Kestra Medical Technologies reported 60% revenue growth in its fiscal first quarter of 2027 and raised its full-year outlook as the wearable medical device and digital healthcare company continued expanding its cardiovascular technology business.
Revenue increased to $31 million from the prior-year period, while gross profit nearly doubled to $17.5 million from $8.9 million.
Gross margin expanded to 56.5% from 45.7%, reflecting higher volume, an increased mix of in-network patients and planned cost improvements.
Kestra attributed revenue growth to expansion of the wearable cardioverter defibrillator market, competitive share gains, new sales territories, a larger proportion of in-network patients and improvements in revenue cycle management.
Based on the strong start, the company increased fiscal 2027 revenue guidance to $141 million from its previous $137 million forecast. The new target represents approximately 48% growth over fiscal 2026.
Kestra continues to spend heavily on commercial expansion and research and development.
GAAP operating expenses increased to $55.2 million from $37.7 million, contributing to a GAAP net loss of $44.1 million compared with a $25.8 million loss a year earlier.
Adjusted EBITDA loss widened to $24 million from $19.4 million as the company accelerated investment in growth programs.
The company nevertheless maintains substantial liquidity to fund expansion. Cash, cash equivalents and investments totaled $244.7 million at July 31. Including committed but unused availability under its term loan, Kestra reported approximately $320 million in total liquidity.
Kestra develops connected monitoring and therapeutic intervention technologies intended to improve outcomes for patients with cardiovascular disease.
The higher guidance signals management’s confidence that commercial expansion and increasing adoption can sustain strong growth through the remainder of fiscal 2027.
KEY QUOTES:
“Kestra delivered another strong quarter of financial performance, generating revenue growth of 60% while expanding gross margin to over 56%. We remain confident that our focus on innovation and commercial expansion positions Kestra to generate durable, top-tier growth for years to come.”
Brian Webster, President and CEO of Kestra Medical Technologies
