Kestra Medical Posts 59% Revenue Growth, Guides Lower for FY27
Kestra Medical Technologies (KMTS) closed fiscal 2026 with $95.1 million in revenue, up 59% from the prior year, even as its adjusted EBITDA loss widened to $87.0 million.
Kestra Medical Technologies (KMTS), maker of the wearable ASSURE cardiac defibrillator system, closed its fiscal fourth quarter with revenue of $28.6 million, up 66% from a year earlier, the fastest year-over-year pace of the fiscal year. Full-year revenue reached $95.1 million, a 59% increase over fiscal 2025.
The quarter capped a year in which growth accelerated even as guidance was repeatedly revised upward. Kestra began fiscal 2026 targeting $85 million in revenue, then raised that figure to $88 million after the first quarter, $91 million after the second and $93 million after the third, with each increase tied to accelerating demand. Quarterly revenue climbed from $19.4 million in the first quarter to $22.6 million, $24.6 million and finally $28.6 million, while year-over-year growth rates moved from 52% to 53% to 63% before reaching 66% in the fourth quarter.
Gross margin expanded in each of the last five quarters, reaching 54.8% in the fourth quarter from 45.7% a year earlier, a run the company attributed to volume leverage and a higher mix of in-network patients. ASSURE prescription volume grew 63% year over year in the fourth quarter, extending a streak of accelerating volume growth that has tracked closely with revenue, indicating that unit growth rather than pricing has driven the top line.
Profitability metrics moved in different directions depending on measure. Adjusted EBITDA loss widened to $26.7 million in the fourth quarter from $20.3 million a year earlier, bringing the full-year adjusted loss to $87.0 million versus $68.4 million in fiscal 2025, as adjusted operating expenses rose to $44.7 million from $29.7 million on accelerated commercial expansion. GAAP net loss for the quarter narrowed to $38.8 million from $51.1 million, though the prior-year quarter had included one-time items such as $2.7 million in other expense that did not recur. Full-year GAAP net loss widened to $131.6 million from $113.8 million. GAAP operating expenses in the fourth quarter were essentially flat at $55.0 million versus $55.8 million a year earlier, a break from the sharp increases seen earlier in the year, when third-quarter GAAP opex rose 76% to $47.7 million from $27.1 million.
Operating cash use improved in the fourth quarter, with $18.7 million consumed versus $24.1 million a year earlier, the first quarter this year in which cash burn eased even as the adjusted EBITDA loss widened. Cash and investments stood at $262.2 million at quarter end, down from $291.3 million in the third quarter, which had been lifted by a $148 million equity offering that closed December 4, 2025.
For fiscal 2027, Kestra guided to $137 million in revenue, implying 44% growth, its first forward guide of that kind and a deceleration from the 59% growth realized in fiscal 2026.
The company also disclosed that its ASSURE system had protected 18,000 patients from sudden cardiac arrest during fiscal 2026, a cumulative patient-impact figure not previously reported in this form, alongside continued reference to its strategic collaboration with Biobeat Technologies first disclosed in the second-quarter release.