competitive environment and pricing - Management indicated no pricing headwinds and emphasized ongoing competition without significant obstacles from competitors [42] Question: Florida Medicaid provider status impact - The approval is expected to enhance growth in Florida, although it will take time to see full benefits [60] Question: CapEx spending as a leading indicator - Management indicated that CapEx spending is aligned with the growth strategy, with expectations for continued investment in inventory and service levels [83] Question: Cash burn outlook - Management expects cash burn to remain in the mid-$20 million range for the next year, excluding specific investments [85]

Kestra Medical Technologies (NasdaqGS:KMTS) Q3 2026 Earnings call March 17, 2026 04:30 PM ET Company ParticipantsBrian Webster - President and CEODavid Roman - Managing DirectorNathan Treybeck - VP of Equity ResearchNeil Bhalodkar - VP of Investor RelationsRick Wise - Managing DirectorTravis Steed - Managing Director, Equity Research, and Medical TechnologyVaseem Mahboob - CFOConference Call ParticipantsMarie Thibault - Managing Director and Medical Technology and Digital Health AnalystMatthew O'Brien - Sen ...

Financial Performance - In Q3 2026, revenue reached $24.6 million, reflecting a 63% increase year-over-year [8][19] - Gross margin improved to 52.6%, up 9 percentage points year-over-year and 200 basis points sequentially, marking the ninth consecutive quarter of gross margin expansion [8][19] - The company aims for gross margins of 70% or higher in the coming years [9][20] Business Line Performance - The company accepted over 5,400 prescriptions for the ASSURE System, contributing to a 58% year-over-year increase in prescriptions [8][19] - The conversion rate improved to approximately 46%, up from an adjusted 43% in the prior year [20] Market Dynamics - The wearable cardioverter defibrillator (WCD) market is estimated to have grown in the low to mid-teens percentage range in 2025, with expectations for continued expansion into a multi-billion-dollar market [10][11] - The company has seen increased market share and is actively expanding its sales organization to penetrate existing accounts and attract new prescribers [14][17] Strategic Direction - The company is focused on enhancing its product offerings, including a new ASSURE algorithm update approved by the FDA, aimed at reducing false alarms and inappropriate shocks [12][68] - A strategic collaboration with Biobeat Technologies was announced to integrate advanced blood pressure monitoring into the ASSURE WCD product line [12][13] Management Commentary - Management expressed confidence in the company's growth trajectory, citing strong revenue growth and operational leverage as key drivers for long-term value [9][17] - The management team highlighted the importance of clinical data from the ACE-PAS study in driving clinician engagement and market expansion [11][49] Other Important Information - The company has recently become an approved provider for Florida's managed Medicaid, which is expected to enhance market access and growth in that state [16][60] - The monthly Medicare reimbursement rate for WCDs increased by 2% to $3,589, positively impacting revenue cycle management [16] Q&A Session Summary Question: Thoughts on early 2027 model and consensus - Management is confident in delivering top-tier med tech growth in 2027 but will provide detailed guidance at the next earnings call [29] Question: Acceleration in WCD market growth - The acceleration is attributed to an expanded commercial team and clinical studies highlighting patient risks, which are driving market growth [30][32] Question: Prescription growth sources - Approximately 70%-75% of prescription growth is from market share shift, with 25% from new prescribers [37] Question: Competitive environment and pricing - There are no significant pricing headwinds, and the competitive landscape remains stable with entrenched competitors focusing on service levels [41][46] Question: Florida market access impact - Gaining Medicaid provider status is expected to enhance market share and gross margins in Florida, although growth will be gradual [60][61] Question: Future territory expansion plans - The company is evaluating the pace of territory expansion and is open to accelerating growth based on market conditions [52] Question: Cash burn and CapEx outlook - Cash burn is expected to remain in the mid-$20 million range, with ongoing investments in CapEx to support growth [86]

Financial Performance - Revenue for the three months ended January 31, 2026, was $24.552 million, a 62.5% increase from $15.090 million in the same period of 2025[15] - Gross profit for the three months ended January 31, 2026, was $12.906 million, compared to $6.547 million in the prior year, reflecting a 96.2% increase[15] - Total operating expenses for the three months ended January 31, 2026, were $47.671 million, up from $27.148 million in the same period of 2025, representing a 75.7% increase[15] - The net loss for the three months ended January 31, 2026, was $34.166 million, compared to a net loss of $21.759 million in the same period of 2025, indicating a 56.9% increase in losses[15] - For the nine months ended January 31, 2026, the company reported a net loss of $92,777 thousand, compared to a net loss of $62,703 thousand for the same period in 2025, indicating an increase in losses of approximately 48%[34] - The net loss attributable to common shareholders for the three months ended January 31, 2026, was $34,166, compared to a net loss of $24,833 for the same period in 2025, representing a year-over-year increase of 37%[115] - For the nine months ended January 31, 2026, the net loss attributable to common shareholders was $92,777, compared to $70,791 for the same period in 2025, reflecting a year-over-year increase of 31%[115] Cash and Liquidity - Cash and cash equivalents as of January 31, 2026, were $291.321 million, an increase from $237.595 million as of April 30, 2025[13] - The company reported cash and cash equivalents of $291,321 thousand as of January 31, 2026, providing a liquidity buffer[33] - Cash used in operating activities for the nine months ended January 31, 2026, was $62,983 thousand, up from $53,552 thousand in 2025, reflecting a 17.9% increase in cash outflow[34] - The Company believes existing cash and cash equivalents will fund planned operating expenses and capital expenditures for at least the next 12 months[37] Assets and Liabilities - Total assets as of January 31, 2026, were $379.342 million, compared to $295.744 million as of April 30, 2025, marking a 28.3% increase[13] - Total liabilities as of January 31, 2026, were $91.353 million, slightly up from $90.338 million as of April 30, 2025[13] - As of January 31, 2026, the company had an accumulated deficit of $613,026 thousand, highlighting ongoing financial challenges[34] - The Company’s long-term debt was $42,261, slightly up from $41,098 as of April 30, 2025, an increase of 2.8%[81] Shareholder Information - The weighted-average shares of common stock outstanding for the three months ended January 31, 2026, were 55,848,413, compared to 19,885,382 in the same period of 2025[15] - The Company had 58,349,053 Common Shares issued and outstanding as of January 31, 2026, an increase from 51,348,656 as of April 30, 2025, representing a growth of 13.6%[89] - The basic and diluted net loss per share attributable to common shareholders for the three months ended January 31, 2026, was $(0.61), compared to $(1.25) for the same period in 2025, showing an improvement of 51.2%[115] Research and Development - The company reported a significant increase in research and development expenses, totaling $4.972 million for the three months ended January 31, 2026, compared to $3.353 million in the same period of 2025, a 48.3% increase[15] - The company continues to focus on expanding the commercialization of its ASSURE WCD and related products as part of its Cardiac Recovery System platform[9] - The company entered into a strategic collaboration agreement with Biobeat Technologies, Ltd., which includes research and development funding of up to $2,000 contingent upon achieving specified milestones[116] Investment Activities - The company incurred a net cash used in investing activities of $30,571 thousand for the nine months ended January 31, 2026, compared to $15,904 thousand in 2025, indicating increased investment activity[23] - The company made a $5,000 equity investment in Biobeat's Series B financing, measured at cost and included in Other long-term assets[116] Compensation and Employee Benefits - Share-based compensation expense for the nine months ended January 31, 2026, was $23,340 thousand, significantly higher than $1,958 thousand in the same period of 2025[23] - The Company sponsors a 401(k) Plan for full-time employees, with matching and discretionary contributions totaling $1,628 for the nine months ended January 31, 2026[112] Accounting and Compliance - The Company is evaluating the impact of several new accounting standards, including ASU 2025-05, which addresses credit losses for accounts receivable[63] - The Company has provided a full valuation allowance against its net deferred tax assets as of January 31, 2026, indicating they are not likely to be realized[108] Market and Risk Factors - There have been no material changes to the company's market risk during the nine months ended January 31, 2026[187]

Exhibit 99.1 Kestra Medical Technologies Reports Third Quarter Fiscal 2026 Financial Results KIRKLAND, Wash., March 17, 2026 (GLOBE NEWSWIRE) – Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a leading wearable medical device and digital healthcare company, today reported financial results for the third quarter fiscal 2026, which ended January 31, 2026. Financial Highlights "Kestra delivered another strong quarter of financial performance, generating revenue growth of 63% while expanding gross margin to o ...

KIRKLAND, Wash., March 17, 2026 (GLOBE NEWSWIRE) -- Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a leading wearable medical device and digital healthcare company, today reported financial results for the third quarter fiscal 2026, which ended January 31, 2026. Financial Highlights Generated revenue of $24.6 million in Q3 FY26, an increase of 63% compared to the prior year period.Expanded gross margin to 52.6% in Q3 FY26 compared to 43.4% in the prior year period.Increased FY26 revenue guidance to $93 m ...

Company Overview March 2026 Disclaimer This presentation and the accompanying oral presentation (this "presentation") have been prepared by Kestra Medical Technologies, Ltd. (together with its subsidiaries and affiliates, the "Company") and are made solely for informational purposes only and not for any other purpose. Certain statements in this presentation are forward-looking statements. These statements relate to future events or the future performance of the Company, as well as its business strategy and ...

Company Overview - Kestra Medical Technologies, Ltd. is a leading wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease through intuitive, intelligent, and connected monitoring and therapeutic intervention technologies [3]. Financial Results Announcement - Kestra Medical Technologies will report its third quarter fiscal 2026 financial results on March 17, 2026 [1]. - A conference call will be hosted by management at 4:30 p.m. Eastern Time on the same day [1]. Conference Call Details - A live and archived webcast of the conference call will be available in the "Events" section of the investor relations website [2]. - Participants are encouraged to register on the website 10 minutes prior to the start of the conference call [2].