Kestra Medical Technologies (NasdaqGS:KMTS) Q2 2026 Earnings Call December 11, 2025 04:30 PM ET Company ParticipantsStephanie Piazzola - VP of Equity Research Medical TechnologyVaseem Mahboob - CFOBrian Webster - President and CEODavid Roman - Managing DirectorNeil Bhalodkar - VP of Investor RelationsNone - Company RepresentativeConference Call ParticipantsLarry Biegelsen - Senior Medical Device Equity Research AnalystMarie Thibault - Managing Director and Medical Technology and Digital Health AnalystMichae ...

Kestra Medical Technologies (NasdaqGS:KMTS) Q2 2026 Earnings Call December 11, 2025 04:30 PM ET Company ParticipantsStephanie Piazzola - VP of Equity Research Medical TechnologyVaseem Mahboob - CFOBrian Webster - President and CEODavid Roman - Managing DirectorNeil Bhalodkar - VP of Investor RelationsNone - Company RepresentativeConference Call ParticipantsLarry Biegelsen - Senior Medical Device Equity Research AnalystMarie Thibault - Managing Director and Medical Technology and Digital Health AnalystMichae ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2026 was $22.6 million, representing a 53% increase compared to the prior year period [6][18] - Gross margin reached 50.6%, up 11 points year over year, marking the first time it surpassed 50% [7][19] - The company expects continued gross margin expansion, aiming for over 70% in the coming years [8][19] Business Line Data and Key Metrics Changes - Approximately 4,700 prescriptions were written for the Assure system in Q2 2026, contributing to revenue growth [6] - Revenue growth was driven by a 54% year-over-year increase in prescriptions, reflecting market share gains and activation of new accounts [18] Market Data and Key Metrics Changes - The wearable cardioverter defibrillator (WCD) market is underutilized, with only 14% of the eligible U.S. addressable market currently receiving therapy [9] - The WCD market growth has accelerated to low double digits, indicating a multi-billion-dollar market potential in the coming years [13] Company Strategy and Development Direction - The company is focused on expanding its sales organization to penetrate existing accounts and attract new prescribers [13][14] - The strategy includes enhancing revenue cycle management capabilities and increasing the in-network patient mix, which has improved from approximately 70% to the low 80s [15][19] - The company is investing in clinical evidence generation to influence clinical practice and guidelines [12][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong growth, supported by a robust clinical evidence base and an expanding market [17][21] - The company is increasing its fiscal year 2026 revenue guidance to $91 million, reflecting a growth of 52% compared to fiscal year 2025 [21][22] Other Important Information - GAAP operating expenses were $43.2 million in Q2, including non-recurring costs related to professional fees and the recent equity offering [20] - The company reported a GAAP net loss of $32.8 million for the quarter, compared to a loss of $20.6 million in the prior year [21] Q&A Session Summary Question: Guidance for the year and Q3 seasonality - Management discussed the importance of tracking performance on a daily, weekly, and monthly basis, emphasizing a focus on prescription volume growth and in-network mix [25] Question: Use of proceeds from the recent equity offering - The company plans to use the additional capital to strengthen its balance sheet and support key growth drivers [27] Question: Impact of AHA data on market growth - Management noted that the WCD market growth is low double digits, with anecdotal evidence suggesting an increase in clinician awareness and interest following the presentation of clinical data [29] Question: Path for guideline updates - Management clarified that while growth does not rely on guideline changes, they believe the clinical evidence warrants a review [33] Question: Prescription volume sustainability - Management expressed confidence in sustaining prescription growth above 50%, driven by ongoing penetration of existing accounts and the addition of new hospitals [41]

Financial Performance - Revenue for the three months ended October 31, 2025, was $22,565,000, representing a 53.5% increase from $14,710,000 in the same period of 2024[14] - Gross profit for the six months ended October 31, 2025, was $20,276,000, up from $10,030,000 in the prior year, indicating a 102.5% increase[14] - Total operating expenses for the three months ended October 31, 2025, were $43,179,000, compared to $24,964,000 in the same period of 2024, reflecting a 73.0% increase[14] - The net loss for the three months ended October 31, 2025, was $32,785,000, compared to a net loss of $20,621,000 for the same period in 2024, representing a 58.7% increase in losses[14] - For the six months ended October 31, 2025, the company incurred a net loss of $58,611 thousand, compared to a net loss of $40,944 thousand for the same period in 2024, representing an increase of 43% in losses year-over-year[31] - The net loss attributable to common shareholders for the six months ended October 31, 2025, was $58,611,000, compared to $45,958,000 for the same period in 2024[102] - Basic net loss per share attributable to common shareholders for the three months ended October 31, 2025, was $(0.64), compared to $(1.19) for the same period in 2024[102] Cash and Assets - Cash and cash equivalents decreased to $175,424,000 as of October 31, 2025, down from $237,595,000 as of April 30, 2025[12] - Total assets decreased to $246,701,000 as of October 31, 2025, from $295,744,000 as of April 30, 2025[12] - The company reported a total shareholders' equity of $164,081,000 as of October 31, 2025, down from $205,406,000 as of April 30, 2025[12] - As of October 31, 2025, the company had an accumulated deficit of $578,860 thousand[31] - The company had cash and cash equivalents of $175,424,000 as of October 31, 2025, down from $237,595,000 as of April 30, 2025[69] Operating Activities - Cash used in operating activities for the six months ended October 31, 2025, was $44,617 thousand, up from $35,555 thousand in 2024, indicating a 25.8% increase in cash outflow[31] - The company has experienced negative operating cash flows since inception, with net cash used in operating activities totaling $44,617 thousand for the six months ended October 31, 2025[31] Shareholder Equity and Stock Compensation - The company incurred share-based compensation expenses of $13,232 thousand for the six months ended October 31, 2025, compared to $1,499 thousand for the same period in 2024, reflecting a significant increase[21] - Total share-based compensation expense for the three months ended October 31, 2025, was $8,653,000, compared to $1,122,000 for the same period in 2024[93] - The company granted 2,251,618 restricted stock units during the six months ended October 31, 2025, with a weighted average grant date fair value of $16.26[87] - The total unrecognized compensation cost related to unvested market-based restricted stock units was $3,180,000, expected to be recognized over approximately 1.71 years[92] - As of October 31, 2025, there was $32,843,000 of total unrecognized compensation cost related to unvested restricted units expected to be recognized over approximately 2.68 years[89] Debt and Financing - The Company entered into a Credit Agreement on September 29, 2023, providing a Senior Secured Delayed Draw Term Loan Facility of up to $60 million, maturing on September 29, 2028[62] - The Company drew an initial $45 million from the Term Loan 2024 and incurred a facility fee of $600,000 upon the first draw[63] - As of October 31, 2025, the total long-term debt was $41,873,000, an increase from $41,098,000 as of April 30, 2025[68] - The Company recognized total expenses related to the Term Loan 2024 of $3,783,000 for the six months ended October 31, 2025, compared to $3,779,000 for the same period in 2024[68] - The fair value of long-term debt, net of discounts, was approximately $48,330,000 as of October 31, 2025, compared to $47,330,000 as of April 30, 2025[70] Market and Product Strategy - The company plans to continue expanding the commercialization of its ASSURE WCD and associated products as part of its Cardiac Recovery System platform[8] - The company is focused on maintaining regulatory approvals for its products and plans to enter new markets[8] - The company faces risks related to market acceptance, manufacturing scalability, and competition that could impact future performance[8] Other Financial Information - The Company recorded a provision for income taxes of $67,000 for the six months ended October 31, 2025, with an effective tax rate of 0.11%[94] - The Company completed a public offering on December 4, 2025, issuing 6,900,000 common shares at $23.00 per share, resulting in net proceeds of $149.2 million[103] - As of October 31, 2025, there were 7,701,304 potentially dilutive securities outstanding, which were excluded from the computation of weighted-average shares due to their antidilutive impact[102] - The Company’s matching and discretionary contributions to the 401(k) Plan totaled $1,025,000 for the six months ended October 31, 2025[99] - The Company has provided a full valuation allowance against its net deferred tax assets as of October 31, 2025, indicating that realization is not more likely than not[95]

KIRKLAND, Wash., Dec. 11, 2025 (GLOBE NEWSWIRE) -- Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a wearable medical device and digital healthcare company, today reported financial results for the second quarter fiscal 2026, which ended October 31, 2025. Financial Highlights Generated revenue of $22.6 million in Q2 FY26, an increase of 53% compared to the prior year period.Expanded gross margin to 50.6% in Q2 FY26 compared to 39.6% in the prior year period.Increased FY26 revenue guidance to $91 million, ...

Core Viewpoint - Kestra Medical Technologies, Ltd. is set to report its second quarter fiscal 2026 financial results on December 11, 2025, with a conference call scheduled for 4:30 p.m. Eastern Time [1]. Company Overview - Kestra Medical Technologies, Ltd. is a commercial-stage company specializing in wearable medical devices and digital healthcare, aiming to improve patient outcomes in cardiovascular disease through innovative monitoring and therapeutic technologies [3]. - The company's technologies are designed to be intuitive, intelligent, and connected, reflecting its commitment to transforming healthcare delivery [3]. Conference Call Details - A live and archived webcast of the upcoming conference call will be accessible in the "Events" section of the investor relations website, with participants encouraged to register 10 minutes prior to the call [2].

KIRKLAND, Wash., Dec. 02, 2025 (GLOBE NEWSWIRE) -- Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a wearable medical device and digital healthcare company, today announced the pricing of its upsized underwritten public offering of 6,000,000 common shares at a price to the public of $23.00 per share. The gross proceeds to Kestra from the offering, before deducting underwriting discounts and commissions and other offering expenses, are expected to be $138,000,000. In addition, Kestra has granted the underw ...

KIRKLAND, Wash., Dec. 01, 2025 (GLOBE NEWSWIRE) -- Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a wearable medical device and digital healthcare company, today announced an underwritten public offering of 5,500,000 common shares. Kestra is offering these shares pursuant to a registration statement on Form S-1 filed with the Securities and Exchange Commission (“SEC”). Kestra also intends to grant the underwriters a 30-day option to purchase up to an additional 825,000 common shares at the public offerin ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): December 1, 2025 KESTRA MEDICAL TECHNOLOGIES, LTD. (Exact name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation) 3933 Lake Washington Blvd NE Suite 200 Kirkland, Washington 98033 (Address of Principal Executive Offices) (Zip Code) (Commission File Number) ...

KIRKLAND, Wash., Dec. 01, 2025 (GLOBE NEWSWIRE) -- Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a wearable medical device and digital healthcare company, today reported preliminary financial results for the second quarter fiscal 2026 ended October 31, 2025. “Revenue is expected to grow by over 50% in the second quarter and continues to exceed our FY26 plan, reflecting sustained commercial momentum as Kestra grows and penetrates the wearable defibrillator market,” said Brian Webster, President and Chief ...