Q1 2026 Kestra Medical Technologies Ltd Earnings Call Transcript
Key Points
- Kestra Medical Technologies Ltd (KMTS) reported a 52% year-over-year revenue growth to $19.4 million, driven by a 51% increase in prescriptions for the ASSURE system.
- The company achieved a significant gross margin expansion to 45.7% from 32.9% in the prior year, marking the seventh consecutive quarter of gross margin improvement.
- KMTS is making progress in expanding its sales organization and targeting high-volume geographies, which is expected to drive further growth.
- The company has increased its in-network patient mix from 70% to nearly 80%, enhancing revenue cycle management and efficiency.
- KMTS completed enrollment in its FDA post-approval study, which is expected to be the largest study ever published in the WCD category, potentially strengthening its clinical evidence base.
- Despite strong revenue growth, KMTS reported a GAAP net loss of $25.8 million in the first quarter, compared to a $20.3 million loss in the prior year.
- Adjusted EBITDA loss increased to $19.4 million from $15.7 million in the prior year period, indicating ongoing financial challenges.
- The company faces a long tail of regional and local payers to bring under contract, which could slow down the pace of achieving full in-network coverage.
- KMTS's market share is currently around 12%, indicating significant room for growth but also highlighting the competitive landscape.
- The company is still in the process of expanding its territory coverage, with only a little over 50% of the US currently covered, which may limit immediate growth potential.
Good afternoon, and welcome to the Kestra Medical Technologies earnings conference call. This conference call is being recorded for replay purposes. We will be facilitating a question-and-answer session following prepared remarks from management. (Operator Instructions)
I would now like to turn the call over to Neil Bhalodkar, Vice President of Investor Relations for introductory comments.
Thank you. Thank you for joining this afternoon's first-quarter fiscal 2026 earnings call. With me today are Brian Webster, President and Chief Executive Officer; and Vaseem Mahboob, Chief Financial Officer.
This call includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements. These statements are based on Kestra's current expectations, forecasts and assumptions, which are subject to the current
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