Kestra Medical Reports Strong Q1 Revenue Growth and Raises Fiscal 2027 Guidance
Kestra Medical (NASDAQ: KMTS) reported a significant increase in first-quarter fiscal year 2027 revenue, rising to $31.0 million—a 60% growth from the prior period. The company also raised its full-year revenue guidance to $141 million, up from $137 million, reflecting strong market expansion and improved reimbursement efficiency. Management attributed this performance to increased sales in wearable cardioverter defibrillators (WCDs), new territories, better patient mix, and enhanced operational efficiencies. Despite the positive results, Kestra continues to face challenges with profitability as operating expenses have grown faster than gross profit. GAAP operating expenses rose by 46% year-over-year while gross profit increased by nearly 98%. However, this suggests potential for future operating leverage if revenue growth outpaces cost increases. The company’s liquidity remains strong at $244.7 million in cash and equivalents as of July 31, 2026, supported by recent refinancing activities that provided additional funding flexibility.
Tickers: $KMTS
Topics: gross margin improvement guidance update revenue growth