Kestra Medical Technologies, Ltd. Common Stock

Kestra Medical Technologies raised its fiscal 2027 revenue guidance to $141 million from a prior $137 million, representing 48% growth over fiscal 2026, after first-quarter revenue grew 60% year-over-year to $31 million. Gross margin rose to 56.5% from 45.7% a year earlier, which CEO Brian Webster said marked the 11th consecutive quarter of sequential gross margin expansion. Webster also lifted the company's longer-term gross margin target to the mid-70s within the next few years, a meaningful increase from the previously communicated 70% goal. CFO Vaseem Mahboob attributed the quarter to continued WCD market expansion, competitive share gains, a higher mix of in-network patients and improvements in revenue cycle management, and said the second half of the year should be faster than the first as sales representatives ramp up. The quarter included a GAAP net loss of $44.1 million and an adjusted EBITDA loss of $24 million, while cash, cash equivalents and investments totaled $245 million, with liquidity of approximately $320 million including a new $200 million term loan facility announced in July.

Kestra Medical Technologies has entered into a five-year term loan facility with Pharmakon Advisors for up to $200 million in non-dilutive financing. The deal includes a $75 million tranche funded at closing, which retired an existing $45 million term loan and covered fees, with additional tranches of $25 million available through July 2027, $50 million available through June 2028 contingent on $150 million in trailing 12-month revenue, and a $50 million uncommitted tranche for acquisitions. The loan features 48 months of interest-only payments, extendable by 12 months upon meeting revenue milestones, with interest at the 3-month SOFR plus 5.5% and a 3.25% floor. Kestra reported $262 million in cash and investments as of April 30, 2026, and total liquidity of approximately $357 million including the new facility. CEO Brian Webster said the financing strengthens the balance sheet, lowers the cost of capital, and provides flexibility for growth investments.

Kestra Medical Technologies reported fourth-quarter fiscal 2026 revenue of $28.6 million, a 66% increase driven by market share gains and expansion of the wearable cardioverter defibrillator category. Full-year revenue reached $95.1 million, up 59%, with gross margin expanding to 54.8% in the quarter and 51.4% for the year. The company wrote 6,357 prescriptions for its ASSURE system in Q4, a 63% jump, and ended the fiscal year with 130 sales territories, up from 80. Kestra guided for fiscal 2027 revenue of $137 million, representing 44% growth, and announced a new $200 million term loan facility with Pharmakon that reduces its cost of capital by 24% while providing total liquidity of $357 million.