KESTRA MEDICAL TECHNOLOGIES, LTD. (KMTS) FY2026 10-K Annual Report
KESTRA MEDICAL TECHNOLOGIES, LTD. (KMTS) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Jul 14, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
KESTRA MEDICAL TECHNOLOGIES, LTD. FY2026 10-K Analysis
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
KESTRA MEDICAL TECHNOLOGIES, LTD. FY2026 Key Financial MetricsXBRL
Revenue
$95M
▲ +59.0% YoY
Net Income
-$132M
▼ -15.6% YoY
Gross Margin
51.4%
▲ +1089bp YoY
Operating Margin
-141.6%
▲ +3620bp YoY
Net Margin
-138.4%
▲ +5192bp YoY
ROE
-50.7%
▲ +472bp YoY
Total Assets
$358M
▲ +21.2% YoY
EPS (Diluted)
$-2.43
▲ +52.6% YoY
Operating Cash Flow
-$82M
▼ -5.3% YoY
Source: XBRL data from KESTRA MEDICAL TECHNOLOGIES, LTD. FY2026 10-K filing on SEC EDGAR. All figures in USD.
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