KESTRA MEDICAL TECHNOLOGIES, LTD. (KMTS) Earnings
KESTRA MEDICAL TECHNOLOGIES, LTD. is expected to report next earnings on July 21, 2026 (in NaN days), with a consensus EPS estimate of $-0.59. KMTS has beaten EPS estimates in 1 of its last 3 reported quarters (average surprise +5.8% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Mar 17, 2026 | $-0.60 | $-0.61 | -2.3% | $25M | -7.3% |
| Dec 11, 2025 | $-0.56 | $-0.62 | -10.7% | $23M | -1.3% |
| Sep 11, 2025 | $-0.66 | $-0.46 | +30.3% | $19M | -6.5% |
| Apr 17, 2025 | — | $-0.43 | — | $15M | — |
| Apr 30, 2024 | — | $-0.45 | — | $10M | — |
| Jan 31, 2024 | — | $-0.44 | — | $8M | — |
| Jul 31, 2021 | — | $-0.27 | — | — | — |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q3 FY2026 · March 17, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Discussed the KESPER mission and a patient case illustrating the value of the cardiac recovery system. - Highlighted strong financial performance in Q3 with over 5,400 Assure system prescriptions, revenue growth, and gross margin expansion. - Talked about the WCD market being underutilized but expanding, with Kestra estimating the market to grow in the low mid-teens in 2025. - Announced FDA approval of a new Assure algorithm update and a strategic collaboration with BioBeat Technologies. - Mentioned expanding the sales organization, progress in market access and reimbursement including becoming an approved Florida managed Medicaid provider, being added to the federal supply schedule for the U.S. Department of Veterans Affairs, and an increase in monthly Medicare reimbursement rate for WCDs. - Spoke about improvements in conversion rate and operating expenses related to commercial expansion and public company costs.
Guidance
- Increased revenue guidance to $93 million for fiscal year 2026, representing growth of 55% compared to fiscal year 2025. - Policy is to only comment about full year guidance for 2027 at the end of the Q4 call, but feel confident in delivering top-tier MedTech growth in 2027 and beyond.
Segment performance
In the third quarter of fiscal 2026, revenue was $24.6 million, with growth of 63% compared to the prior year period. Gross margin was 52.6%, up nine points year over year and 200 basis points sequentially. Revenue growth was driven by a 58% year-over-year increase in prescriptions. Gross margin expansion was due to attractive unit economics, increase in revenue per fit from more in-network patients, and decline in cost per fit driven by volume leverage and cost improvement projects.
Analyst Q&A
Q: Travis Steed from Bank of America Securities asked about next year's model and WCD market acceleration.
A: Policy is to comment on 2027 guidance at end of Q4 call, but feel confident in 2027 growth; market growth driven by expanding commercial team and clinical studies.
Q: Matthew O'Brien from Piper Sandler asked about sequential bump in prescriptions.
A: Prescription growth coming from installed base market share shift (70-75%) and new prescribers (25%).
Q: Larry Beagleson from Wells Fargo asked about competition and getting physicians to prescribe WCDs.
A: Not seeing impact from Zoll's new product rollout; market growth will continue and require guideline changes.
Q: Michael Polark from Wolf Research asked about sales force vision and conversion rate.
A: In FY27 planning process, considering speed of sales force expansion; conversion rate trending up with progress on RevCycle but affected by deductibles in January.
Q: Rick Wise from CFO asked about Florida market access, cost per fit, and FDA algorithm approval.
A: Florida market access is a big deal removing a barrier for reps, cost per fit improving with cost improvement projects, FDA algorithm update will further differentiate product.
Q: Marie Siebel from VTIG asked about Veterans Affairs and territory expansion.
A: VA approval is a big win, rolling out territory by territory, seeing wins in VA hospitals; momentum in prescriptions can continue with investments.
Q: David Roman from Goldman Sachs asked about territory expansion and CapEx.
A: Territory expansion involves adding new reps and improving productivity, CapEx investment related to building out distribution team with $9 million in Q3, cash burn in line with expectations for go-forward basis.