Short answer
KESTRA MEDICAL TECHNOLOGIES, LTD. (KMTS) filed its fiscal 2026 10-K annual report with the SEC on Jul 14, 2026. It reported revenue of $95M (+59.0% year over year) and net income of −$132M.
- Top risk flagged: Regulatory risk: Ongoing enforcement and compliance scrutiny by DOJ, HHS OIG, state attorneys general, and CMS around financial relationships with healthcare providers and billing practices
FY2026 key financial metrics · XBRL
- Revenue
- $95M
- +59.0% YoY
- Net income
- −$132M
- −15.6% YoY
- Operating margin
- -141.6%
- +36.2 pp YoY
- Gross margin
- 51.4%
- +10.9 pp YoY
- EPS (diluted)
- −$2.43
- +52.6% YoY
- ROE
- -50.7%
- +4.7 pp YoY
- Operating cash flow
- −$82M
- −5.3% YoY
Source: XBRL data from the KESTRA MEDICAL TECHNOLOGIES, LTD. (KMTS) FY2026 10-K on SEC EDGAR. USD.
KESTRA MEDICAL TECHNOLOGIES, LTD. FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: commercial-stage wearable medical device and digital healthcare company focused on cardiovascular patient monitoring and therapy via the Cardiac Recovery System platform anchored by the ASSURE WCD
- New product emphasis: April 2026 launch of Enhanced ASSURE Detection Algorithm improving rhythm discrimination and reducing false alarms to estimated 3% from prior 6%
- Strategic shift: plans to expand internationally with CE Mark pursuit targeting Western Europe within three years, marking first regulatory approval efforts outside the U.S.
- Quantitative metric: commercial protection of nearly 40,000 patients by April 2026 and enrollment of ~40,000 patients in ongoing ASSURE Patient Registry
- Noteworthy fact: strategic collaboration in January 2026 with Biobeat Technologies to integrate FDA-cleared cuffless ambulatory blood pressure monitoring into product portfolio
Management Discussion & Analysis
- Revenue $95.1M, up 59% YoY from $59.8M in 2025, driven by 58% patient growth
- Gross profit $48.9M (51.4% margin) vs $24.2M (40.5% margin) in 2025; gross profit margin increased ~11pp
- Best segment: Leasing of ASSURE WCD with revenue $95.1M; no separate segments disclosed
- Operating loss widened to $134.7M from $106.4M; R&D increased 24% to $19.5M, SG&A up 43% to $164.1M
- Cash flow: Operating cash outflow $81.7M; investing cash outflow $203.3M; financing cash inflow $147.1M including $149.3M secondary offering
- Capital allocation: Raised $149.3M in Dec 2025 offering; invested $34.9M in property/equipment; no buybacks/dividends reported
- Outlook: Existing cash $262.2M sufficient for 12+ months; risk of needing future funding if costs rise or cash from operations lags
Risk Factors
- Regulatory risk: Ongoing enforcement and compliance scrutiny by DOJ, HHS OIG, state attorneys general, and CMS around financial relationships with healthcare providers and billing practices
- Macroeconomic threat: Inflation and inflation-driven cost increases for materials, labor, shipping, and component shortages may raise manufacturing expenses and reduce profitability
- Operational vulnerability: Reliance on limited suppliers for ASSURE WCD components, with no large inventory; delays in component supply or device reconditioning by third-party manufacturers risk product shortages
- Competitive risk: Primary competitor ZOLL Medical (Asahi Kasei subsidiary) and a new FDA-approved adhesive-based external defibrillator competitor threaten market share
- Financial risk: $45 million Term Loan with collateral on all assets and restrictive covenants limits operational flexibility and requires substantial quarterly interest payments
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