Kestra Medical Technologies (NASDAQ:KMTS) Announces Earnings Results, Misses Estimates By $0.14 EPS

Posted by Geri Gentry on Sep 16th, 2026

Kestra Medical Technologies (NASDAQ:KMTS – Get Free Report) issued its quarterly earnings data on Monday. The company reported ($0.75) earnings per share for the quarter, missing the consensus estimate of ($0.61) by ($0.14), FiscalAI reports. Kestra Medical Technologies had a negative return on equity of 62.82% and a negative net margin of 140.43%.The business had revenue of $30.97 million during the quarter.

Here are the key takeaways from Kestra Medical Technologies’ conference call:

Positive Sentiment: Kestra reported first-quarter revenue of $31 million, reflecting strong year-over-year growth, and raised fiscal 2027 revenue guidance to $141 million, or 48% growth.
Positive Sentiment: Gross margin expanded to 56.5%, marking the 11th consecutive quarter of sequential improvement. Management now expects margins to reach the mid-70% range over the next two to three years, above its previous 70% target.
Positive Sentiment: Commercial momentum remains strong, with new sales representatives ramping faster, deeper penetration in existing accounts, and market share estimated at approximately 15%. Management cited a growing WCD market, increased payer coverage, and continued share gains as key drivers.
Neutral Sentiment: Kestra is investing in AI and automation for patient adherence, revenue-cycle management, and sales productivity. Management expects limited benefits in fiscal 2027, with more meaningful operating leverage beginning in fiscal 2028 and beyond.
Negative Sentiment: The company remains loss-making, reporting a $44.1 million GAAP net loss, a $24 million adjusted EBITDA loss, and $32.3 million of operating cash usage in the quarter. Management expects cash burn to decline through the year, while fiscal 2027 operating expenses are projected at approximately $220 million.

Kestra Medical Technologies Stock Up 4.7%

Shares of KMTS opened at $25.18 on Wednesday. The company has a debt-to-equity ratio of 0.16, a quick ratio of 4.41 and a current ratio of 4.41. Kestra Medical Technologies has a 52 week low of $17.34 and a 52 week high of $30.00. The stock has a market capitalization of $1.48 billion, a price-to-earnings ratio of -9.43 and a beta of 0.62. The stock has a fifty day moving average of $25.21 and a 200-day moving average of $22.67.

Wall Street Analysts Forecast Growth

KMTS has been the subject of several recent research reports. Oppenheimer initiated coverage on Kestra Medical Technologies in a research note on Tuesday, July 21st. They issued a “market perform” rating for the company. Piper Sandler reaffirmed an “overweight” rating on shares of Kestra Medical Technologies in a report on Tuesday. Weiss Ratings downgraded Kestra Medical Technologies from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, August 31st. Wall Street Zen cut Kestra Medical Technologies from a “hold” rating to a “sell” rating in a research report on Saturday. Finally, Wolfe Research set a $30.00 price target on Kestra Medical Technologies in a research note on Wednesday, July 15th. Four investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $28.38.

Read Our Latest Research Report on KMTS

Insiders Place Their Bets

In other news, insider Timothy P. Moran sold 8,759 shares of the business’s stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $22.61, for a total transaction of $198,040.99. Following the sale, the insider directly owned 68,725 shares in the company, valued at approximately $1,553,872.25. The trade was a 11.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Brian Webster sold 51,900 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $24.52, for a total value of $1,272,588.00. Following the completion of the transaction, the insider directly owned 475,215 shares of the company’s stock, valued at $11,652,271.80. This represents a 9.85% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 239,588 shares of company stock worth $5,802,688. Company insiders own 5.30% of the company’s stock.

Hedge Funds Weigh In On Kestra Medical Technologies

Several large investors have recently modified their holdings of the business. Brown Advisory Inc. grew its stake in shares of Kestra Medical Technologies by 34.1% in the fourth quarter. Brown Advisory Inc. now owns 1,688,356 shares of the company’s stock worth $44,775,000 after purchasing an additional 428,996 shares during the last quarter. Eventide Asset Management LLC raised its position in Kestra Medical Technologies by 5.4% during the 4th quarter. Eventide Asset Management LLC now owns 1,269,651 shares of the company’s stock worth $33,671,000 after purchasing an additional 65,288 shares during the last quarter. Next Century Growth Investors LLC lifted its stake in shares of Kestra Medical Technologies by 154.5% in the fourth quarter. Next Century Growth Investors LLC now owns 465,845 shares of the company’s stock worth $12,354,000 after acquiring an additional 282,832 shares during the period. Summit Partners Public Asset Management LLC acquired a new position in shares of Kestra Medical Technologies in the 4th quarter worth approximately $9,282,000. Finally, UBS Group AG lifted its holdings in Kestra Medical Technologies by 34.9% in the fourth quarter. UBS Group AG now owns 270,058 shares of the company’s stock valued at $7,162,000 after buying an additional 69,908 shares during the period.

Kestra Medical Technologies News Summary

Here are the key news stories impacting Kestra Medical Technologies this week:

Positive Sentiment: First-quarter revenue increased 60% year over year to approximately $31.0 million, exceeding expectations. The company also raised its fiscal 2027 revenue outlook to $141 million, above the roughly $137.1 million consensus estimate. Kestra Medical revenue and guidance article
Positive Sentiment: Management highlighted continued adoption of its wearable cardiac monitoring and protection devices and outlined a long-term goal of achieving gross margins in the mid-70% range. Kestra revenue target and gross margin article
Positive Sentiment: BTIG Research reaffirmed its “Buy” rating and assigned a $32 price target, implying meaningful upside from the reported $25.18 reference price. Piper Sandler also characterized the weakness as a potential buying opportunity despite leverage concerns. Piper Sandler Kestra commentary
Neutral Sentiment: The company’s revenue growth and raised outlook support the expansion story, but management is still investing heavily to scale the business and has not yet reached profitability. Kestra first-quarter fiscal 2027 results
Negative Sentiment: Kestra reported a quarterly loss of $0.75 per share, missing the $0.61 loss expected by analysts. The net loss widened despite the 60% revenue increase, reinforcing concerns over near-term earnings and operating leverage. Kestra quarterly loss report
Negative Sentiment: Investors also reacted to leverage concerns and the company’s deeply negative net margin and return on equity. These issues outweighed the better revenue outlook in the initial market reaction. Kestra earnings reaction

About Kestra Medical Technologies

(Get Free Report)

Kestra Medical Technologies, Inc is a medical device company focused on developing and commercializing technologies for patients at risk of sudden cardiac arrest. The company’s primary product is the ASSURE wearable cardioverter defibrillator, a wearable system designed to continuously monitor a patient’s heart rhythm and deliver an electrical shock when a life-threatening arrhythmia is detected.

The ASSURE system is intended to provide temporary protection for patients who may be at elevated risk of sudden cardiac death but are not yet candidates for, or are awaiting, an implantable cardioverter-defibrillator.