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Kestra Medical Technologies Ltd. (KMTS)
:KMTS
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Kestra Medical Technologies Ltd.
(NASDAQ:KMTS)
Select Model
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Rating:58Neutral
Price Target:
$27.00
▲(0.56% Upside)
Kestra Medical Technologies Ltd. shows strong revenue growth and improving gross margins, which are positive indicators. However, the company's ongoing profitability challenges and increased operating expenses weigh heavily on its financial performance. The technical analysis suggests bullish momentum, but valuation concerns due to negative earnings and lack of dividends limit the stock's attractiveness.
Positive Factors
Revenue Growth
Strong revenue growth indicates effective market expansion and product adoption, which can enhance long-term financial stability and market position.
Gross Margin Improvement
Improved gross margins suggest better cost management and operational efficiency, which can lead to sustainable profitability over time.
Strategic Leadership Appointment
The appointment of a seasoned executive can enhance strategic direction and business development, potentially driving long-term growth and competitive advantage.
Negative Factors
Ongoing Profitability Challenges
Continued net losses highlight challenges in achieving profitability, which can impact financial flexibility and long-term viability.
Increased Operating Expenses
Rising operating expenses due to growth investments can strain cash flow and delay the path to profitability, affecting long-term financial health.
Negative Cash Flow to Net Income Ratio
Negative cash flow relative to net income indicates cash management issues, which can hinder investment in growth opportunities and operational stability.
Kestra Medical Technologies Ltd. (KMTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.38B
Dividend YieldN/A
Average Volume (3M)310.14K
Price to Earnings (P/E)―
Beta (1Y)1.19
Revenue Growth83.78%
EPS Growth-25.37%
CountryUS
Employees300
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.50
Shares Outstanding51,449,055
10 Day Avg. Volume274,671
30 Day Avg. Volume310,137
Financial Highlights & Ratios
PEG Ratio-0.69
Price to Book (P/B)-5.17
Price to Sales (P/S)38.89
P/FCF Ratio-12.76
Enterprise Value/Market Cap0.50
Enterprise Value/Revenue13.35
Enterprise Value/Gross Profit29.96
Enterprise Value/Ebitda-7.31
Forecast
1Y Price Target
$25.00Price Target Upside-6.89% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Kestra Medical Technologies Ltd. Business Overview & Revenue Model
Company DescriptionKestra Medical Technologies Ltd. (KMTS) is a pioneering company in the healthcare sector specializing in advanced medical devices and technologies aimed at enhancing patient outcomes. The company focuses on developing innovative solutions in areas such as diagnostics, monitoring, and therapeutic devices, leveraging cutting-edge technology to meet the evolving needs of healthcare providers and patients. With a commitment to quality and innovation, KMTS aims to improve the efficiency of healthcare delivery through its core products and services.
How the Company Makes MoneyKestra Medical Technologies Ltd. generates revenue primarily through the sale of its medical devices and technologies. The company adopts a business model that includes direct sales to hospitals and clinics, as well as partnerships with distributors and healthcare organizations. Key revenue streams include the sale of diagnostic equipment, monitoring devices, and associated consumables. Additionally, KMTS may engage in strategic partnerships with other healthcare companies and research institutions to co-develop products, which can provide additional revenue through licensing agreements and shared research funding. The company also invests in ongoing research and development to innovate new products, which can lead to increased market share and sales growth.
Kestra Medical Technologies Ltd. Earnings Call Summary
Earnings Call Date:Sep 11, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 20, 2026
Earnings Call Sentiment Positive
The earnings call highlights significant revenue growth, gross margin expansion, and strategic achievements such as the increased in-network patient percentage and FDA study milestones. However, these positive aspects are tempered by ongoing net losses and increased operating expenses.Q1-2026 Updates
Positive Updates
Strong Revenue Growth
Revenue grew 52% year-over-year to $19.4 million, driven by a 51% increase in ASSURE system prescriptions.
Gross Margin Expansion
First quarter gross margin was 45.7%, up from 32.9% in the prior year period, marking the seventh consecutive quarter of gross margin expansion.
Increase in In-Network Patients
The percentage of fittings for patients with in-network benefits increased from approximately 70% at the time of IPO to nearly 80%.
FDA Post-Approval Study Milestone
Conclusion of enrollment in the FDA post-approval study for the ASSURE system, which will be the largest study ever published in the WCD category.
Guidance Increase
Fiscal year 2026 revenue guidance increased to $88 million, up 47% compared to fiscal year 2025, from previous guidance of $85 million.
Negative Updates
Ongoing Net Loss
GAAP net loss was $25.8 million in the first quarter, compared to $20.3 million in the prior year period.
Operating Expenses Increase
Operating expenses were $37.7 million, up from $22.6 million in the prior year period, driven by growth investments and new public company costs.
Company Guidance
During the Kestra Medical Technologies earnings call for the first quarter of fiscal year 2026, management provided updated guidance and highlighted several key metrics indicating strong growth and performance. The company reported a 52% year-over-year increase in revenue, reaching $19.4 million, driven by a 51% increase in prescriptions for the ASSURE system. The gross margin expanded to 45.7% from 32.9% in the prior year, marking the seventh consecutive quarter of gross margin improvement. Kestra's in-network patient mix rose to nearly 80%, contributing to a higher revenue per fitting. Operating expenses increased to $37.7 million, largely due to growth investments in commercial and revenue cycle resources. The company also raised its fiscal year 2026 revenue guidance to $88 million, a 47% increase from fiscal year 2025, with expectations of continued strong prescription growth and improvements in revenue cycle management.Kestra Medical Technologies Ltd. Financial Statement Overview
Summary
Kestra Medical Technologies Ltd. is experiencing strong revenue growth, but profitability remains a significant challenge. The balance sheet is relatively stable with moderate leverage, but the company is not yet profitable. Cash flow improvements are promising, but operational efficiency needs enhancement to achieve sustainable profitability.Income Statement
Kestra Medical Technologies Ltd. has shown significant revenue growth of 137.89% in the latest year, which is a positive indicator of market expansion. However, the company is struggling with profitability, as evidenced by negative net profit margins (-190.28%) and EBIT margins (-177.12%). The gross profit margin has improved to 40.47%, indicating better cost management, but the overall negative margins highlight ongoing operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a manageable debt-to-equity ratio of 0.22, suggesting moderate leverage. However, the company has a negative return on equity (-55.41%), indicating that it is not generating profit from shareholders' equity. The equity ratio stands at 69.45%, reflecting a strong equity base relative to total assets, which is a positive aspect.50
Neutral
Cash Flow
Kestra Medical Technologies Ltd. has experienced a substantial increase in free cash flow growth (143.29%), which is a positive sign. However, the operating cash flow to net income ratio is negative (-2.04), indicating cash flow challenges relative to net income. The free cash flow to net income ratio is positive (1.30), suggesting that the company is generating free cash flow despite net losses.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 51.69M | 59.81M | 27.81M | 7.63M | 0.00 | 0.00 |
| Gross Profit | 23.03M | 24.21M | 362.00K | -10.65M | 0.00 | 0.00 |
| EBITDA | -94.36M | -97.98M | -76.31M | -73.74M | -32.33M | -28.84M |
| Net Income | -99.39M | -113.81M | -94.12M | -84.24M | -34.10M | -29.47M |
Balance Sheet | ||||||
| Total Assets | 266.30M | 295.74M | 45.95M | 38.66M | 30.52M | 7.87M |
| Cash, Cash Equivalents and Short-Term Investments | 201.21M | 237.59M | 8.25M | 14.81M | 24.34M | 5.76M |
| Total Debt | 3.10M | 44.31M | 45.17M | 39.13M | 22.85M | 452.00K |
| Total Liabilities | 82.14M | 90.34M | 255.33M | 156.23M | 28.76M | 4.02M |
| Stockholders Equity | 184.16M | 205.41M | -209.38M | -117.58M | 1.77M | 3.86M |
Cash Flow | ||||||
| Free Cash Flow | -88.63M | -101.20M | -84.75M | -85.10M | -30.23M | -30.52M |
| Operating Cash Flow | -68.36M | -77.61M | -72.23M | -69.64M | -29.89M | -30.29M |
| Investing Cash Flow | -20.06M | -23.31M | -12.23M | -15.46M | -334.00K | -232.00K |
| Financing Cash Flow | 212.71M | 330.26M | 77.72M | 96.11M | 48.81M | 30.24M |
Kestra Medical Technologies Ltd. Risk Analysis
Kestra Medical Technologies Ltd. disclosed 75 risk factors in its most recent earnings report. Kestra Medical Technologies Ltd. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kestra Medical Technologies Ltd. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $482.04M | -15.51 | -17.10% | ― | 2.73% | 87.03% | |
60 Neutral | $1.33B | ― | -5.98% | ― | -18.61% | 92.36% | |
58 Neutral | $1.38B | ― | ― | ― | 83.78% | -25.37% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $222.34M | ― | -12.65% | ― | -49.35% | -285.61% | |
46 Neutral | $1.32B | ― | -25.55% | ― | -32.59% | -667.81% | |
44 Neutral | $1.23B | ― | -103.50% | ― | ― | -33.24% |
* Healthcare Sector Average
KMTS
Kestra Medical Technologies Ltd.
26.07
5.08
24.20%
ANGO
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12.14
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71.23%
OSUR
Orasure Technologies
2.87
-1.16
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STAA
Staar Surgical
24.90
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-17.88%
BLFS
BioLife Solutions
27.54
5.93
27.44%
PLSE
Pulse Biosciences
17.25
-0.67
-3.74%
Kestra Medical Technologies Ltd. Corporate Events
Kestra Medical Technologies Reports Strong Growth Amid Challenges
Sep 13, 2025
Kestra Medical Technologies Ltd. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company showcased impressive revenue growth and strategic milestones, yet these achievements were overshadowed by persistent net losses and rising operating expenses.
Kestra Medical Technologies Reports Strong Q1 Growth
Sep 12, 2025
Kestra Medical Technologies, Ltd. is a commercial-stage company specializing in wearable medical devices and digital healthcare solutions aimed at improving cardiovascular disease outcomes through innovative monitoring and therapeutic technologies.
Executive/Board ChangesShareholder Meetings
Kestra Medical’s 2025 Annual Shareholder Meeting Outcomes
Neutral
Sep 4, 2025
Kestra Medical Technologies, Ltd. held its 2025 annual general meeting of shareholders on September 3, 2025, where significant decisions were made regarding the company’s governance and financial oversight. The shareholders elected Conor Hanley and Elizabeth Kwo as Class I directors until the 2028 annual meeting, ratified PricewaterhouseCoopers as the independent registered public accounting firm for the fiscal year ending April 30, 2026, and approved the 2025 Employee Stock Purchase Plan.
The most recent analyst rating on (KMTS) stock is a Hold with a $15.50 price target. To see the full list of analyst forecasts on Kestra Medical Technologies Ltd. stock, see the KMTS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.