Kestra Medical Technologies, Ltd.

Q4 FY2026 revenue was $28.6 million, up 66% year over year. Full-year FY2026 revenue was $95 million, up 59% year over year. Q4 gross margin was 54.8%, versus 44.3% in the prior-year period; full-year gross margin was 51.4%, up about 11 percentage points year over year. GAAP operating expenses were $55 million in Q4 versus $55.8 million a year ago; adjusted operating expenses were $44.7 million versus $29.7 million. GAAP net loss was $38.8 million versus $51.1 million, and adjusted EBITDA loss was $26.7 million versus $20.3 million. Cash, cash equivalents and investments were $262 million as of April 30, and cash used in operating activities was $18.7 million versus $24.1 million a year ago. FY2027 revenue guidance is $137 million, up 44% year over year. Management said it expects prescription growth from deeper existing-account penetration and new-account activation, higher in-network mix in the low-to-mid 80s, and continued RCM improvement.

Brian Webster framed the quarter as proof that Kestra’s strategy is working: clinical evidence, physician education, enterprise partnerships, and product innovation are all supporting adoption of ASSURE. He emphasized the company’s mission-driven identity, pointing to patient outcomes and citing the new Heart Rhythm publication as a meaningful step toward broader scientific and guideline recognition. His tone was confident and optimistic, repeatedly highlighting a growing market, a differentiated product, and a strong foundation for durable growth.

Vaseem Mahboob highlighted broad-based financial improvement: revenue growth of 66% in Q4, gross margin rising to 54.8% from 44.3%, and operating cash burn improving to $18.7 million from $24.1 million. He said the margin gains were driven by better unit economics, more in-network patients, and lower cost per fit, and he expects steady gross margin expansion through FY2027 with 70%+ margins in the next few years. He also discussed the $200 million Pharmakon term loan, calling it nondilutive, a 24% reduction in borrowing cost versus the prior loan, and a way to strengthen flexibility for commercial investment and fleet expansion; total liquidity was about $357 million including unused availability.

Analysts focused on whether FY2027 guidance is conservative relative to market growth, share gains, and the expanded sales force. Management said the 44% growth guide reflects a rational, early-year posture while new reps ramp, and that growth should accelerate in the second half as the 6-month ramp period plays out. Questions also centered on the new financing and potential M&A; management said the facility was primarily to lower cost of capital and preserve optionality, with the M&A tranche described as prospective rather than tied to a deal currently in view.