KIRKLAND, Wash., March 17, 2026 (GLOBE NEWSWIRE) — Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a leading wearable medical device and digital healthcare company, today reported financial results for the third quarter fiscal 2026, which ended January 31, 2026. Financial Highlights Generated revenue of $24.6 million in Q3 FY26, an increase of 63% compared to the prior year period.Expanded gross margin to 52.6% in Q3 FY26 compared to 43.4% in the prior year period.Increased FY26 revenue guidance to $93 million, representing growth of 55% compared to FY25. “Kestra delivered another strong quarter of financial performance, generating revenue growth of 63% while expanding gross margin to over 52%,” said Brian Webster, President and CEO. “We also continued to execute on several key operational objectives, including rapid growth of the commercial organization, release of compelling primary results from our FDA post-approval study, fortification of our balance sheet with an equity offering, and entrance into a strategic collaboration with Biobeat Technologies. As we progress on our journey to category leadership, our team remains focused on growing the wearable defibrillator market and executing on our commitments to patients and their prescribers.” Third Quarter Fiscal 2026 Financial Results Total revenue was $24.6 million, an increase of 63% compared to the prior year period. 5,462 prescriptions were written for the ASSURE® system, an increase of 58% compared to the prior year period.Revenue growth was driven by higher market share and wearable cardioverter defibrillator (WCD) market expansion. Revenue also benefited from a higher mix of in-network patients and improvements in revenue cycle management capabilities. Gross profit was $12.9 million compared to $6.5 million in the prior year period. Gross margin expanded to 52.6% compared to 43.4% in the prior year period, driven by volume leverage, a higher mix of in-network patients and cost improvement programs. GAAP operating expenses were $47.7 million and included $1.5 million of non-recurring costs. GAAP operating expenses were $27.1 million in the prior year period. Excluding non-recurring costs and share-based compensation expense, operating expenses were $36.1 million in Q3 FY26 compared to $24.8 million in Q3 FY25. The increase was attributable to growth in expenses related to accelerated commercial expansion and public company costs. GAAP net loss and comprehensive loss was $34.2 million compared to GAAP net loss and comprehensive loss of $21.8 million in the prior year period. Adjusted EBITDA* loss was $21.2 million compared to an adjusted EBITDA loss of $16.3 million in the prior year period. Cash and cash equivalents totaled $291 million as of January 31, 2026. Cash and cash equivalents includes the net proceeds Kestra received from an underwritten public offering of 6.9 million common shares, which closed on December 4, 2025. *Adjusted EBITDA is a non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” below for additional information. A reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure is included in this press release. Fiscal Year 2026 Revenue GuidanceKestra is increasing its FY26 revenue guidance to $93 million, which would represent growth of 55% compared to FY25. This compares to prior FY26 revenue guidance of $91 million and initial FY26 guidance of $85 million. Webcast and Conference CallKestra will host a conference call today at 4:30 p.m. ET to discuss financial results. A live and archived webcast of the event will be available in the “Events” section of the investor relations website. Use of Non-GAAP Financial MeasuresThis press release contains certain financial information that is not presented in conformity with U.S. generally accepted accounting principles (“GAAP”), including Adjusted EBITDA. The non-GAAP financial measures are provided as supplemental information to Kestra’s financial measures presented in this press release that are calculated and presented in accordance with GAAP. Adjusted EBITDA, which is calculated as net income (loss), as adjusted to exclude other income/expense (including interest), income tax expense (benefit), depreciation and amortization expense, share-based compensation expense, and non-recurring expenses, is presented because management believes it allows investors to view the Company’s performance in a manner similar to the method used by management to evaluate the Company’s performance for both strategic and annual operating planning. Management believes that in order to properly understand short-term and long-term financial trends, it is helpful for investors to understand the impact of the items excluded from the calculation of Adjusted EBITDA, in addition to considering the Company’s GAAP financial measures. The excluded items vary in frequency and/or impact on our results of operations and management believes that the excluded items are not reflective of our ongoing core business operations and financial condition. Excluding such items allows investors and analysts to compare our operating performance to other companies in our industry and to compare our period-over-period results. The non-GAAP financial measures used by Kestra may not be the same or calculated in the same manner as those used and calculated by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for Kestra’s financial results prepared and reported in accordance with GAAP. We urge investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate our business. A reconciliation of Adjusted EBITDA reported in this press release to the most comparable GAAP measure for the respective periods appears in the table captioned “Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA” later in this release. Within the accompanying financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Forward-Looking StatementsExcept where otherwise noted, the information contained in this press release is as of March 17, 2026. Statements in this press release and on the related teleconference that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements. Except as required by law, the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about, among other topics, our anticipated operating and financial performance, including financial guidance and projections; business plans, strategy, goals and prospects; and expectations for our products. Given their forward-looking nature, these statements involve substantial risks, uncertainties and potentially inaccurate assumptions, and we cannot ensure that any outcome expressed in these forward-looking statements will be realized in whole or in part. You can identify these statements by the fact that they use future dates or use words such as “will,” “may,” “could,” “likely,” “ongoing,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “assume,” “target,” “forecast,” “guidance,” “goal,” “objective,” “aim,” “seek,” “potential,” “hope” and other words and terms of similar meaning. Kestra’s financial guidance is based on estimates and assumptions that are subject to significant uncertainties. Among the factors that could cause actual results to differ materially from past results and future plans and projected future results are the following: risks related to our limited operating history and history of net losses; our ability to successfully achieve substantial market adoption of our products; competitive pressures; our ability to adapt our manufacturing and production capacities to evolving patterns of demand, governmental actions and customer trends; product defects or complaints and related liability; our ability to obtain and maintain adequate coverage and reimbursement levels for our products; our ability to comply with changing laws and regulatory requirements and resulting costs; our dependence on a limited number of suppliers; risks and uncertainties related to market conditions; and other risks and uncertainties, including those described under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended April 30, 2025 and other filings filed or to be filed with the U.S. Securities and Exchange Commission (“SEC”). These filings, when made, are available on the Investor Relations section of our website at https://investors.kestramedical.com/ and on the SEC’s website at https://sec.gov/. About KestraKestra Medical Technologies, Ltd. is a leading wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease using monitoring and therapeutic intervention technologies that are intuitive, intelligent, and connected. For more information, visit www.kestramedical.com. KESTRA MEDICAL TECHNOLOGIES, LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS(in thousands, except share and per share amounts)(unaudited) Three Months EndedJanuary 31, Nine Months EndedJanuary 31, 2026 2025 2026 2025 Revenue $24,552 $15,090 $66,488 $42,582 Cost of revenue 11,646 8,543 33,307 26,005 Gross profit 12,906 6,547 33,181 16,577 Operating expenses: Research and development 4,972 3,353 13,850 10,266 Selling, general and administrative 42,699 23,795 114,728 64,477 Total operating expenses 47,671 27,148 128,578 74,743 Loss from operations (34,765) (20,601) (95,397) (58,166)Other expense (income): Interest expense 1,888 1,783 5,702 5,974 Interest income (2,163) (628) (6,125) (1,543)Other expense (income) (359) (15) (2,299) 73 Net loss before provision for income taxes (34,131) (21,741) (92,675) (62,670)Provision for income taxes 35 18 102 33 Net loss and comprehensive loss (34,166) (21,759) (92,777) (62,703)Net loss attributable to non-controlling interest — (250) — (942)Net loss and comprehensive loss attributable to Kestra Medical Technologies, Ltd. (34,166) (21,509) (92,777) (61,761)Less: Undeclared preferred stock dividends — 3,324 — 9,030 Net loss attributable to common shareholders, basic and diluted $(34,166) $(24,833) $(92,777) $(70,791) Net loss per share attributable to common shareholders, basic and diluted $(0.61) $(1.25) $(1.76) $(3.56)Weighted-average shares of common shares outstanding, basic and diluted 55,848,413 19,885,382 52,843,097 19,885,382 RECONCILIATION OF GAAP NET LOSS AND COMPREHENSIVE LOSS TO ADJUSTED EBITDA(in thousands)(unaudited) Three Months EndedJanuary 31, Nine Months EndedJanuary 31, 2026 2025 2026 2025 GAAP Net loss and comprehensive loss $(34,166) $(21,759) $(92,777) $(62,703)Non-GAAP Adjustments: Interest expense 1,888 1,783 5,702 5,974 Interest income (2,163) (628) (6,125) (1,543)Other expense (income) (359) (15) (2,299) 73 Provision for income taxes 35 18 102 33 Depreciation expense 1,984 1,888 6,384 6,132 Share-based compensation expense 10,108 459 23,340 1,958 Non-recurring expenses 1,482 1,927 5,396 1,927 Adjusted EBITDA $(21,191) $(16,327) $(60,277) $(48,149) KESTRA MEDICAL TECHNOLOGIES, LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except share and per share amounts)(unaudited) January 31, April 30, 2026 2025 Assets Current assets Cash and cash equivalents $291,321 $237,595 Accounts receivable, net 12,709 8,081 Disposable medical equipment supplies 6,829 6,572 Prepaid expenses and other current assets 3,204 3,080 Total current assets 314,063 255,328 Right-of-use assets 3,419 2,078 Deposits 1,847 2,021 Restricted cash 334 334 Property and equipment, net 53,799 34,830 Other long-term assets 5,880 1,153 Total assets $379,342 $295,744 Liabilities and Shareholders’ Equity Current liabilities Accounts payable $24,023 $23,961 Accrued liabilities 18,898 13,829 Operating lease liabilities, current portion 10 187 Total current liabilities 42,931 37,977 Operating lease liabilities, net of current portion 4,276 3,026 Warrant liabilities 1,745 8,097 Other long-term liabilities 140 140 Long-term debt, net 42,261 41,098 Total liabilities 91,353 90,338 Commitments and contingencies Shareholders’ equity Common Shares, $1.00 par value; 100,000,000 shares authorized as of January 31, 2026 and April 30, 2025; 58,349,053 issued and outstanding as of January 31, 2026 and 51,348,656 shares issued and outstanding as of April 30, 2025 58,349 51,349 Additional paid-in capital 842,666 674,306 Accumulated deficit (613,026) (520,249)Total shareholders’ equity 287,989 205,406 Total liabilities and shareholders’ equity $379,342 $295,744 KESTRA MEDICAL TECHNOLOGIES, LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited) Nine Months EndedJanuary 31, 2026 2025 Cash flows from operating activities Net loss $(92,777) $(62,703)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 6,384 6,132 Loss on disposal of property and equipment 727 882 Reserve for lost equipment and supplies 1,600 647 Provision for uncollectible accounts receivable 1,515 1,883 Interest paid-in-kind — 703 Amortization of debt discounts and issuance costs 1,406 1,031 Share-based compensation expense 23,340 1,958 Non-cash lease expense 273 330 Change in fair value of warrant liabilities (2,297) — Changes in operating assets and liabilities: Disposable medical equipment supplies (466) (2,823)Prepaid expenses and other current assets 421 (431)Accounts receivable (6,143) (7,814)Accounts payable (647) 3,665 Accrued liabilities 4,192 2,730 Operating lease liabilities (541) 228 Other long-term assets 30 30 Net cash used in operating activities (62,983) (53,552)Cash flows from investing activities Purchases of property and equipment (25,228) (15,547)Deposits for medical rental equipment (527) (627)Refund of deposits for medical rental equipment 184 270 Investment in equity security (5,000) — Net cash used in investing activities (30,571) (15,904)Cash flows from financing activities Proceeds from issuance of common stock 149,291 — Payment of equity issuance costs (1,986) (3,293)Deemed dividend for payments to third party on behalf of shareholder (25) (1,648)Proceeds from issuance of redeemable preferred stock — 103,400 Proceeds from issuance of stock to non-controlling interest — 17,100 Net cash provided by financing activities 147,280 115,559 Net increase in cash, cash equivalents and restricted cash 53,726 46,103 Cash, cash equivalents and restricted cash Beginning of period 237,929 8,583 End of period $291,655 $54,686 CONTACT: Investor contact
Neil Bhalodkar
neil.bhalodkar@kestramedical.com
