KIRKLAND, Wash., Aug. 28, 2025 (GLOBE NEWSWIRE) -- Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a wearable medical device and digital healthcare company, today announced that it will report first quarter fiscal 2026 financial results on Thursday, September 11. Management will host a corresponding conference call at 4:30 p.m. Eastern Time. A live and archived webcast of the conference call will be available in the “Events” section of the investor relations website. Participants are encouraged to registe ...

[PART I](index=9&type=section&id=PART%20I) [Item 1. Business](index=9&type=section&id=Item%201.%20Business.) Kestra Medical Technologies, Ltd. is a medical device company focused on cardiovascular disease, offering the ASSURE WCD - Kestra Medical Technologies, Ltd. completed its initial public offering (IPO) on March 7, 2025, and its Common Shares began trading on the Nasdaq Global Select Market on March 6, 2025[4](index=4&type=chunk)[8](index=8&type=chunk)[432](index=432&type=chunk) - The company's core product, the ASSURE WCD, received FDA approval in July 2021 and was fully commercially launched in August 2022, having been worn by over **20,000 patients** since launch[25](index=25&type=chunk)[29](index=29&type=chunk)[54](index=54&type=chunk) Key Financial Highlights (Fiscal Year Ended April 30) | Metric | FY2025 (Millions) | FY2024 (Millions) | YoY Change (%) | | :----------------------- | :---------------- | :---------------- | :------------- | | Revenue | $59.8 | $27.8 | 115% | | Net Loss | $(113.8) | $(94.1) | 21% | | Gross Profit | $24.2 | $0.4 | NM | - The U.S. annual addressable market for WCD therapy is estimated at approximately **$10 billion** as of 2024, with an international market opportunity of approximately **$14 billion**, indicating significant underpenetration (only **14% of eligible U.S. patients** in 2023)[30](index=30&type=chunk)[36](index=36&type=chunk)[43](index=43&type=chunk) - The ASSURE WCD differentiates itself from competitors by offering gender-specific garments, cushioned electrodes for improved ECG signal quality, four channels of high-quality ECG with Adaptive Patient Intelligence (API) to minimize false alarms (**6% false alarm rate** vs. **46% for competitor's device**), and a higher energy shock (**170 joules** vs. **150 joules**)[30](index=30&type=chunk)[31](index=31&type=chunk)[37](index=37&type=chunk) [Overview](index=9&type=section&id=Overview) This section provides an overview of Kestra Medical Technologies, Ltd. and its business operations [Our Success Factors](index=13&type=section&id=Our%20Success%20Factors) The company's success is driven by its innovative WCD technology, patient-centric design, and strategic market penetration [Our Growth Strategies](index=16&type=section&id=Our%20Growth%20Strategies) Kestra focuses on expanding market reach, enhancing product features, and optimizing reimbursement processes to drive future growth [Market Overview](index=18&type=section&id=Market%20Overview) This section describes the wearable cardioverter defibrillator market, including patient demographics and unmet needs [WCD Therapy for Patients at Elevated Risk of SCA](index=20&type=section&id=WCD%20Therapy%20for%20Patients%20at%20Elevated%20Risk%20of%20SCA) WCD therapy provides a critical bridge to permanent implantable defibrillators for patients at high risk of sudden cardiac arrest [Limitations of the Legacy, Commercially Available WCD](index=22&type=section&id=Limitations%20of%20the%20Legacy%2C%20Commercially%20Available%20WCD) Existing WCD devices face limitations in patient comfort, false alarm rates, and overall user experience [Our Solution](index=23&type=section&id=Our%20Solution) Kestra's ASSURE WCD offers an advanced solution addressing the limitations of legacy devices through enhanced design and technology [Treatment with the ASSURE WCD](index=27&type=section&id=Treatment%20with%20the%20ASSURE%20WCD) This section details the clinical application and patient experience with the ASSURE WCD [Our Clinical Results and Studies](index=27&type=section&id=Our%20Clinical%20Results%20and%20Studies) Clinical data demonstrates the effectiveness and safety profile of the ASSURE WCD in preventing sudden cardiac arrest [Sales and Marketing](index=31&type=section&id=Sales%20and%20Marketing) The company employs a targeted sales and marketing strategy to drive adoption among healthcare providers and patients [Third Party Coverage, Reimbursement and Payor Relations](index=32&type=section&id=Third%20Party%20Coverage%2C%20Reimbursement%20and%20Payor%20Relations) Ensuring broad third-party coverage and favorable reimbursement policies is crucial for commercial success [Research & Development](index=33&type=section&id=Research%20%26%20Development) Ongoing research and development efforts focus on product innovation and expanding the Cardiac Recovery System platform [Manufacturing and Supply](index=33&type=section&id=Manufacturing%20and%20Supply) The company manages its manufacturing and supply chain to ensure product availability and quality [Competition](index=34&type=section&id=Competition) Kestra operates in a competitive market, facing established players and new entrants in the WCD and cardiovascular device space [Intellectual Property](index=36&type=section&id=Intellectual%20Property) The company protects its innovations through a portfolio of patents and other intellectual property rights [Government Regulation](index=36&type=section&id=Government%20Regulation) Kestra's products are subject to extensive government regulation, including FDA approvals and compliance requirements [Executive Officers of the Company](index=50&type=section&id=Executive%20Officers%20of%20the%20Company) This section lists the key executive officers responsible for the company's strategic direction and operations [Team Members and Human Capital Resources](index=51&type=section&id=Team%20Members%20and%20Human%20Capital%20Resources) The company's human capital strategy focuses on attracting, developing, and retaining a skilled workforce [Corporate Information](index=51&type=section&id=Corporate%20Information) This section provides general corporate information about Kestra Medical Technologies, Ltd [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors.) The company faces risks including limited operating history, net losses, product dependence, and operational, regulatory, and market challenges - The company has a limited operating history, having fully commercially launched its ASSURE WCD in August 2022, making it difficult to evaluate future success and viability[188](index=188&type=chunk) Net Losses and Accumulated Deficit (Fiscal Year Ended April 30) | Metric | FY2025 (Millions) | FY2024 (Millions) | | :----------------- | :---------------- | :---------------- | | Net Losses | $(113.8) | $(94.1) | | Accumulated Deficit| $(520.2) | $(406.4) | - The company is highly dependent on the lease of its ASSURE WCD for revenue, and its commercial success relies on healthcare providers, hospitals, and patients adopting its solutions, which can be hindered by competition and reluctance to change existing practices[195](index=195&type=chunk)[198](index=198&type=chunk) - Material weaknesses in internal control over financial reporting have been identified, including insufficient accounting resources and control deficiencies over financial statement presentation and IT general controls, which are currently undergoing remediation[281](index=281&type=chunk)[283](index=283&type=chunk)[284](index=284&type=chunk)[524](index=524&type=chunk)[525](index=525&type=chunk)[528](index=528&type=chunk)[529](index=529&type=chunk) - Bain Capital beneficially owns approximately **52.6% of common shares** and controls approximately **48.6% of voting power**, giving it significant influence over corporate decisions, which may conflict with other shareholders' interests[384](index=384&type=chunk) [Risks Related to Our Business](index=52&type=section&id=Risks%20Related%20to%20Our%20Business) The company faces business risks including limited operating history, reliance on a single product, and challenges in market adoption and reimbursement [Risks Related to Our Intellectual Property](index=91&type=section&id=Risks%20Related%20to%20Our%20Intellectual%20Property) The company's intellectual property is subject to risks such as infringement, challenges to validity, and the inability to protect proprietary rights [Risks Related to Government Regulation](index=104&type=section&id=Risks%20Related%20to%20Government%20Regulation) Compliance with extensive and evolving government regulations, including FDA requirements, poses significant risks to the company's operations and product commercialization [Risks Related to Ownership of Our Common Shares](index=117&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Common%20Shares) Ownership of common shares involves risks related to market volatility, lack of dividends, and the influence of significant shareholders [General Risk Factors](index=126&type=section&id=General%20Risk%20Factors) This section outlines general risks that could adversely affect the company's business, financial condition, and operating results [Item 1B. Unresolved Staff Comments](index=127&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments.) The company has no unresolved staff comments to report [Item 1C. Cybersecurity](index=127&type=section&id=Item%201C.%20Cybersecurity.) Kestra maintains a robust cybersecurity risk management program aligned with NIST CSF and ISO 27001, overseen by the Audit Committee, with no material incidents reported - The company's cybersecurity risk management program is aligned with NIST Cybersecurity Framework (NIST CSF) and ISO 27001, covering data breaches, phishing, ransomware, insider threats, and third-party risks[415](index=415&type=chunk)[416](index=416&type=chunk) - All Kestra team members receive mandatory quarterly security awareness training, including phishing tests, and annual HIPAA Covered Entity training[418](index=418&type=chunk)[421](index=421&type=chunk) - The Audit Committee of the Board of Directors oversees the cybersecurity program, receiving regular briefings from the CIO, who has over **12 years of experience** in information security[424](index=424&type=chunk)[426](index=426&type=chunk) - As of the date of this Annual Report, the Company has not experienced any material cybersecurity incidents[422](index=422&type=chunk) [Item 2. Properties](index=129&type=section&id=Item%202.%20Properties.) Kestra Medical Technologies operates from leased facilities, including its Kirkland, WA headquarters and administrative offices, with plans for expansion - All company operations are conducted at leased facilities, including two in Kirkland, WA, and one in Dublin, Ireland[427](index=427&type=chunk)[428](index=428&type=chunk) Leased Facilities Overview | Location | Size (sq ft) | Purpose | Lease Expiry | | :----------------------- | :----------- | :------------------------------------ | :----------- | | 3933 Lake Washington Blvd, Kirkland, WA | 16,700 | R&D, General Admin, Corporate HQ | April 30, 2029 | | 10210 Points Dr NE, Kirkland, WA | 18,500 | General Admin | April 30, 2029 | | 28 Fitzwilliam Place, Dublin 2, Ireland | 300 | General Admin | July 31, 2025 | [Item 3. Legal Proceedings](index=131&type=section&id=Item%203.%20Legal%20Proceedings.) The company is occasionally involved in ordinary course legal proceedings, but does not anticipate material adverse effects on its financial position - The Company is from time to time a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business[429](index=429&type=chunk) - The Company does not expect any of its pending legal proceedings to have a material adverse effect on its results of operations, financial position or cash flows[429](index=429&type=chunk) [Item 4. Mine Safety Disclosures](index=131&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company [PART II](index=132&type=section&id=PART%20II) [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=132&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Kestra Medical Technologies' common shares began trading on Nasdaq in March 2025 post-IPO, with no immediate dividend plans, and proceeds used for growth - Kestra Medical Technologies' common shares began trading on the Nasdaq Global Select Market under the symbol 'KMTS' on March 6, 2025[432](index=432&type=chunk) - As of July 16, 2025, there were **361 registered holders** of record for the company's common shares[433](index=433&type=chunk) - The company has never declared or paid cash dividends and does not expect to do so in the foreseeable future, prioritizing reinvestment of earnings into business operations and growth[434](index=434&type=chunk)[125](index=125&type=chunk) IPO Proceeds (March 2025) | Item | Amount (Millions) | | :--------------------------------- | :---------------- | | Shares Issued and Sold | 13,664,704 | | Public Offering Price per Share | $17.00 | | Gross Proceeds | $232.3 | | Underwriting Discounts & Commissions | $16.5 | | Net Proceeds | $215.8 | [Item 6. [Reserved]](index=132&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=133&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section reviews Kestra's financial performance, highlighting rapid revenue growth, continued net losses, and significantly boosted liquidity from its recent IPO - The company is a commercial-stage medical device and digital healthcare company focused on cardiovascular disease, with its Cardiac Recovery System platform centered around the ASSURE WCD[440](index=440&type=chunk) Financial Performance Summary (Fiscal Year Ended April 30) | Metric | FY2025 (Millions) | FY2024 (Millions) | YoY Change (%) | | :----------------- | :---------------- | :---------------- | :------------- | | Revenue | $59.8 | $27.8 | 115% | | Gross Profit | $24.2 | $0.4 | NM | | Net Loss | $(113.8) | $(94.1) | 21% | | Cash & Equivalents | $237.6 | $8.2 | 2797.6% | | Accumulated Deficit| $(520.2) | $(406.4) | 28% | - Revenue growth was primarily driven by an **88% increase** in the number of patients using the product and a **15% increase** in reimbursement realization due to additional payor contracts and enhanced collection efforts[462](index=462&type=chunk) - Gross profit significantly increased due to revenue growth and a **47% decrease** in cost of revenues per patient, resulting from improved medical equipment utilization and manufacturing cost reduction programs[464](index=464&type=chunk) - The company's liquidity was significantly boosted by **$215.8 million** in net proceeds from its IPO in March 2025, which, along with existing cash and revenue, is expected to fund operations for at least the next **12 months**[446](index=446&type=chunk)[447](index=447&type=chunk)[472](index=472&type=chunk) [Overview](index=133&type=section&id=Overview) This section provides an overview of the company's financial condition and results of operations [Key Factors Affecting Our Results of Operations and Performance](index=134&type=section&id=Key%20Factors%20Affecting%20Our%20Results%20of%20Operations%20and%20Performance) Key factors influencing financial results include patient adoption, reimbursement rates, and operational efficiency [Key Components of Our Results of Operations](index=134&type=section&id=Key%20Components%20of%20Our%20Results%20of%20Operations) This section details the primary components of revenue, cost of revenue, and operating expenses [Results of Operations](index=136&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's financial performance for the reported periods [Liquidity and Capital Resources](index=139&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity and capital resources are discussed, including cash position, debt, and funding strategies [Off-Balance Sheet Arrangements](index=144&type=section&id=Off-Balance%20Sheet%20Arrangements) This section discloses any off-balance sheet arrangements that could have a material effect on the company's financial condition [Critical Accounting Policies and Significant Management Estimates](index=144&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Management%20Estimates) This section outlines the critical accounting policies and significant management estimates used in financial reporting [Emerging Growth Company and Smaller Reporting Company Status](index=147&type=section&id=Emerging%20Growth%20Company%20and%20Smaller%20Reporting%20Company%20Status) The company's status as an emerging growth and smaller reporting company impacts its regulatory compliance and disclosure requirements [Recently Adopted and Issued Accounting Pronouncements](index=148&type=section&id=Recently%20Adopted%20and%20Issued%20Accounting%20Pronouncements) This section details the impact of recently adopted and issued accounting pronouncements on the company's financial statements [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=148&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) Kestra Medical Technologies faces market risks from interest rates, credit concentrations, and inflation, though current impacts are not significant - The company's exposure to interest rate risk from cash deposits and the Term Loan is not significant, with a hypothetical **10% change** in rates having no material impact on financial statements[515](index=515&type=chunk)[516](index=516&type=chunk) Cash, Cash Equivalents and Restricted Cash Balances (Fiscal Year Ended April 30) | Metric | FY2025 (Millions) | FY2024 (Millions) | | :----------------------------------- | :---------------- | :---------------- | | Cash, Cash Equivalents & Restricted Cash | $237.9 | $8.6 | | Uninsured Balances (Cayman Islands) | $0.3 | $0.3 | - The effects of inflation on the company's results of operations and financial condition have been immaterial to date, but future inflation could have an adverse impact[519](index=519&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=150&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data.) The consolidated financial statements and supplementary data are filed as part of this Annual Report - The consolidated financial statements and notes are included in this Annual Report starting on page F-1[520](index=520&type=chunk) [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=150&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure.) There have been no changes in or disagreements with accountants on accounting and financial disclosure [Item 9A. Controls and Procedures](index=150&type=section&id=Item%209A.%20Controls%20and%20Procedures.) Management concluded disclosure controls were ineffective as of April 30, 2025, due to material weaknesses in internal control over financial reporting, with ongoing remediation - Management concluded that the company's disclosure controls and procedures were not effective as of April 30, 2025, due to material weaknesses in internal control over financial reporting[522](index=522&type=chunk) - Identified material weaknesses include an ineffective control environment (lack of sufficient accounting, finance, and IT resources), ineffective controls for non-routine/complex transactions, inadequate segregation of duties for manual journal entries, and deficiencies in IT general controls[524](index=524&type=chunk)[525](index=525&type=chunk)[526](index=526&type=chunk)[528](index=528&type=chunk)[529](index=529&type=chunk) - Remediation plans are ongoing and include hiring additional qualified personnel, engaging third parties for technical accounting and control design, and enhancing IT governance processes, with full remediation anticipated beyond fiscal year 2025[530](index=530&type=chunk)[531](index=531&type=chunk)[532](index=532&type=chunk) [Item 9B. Other Information](index=152&type=section&id=Item%209B.%20Other%20Information.) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during FY2025 - No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal year ended April 30, 2025[536](index=536&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=152&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections.) There are no disclosures regarding foreign jurisdictions that prevent inspections [PART III](index=154&type=section&id=PART%20III) [Item 10. Directors, Executive Officers and Corporate Governance](index=154&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance.) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2025 Proxy Statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the definitive Proxy Statement for the 2025 Annual Meeting of Shareholders[539](index=539&type=chunk) - The company has adopted a Code of Business Conduct and Ethics applicable to all directors, officers, and employees, and insider trading policies to ensure compliance with relevant laws and regulations[540](index=540&type=chunk)[542](index=542&type=chunk) [Item 11. Executive Compensation](index=154&type=section&id=Item%2011.%20Executive%20Compensation.) Executive compensation information is incorporated by reference from the 2025 Proxy Statement - Information on executive compensation is incorporated by reference from the definitive Proxy Statement for the 2025 Annual Meeting of Shareholders[543](index=543&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=154&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters.) Security ownership information for beneficial owners and management is incorporated by reference from the 2025 Proxy Statement - Information on security ownership of certain beneficial owners and management is incorporated by reference from the definitive Proxy Statement for the 2025 Annual Meeting of Shareholders[544](index=544&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=154&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence.) Information on related transactions and director independence is incorporated by reference from the 2025 Proxy Statement - Information on certain relationships and related transactions, and director independence, is incorporated by reference from the definitive Proxy Statement for the 2025 Annual Meeting of Shareholders[545](index=545&type=chunk) [Item 14. Principal Accounting Fees and Services](index=154&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services.) Principal accounting fees and services information is incorporated by reference from the 2025 Proxy Statement - Information on principal accounting fees and services is incorporated by reference from the definitive Proxy Statement for the 2025 Annual Meeting of Shareholders[546](index=546&type=chunk) [PART IV](index=155&type=section&id=PART%20IV) [Item 15. Exhibits, Financial Statement Schedules](index=155&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules.) This section lists financial statements, schedules, and various exhibits filed as part of the Annual Report - The Annual Report includes financial statements, schedules, and a comprehensive list of exhibits[549](index=549&type=chunk)[551](index=551&type=chunk) - Exhibits include corporate governance documents (Certificate of Incorporation, Bye-laws), financial agreements (Warrants, Credit Agreement), compensation plans (Omnibus Incentive Plan, Employment Agreements), and regulatory certifications (SOX 302/906)[553](index=553&type=chunk)[555](index=555&type=chunk) [Item 16. Form 10-K Summary](index=155&type=section&id=Item%2016.%20Form%2010-K%20Summary.) This item indicates that no Form 10-K Summary is provided [Financial Statements](index=160&type=section&id=Financial%20Statements) [Report of Independent Registered Public Accounting Firm](index=161&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PricewaterhouseCoopers LLP issued an unqualified opinion on Kestra's consolidated financial statements, noting a history of negative operating cash flows and losses - PricewaterhouseCoopers LLP provided an unqualified opinion on the consolidated financial statements for FY225 and FY2024, affirming fair presentation in accordance with US GAAP[565](index=565&type=chunk) - The report highlights the company's history of negative operating cash flows and significant losses from operations since its inception[569](index=569&type=chunk) [Consolidated Balance Sheets](index=162&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show a significant increase in total assets and a shift to positive shareholders' equity in FY2025, driven by the IPO Consolidated Balance Sheet Highlights (in thousands) | Metric | April 30, 2025 | April 30, 2024 | | :------------------------- | :------------- | :------------- | | Total Assets | $295,744 | $45,949 | | Cash and cash equivalents | $237,595 | $8,249 | | Total Liabilities | $90,338 | $78,216 | | Redeemable Preferred Stock | $0 | $177,110 | | Total Shareholders' Equity (Deficit) | $205,406 | $(209,377) | - Cash and cash equivalents increased significantly from **$8.2 million** in FY2024 to **$237.6 million** in FY2025, largely due to IPO proceeds[573](index=573&type=chunk) - Shareholders' equity transitioned from a deficit of **$209.4 million** in FY2024 to a positive **$205.4 million** in FY2025, reflecting the impact of the IPO and capital contributions[573](index=573&type=chunk) [Consolidated Statements of Operations and Comprehensive Loss](index=163&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The consolidated statements show substantial revenue growth and improved gross profit in FY2025, but also increased operating expenses leading to a higher net loss Consolidated Statements of Operations Highlights (in thousands) | Metric | Year Ended April 30, 2025 | Year Ended April 30, 2024 | YoY Change (%) | | :--------------------------------------- | :------------------------ | :------------------------ | :------------- | | Revenue | $59,815 | $27,814 | 115% | | Cost of revenue | $35,605 | $27,452 | 30% | | Gross profit | $24,210 | $362 | NM | | Research and development | $15,652 | $15,490 | 1% | | Selling, general and administrative | $114,936 | $69,935 | 64% | | Total operating expenses | $130,588 | $85,425 | 53% | | Loss from operations | $(106,378) | $(85,063) | 25% | | Net loss and comprehensive loss | $(113,814) | $(94,120) | 21% | | Net loss per share (basic and diluted) | $(5.13) | $(5.07) | 1.2% | - Revenue increased by **$32.0 million (115%)** in FY2025, driven by increased patient usage and higher reimbursement realization[462](index=462&type=chunk)[574](index=574&type=chunk) - Gross profit saw a substantial increase of **$23.8 million**, reaching **$24.2 million** in FY2025, primarily due to revenue growth and a **47% decrease** in cost of revenues per patient[464](index=464&type=chunk)[574](index=574&type=chunk) - Selling, general and administrative expenses increased by **$45.0 million (64%)** in FY2025, mainly due to higher personnel expenses and professional services related to the IPO[466](index=466&type=chunk)[574](index=574&type=chunk) [Consolidated Statements of Changes in Redeemable Preferred Stock and Shareholders' Equity (Deficit)](index=164&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Redeemable%20Preferred%20Stock%20and%20Shareholders%27%20Equity%20%28Deficit%29) The consolidated statements reflect a significant capital structure transformation, with preferred stock conversion and IPO proceeds boosting equity despite ongoing net losses - Redeemable preferred stock, which stood at **$177.1 million** in FY2024, was fully converted into Common Shares in connection with the IPO in FY2025[578](index=578&type=chunk)[691](index=691&type=chunk) - The IPO resulted in the issuance of **13,664,704 common shares**, contributing significantly to additional paid-in capital[579](index=579&type=chunk) - Total shareholders' equity shifted from a deficit of **$(209.4) million** in FY2024 to a positive **$205.4 million** in FY2025, primarily due to the IPO proceeds and capital contributions, despite a net loss of **$(113.8) million** in FY2025[578](index=578&type=chunk)[580](index=580&type=chunk) - Share-based compensation expense recognized was **$24.3 million** in FY2025, a significant increase from **$1.5 million** in FY2024, partly due to the acceleration of vesting for Incentive Units during the IPO[579](index=579&type=chunk)[699](index=699&type=chunk)[706](index=706&type=chunk) [Consolidated Statements of Cash Flows](index=167&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements show continued negative operating cash flow, offset by a surge in financing activities from IPO proceeds, leading to a substantial cash increase Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Year Ended April 30, 2025 | Year Ended April 30, 2024 | | :--------------------------------- | :------------------------ | :------------------------ | | Net cash used in operating activities | $(77,608) | $(72,235) | | Net cash used in investing activities | $(23,308) | $(12,229) | | Net cash provided by financing activities | $330,262 | $77,725 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $229,346 | $(6,739) | | Cash, cash equivalents and restricted cash (End of period) | $237,929 | $8,583 | - Cash used in operating activities increased by **$5.4 million (7.4%)** in FY2025, primarily due to the net loss and changes in operating assets and liabilities[485](index=485&type=chunk) - Cash provided by financing activities dramatically increased by **$252.5 million (324.9%)** in FY2025, driven by **$215.8 million** in IPO proceeds and **$103.4 million** from redeemable preferred stock issuances[489](index=489&type=chunk) - Purchases of property and equipment, including medical rental equipment, increased from **$12.2 million** in FY2024 to **$22.9 million** in FY2025[487](index=487&type=chunk)[488](index=488&type=chunk) [Notes to Consolidated Financial Statements](index=169&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's formation, IPO, significant accounting policies, debt, fair value, income taxes, and emerging growth company status - Kestra Medical Technologies, Ltd. was formed in Bermuda in May 2021 for its IPO, which completed on March 7, 2025, leading to organizational transactions where pre-existing interests were exchanged into Common Shares[589](index=589&type=chunk)[592](index=592&type=chunk)[593](index=593&type=chunk)[594](index=594&type=chunk) - The company changed the estimated useful life of medical rental equipment (therapy cables from **2 to 8 years**, batteries from **2 to 6 years**) prospectively in FY2025, reducing depreciation expense by **$1.4 million**[614](index=614&type=chunk)[615](index=615&type=chunk) - The company accounts for revenue from ASSURE WCD leases as operating leases, recognizing revenue on a straight-line basis over the one-month non-cancellable lease term when collectability is probable[630](index=630&type=chunk)[631](index=631&type=chunk) - As of April 30, 2025, the company had **$45.0 million** outstanding under the Term Loan 2024, which bears interest at Term SOFR plus **7.25%** and includes financial covenants[679](index=679&type=chunk) Deferred Tax Assets and Liabilities (in thousands) | Metric | April 30, 2025 | April 30, 2024 | | :------------------------- | :------------- | :------------- | | Total Deferred Tax Assets | $110,698 | $83,625 | | Valuation Allowance | $(103,815) | $(79,028) | | Net Deferred Tax Assets | $6,883 | $4,597 | | Total Deferred Tax Liabilities | $(7,023) | $(4,673) | - The company has applied a full valuation allowance against its net deferred tax assets due to the unlikelihood of realizing the benefits of these deductible differences, given its history of net losses[712](index=712&type=chunk)[716](index=716&type=chunk) [1. The Company](index=169&type=section&id=1.%20The%20Company) This note describes the company's formation, business, and recent initial public offering [2. Significant Accounting Policies](index=170&type=section&id=2.%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and methods used in preparing the consolidated financial statements [3. Prepaid Expenses and Other Current Assets](index=176&type=section&id=3.%20Prepaid%20Expenses%20and%20Other%20Current%20Assets) This note provides details on the composition of prepaid expenses and other current assets [4. Property and Equipment](index=177&type=section&id=4.%20Property%20and%20Equipment) This note details the company's property and equipment, including depreciation policies and changes in useful lives [5. Leases](index=177&type=section&id=5.%20Leases) This note describes the company's lease arrangements, including operating lease liabilities and right-of-use assets [6. Accrued Liabilities](index=178&type=section&id=6.%20Accrued%20Liabilities) This note provides a breakdown of the company's accrued liabilities [7. Long-Term Debt](index=178&type=section&id=7.%20Long-Term%20Debt) This note details the company's long-term debt obligations, including terms, interest rates, and covenants [8. Fair Value Measurement](index=181&type=section&id=8.%20Fair%20Value%20Measurement) This note explains the methodologies and inputs used for fair value measurements of financial instruments [9. Common Shares](index=182&type=section&id=9.%20Common%20Shares) This note provides information on the company's common shares, including authorized and issued amounts [10. Redeemable Preferred Stock](index=182&type=section&id=10.%20Redeemable%20Preferred%20Stock) This note details the redeemable preferred stock, including its conversion to common shares during the IPO [11. Non-Controlling Interest](index=182&type=section&id=11.%20Non-Controlling%20Interest) This note describes the non-controlling interest in the company's consolidated financial statements [12. Equity Incentive Plan](index=183&type=section&id=12.%20Equity%20Incentive%20Plan) This note outlines the company's equity incentive plan, including stock options and share-based compensation [13. Income Taxes](index=185&type=section&id=13.%20Income%20Taxes) This note provides information on income tax provisions, deferred tax assets and liabilities, and valuation allowances [14. Commitments and Contingencies](index=188&type=section&id=14.%20Commitments%20and%20Contingencies) This note discloses the company's commitments and contingencies, including legal proceedings and contractual obligations [15. Defined Contribution Plan](index=188&type=section&id=15.%20Defined%20Contribution%20Plan) This note describes the company's defined contribution retirement plan for eligible employees [16. Net Loss Per Share Attributable to Common Shareholders](index=188&type=section&id=16.%20Net%20Loss%20Per%20Share%20Attributable%20to%20Common%20Shareholders) This note details the calculation of basic and diluted net loss per share attributable to common shareholders

Company Overview - Kestra Medical Technologies, Ltd. is a commercial-stage wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease through monitoring and therapeutic intervention technologies that are intuitive, intelligent, and connected [5] Industry Recognition - Kestra Medical Technologies has been recognized as a 2025 Top Workplaces Industry winner by Energage, highlighting its commitment to building a people-first workplace culture [1][2] - The Top Workplaces award is based on feedback from a research-backed employee engagement survey, emphasizing the importance of employee voice and engagement in the workplace [3][4] Leadership Perspective - The recognition as a Top Workplace reflects the dedication of Kestra's team members and their commitment to the company's mission of empowering providers and improving patient outcomes [3] - The CEO of Energage stated that earning a Top Workplaces award is a badge of honor for companies, as it comes authentically from their employees, which is crucial in today's market [4]

Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $17.2 million, representing a 71% increase year-over-year [9][24] - For fiscal year 2025, total revenue reached $59.8 million, a 115% increase compared to fiscal year 2024 [24] - Gross margin improved to 44.3% in Q4 2025 from 13.9% in the prior year [10][25] - Fiscal year 2025 gross margin was 40.5%, up from 1.3% in fiscal year 2024 [11][25] - GAAP net loss for Q4 2025 was $51.1 million, compared to a loss of $22.3 million in the prior year [29] - Adjusted EBITDA loss for Q4 2025 was $20.3 million, compared to a loss of $16.5 million in the prior year [29] Business Line Data and Key Metrics Changes - The Assure system generated over 3,900 prescriptions in Q4 2025, a 43% increase year-over-year [9] - Revenue growth was driven by a higher mix of in-network patients and improvements in revenue cycle management capabilities [24][25] Market Data and Key Metrics Changes - Covered lives for the Assure system now total over 285 million health plan members in the U.S. [13] - The company is targeting geographies with high volumes of WCD prescriptions and strong in-network payer coverage [12] Company Strategy and Development Direction - The company aims to expand its commercial team and enhance revenue cycle management capabilities [11][12] - Plans to nearly double sales coverage over the next few years, increasing from approximately 80 sales territories [12] - The company is focused on continuous innovation and has over 365 patent assets [14][15] - The goal is to make the Assure system the standard of care for patients at risk of sudden cardiac arrest [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving significant operating leverage and gross margin expansion over the next few years [11][30] - The company expects revenue of $85 million for fiscal year 2026, a 42% increase compared to fiscal year 2025 [30] - Management highlighted the underutilization of WCD therapy, indicating a significant market opportunity [16][17] Other Important Information - The company is not subject to competitive bidding due to the Assure system being a class III medical device [26] - The company is focused on building clinical evidence to support the safety and efficacy of the Assure system [15][84] Q&A Session Summary Question: Guidance for fiscal year 2026 and underlying assumptions - Management indicated that revenue growth will be driven by sales territory productivity, expansion plans, and penetration of existing accounts [33][35] Question: Margin expansion potential - Management noted that margin expansion is expected due to increasing volumes and improved revenue per fit [37][38] Question: Sole source contract with a provider network - Management explained that the contract allows for better patient management and smoother revenue cycle processes [40][42] Question: Seasonality considerations for fiscal year 2026 - Management stated that prescription growth is expected to average 40% per quarter, with higher conversion rates in the first half of the year [44][45] Question: Competitive response and guidance - Management clarified that the guidance reflects normal scaling and territory ramp-up, with no significant competitive issues [48][50] Question: Conversion rate drivers - Management identified fill rate, claim conversion, and in-network patient mix as key drivers of the conversion rate [59][61] Question: Plans for randomized trials - Management is focused on executing the post-approval study and leveraging the data from the registry [83][85]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Kestra achieved strong fiscal 2025 results, driven by ASSURE® system demand, improved gross margin, and operational progress, with positive FY26 guidance [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO highlighted strong FY25, driven by ASSURE® demand, improved gross margin, and operational achievements - Accelerating demand for the ASSURE® cardiac recovery system, benefiting from heightened prescriber awareness and positive patient experiences[2](index=2&type=chunk) - Meaningful improvement in gross margin, attributed to attractive unit economics and positive leverage inherent in the business model[2](index=2&type=chunk) - Progress on key operational objectives, including significant growth of the commercial organization and planned enhancements to revenue cycle capabilities[2](index=2&type=chunk) [Overall Financial Highlights](index=1&type=section&id=Overall%20Financial%20Highlights) Kestra reported significant Q4 and FY25 revenue growth and gross margin expansion, initiating FY26 guidance Key Financial Highlights (Q4 FY25 vs. Prior Year & FY25 vs. FY24) | Metric | Q4 FY25 | Q4 Prior Year | Change (YoY) | FY25 | FY24 | Change (YoY) | | :----- | :------ | :------------ | :----------- | :--- | :--- | :----------- | | Revenue | $17.2M | $10.054M | +71% | $59.8M | $27.814M | +115% | | Gross Margin | 44.3% | 13.9% | +30.4 pp | 40.5% | 1.3% | +39.2 pp | | FY26 Revenue Guidance | - | - | - | $85M | - | +42% (vs FY25) | [Fourth Quarter Fiscal 2025 Financial Results](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Financial%20Results) Kestra's Q4 FY25 financial results detail revenue, gross profit, operating expenses, net loss, and cash position [Revenue and Prescriptions](index=1&type=section&id=Q4%20Revenue%20and%20Prescriptions) Kestra's Q4 FY25 revenue increased by 71% to $17.2 million, supported by a 43% rise in ASSURE® system prescriptions Q4 FY25 Revenue and Prescriptions | Metric | Q4 FY25 | Q4 Prior Year | Change (YoY) | | :----- | :------ | :------------ | :----------- | | Total Revenue | $17.2M | $10.054M | +71% | | ASSURE® Prescriptions | 3,903 | 2,730 | +43% | - Revenue growth was driven by a higher share of wallet with existing customers, activation of new accounts, a higher mix of in-network patients, and improvements in revenue cycle management capabilities[5](index=5&type=chunk) [Gross Profit and Margin](index=1&type=section&id=Q4%20Gross%20Profit%20and%20Margin) Q4 FY25 gross profit surged to $7.6 million, with gross margin expanding to 44.3% due to volume leverage Q4 FY25 Gross Profit and Margin | Metric | Q4 FY25 | Q4 Prior Year | Change (YoY) | | :----- | :------ | :------------ | :----------- | | Gross Profit | $7.6M | $1.4M | +442.8% | | Gross Margin | 44.3% | 13.9% | +30.4 pp | - Gross margin expanded due to volume leverage and a higher mix of in-network patients[5](index=5&type=chunk) [Operating Expenses](index=1&type=section&id=Q4%20Operating%20Expenses) Q4 FY25 GAAP operating expenses increased to $55.8 million, including significant share-based compensation and IPO-related costs Q4 FY25 Operating Expenses | Metric | Q4 FY25 | Q4 Prior Year | Change (YoY) | | :----- | :------ | :------------ | :----------- | | GAAP Operating Expenses | $55.8M | $21.7M | +157.1% | | Share-based Compensation Expense | $22.3M | $0.389M | +5629.9% | | IPO Professional Services Expenses | $3.8M | $0 | N/A | | Adjusted Operating Expenses (excl. SBC & IPO) | $29.7M | $21.4M | +38.8% | - Share-based compensation expense in Q4 included one-time impacts from accelerated vesting of incentive units and the issuance of stock options to Kestra team members due to the company's IPO in March[5](index=5&type=chunk) - The increase in adjusted operating expenses was attributable to growth in expenses related to commercial and revenue cycle resources[5](index=5&type=chunk) [Net Loss and Adjusted EBITDA](index=1&type=section&id=Q4%20Net%20Loss%20and%20Adjusted%20EBITDA) Kestra reported a GAAP net loss of $51.1 million and an Adjusted EBITDA loss of $20.3 million in Q4 FY25 Q4 FY25 Net Loss and Adjusted EBITDA | Metric | Q4 FY25 | Q4 Prior Year | Change (YoY) | | :----- | :------ | :------------ | :----------- | | GAAP Net Loss and Comprehensive Loss | $(51.1)M | $(22.3)M | +129.1% (larger loss) | | Adjusted EBITDA Loss | $(20.3)M | $(16.5)M | +23.0% (larger loss) | [Cash Position](index=2&type=section&id=Q4%20Cash%20Position) Kestra's cash and cash equivalents significantly increased to $237.6 million as of April 30, 2025 Cash and Cash Equivalents | Metric | April 30, 2025 | April 30, 2024 | | :----- | :------------- | :------------- | | Cash and Cash Equivalents | $237.6M | $8.249M | [Fiscal Year 2025 Financial Results](index=2&type=section&id=Fiscal%20Year%202025%20Financial%20Results) Kestra's full fiscal year 2025 financial results detail revenue, gross profit, operating expenses, and net loss [Revenue and Prescriptions](index=2&type=section&id=FY25%20Revenue%20and%20Prescriptions) Kestra's FY25 total revenue reached $59.8 million, a 115% increase, driven by a 72% rise in ASSURE® system prescriptions FY25 Revenue and Prescriptions | Metric | FY25 | FY24 | Change (YoY) | | :----- | :--- | :--- | :----------- | | Total Revenue | $59.8M | $27.814M | +115% | | ASSURE® Prescriptions | 13,193 | 7,670 | +72% | [Gross Profit and Margin](index=2&type=section&id=FY25%20Gross%20Profit%20and%20Margin) FY25 gross profit dramatically increased to $24.2 million, with gross margin expanding to 40.5% FY25 Gross Profit and Margin | Metric | FY25 | FY24 | Change (YoY) | | :----- | :--- | :--- | :----------- | | Gross Profit | $24.2M | $0.4M | +5950% | | Gross Margin | 40.5% | 1.3% | +39.2 pp | [Operating Expenses](index=2&type=section&id=FY25%20Operating%20Expenses) FY25 GAAP operating expenses were $130.6 million, with adjusted operating expenses at $100.6 million FY25 Operating Expenses | Metric | FY25 | FY24 | Change (YoY) | | :----- | :--- | :--- | :----------- | | GAAP Operating Expenses | $130.6M | $85.4M | +52.9% | | Adjusted Operating Expenses (excl. SBC & IPO) | $100.6M | $83.9M | +19.9% | [Net Loss and Adjusted EBITDA](index=2&type=section&id=FY25%20Net%20Loss%20and%20Adjusted%20EBITDA) Kestra reported a GAAP net loss of $113.8 million for FY25, with an Adjusted EBITDA loss of $68.4 million FY25 Net Loss and Adjusted EBITDA | Metric | FY25 | FY24 | Change (YoY) | | :----- | :--- | :--- | :----------- | | GAAP Net Loss and Comprehensive Loss | $(113.8)M | $(94.1)M | +20.9% (larger loss) | | Adjusted EBITDA Loss | $(68.4)M | $(72.0)M | -5.0% (smaller loss) | [Fiscal Year 2026 Revenue Guidance](index=2&type=section&id=Fiscal%20Year%202026%20Revenue%20Guidance) Kestra projects FY26 revenue of $85 million, representing a 42% increase over FY25 actuals FY26 Revenue Guidance | Metric | FY26 Guidance | FY25 Actual | Projected Change (YoY) | | :----- | :------------ | :---------- | :--------------------- | | Revenue | $85M | $59.8M | +42% | [Use of Non-GAAP Financial Measures](index=2&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) This section defines Adjusted EBITDA as a non-GAAP measure, explaining its rationale and limitations for financial analysis [Adjusted EBITDA Definition and Rationale](index=2&type=section&id=Adjusted%20EBITDA%20Definition%20and%20Rationale) Adjusted EBITDA is a non-GAAP measure used by management for performance evaluation, excluding non-core operational items - Adjusted EBITDA is a non-GAAP financial measure calculated as net income (loss) adjusted to exclude other income/expense (including interest), income tax expense (benefit), depreciation and amortization expense, share-based compensation expense, and expenses related to Kestra's initial public offering[12](index=12&type=chunk) - Management believes Adjusted EBITDA allows investors to view the Company's performance in a manner similar to the method used by management to evaluate performance for strategic and annual operating planning, as excluded items are not reflective of ongoing core business operations[12](index=12&type=chunk) - Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for GAAP financial results; investors are urged to review the reconciliation to comparable GAAP measures[13](index=13&type=chunk) [Company Overview](index=3&type=section&id=Company%20Overview) Kestra Medical Technologies is a commercial-stage wearable medical device and digital healthcare company focused on cardiovascular patient outcomes - Kestra Medical Technologies, Ltd. is a commercial-stage wearable medical device and digital healthcare company[16](index=16&type=chunk) - The company focuses on transforming patient outcomes in cardiovascular disease using monitoring and therapeutic intervention technologies that are intuitive, intelligent, and connected[16](index=16&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section provides a disclaimer on forward-looking statements, outlining risks and uncertainties that could impact actual results - Statements expressing a belief, expectation, or intention, as well as those that are not historical fact, are forward-looking statements and involve substantial risks, uncertainties, and potentially inaccurate assumptions[15](index=15&type=chunk) - Factors that could cause actual results to differ materially include risks related to limited operating history, market adoption, competitive pressures, product defects, ability to obtain adequate coverage and reimbursement, regulatory compliance, and dependence on a limited number of suppliers[15](index=15&type=chunk) - The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law[15](index=15&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents Kestra's consolidated financial statements, including balance sheets, statements of operations, and EBITDA reconciliation [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Kestra's balance sheets show a significant increase in assets and a shift to positive shareholders' equity due to the IPO Consolidated Balance Sheet Highlights (as of April 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change | | :----- | :------------------ | :------------------ | :----- | | Cash and cash equivalents | $237,595 | $8,249 | +2779.1% | | Total current assets | $255,328 | $14,907 | +1612.8% | | Total assets | $295,744 | $45,949 | +543.6% | | Total liabilities | $90,338 | $78,216 | +15.5% | | Total shareholders' equity (deficit) | $205,406 | $(209,377) | Shift from deficit to equity | [Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The statements of operations highlight strong revenue growth and gross margin expansion, alongside increased operating expenses and net losses Consolidated Statements of Operations Highlights (Year Ended April 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (YoY) | | :----- | :------------------ | :------------------ | :----------- | | Revenue | $59,815 | $27,814 | +115.0% | | Gross profit | $24,210 | $362 | +5952.5% | | Total operating expenses | $130,588 | $85,425 | +52.9% | | Net loss and comprehensive loss | $(113,814) | $(94,120) | +20.9% (larger loss) | | Net loss per share attributable to common shareholders, basic and diluted | $(5.13) | $(5.07) | +1.2% (larger loss per share) | [Reconciliation of GAAP Net Loss to Adjusted EBITDA](index=5&type=section&id=Reconciliation%20of%20GAAP%20Net%20Loss%20to%20Adjusted%20EBITDA) This section reconciles GAAP net loss to Adjusted EBITDA for FY25, showing adjustments for non-operating and non-cash items Adjustments from GAAP Net Loss to Adjusted EBITDA (Year Ended April 30) | Adjustment | FY25 (in thousands) | FY24 (in thousands) | | :--------- | :------------------ | :------------------ | | GAAP Net loss and comprehensive loss | $(113,814) | $(94,120) | | Interest expense | $7,734 | $6,230 | | Depreciation expense | $7,968 | $11,560 | | Share-based compensation expense | $24,271 | $1,488 | | IPO expense | $5,736 | $0 | | Adjusted EBITDA | $(68,403) | $(72,015) | [Additional Information](index=2&type=section&id=Additional%20Information) This section provides details on the webcast and conference call for financial results, along with investor contact information [Webcast and Conference Call](index=2&type=section&id=Webcast%20and%20Conference%20Call) Kestra hosted a conference call on July 15, 2025, to discuss Q4 and FY25 results, with an archived webcast available - A conference call was hosted on July 15, 2025, at 4:30 p.m. ET to discuss fourth quarter and fiscal year 2025 financial results[10](index=10&type=chunk) - A live and archived webcast of the event is available in the 'Events' section of the investor relations website[10](index=10&type=chunk) [Investor Contact](index=3&type=section&id=Investor%20Contact) Investor inquiries can be directed to Neil Bhalodkar via email - Investor contact: Neil Bhalodkar, neil.bhalodkar@kestramedical.com[17](index=17&type=chunk)

Core Insights - Kestra Medical Technologies, Ltd. reported strong financial results for Q4 and FY25, driven by increased demand for its ASSURE® cardiac recovery system [3][5][6] - The company achieved a total revenue of $59.8 million in FY25, marking a 115% increase compared to FY24 [5][6] - Gross margin improved significantly, reaching 44.3% in Q4 FY25 and 40.5% for FY25, compared to 13.9% and 1.3% in the prior periods respectively [6][15] Financial Performance - Q4 FY25 revenue was $17.2 million, a 71% increase year-over-year, with 3,903 prescriptions written for the ASSURE® system, up 43% from the previous year [6][7] - The company generated a gross profit of $7.6 million in Q4 FY25, compared to $1.4 million in the same period last year [7][20] - GAAP net loss for Q4 FY25 was $51.1 million, compared to a loss of $22.3 million in Q4 FY24 [7][21] Operational Highlights - The company wrote a total of 13,193 prescriptions for the ASSURE® system in FY25, a 72% increase from FY24 [15] - Operating expenses for FY25 were $130.6 million, up from $85.4 million in FY24, largely due to increased commercial and revenue cycle resources [15][21] - Cash and cash equivalents stood at $237.6 million as of April 30, 2025, a significant increase from $8.2 million a year earlier [18] Future Outlook - Kestra has initiated revenue guidance for FY26 at $85 million, representing a 42% increase compared to FY25 [6][9] - The company remains focused on innovation and enhancing prescriber and patient support to drive market expansion [3][6]

Company Overview - Kestra Medical Technologies, Ltd. is a commercial-stage 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 fourth quarter and fiscal year 2025 financial results on July 15, 2025 [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 at least 10 minutes prior to the start of the conference call [2]

Core Points - Kestra Medical Technologies, Ltd. will be added to the Russell 3000® Index, with automatic inclusion in the Russell 2000® Index, effective after the U.S. market close on June 27, 2025 [1] - The Russell indexes capture the 4,000 largest U.S. stocks as of April 30, ranked by total market capitalization, and are widely used by investment managers and institutional investors for index funds and benchmarks [2] - The inclusion in the Russell indexes is seen as a significant milestone for Kestra following its initial public offering in March 2025, reflecting the company's commitment to expanding its market presence and creating long-term shareholder value [3] Company Overview - Kestra Medical Technologies, Ltd. is a commercial-stage wearable medical device and digital healthcare company focused on improving patient outcomes in cardiovascular disease through innovative monitoring and therapeutic intervention technologies [4]

Summary of Kestra Medical Technologies (KMTS) FY Conference Call Company Overview - Kestra Medical Technologies is a newly public company focused on protecting at-risk cardiac patients with its Asure wearable defibrillator product [2][3] - The company went public in March 2025 and has completed its first quarter as a public entity [2] Target Patient Population - The primary patient population includes those who have experienced a heart attack and those with non-ischemic cardiomyopathy or heart failure [3][4] - Approximately 40% of patients using the Asure device will eventually receive an implanted device [4][5] Market Dynamics - The total addressable market (TAM) in the U.S. is approximately 850,000 patients annually, with a revenue market size of about $1 billion [8][9] - Current penetration is around 120,000 patients, indicating significant growth potential [9] - The market is expected to grow at mid-single digits, with continuous price increases tied to reimbursement rates [10][13] Competitive Landscape - Kestra Medical is positioned as a second entrant in a market dominated by a long-standing competitor, which has been in the market for 20 years [11][12] - Initial feedback from payers and prescribers indicates a positive reception to the differentiated product offering [12] - The competitor has employed various tactics to defend market share, including questioning Kestra's experience and financial stability [15][16] Product Differentiation - The Asure device has a significantly lower false alarm rate (under 6%) compared to the competitor's (approximately 46%) [30] - The product is designed for comfort and includes a digital suite for real-time monitoring, which is not offered by competitors [32] Sales and Marketing Strategy - The company has expanded its sales team and territories significantly since its IPO, enhancing its market presence [21][54] - Positive feedback from physicians indicates that the product is viewed as a valuable diagnostic tool, not just a defibrillator [24][25] Financial Performance and Projections - The company has seen a sequential increase in gross margins over five quarters, with expectations to achieve 70% gross margins in the near future [59][61] - The rental model allows for high incremental margins, with a projected EBITDA margin of over 25% at $250 million in revenue [62] Revenue Cycle Management - The revenue cycle management (RCM) process is crucial for ensuring timely payments from payers, with a mix of in-network and out-of-network patients affecting cash flow [63][64] - The company has secured coverage with major payers, including Kaiser, enhancing its revenue potential [65] Upcoming Developments - A significant clinical study involving over 20,000 patients is expected to conclude in the next 60 to 90 days, which will provide substantial clinical evidence for the product [68][70] - The company aims to present findings at major cardiology conferences, which could enhance visibility and credibility [69] Key Takeaways - Kestra Medical is positioned in a large and growing market with a superior product offering and established reimbursement guidelines [72] - The company is focused on expanding its market penetration and improving patient outcomes, with a strong commitment to service delivery [51][73]

Group 1 - Kestra Medical Technologies, Ltd. (KMTS) went public in early March, presenting a promising investment opportunity due to its cardiac recovery system's rapid growth [1] - The investing group "Value In Corporate Events" focuses on providing actionable ideas related to major corporate events such as IPOs, mergers & acquisitions, and earnings reports [1] - The group covers approximately 10 major events each month, aiming to identify the best investment opportunities [1]