Kestra Medical Technologies (NASDAQ:KMTS) Releases Earnings Results, Misses Estimates By $0.01 EPS

Kestra Medical Technologies (NASDAQ:KMTS) issued its quarterly earnings data on Tuesday. The company reported ($0.61) EPS for the quarter, missing the consensus estimate of ($0.60) by ($0.01), FiscalAI reports. Kestra Medical Technologies had a negative return on equity of 74.66% and a negative net margin of 171.87%.The firm had revenue of $24.55 million during the quarter. Kestra Medical Technologies’s revenue for the quarter was up 62.7% on a year-over-year basis.

Here are the key takeaways from Kestra Medical Technologies’ conference call:

• Q3 revenue was $24.6M (up 63% YoY) with over 5,400 prescriptions, and management raised FY‑2026 revenue guidance to $93M (up 55% YoY), signaling strong top‑line momentum.
• Management emphasized continued gross‑margin expansion (nine consecutive quarters) and reiterated a path to >70% gross margins over the next few years, driven by rental unit economics, a higher in‑network mix, and cost improvements.
• The transcript contains a material inconsistency on the reported quarterly gross‑margin percentage (CEO cited 52.6% while the CFO cited 32.6%), creating ambiguity about the exact margin level despite the stated improvement trend.
• Losses widened as GAAP net loss increased to $34.2M (from $21.8M) and adjusted EBITDA loss was $21.2M (from $16.3M), reflecting higher operating spend for commercial expansion and one‑time transaction costs.
• Market access and clinical momentum — the ACE‑PAS real‑world study, FDA algorithm update, Biobeat collaboration (with a $5M equity investment), Florida managed Medicaid approvals, and VA Federal Supply Schedule listing should help broaden prescriptions and payer coverage.

Kestra Medical Technologies Price Performance

Shares of Kestra Medical Technologies stock opened at $19.58 on Thursday. The company has a market capitalization of $1.14 billion and a price-to-earnings ratio of -4.94. The company has a quick ratio of 5.47, a current ratio of 5.47 and a debt-to-equity ratio of 0.26. The stock’s 50-day simple moving average is $24.19 and its 200-day simple moving average is $24.53. Kestra Medical Technologies has a 52 week low of $13.25 and a 52 week high of $30.00.

Insider Activity

In related news, insider Traci S. Umberger sold 10,500 shares of Kestra Medical Technologies stock in a transaction that occurred on Monday, December 29th. The stock was sold at an average price of $26.69, for a total transaction of $280,245.00. Following the sale, the insider owned 136,633 shares of the company’s stock, valued at approximately $3,646,734.77. This trade represents a 7.14% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Brian Daniel Webster sold 15,000 shares of the business’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $25.60, for a total value of $384,000.00. Following the completion of the transaction, the insider directly owned 379,786 shares in the company, valued at approximately $9,722,521.60. This represents a 3.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 55,500 shares of company stock valued at $1,405,095 in the last quarter. 3.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Kestra Medical Technologies

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Farther Finance Advisors LLC purchased a new position in Kestra Medical Technologies during the fourth quarter valued at $31,000. Russell Investments Group Ltd. boosted its holdings in shares of Kestra Medical Technologies by 43.5% during the 4th quarter. Russell Investments Group Ltd. now owns 1,563 shares of the company’s stock valued at $41,000 after purchasing an additional 474 shares during the last quarter. China Universal Asset Management Co. Ltd. bought a new position in shares of Kestra Medical Technologies during the 3rd quarter valued at about $48,000. Police & Firemen s Retirement System of New Jersey purchased a new position in shares of Kestra Medical Technologies during the second quarter valued at about $54,000. Finally, BNP Paribas Financial Markets increased its holdings in shares of Kestra Medical Technologies by 148.9% in the third quarter. BNP Paribas Financial Markets now owns 2,738 shares of the company’s stock worth $65,000 after purchasing an additional 1,638 shares during the last quarter.

Analyst Ratings Changes

Several equities research analysts have recently commented on the stock. Piper Sandler upped their price target on shares of Kestra Medical Technologies from $27.00 to $30.00 and gave the company an “overweight” rating in a research report on Friday, December 12th. Wells Fargo & Company upped their target price on shares of Kestra Medical Technologies from $27.00 to $28.00 and gave the company an “overweight” rating in a report on Friday, December 12th. BTIG Research reiterated a “buy” rating and set a $32.00 price target on shares of Kestra Medical Technologies in a research note on Wednesday. Stifel Nicolaus set a $30.00 target price on Kestra Medical Technologies in a report on Friday, December 12th. Finally, The Goldman Sachs Group set a $24.00 price target on Kestra Medical Technologies in a report on Friday, January 16th. Six analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $29.00.

About Kestra Medical Technologies

We are a commercial-stage, wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease using monitoring and therapeutic intervention technologies that are intuitive, intelligent, and connected. We have developed and are commercializing our Cardiac Recovery System platform, a comprehensive and advanced system that integrates monitoring, therapeutic treatment, digital health, and patient support services into a single, unified solution. The cornerstone of our Cardiac Recovery System platform is the ASSURE WCD, a next generation wearable cardioverter defibrillator (“WCD”) used to protect patients at an elevated risk of sudden cardiac arrest (“SCA”), a major public health problem that accounts for approximately 50% of all cardiovascular deaths in the U.S.