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Kestra Medical Technologies Ltd. (KMTS)
NASDAQ:KMTS
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Kestra Medical Technologies Ltd.
(NASDAQ:KMTS)
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Rating:52Neutral
Price Target:
$23.50
▲(0.95% Upside)
Action:ReiteratedDate:12/12/25
Kestra Medical Technologies Ltd. shows promising revenue growth and clinical validation, which are significant strengths. However, ongoing profitability challenges and bearish technical indicators weigh on the overall score. The recent capital raise and positive study results provide some optimism for future growth.
Positive Factors
Revenue Growth
Sustained 53% YoY revenue growth and a 54% rise in prescriptions indicate durable commercial traction for ASSURE. Coupled with expanded sales coverage (≈100 territories) and raised FY26 guidance to $91M, this supports scalable, multi-quarter revenue expansion driven by adoption.
Margin Expansion
Consecutive gross margin improvements to 50.6% reflect improving unit economics and better revenue mix (higher in-network). Management targets further margin gains (>70%), suggesting sustainable margin tailwinds as volumes scale and revenue cycle efficiencies continue.
Clinical Validation & Strategic Partnerships
The Biobeat partnership and exclusive license expand diagnostic capabilities for ASSURE, while the ACE PAS study (met primary endpoints) provides strong clinical validation. Together these structural moves strengthen product differentiation and long-term adoption potential.
Negative Factors
Ongoing Net Losses
Material quarterly GAAP losses create a persistent profitability gap; negative ROE (-55.41%) shows shareholder capital isn't earning returns yet. Continued losses pressure cash resources and require either durable margin conversion or repeated external financing to sustain growth investments.
Rising Operating Expenses
Rapidly higher operating spend—driven by commercialization and headcount expansion—raises the burn rate and lengthens the runway to profitability. If revenue growth slows, elevated SG&A could force strategic trade-offs or additional capital raises, stressing long-term financial stability.
Reliance on Market Penetration
Kestra's growth depends on expanding a still-underpenetrated WCD market, requiring sustained education, reimbursement progress and sales intensity. Slow adoption or reimbursement headwinds would materially extend the time needed to scale and justify the heavy commercial investment.
Kestra Medical Technologies Ltd. (KMTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.36B
Dividend YieldN/A
Average Volume (3M)310.69K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth62.06%
EPS Growth-41.97%
CountryUS
Employees300
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.64
Shares Outstanding58,349,052
10 Day Avg. Volume502,173
30 Day Avg. Volume310,694
Financial Highlights & Ratios
PEG Ratio-0.69
Price to Book (P/B)-5.17
Price to Sales (P/S)38.89
P/FCF Ratio-12.76
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue15.97
Enterprise Value/Gross Profit34.42
Enterprise Value/Ebitda-10.24
Forecast
1Y Price Target
$29.00Price Target Upside24.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-2.31
Revenue Forecast (FY)$90.94M
Kestra Medical Technologies Ltd. Business Overview & Revenue Model
Company DescriptionKestra Medical Technologies, Ltd. operates as a wearable medical device and digital healthcare company. It focuses on transforming patient outcomes in cardiovascular disease using monitoring and therapeutic intervention technologies that are intuitive, intelligent, and connected. The company develops and commercializes Cardiac Recovery System platform, a system that integrates monitoring, therapeutic treatment, digital health, and patient support services into a single, unified solution. Its Cardiac Recovery System platform is the ASSURE WCD, a wearable cardioverter defibrillator (WCD) used to protect patients at an elevated risk of sudden cardiac arrest (SCA). The company's Cardiac Recovery System platform also includes a suite of integrated digital solutions and services that enable enhanced patient and provider engagement and oversight with the objective of improving patient outcomes. The company was founded in 2014 and is based in Kirkland, Washington.
How the Company Makes MoneyKMTS generates revenue primarily through the sale of its medical devices and diagnostic tools to healthcare providers, hospitals, and clinics. The company has multiple key revenue streams, including direct product sales, subscription-based services for its telehealth platform, and partnerships with pharmaceutical companies for integrated health solutions. Additionally, KMTS may engage in research collaborations and licensing agreements, further contributing to its earnings by allowing other companies to utilize its technology and innovations. Strategic partnerships with healthcare organizations enhance its market reach and foster growth through joint ventures, ultimately leading to increased sales and market penetration.
Kestra Medical Technologies Ltd. Key Performance Indicators (KPIs)
Kestra Medical Technologies Ltd. Earnings Call Summary
Earnings Call Date:Dec 11, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 20, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in revenue and gross margin, supported by positive clinical study outcomes and an expanded sales force. However, the company continues to face challenges with net losses and operating expenses, along with the underpenetrated WCD market. Overall, the positive aspects of revenue growth and clinical validation outweigh the negatives.Q2-2026 Updates
Positive Updates
Strong Revenue Growth
Revenue reached $22.6 million, marking a 53% increase over the prior year period. Prescription volumes increased by 54% year-over-year, reflecting market share gains and activation of new accounts.
Gross Margin Milestone
Gross margin surpassed 50% for the first time in the company's history, reaching 50.6%, up 11 points from the previous year. This marks the eighth consecutive quarter of gross margin expansion.
Positive Clinical Study Results
The ACE PAS study, involving over 21,000 patients, met its primary endpoints, demonstrating the safety and effectiveness of the Assure system. It also highlighted an increase in WCD wear time and a reduction in false alarms.
Increased Revenue Guidance
Fiscal year 2026 revenue guidance was increased to $91 million, representing a 52% growth compared to fiscal year 2025.
Expanded Sales Force
The company expanded its sales organization to approximately 100 active sales territories, up from about 80 at the end of fiscal year 2025.
Improved Revenue Cycle Management
The in-network mix increased to the low eighties, improving revenue cycle metrics and supporting future margin expansion.
Negative Updates
Continued Net Loss
GAAP net loss increased to $32.8 million in the second quarter, compared to a GAAP net loss of $20.6 million in the prior year period.
Dependence on Market Expansion
Despite the growth, the WCD market remains underpenetrated, with only 14% of the eligible US addressable market currently being served.
Increased Operating Expenses
Operating expenses rose to $43.2 million in the second quarter, including $1 million in non-recurring costs, compared to $25 million in the prior year period.
Company Guidance
During the second quarter of fiscal year 2026, KESTRA MEDICAL TECHNOLOGIES, LTD. demonstrated significant financial progress and provided robust guidance. The company reported revenue of $22.6 million, marking a 53% increase compared to the previous year, driven by a 54% rise in prescriptions for their Assure system. This growth was bolstered by achieving a gross margin of 50.6%, an 11-point improvement year-over-year, and the eighth consecutive quarter of gross margin expansion. The company aims for margins above 70% in the coming years. KESTRA's market share has expanded to approximately 13%, and the wearable cardioverter-defibrillator (WCD) market is growing at low double digits. With 100 active sales territories and plans to double their sales force over the next couple of years, KESTRA also increased FY 2026 revenue guidance to $91 million, a 52% growth from FY 2025. The company's conversion rate improved to 48.8%, supported by an increased in-network patient mix. Additionally, the Assure system's ACE PAS study, the largest real-world prospective WCD study, demonstrated the system's effectiveness and safety, potentially influencing future clinical guidelines.Kestra Medical Technologies Ltd. Financial Statement Overview
Summary
Kestra Medical Technologies Ltd. is experiencing strong revenue growth, but profitability remains a significant challenge. The balance sheet is relatively stable with moderate leverage, but the company is not yet profitable. Cash flow improvements are promising, but operational efficiency needs enhancement to achieve sustainable profitability.Income Statement
Kestra Medical Technologies Ltd. has shown significant revenue growth of 137.89% in the latest year, which is a positive indicator of market expansion. However, the company is struggling with profitability, as evidenced by negative net profit margins (-190.28%) and EBIT margins (-177.12%). The gross profit margin has improved to 40.47%, indicating better cost management, but the overall negative margins highlight ongoing operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a manageable debt-to-equity ratio of 0.22, suggesting moderate leverage. However, the company has a negative return on equity (-55.41%), indicating that it is not generating profit from shareholders' equity. The equity ratio stands at 69.45%, reflecting a strong equity base relative to total assets, which is a positive aspect.50
Neutral
Cash Flow
Kestra Medical Technologies Ltd. has experienced a substantial increase in free cash flow growth (143.29%), which is a positive sign. However, the operating cash flow to net income ratio is negative (-2.04), indicating cash flow challenges relative to net income. The free cash flow to net income ratio is positive (1.30), suggesting that the company is generating free cash flow despite net losses.40
Negative
| Breakdown | TTM | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2021 | Apr 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 74.26M | 59.81M | 27.81M | 7.63M | 0.00 | 0.00 |
| Gross Profit | 34.45M | 24.21M | 362.00K | -10.65M | 0.00 | 0.00 |
| EBITDA | -115.81M | -97.98M | -76.31M | -73.74M | -32.33M | -28.84M |
| Net Income | -132.17M | -113.81M | -94.12M | -84.24M | -34.10M | -29.47M |
Balance Sheet | ||||||
| Total Assets | 246.70M | 295.74M | 45.95M | 38.66M | 30.52M | 7.87M |
| Cash, Cash Equivalents and Short-Term Investments | 175.42M | 237.59M | 8.25M | 14.81M | 24.34M | 5.76M |
| Total Debt | 2.93M | 44.31M | 45.17M | 39.13M | 22.85M | 452.00K |
| Total Liabilities | 82.62M | 90.34M | 255.33M | 156.23M | 28.76M | 4.02M |
| Stockholders Equity | 164.08M | 205.41M | -209.38M | -117.58M | 1.77M | 3.86M |
Cash Flow | ||||||
| Free Cash Flow | -114.24M | -101.20M | -84.75M | -85.10M | -30.23M | -30.52M |
| Operating Cash Flow | -86.70M | -77.61M | -72.23M | -69.64M | -29.89M | -30.29M |
| Investing Cash Flow | -27.48M | -23.31M | -12.23M | -15.46M | -334.00K | -232.00K |
| Financing Cash Flow | 212.68M | 330.26M | 77.72M | 96.11M | 48.81M | 30.24M |
Kestra Medical Technologies Ltd. Risk Analysis
Kestra Medical Technologies Ltd. disclosed 75 risk factors in its most recent earnings report. Kestra Medical Technologies Ltd. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kestra Medical Technologies Ltd. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $1.17B | -352.26 | -5.20% | ― | -18.82% | 92.56% | |
52 Neutral | $1.36B | -8.67 | -136.96% | ― | 62.06% | -41.97% | |
52 Neutral | $1.27B | -17.34 | -86.99% | ― | ― | -40.63% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $471.53M | -16.99 | -15.26% | ― | 2.73% | 87.03% | |
51 Neutral | $225.96M | -3.37 | -15.30% | ― | -43.95% | -620.21% | |
46 Neutral | $989.86M | -10.17 | -24.65% | ― | -32.42% | -540.37% |
* Healthcare Sector Average
KMTS
Kestra Medical Technologies Ltd.
23.28
2.29
10.91%
ANGO
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OSUR
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STAA
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19.90
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20.83%
BLFS
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24.20
-0.31
-1.26%
PLSE
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18.73
0.86
4.81%
Kestra Medical Technologies Ltd. Corporate Events
Private Placements and Financing
Kestra Medical Raises $148.4 Million in Public Offering
Positive
Dec 4, 2025
On December 4, 2025, Kestra Medical Technologies, Ltd. successfully closed an underwritten public offering of 6,900,000 common shares, raising approximately $148.4 million. The proceeds are intended to support sales, marketing, commercialization, research and development, clinical studies, and general corporate purposes.
The most recent analyst rating on (KMTS) stock is a Hold with a $22.50 price target. To see the full list of analyst forecasts on Kestra Medical Technologies Ltd. stock, see the KMTS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.