Kestra Medical Technologies falls on Q4 loss despite revenue growth

Published 15/07/2025, 22:14
Kestra Medical Technologies falls on Q4 loss despite revenue growth

Investing.com -- Kestra Medical (TASE:BLWV) Technologies , Ltd. (NASDAQ:KMTS) reported a wide loss for its fourth quarter despite strong revenue growth, sending shares down 2.4% following the announcement.

The wearable medical device company posted revenue of $17.2 million for the fourth quarter ended April 30, 2025, representing a 71% increase YoY. However, the company reported a quarterly loss of -$2.21 per share. For the full fiscal year 2025, revenue reached $59.8 million, up 115% compared to fiscal 2024.

Kestra’s gross margin improved significantly to 44.3% in the fourth quarter, compared to 13.9% in the same period last year. The company attributed this improvement to volume leverage and a higher mix of in-network patients. Despite these gains, Kestra reported a GAAP net loss of $51.1 million for the quarter, more than double the $22.3 million loss in the prior year period.

"We capped an exciting year for Kestra with a very strong finish to our fiscal 2025. This quarter’s financial results reflect accelerating demand for our best-in-class cardiac recovery system," said Brian Webster, President and CEO.

The company reported that 3,903 prescriptions were written for its ASSURE® system during the quarter, a 43% increase YoY. Revenue growth was driven by increased share of wallet with existing customers and activation of new accounts.

Looking ahead, Kestra initiated fiscal year 2026 revenue guidance of $85 million, representing a 42% increase over fiscal 2025. The company ended the quarter with $237.6 million in cash and cash equivalents.

Operating expenses rose significantly to $55.8 million in the fourth quarter, including $22.3 million in share-based compensation expense and $3.8 million in professional services expenses related to the company’s IPO in March.

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