What does Kestra Medical do and what are its main business segments?

What is the revenue and EPS growth rate for Kestra Medical year over year?

Did Kestra Medical beat or miss consensus estimates last quarter?

What is Kestra Medical's gross profit margin?

What guidance did Kestra Medical's management provide for the next earnings period?

What is the market's earnings forecast for Kestra Medical next quarter?

What factors drove the changes in Kestra Medical's revenue and profit?

What is Kestra Medical's latest dividend and current dividend yield?

- **Revenue Growth Accelerates**: Q1 2026 revenue up 52% YoY to $19.4M, driven by 51% prescription growth. 
- **Gross Margin Expansion**: 45.7% (vs. 32.9% prior year), on track for 70%+ in a few years. 
- **Clinical Validation**: Late-breaking AHA study to present 25,000-patient data, solidifying compliance and safety leadership. 
- **Market Opportunity**: 6x underserved patients in $1B+ WCD market. 
- **Operational Efficiency**: 80% in-network mix, 47% conversion rate, and $201M cash runway.

**【CEO Summary Section】**
- Q1 2026 revenue reached $19.4 million, up 52% YoY, driven by 51% YoY increase in prescriptions (4,200+ ASSURE system prescriptions). 
- Gross margin expanded to 45.7% (vs. 32.9% prior year), with 7 consecutive quarters of margin improvement. 
- Key growth drivers: 
  1. Sales expansion (80+ territories, targeting high-WCD geographies) 
  2. RCM improvements (in-network mix 80% vs. 70% at IPO) 
  3. Fleet scale (3 patient wears/device/year) 
  4. Clinical evidence (FDA post-approval study enrollment complete)
- WCD market penetration at ~14%, with 6x underserved patients. Late-breaking AHA study will present 25,000-patient data on compliance, safety, and outcomes.

**【CFO Financial Commentary】**
- Q1 GAAP net loss: $25.8M (vs. $20.3M prior year). Adjusted EBITDA loss: $19.4M (vs. $15.7M). 
- FY26 revenue guidance raised to $88M (47% YoY growth). 
- Conversion rate 47% (vs. 40% prior year), driven by: 
  - 20% cost per fit decline 
  - 20% revenue per fit increase 
  - 80% in-network mix (vs. 70% at IPO)
- Cash reserves: $201.2M, with $15M available under term loan. 
- Targeting 70%+ gross margins through scale and volume leverage.

**【Q&A Highlights】**
- **Prescription Growth**: Sequential +300 prescriptions, annualizing to ~14% market share. 
- **In-Network Strategy**: Focused on 3,000+ payers, prioritizing high-WCD geographies. 
- **Compliance**: Median daily wear >23 hours, sustained adherence >90 days. 
- **Competitive Position**: Incumbent competitor's SCD PROTECT study validates WCD need, but Kestra offers superior compliance and outcomes. 
- **OpEx Cadence**: Steady territory expansion with ~50% U.S. coverage, targeting 100% over time.

Kestra Medical Technologies, Ltd. (KMTS) Q1 2026 Earnings Call Transcript

- **Revenue Surge**: Q4 FY25 revenue up 71% YoY to $17.2M, FY25 total $59.8M (115% YoY growth). 
- **Gross Margin Soars**: Q4 gross margin 44.3% (vs. 13.9% prior year), FY25 margin 40.5% (vs. 1.3% FY24). Targeting 70%+ by 2026.
- **Market Expansion**: 80 sales territories (67% YoY growth), 285M+ in-network patients, 43% prescription increase.
- **Clinical Superiority**: ASSURE false alarm rate 6% (vs. 46% competitor), 23.2-hour daily wear, 96% shock efficacy.
- **2026 Outlook**: $85M revenue (42% growth), 40%+ prescription growth, 70%+ in-network mix, $40M+ stock comp expenses.

**【CEO Summary Section】**
- **Revenue Growth**: Q4 FY25 revenue of $17.2M, up 71% YoY, driven by 43% increase in prescriptions (3,900+ ASSURE system prescriptions). FY25 total revenue $59.8M, up 115% YoY.
- **Gross Margin Expansion**: Q4 FY25 gross margin 44.3% (vs. 13.9% prior year), FY25 gross margin 40.5% (vs. 1.3% FY24). Targeting 70%+ gross margin over next few years.
- **Market Penetration**: 80 sales territories as of FY25 end (up 67% YoY), with plans to nearly double coverage over next few years. In-network payer coverage now exceeds 285M U.S. health plan members.
- **Clinical Evidence**: ASSURE system false alarm rate 6% (vs. 46% competitor), median daily wear 23.2 hours. Post-approval registry of 20,000+ patients shows 96% shock conversion efficacy.
- **Innovation**: Over 365 patent assets; investing in R&D for next-gen cardiac recovery systems and new therapeutic capabilities.

**【CFO Financial Commentary】**
- **Q4 FY25 Financials**: GAAP net loss $51.1M (vs. $22.3M prior year), adjusted EBITDA loss $20.3M (vs. $16.5M). FY25 GAAP net loss $113.8M, adjusted EBITDA loss $68.4M.
- **Revenue Conversion**: Q4 revenue conversion rate 44.8%, FY25 rate 46.8% (excluding one-time items). Driven by higher in-network patient mix (70%+ of new fits) and cost improvements.
- **2026 Guidance**: Revenue $85M (42% YoY growth), driven by 40%+ prescription growth and 70%+ in-network patient mix. Expect $40M+ in stock-based compensation expenses.
- **Cash Position**: $237.6M as of April 30, 2025, supporting growth investments.

**【Q&A Key Highlights】**
- **Sole-Source Contract**: Signed with risk-bearing provider network for streamlined patient care and reduced hospital readmissions. Highlights ASSURE's clinical differentiation.
- **Conversion Rate Drivers**: Focus on high-prescription, high-in-network territories. Targeting 76% best-in-class conversion rate (currently 46.8%).
- **Competitive Landscape**: Competitor maintains 86% market share but ASSURE gaining traction via superior comfort, compliance, and clinical outcomes.
- **Operating Leverage**: 40%+ revenue growth vs. 20%+ OpEx growth, enabling gross margin expansion and R&D investments.
- **Innovation Pipeline**: Next-gen ASSURE system and new therapeutic capabilities in development, with clinical data expected to support guideline changes.

KMTS

KMTS fundamentals

Earnings Call

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