Kestra Medical Technologies, Ltd. (KMTS)

Price$25.57Cached quoteAs of 2026-09-04 16:23 UTC

AI: Overvalued

Price checkThe shares look expensive because rapid sales growth has not yet produced durable cash.

With 58.4 million shares outstanding, the market values Kestra near $1.33 billion, about 14 times fiscal 2026 revenue. Subtracting $262.2 million of April cash and investments and adding $46.8 million of debt gives an enterprise value—the value of operations—near $1.12 billion, or roughly eight times management's $137 million fiscal 2027 sales target. That is demanding for a company losing cash. It assumes years of fast growth plus eventual healthy margins, supporting an Overvalued verdict.

Big pictureKestra is growing quickly, but its operating losses still expand faster than gross profit.

Revenue rose 59% to $95.1 million in fiscal 2026, and gross margin—the share of sales left after direct product costs—improved to 51.4% from 40.5%. Yet the net loss widened to $131.6 million from $113.8 million. Operating cash outflow was $81.7 million; after $34.9 million of equipment spending, free cash flow, meaning cash left after running and investing in the business, was roughly negative $116.6 million. Cardiac need is recession-resistant, but prescriptions, insurer approval, and collection timing can still make results uneven.

Business strengthBetter device economics support growth, while one product still carries nearly all revenue.

Fourth-quarter prescriptions climbed 63% to 6,357, while gross margin reached 54.8%; the filing says cost per patient fell 18% during the year. Medicare and many private insurers already cover wearable defibrillators, reducing a major adoption hurdle. However, nearly all revenue comes from leasing ASSURE, so product or reimbursement trouble would affect the whole business. The market also includes entrenched LifeVest maker ZOLL and a newer adhesive-device entrant. The strength is real commercial momentum, not yet a diversified or self-funding franchise.

What could change the storySustained rapid growth and lower spending could justify the price; fresh dilution would weaken it.

April liquidity of $262.2 million covered roughly 2.2 years of fiscal 2026 free-cash-flow burn and exceeded $46.8 million of debt. Still, outside funding matters: a December sale of 6.9 million shares lifted shares 13.7% to 58.4 million, while stock compensation reached $33.6 million; no buybacks or dividends offset dilution. July's loan funded $75 million and can reach $200 million, avoiding immediate dilution but charging at least 8.75%. Meeting $137 million of sales while lowering burn would strengthen the bull case; another share sale or stalled margin gains would strengthen the bear case.

AI: News

Growth Outlook RaisedAnnual sales jumped, margins improved, and management forecast another year of rapid growth.

On July 14, Kestra reported fiscal 2026 revenue of $95.1 million, up 59%, and guided fiscal 2027 revenue to $137 million, up 44%. Fourth-quarter revenue rose 66% and gross margin reached 54.8%, while the quarterly net loss improved to $38.8 million from $51.1 million. Shares closed 1.8% higher next session, but the move cannot be assigned to results alone because financing was announced simultaneously. The event raised growth expectations while confirming that heavy spending remains central.

New Debt RunwayA new loan extends the cash runway without new shares, but adds costly interest and restrictions.

Also on July 14, Kestra signed a five-year facility for up to $200 million. It drew $75 million, using part to repay an existing $45 million loan; another $25 million is optional, and $50 million requires $150 million of trailing revenue. Interest equals the three-month overnight benchmark plus 5.5%, with a 3.25% floor, so the minimum rate is 8.75%. The facility reduces near-term equity dilution risk, but interest payments and loan covenants consume flexibility while losses continue.

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Revenue

2023

2024

2025

2026

Net income

2023

2024

2025

2026

Free cash flow

2023

2024

2025

2026

Total cash / debt

CashTotal debt

2023

2024

2025

2026

Financial statements

	2026	2025	2024	2023
Revenue	$95.1M	$59.8M	$27.8M	$7.6M
Gross profit	$48.9M	$24.2M	$362,000	−$10.7M
Gross margin	51.37%	40.47%	1.30%	−139.59%
Research & development	$19.5M	$15.7M	$15.5M	$15.8M
Operating expenses	$183.6M	$130.6M	$85.4M	$69.8M
Operating income	−$134.7M	−$106.4M	−$85.1M	−$80.4M
Operating margin	−141.64%	−177.85%	−305.83%	−1,054.01%
EBITDA	−$126.0M	−$98.4M	−$73.5M	−$73.7M
EBITDA margin	−132.49%	−164.52%	−264.27%	−966.44%
Net income	−$131.6M	−$113.8M	−$94.1M	−$84.2M
Net profit margin	−138.36%	−190.28%	−338.39%	−1,104.04%
Basic EPSper basic share	-$2.43	-$5.13	-$5.07	-$4.36
Diluted EPSper diluted share	-$2.43	-$5.13	-$5.07	-$4.36

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 13 reported holders of KMTS
Holder	Shares held
Schwartz Jeffrey Lawrence	27.03M
BAIN CAPITAL INVESTORS LLC / Bain Charger Holdings, L.P.	27.02M
Gordon Christopher R	27.02M
Webster Brian Daniel	395.47K
Umberger Traci S	161.86K
Ford Alfred J Jr	74.64K
Mahboob Vaseem	67.96K
COHEN RAYMOND W	50.9K
Moran Timothy P.	42.26K
Ladone Mary Kay	23.9K
Hanley Conor	13.12K
Kwo Elizabeth	10.91K
Reilly Kevin C	8.3K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys4$1.06M disclosed value

Sells (SEC code S)11$2.64M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 15, 2026Form 4 · 10b5-1	Webster Brian DanielSee Remarks	SellCommon Shares	15.0K	$20.81	$312.1K	395.5K
May 15, 2026Form 4 · 10b5-1	Webster Brian DanielSee Remarks	SellCommon Shares	6.8K	$21.46	$146.9K	334.8K
May 15, 2026Form 4 · 10b5-1	Webster Brian DanielSee Remarks	SellCommon Shares	8.2K	$20.53	$167.4K	341.6K
Apr 15, 2026Form 4 · 10b5-1	Webster Brian DanielSee Remarks	SellCommon Shares	15.0K	$20.04	$300.6K	349.8K
Mar 26, 2026Form 4	COHEN RAYMOND WDirector	BuyCommon Shares	10.0K	$19.98	$199.8K	50.9K

Review ownership filings at SEC.gov ↗

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Kestra Medical Technologies, Ltd. (KMTS)

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