Kestra Medical 2026 Q1 Earnings Strong Performance with 55.4% EPS Improvement

Kestra Medical (KMTS) reported its fiscal 2026 Q1 earnings on Sep 12th, 2025. The company delivered strong performance, with revenue rising 51.5% year-over-year to $19.37 million, and narrowing its per-share loss significantly.

Revenue
Kestra Medical’s total revenue surged by 51.5% to $19.37 million in fiscal 2026 Q1, compared to $12.78 million in the same period in 2025. This substantial growth reflects the company's expanding market presence and effective commercial strategies.

Earnings/Net Income
The company reported a significant improvement in earnings per share (EPS), narrowing its per-share loss to $0.50 in fiscal 2026 Q1, compared to a loss of $1.12 per share in the prior-year period, representing a 55.4% reduction. However, Kestra Medical’s net loss widened to $-25.83 million in fiscal 2026 Q1, compared to $-20.32 million in the prior-year period, signaling an increase in overall expenses.

Price Action
Following the earnings report, Kestra Medical’s stock price experienced a strong rally. The stock surged 9.15% during the latest trading day, 28.41% during the most recent full trading week, and 45.24% month-to-date, indicating robust investor confidence in the company’s growth trajectory.

Post Earnings Price Action Review
Kestra Medical’s stock saw a significant post-earnings rally driven by positive earnings guidance and strong operational performance. The company reported a 51% year-over-year growth in prescriptions and $19.4 million in revenue, while also highlighting key growth drivers such as expanding the sales force and enhancing clinical evidence for the ASSURE system. The stock price surged sharply, reflecting strong investor sentiment and confidence in Kestra Medical’s long-term growth prospects and strategic priorities.

CEO Commentary
Brian Webster, Founder, President, CEO & Director, expressed optimism about Kestra Medical’s strong start to fiscal 2026. He emphasized growth drivers such as expanding the sales force, improving revenue cycle management, and enhancing clinical evidence for the ASSURE system. Webster highlighted strategic priorities including increasing territory coverage, boosting in-network payer mix to nearly 80%, and leveraging clinical specialists to deepen penetration. He underscored the company’s mission-driven culture focused on saving lives and expressed confidence in reaching 70%+ gross margins over the next few years. The tone was strongly positive, reflecting confidence in execution and long-term growth.

Guidance
Kestra Medical raised its fiscal 2026 revenue guidance to $88 million from $85 million, reflecting expectations of continued prescription growth, improved in-network mix, and enhanced revenue cycle management. The company anticipates 47% year-over-year revenue growth driven by market share gains and commercial expansion. Gross margin is expected to continue expanding, with confidence in achieving 70%+ margins over the next few years. Operating expenses are projected to increase due to investments in commercial and RCM resources, though the company maintains that its $201.2 million cash balance is sufficient to support growth and reach cash flow breakeven.

Additional News
Recent market activity includes significant developments in the automotive sector. The company announced that which will be formally launched in the coming months. Additionally, the company announced an increase in its investment in , aiming to expand its market share in the competitive industry. These strategic moves are expected to enhance the company's long-term growth potential and strengthen its competitive position.