Kestra Lifts Fiscal 2027 Revenue Outlook to $141 Million
The wearable defibrillator maker posted $31.0 million of first-quarter revenue, 60% above a year earlier.
Kestra Medical Technologies, Ltd. (KMTS), a wearable medical device and digital healthcare company, raised its fiscal 2027 revenue outlook to $141 million after a first quarter that kept the company on a fast growth path and pushed gross margin to a new high.
The new target implies 48% growth versus fiscal 2026 and sits above the $137 million outlook the company issued with fourth-quarter results, which had implied 44% growth.
Revenue for the quarter ended July 31, 2026, was $31.0 million, up 60% from a year earlier. That year-over-year rate was a touch slower than the 66% increase recorded in the prior quarter and the 63% increase in the quarter before that, but the sequential step-up from $28.6 million continued the expansion.
The company said growth was driven by wearable cardioverter defibrillator market expansion, competitive share gains, new sales territories, a higher mix of in-network patients, and ongoing improvements in revenue-cycle management. Those factors overlapped with the drivers cited in the prior quarter, when higher market share and WCD market expansion were the primary contributors.
Gross profit was $17.5 million, compared with $8.9 million a year earlier. Gross margin expanded to 56.5% from 45.7% in the year-ago quarter, after 54.8% in the prior quarter and 52.6% in the quarter before that. Kestra attributed the expansion to volume leverage, a higher mix of in-network patients, and execution of planned cost-improvement programs.
GAAP operating expenses were $55.2 million, versus $37.7 million a year earlier. Excluding non-recurring costs and share-based compensation, adjusted operating expenses were $44.2 million, compared with $30.3 million a year earlier. The company said the increase was primarily attributable to growth in expenses related to commercial expansion and accelerated investment in key research and development programs.
GAAP net loss widened to $44.1 million from $25.8 million a year earlier, or $0.75 a share. The quarter included a $6.3 million loss on extinguishment of debt. Adjusted EBITDA loss was $24.0 million, versus $19.4 million a year earlier.
Cash and cash equivalents and investments totaled $244.7 million as of July 31, 2026. Including committed unused availability under the company’s term loan agreement, Kestra said total liquidity was approximately $320 million. Financing activities in the quarter included $75.0 million of long-term debt proceeds and $46.4 million of repayments.
President and Chief Executive Officer Brian Webster said Kestra delivered another strong quarter, generating 60% revenue growth while expanding gross margin to more than 56%, and that the company remains confident that its focus on innovation and commercial expansion positions it to generate durable, top-tier growth.
The company will host a conference call to discuss the results.