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Kestra Medical Technologies Ltd.
(NASDAQ:KMTS)
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Rating:48Neutral
Price Target:
$21.50
▲(13.04% Upside)
Action:Reiterated
Date:05/19/26
The score is held down primarily by weak financial performance driven by large ongoing losses and mixed cash-flow quality, alongside a bearish technical setup with the stock trading below major moving averages. The latest earnings call is a meaningful positive (raised revenue guidance, strong prescription/revenue growth, and improving gross margins), but valuation support is limited due to negative earnings and no dividend yield provided.
Positive Factors
Sustained Revenue & Prescription Momentum
Consistent double-digit prescription growth and raised FY26 revenue guidance reflect durable market demand and successful commercial adoption. Prescription volume growth and rising in‑network mix suggest recurring revenue potential and an expanding addressable base that supports multi‑period scale.
Negative Factors
Deep Ongoing Losses
Very large operating losses relative to revenue signal that profitability remains distant without sustained margin improvement and conversion gains. Persistent negative returns on equity and widening GAAP losses increase future financing needs and heighten dilution risk if scale or margin targets slip.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue & Prescription Momentum
Consistent double-digit prescription growth and raised FY26 revenue guidance reflect durable market demand and successful commercial adoption. Prescription volume growth and rising in‑network mix suggest recurring revenue potential and an expanding addressable base that supports multi‑period scale.
Read all positive factors
Kestra Medical Technologies Ltd. Key Performance Indicators (KPIs)
Any
Prescriptions For Assure System
Indicates the number of prescriptions written for the Assure System, highlighting the product's market acceptance and potential revenue growth as more healthcare providers adopt this technology.
Indicates the number of prescriptions written for the Assure System, highlighting the product's market acceptance and potential revenue growth as more healthcare providers adopt this technology.
Data provided by:
The Fly
The FlyKestra Medical Technologies Ltd. (KMTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.54B
Dividend YieldN/A
Average Volume (3M)310.69K
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth59.06%
EPS Growth-47.91%
CountryUS
Employees300
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-3.96
Shares Outstanding58,373,352
10 Day Avg. Volume502,173
30 Day Avg. Volume310,694
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 Cap0.54
Enterprise Value/Revenue9.87
Enterprise Value/Gross Profit20.26
Enterprise Value/Ebitda-6.46
Forecast
1Y Price Target
$25.67Price Target Upside34.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-2.2
Revenue Forecast (FY)$132.89M
Kestra Medical Technologies Ltd. Business Overview & Revenue Model
Company Description
Kestra Medical Technologies, Ltd. operates at the intersection of wearable medical technology and digital healthcare. Its core mission is to revolutionize patient outcomes in cardiovascular disease through intelligent, intuitive, and connected mon...
How the Company Makes Money
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Kestra Medical Technologies Ltd. Earnings Call Summary
Earnings Call Date:Mar 17, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 21, 2026
Earnings Call Sentiment Positive
The call highlighted strong operational and commercial momentum: double-digit prescription growth, 63% revenue growth, meaningful gross margin expansion, positive clinical and regulatory developments (ACE PAS and FDA algorithm approval), material market-access wins, and a healthy cash runway. These positives are balanced by near-term trade-offs: rising operating losses and adjusted EBITDA loss from investments in territory expansion and RCM, quarterly cash burn and CapEx needs to support growth, and execution/competitive risks inherent in a rapid commercial scale-up. Overall, management communicated clear progress toward scaled, durable growth while acknowledging expected near-term investment-related losses.Positive Updates
Strong Revenue Growth
Revenue of $24.6M in Q3, up 63% year-over-year; company increased FY2026 revenue guidance to $93.0M (growth of 55% vs. FY2025).
Negative Updates
Widening GAAP Losses and Adjusted EBITDA Loss
GAAP net loss increased to $34.2M in Q3 from $21.8M year-over-year; adjusted EBITDA loss widened to $21.2M from $16.3M, driven by investments in commercial expansion and public company costs.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Revenue Growth
Revenue of $24.6M in Q3, up 63% year-over-year; company increased FY2026 revenue guidance to $93.0M (growth of 55% vs. FY2025).
Read all positive updates
Company Guidance
KESTRA MEDICAL TECHNOLOGIES raised FY2026 revenue guidance to $93.0M (up 55% vs. FY2025), versus prior guidance of $91.0M and an initial $85.0M, underpinned by Q3 results of $24.6M revenue (+63% YoY) and >5,400 prescriptions; management cited prescription growth, higher revenue-per-fit from a rising in‑network mix (from ~70% at IPO to the low‑80s today), improving conversion (~46% in Q3 vs. an adjusted 43% a year ago; FY24: 38%, FY25: 44%), and expansion of sales territories to ~130 (from ~100 end‑2025). Q3 gross margin was 52.6% (up nine points YoY and +200 bps sequentially) with a stated path to 70%+ over the next few years; Q3 GAAP operating expense was $47.7M (including $1.5M nonrecurring), GAAP net loss $34.2M, adjusted EBITDA loss $21.2M, cash of $291M (as of Jan 31), and Q3 CapEx ~$9M with a planning-run rate near $30M/year.Kestra Medical Technologies Ltd. Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
50
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2021 | Apr 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 83.72M | 59.81M | 27.81M | 7.63M | 0.00 | 0.00 |
| Gross Profit | 40.81M | 24.21M | 362.00K | -10.65M | 0.00 | 0.00 |
| EBITDA | -128.00M | -97.98M | -76.31M | -73.74M | -32.33M | -28.84M |
| Net Income | -144.83M | -113.81M | -94.12M | -84.24M | -34.10M | -29.47M |
Balance Sheet | ||||||
| Total Assets | 379.34M | 295.74M | 45.95M | 38.66M | 30.52M | 7.87M |
| Cash, Cash Equivalents and Short-Term Investments | 291.32M | 237.59M | 8.25M | 14.81M | 24.34M | 5.76M |
| Total Debt | 4.29M | 44.31M | 45.17M | 39.13M | 22.85M | 452.00K |
| Total Liabilities | 91.35M | 90.34M | 255.33M | 156.23M | 28.76M | 4.02M |
| Stockholders Equity | 287.99M | 205.41M | -209.38M | -117.58M | 1.77M | 3.86M |
Cash Flow | ||||||
| Free Cash Flow | -119.95M | -101.20M | -84.75M | -85.10M | -30.23M | -30.52M |
| Operating Cash Flow | -86.68M | -77.61M | -72.23M | -69.64M | -29.89M | -30.29M |
| Investing Cash Flow | -38.33M | -23.31M | -12.23M | -15.46M | -334.00K | -232.00K |
| Financing Cash Flow | 361.98M | 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.40B | -132.73 | -2.91% | ― | -5.48% | -666.94% | |
60 Neutral | $553.67M | -17.87 | -17.65% | ― | 10.73% | 25.37% | |
58 Neutral | $1.97B | -26.10 | -86.67% | ― | ― | -13.79% | |
56 Neutral | $1.46B | -69.74 | -6.07% | ― | 4.03% | 70.55% | |
54 Neutral | $307.06M | -4.29 | -21.50% | ― | -30.08% | -143.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $1.54B | -6.67 | -68.83% | ― | 59.06% | -47.91% |
* Healthcare Sector Average
KMTS
Kestra Medical Technologies Ltd.
26.43
9.85
59.41%
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BLFS
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33.10%
PLSE
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28.45
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88.54%
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.