| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 12 | — | 17.3x | Bottom tier | |
Growth | 93 | 60.7% | 7.1% | Top tier | |
Quality | 25 | -54.5% | 4.5% | Bottom tier | |
Safety | 47 | — | 2.6x | Around median | |
Capital Return | 28 | 0.03% | 0.06% | Bottom tier | |
Momentum | 87 | 12.1% | -1.6% | Top tier | |
Sentiment | 34 | 5 | 3 | Bottom tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Kestra Medical Technologies is developing a care ecosystem for at-risk patients with cardiac arrhythmias, centered on the ASSURE WCD wearable cardioverter-defibrillator and Heart Alert services. The ecosystem combines continuous therapeutic protection, clinical data, and communication with patients and healthcare providers; the company benefits financially from a rental model whose profitability increases as patient fittings grow, collections improve, and the proportion of beneficiaries covered by contracted insurers rises.
In the first quarter of fiscal 2027, revenue reached $31.0 million, up 60% year over year and exceeding market expectations by approximately $1.99 million. Gross profit was $17.5 million, and gross margin reached 56.5% versus 45.7% in the comparable period, an increase of more than ten percentage points and 175 basis points sequentially; this marked the eleventh consecutive quarter of margin expansion. The results were supported by growth in the WCD market, market-share gains from competitors, an increase in the in-network patient mix to the low-80% range, and improved revenue cycle management.
Despite strong revenue and margins, the company remained far from profitability in the first quarter of fiscal 2027; its GAAP net loss widened to $44.1 million from $25.8 million, and its loss per share was $0.75. GAAP operating expenses reached $55.2 million versus $37.7 million, while the company recorded an adjusted EBITDA loss of $24 million and operating cash burn of $32.3 million. The available data do not disclose separate revenue segments, so the most important economic mix factors are the expansion of in-network coverage and improvement in revenue per fitting.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is Buy, with an average price target of $30.67 and a narrow range of $30 to $32; the average is slightly above the 52-week range high of $30, while the annual range extends down to $17.34. No positive price-to-earnings multiple is available given the twelve-month loss of $149.9 million, and the $1.5 billion market capitalization equals approximately 14 times revenue of $106.7 million, so the valuation assumes continued growth near the guided 48% and that margin expansion will translate into meaningful operating leverage.
Figures in the text are as of 2026-09-16; the live price is shown at the top of the page.
Kestra offers the ASSURE WCD ecosystem to protect patients at risk of dangerous cardiac arrhythmias, combining it with Heart Alert services that monitor data and communicate with patients and clinical providers. The model is based on device rentals, so its economics improve as fittings increase and the fleet is reused. In the first quarter of fiscal 2027, expansion of the WCD market, market-share gains, and improved revenue cycle management helped raise revenue to $31 million.
Revenue reached $31 million, up 60% year over year and exceeding expectations by approximately $1.99 million. Gross profit was $17.5 million, and gross margin increased to 56.5% from 45.7% in the comparable period. In contrast, the GAAP net loss widened to $44.1 million, while the loss per share was $0.75 and operating expenses were $55.2 million.
On September 14, 2026, management raised its revenue guidance from $137 million to $141 million, representing growth of 48% from fiscal 2026. The company expects the second half to be stronger than the first as representatives hired in late fiscal 2026 and early fiscal 2027 become more productive. The guidance also depends on deeper account penetration, opening new accounts, a higher in-network insurance mix, and improved collections.
Cash, cash equivalents, and investments totaled $245 million as of July 31, 2026, while approximate liquidity was $320 million after including the undrawn portion of a $200 million term loan facility. Operations used $32.3 million in cash in the first quarter of fiscal 2027, and management said cash burn was sequentially elevated because of company bonuses and the timing of supplier payments. Management expects cash burn to decline sequentially during fiscal 2027, but the continued net loss of $44.1 million in the quarter makes the burn rate a key factor to monitor.
The margin reached 56.5% in the first quarter of fiscal 2027 after 11 consecutive quarters of expansion. Management attributes the improvement to higher revenue per fitting as the number of in-network patients increases, lower cost per fitting, and volume-based supplier discounts. The company targets a margin in the mid-70% range within two to three years and expects an annual margin of 70% in fiscal 2029.
Growth drivers include the WCD market, which grew approximately 14% during the twelve months ended July 2026, Kestra's estimated U.S. market share of approximately 15% in the first quarter of fiscal 2027, and expanded insurance coverage for non-ischemic patients. The company is also working to integrate blood pressure monitoring from Biobeat Technologies and add a new capability to the ASSURE platform. Conversely, the company faces a trailing annual loss of $149.9 million, execution that depends on second-half acceleration, an established competitor, and more than 3,000 U.S. payers that are not yet all covered.