Kestra Medical Technologies (KMTS) Q1 2027 earnings summary

Executive summary

• Revenue for Q1 FY27 was $31.0 million, up 60% year-over-year, driven by market expansion, competitive share gains, and increased patient adoption of the ASSURE® WCD platform.

• Gross margin expanded to 56.5%, up from 45.7% year-over-year, marking the 11th consecutive quarter of margin expansion and reflecting improved utilization and cost efficiencies.

• Net loss widened to $44.1 million from $25.8 million year-over-year, primarily due to higher operating expenses and a $6.3 million loss on extinguishment of debt.

• Continued investments in technology, AI, automation, commercial expansion, R&D, and infrastructure to drive operational efficiency and scalability.

• Commercial team expansion and territory splits are accelerating market penetration and rep productivity.

Financial highlights

• Q1 revenue reached $31.0 million, a 60% year-over-year increase, with gross profit rising to $17.5 million from $8.9 million.

• Gross margin improved to 56.5% from 45.7% year-over-year, driven by higher in-network mix, cost improvements, and better equipment utilization.

• GAAP operating expenses were $55.2 million, including $1.4 million in non-recurring items; adjusted OpEx was $44.2 million.

• GAAP net loss was $44.1 million, with adjusted EBITDA loss at $24.0 million versus $19.4 million prior year.

• Cash, cash equivalents, and investments totaled $244.7 million as of July 31, 2026; total liquidity including term loan was ~$320 million.

Outlook and guidance

• FY 2027 revenue guidance raised to $141 million, representing 48% growth over FY 2026 and up from prior guidance of $137 million.

• Expect stronger growth in the second half of FY 2027 as new reps ramp and territory expansion continues.

• Gross margin target increased to mid-70% over the next few years, up from previous 70% outlook.

• OpEx for FY 2027 expected at $220 million, with R&D spend returning to historical 5-7% of revenue in H2.

• Existing liquidity is expected to fund operations and capital needs for at least the next 12 months, though additional funding may be required if cash generation is lower or expenses are higher than planned.