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]
Kestra Medical Technologies Ltd(KMTS) - 2026 Q2 - Quarterly Report