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Kestra Medical Technologies Ltd.
(NASDAQ:KMTS)
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Rating:55Neutral
Price Target:
$29.00
▲(13.55% Upside)
Action:Reiterated
Date:09/17/26
The score is held back primarily by weak financial performance (deep losses and substantial cash burn), despite strong revenue growth and low leverage. The earnings call provides a meaningful offset with raised guidance and improving margin outlook, while technicals remain soft in the near term and valuation is hard to assess due to negative earnings and no dividend yield provided.
Positive Factors
Revenue growth and guidance
Rapid revenue growth, higher FY2027 guidance, and expanding account penetration indicate strengthening commercial execution and market adoption. If sustained, this scale can improve fixed-cost absorption, support reinvestment, and provide a durable foundation for eventual operating leverage.
Negative Factors
Deep operating losses
Large and widening losses show that strong revenue growth has not yet translated into sustainable earnings. Persistent negative operating leverage can consume financial resources, delay self-funding, and leave profitability dependent on successful execution of future margin and efficiency initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and guidance
Rapid revenue growth, higher FY2027 guidance, and expanding account penetration indicate strengthening commercial execution and market adoption. If sustained, this scale can improve fixed-cost absorption, support reinvestment, and provide a durable foundation for eventual operating leverage.
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
$1.71B
Dividend YieldN/A
Average Volume (3M)443.84K
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth60.72%
EPS Growth-5.66%
CountryUS
Employees443
SectorGeneral
Sector StrengthN/A
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-2.67
Shares Outstanding59,561,794
10 Day Avg. Volume445,117
30 Day Avg. Volume443,837
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)4.66
Price to Sales (P/S)12.72
P/FCF Ratio-10.38
Enterprise Value/Market Cap0.71
Enterprise Value/Revenue11.38
Enterprise Value/Gross Profit21.12
Enterprise Value/Ebitda-9.29
Forecast
1Y Price Target
$30.00Price Target Upside17.46% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-2.45
Revenue Forecast (FY)$140.94M
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...
Kestra Medical Technologies Ltd. Earnings Call Summary
Earnings Call Date:Sep 14, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 10, 2026
Earnings Call Sentiment Positive
The call was strongly optimistic, with management highlighting 60% year-over-year revenue growth, repeated gross margin expansion, raised fiscal year 2027 guidance, improving payer coverage, commercial share gains, product innovation, and strengthened liquidity. The company also reported larger operating expenses, a wider net loss and adjusted EBITDA loss, and substantial operating cash use, but management characterized these investments and cash trends as part of its growth strategy and expressed confidence in increasing operating leverage and a path to profitability over the next few years.Positive Updates
Strong First-Quarter Revenue Growth
First-quarter revenue was $31 million, up 60% year-over-year and advancing sequentially from a strong fourth quarter. Growth was driven by continued WCD market expansion, competitive share gains, a higher mix of in-network patients, and ongoing improvements in revenue cycle management.
Negative Updates
Higher Operating Expenses
GAAP operating expenses were $55.2 million in the first quarter compared with $37.7 million in the prior-year period. Excluding nonrecurring costs and stock-based compensation, operating expenses were $44.2 million versus $30.3 million. The increase was primarily attributable to commercial expansion and accelerated investment in late-stage R&D programs.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong First-Quarter Revenue Growth
First-quarter revenue was $31 million, up 60% year-over-year and advancing sequentially from a strong fourth quarter. Growth was driven by continued WCD market expansion, competitive share gains, a higher mix of in-network patients, and ongoing improvements in revenue cycle management.
Read all positive updates
Company Guidance
Kestra expects fiscal year 2027 revenue of $141 million, representing growth of 48% compared to fiscal year 2026, versus prior fiscal year 2027 revenue guidance of $137 million, with the second half to be faster than the first half; it expects steady and consistent increases in gross margin, with a mid-70s gross margin percentage in the next few years, up from the prior outlook of 70% gross margins, and the 700-point expansion for next year is “pretty solid”; GAAP OpEx for the year is expected to be $220 million in 2027, reflecting OpEx growth of 20% in fiscal year '27 versus the guidance of 48%, while R&D spend is expected to return to historical levels of 5% to 7% range in the second half of the year; for fiscal year 2029, Kestra expects to deliver 70% gross margin, with the second half of that year north of 70%, and expects the AI and automation benefit to accelerate in FY '28 and '29.Kestra Medical Technologies Ltd. Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
72
Positive
Cash Flow
18
Very Negative
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 106.73M | 95.13M | 59.81M | 27.81M | 7.63M | 0.00 |
| Gross Profit | 57.51M | 48.86M | 24.21M | 362.00K | -10.65M | 0.00 |
| EBITDA | -130.75M | -136.93M | -97.98M | -76.31M | -73.74M | -32.33M |
| Net Income | -149.87M | -131.61M | -113.81M | -94.12M | -84.24M | -34.10M |
Balance Sheet | ||||||
| Total Assets | 347.36M | 358.46M | 295.74M | 45.95M | 38.66M | 30.52M |
| Cash, Cash Equivalents and Short-Term Investments | 198.91M | 196.43M | 237.59M | 8.25M | 14.81M | 24.34M |
| Total Debt | 76.45M | 46.79M | 44.31M | 45.17M | 39.13M | 22.85M |
| Total Liabilities | 125.00M | 98.81M | 90.34M | 255.33M | 156.23M | 28.76M |
| Stockholders Equity | 222.36M | 259.66M | 205.41M | -209.38M | -117.58M | 1.77M |
Cash Flow | ||||||
| Free Cash Flow | -122.78M | -116.59M | -101.20M | -84.75M | -85.10M | -30.23M |
| Operating Cash Flow | -87.72M | -81.70M | -77.61M | -72.23M | -69.64M | -29.89M |
| Investing Cash Flow | -216.40M | -203.28M | -23.31M | -12.23M | -15.46M | -334.00K |
| Financing Cash Flow | 171.47M | 147.09M | 330.26M | 77.72M | 96.11M | 48.81M |
Kestra Medical Technologies Ltd. Technical Analysis
Positive
25.54
Price Trends
26.48
Positive
24.98
Positive
23.66
Positive
Market Momentum
0.60
Negative
56.43
Neutral
60.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KMTS, the sentiment is Positive. The current price of 25.54 is below the 20-day moving average (MA) of 27.57, below the 50-day MA of 26.48, and above the 200-day MA of 23.66, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 56.43 is Neutral, neither overbought nor oversold. The STOCH value of 60.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KMTS.
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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.93B | 29.12 | 16.42% | 1.12% | 11.85% | 38.09% | |
71 Outperform | $5.57B | 38.08 | 9.07% | ― | 10.51% | 20.67% | |
65 Neutral | $4.17B | 138.85 | 1.41% | ― | -8.84% | ― | |
58 Neutral | $5.77B | -5.85 | -31.83% | 1.00% | -14.49% | -644.98% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | $1.71B | -10.77 | -64.18% | ― | 60.72% | -5.66% | |
52 Neutral | $520.00M | -15.65 | -19.25% | ― | 8.20% | -0.88% |
* General Sector Average
KMTS
Kestra Medical Technologies Ltd.
28.76
1.69
6.24%
ANGO
AngioDynamics
12.37
0.08
0.61%
ICUI
ICU Medical
166.62
43.71
35.56%
LMAT
Lemaitre Vascular
84.45
-4.77
-5.34%
MMSI
Merit Medical Systems
93.30
10.55
12.75%
TFX
Teleflex
136.29
5.20
3.97%
Kestra Medical Technologies Ltd. Corporate Events
Executive/Board ChangesShareholder Meetings
Kestra Medical Technologies Shareholders Approve Directors and Auditor
Positive
Sep 10, 2026
At Kestra Medical Technologies Ltd.’s 2026 annual general meeting of shareholders held on September 9, 2026, investors representing about 94.53% of outstanding common shares participated, underscoring strong shareholder engagement. Sharehold...
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.