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Kestra Medical Technologies Ltd.
(NASDAQ:KMTS)
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Rating:59Neutral
Price Target:
$25.00
▲(31.44% Upside)
Action:Reiterated
Date:07/15/26
KMTS scores in the upper-middle range primarily because strong growth and improving gross margins are offset by very large operating losses and significant cash burn. Technicals add support with an above-trend price and positive MACD, while valuation remains less favorable due to negative earnings and no dividend yield. The latest earnings call lifts the score with strong FY2027 revenue guidance and margin expansion targets, tempered by ongoing EBITDA losses and elevated operating investment.
Positive Factors
Revenue Growth & Commercial Scale
Kestra has established durable top-line momentum as prescriptions, prescribers and facilities expanded materially. Rapid revenue scaling driven by prescription growth and expanded territories supports market penetration, enabling operating leverage as the commercial footprint matures over multiple quarters.
Negative Factors
High Cash Burn & Negative Free Cash Flow
Kestra continues to consume substantial cash as it invests in commercial scale and RCM capabilities. Persistent negative operating and free cash flow require sustained financing or improved operating leverage; extended cash burn heightens dilution or debt dependence risk if revenue or margin progress slows.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Commercial Scale
Kestra has established durable top-line momentum as prescriptions, prescribers and facilities expanded materially. Rapid revenue scaling driven by prescription growth and expanded territories supports market penetration, enabling operating leverage as the commercial footprint matures over multiple quarters.
Read all positive factors
Kestra Medical Technologies Ltd. Key Performance Indicators (KPIs)
Any
Prescriptions For Assure System
Indicates the number of prescriptions written for the Assure System, highlighting the product's market acceptance and potential revenue growth as more healthcare providers adopt this technology.
Indicates the number of prescriptions written for the Assure System, highlighting the product's market acceptance and potential revenue growth as more healthcare providers adopt this technology.
Data provided by:
The Fly
The FlyKestra Medical Technologies Ltd. (KMTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.41B
Dividend YieldN/A
Average Volume (3M)310.69K
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth59.03%
EPS Growth2.13%
CountryUS
Employees330
SectorGeneral
Sector StrengthN/A
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-2.42
Shares Outstanding58,602,497
10 Day Avg. Volume502,173
30 Day Avg. Volume310,694
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)4.66
Price to Sales (P/S)12.72
P/FCF Ratio-10.38
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$30.00Price Target Upside57.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)-2.2
Revenue Forecast (FY)$132.89M
Kestra Medical Technologies Ltd. Business Overview & Revenue Model
Company Description
Kestra Medical Technologies, Ltd. operates at the intersection of wearable medical technology and digital healthcare. Its core mission is to revolutionize patient outcomes in cardiovascular disease through intelligent, intuitive, and connected mon...
How the Company Makes Money
KMTS primarily makes money by providing its wearable cardiac protection solution to patients under prescription and clinical oversight, with revenue typically generated through providing the device and associated monitoring services for the durati...
Kestra Medical Technologies Ltd. Earnings Call Summary
Earnings Call Date:Jul 14, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 10, 2026
Earnings Call Sentiment Positive
The call emphasized robust top-line momentum (66% Q4 revenue growth, 59% FY growth), meaningful gross margin expansion (10+ percentage points QoQ/Yoy improvements), strong clinical validation (ACE-PAS study and publication), and reinforced liquidity via a $200M term loan — all supportive of durable long-term growth. Offsetting these positives are ongoing negative adjusted EBITDA, elevated operating investments (material increases in operating expense excluding nonrecurring items), and short-term phasing risks from rapid hiring and rep ramp-up. Management framed the expense growth as deliberate investment to capture a large underpenetrated market and expects operating leverage to improve over the next several years.Positive Updates
Strong Revenue Growth
Q4 revenue of $28.6M, up 66% year-over-year; full-year fiscal 2026 revenue of $95M, up 59% versus FY2025.
Negative Updates
Adjusted EBITDA and Profitability Pressure
Adjusted EBITDA loss widened to $26.7M in Q4 from a loss of $20.3M in the prior-year period, indicating ongoing negative adjusted profitability despite revenue growth.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Revenue Growth
Q4 revenue of $28.6M, up 66% year-over-year; full-year fiscal 2026 revenue of $95M, up 59% versus FY2025.
Read all positive updates
Company Guidance
Kestra guided to fiscal 2027 revenue of $137 million, up 44% versus FY26 ($95.0M; Q4 revenue $28.6M, +66% YoY), driven by prescription growth (prescriptions rose ~63% YoY in Q4), deeper penetration of existing accounts and new account activation, and an expected in‑network mix in the low‑to‑mid‑80% range; management forecast continued gross‑margin expansion from the Q4 margin of 54.8% (FY26 margin 51.4%) on a path to 70%+ over the next few years, improving revenue‑per‑fit and collections via RCM and AI tools, operating leverage as the commercial footprint scales (ended FY26 with ~130 territories, up from ~80, with roughly +40 reps planned), and declining operating cash burn (Q4 cash used $18.7M vs $24.1M prior year) backed by $262M in cash/investments and approximately $357M total liquidity including a $200M term loan ( $75M funded).Kestra Medical Technologies Ltd. Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
63
Positive
Cash Flow
18
Very Negative
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 95.13M | 59.81M | 27.81M | 7.63M | 0.00 |
| Gross Profit | 48.86M | 24.21M | 362.00K | -10.65M | 0.00 |
| EBITDA | -150.04M | -97.98M | -76.31M | -73.74M | -32.33M |
| Net Income | -131.61M | -113.81M | -94.12M | -84.24M | -34.10M |
Balance Sheet | |||||
| Total Assets | 358.46M | 295.74M | 45.95M | 38.66M | 30.52M |
| Cash, Cash Equivalents and Short-Term Investments | 196.43M | 237.59M | 8.25M | 14.81M | 24.34M |
| Total Debt | 46.79M | 44.31M | 45.17M | 39.13M | 22.85M |
| Total Liabilities | 98.81M | 90.34M | 255.33M | 156.23M | 28.76M |
| Stockholders Equity | 259.66M | 205.41M | -209.38M | -117.58M | 1.77M |
Cash Flow | |||||
| Free Cash Flow | -116.59M | -101.20M | -84.75M | -85.10M | -30.23M |
| Operating Cash Flow | -81.70M | -77.61M | -72.23M | -69.64M | -29.89M |
| Investing Cash Flow | -203.28M | -23.31M | -12.23M | -15.46M | -334.00K |
| Financing Cash Flow | 147.09M | 330.26M | 77.72M | 96.11M | 48.81M |
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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.48B | -140.09 | -2.91% | ― | -5.48% | -666.94% | |
62 Neutral | $584.44M | -16.07 | -17.65% | ― | 9.46% | -6.34% | |
59 Neutral | $1.41B | -9.91 | -68.83% | ― | 59.03% | 2.13% | |
58 Neutral | $1.89B | -25.12 | -86.67% | ― | ― | -13.79% | |
56 Neutral | $1.44B | -69.00 | -6.07% | ― | 4.03% | 70.55% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | $272.64M | -3.81 | -21.50% | ― | -30.08% | -143.79% |
* General Sector Average
KMTS
Kestra Medical Technologies Ltd.
23.98
8.08
50.82%
ANGO
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STAA
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11.62
66.94%
BLFS
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PLSE
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27.38
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81.32%
Kestra Medical Technologies Ltd. Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Kestra Medical Technologies Reports Strong Fiscal 2026 Growth
Positive
Jul 15, 2026
On July 10, 2026, Kestra Medical Technologies secured a new five-year senior secured term loan facility of up to $200 million from funds managed by Pharmakon Advisors, replacing and fully repaying a prior credit agreement with Perceptive Credit Ho...
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.