Exceptional revenue growth near 63% per year and three consecutive earnings beats demonstrate strong commercial momentum, but deeply negative free cash flow consuming roughly 89% of revenues, below-floor business quality, and a technical setup that has not yet confirmed a resumption of trend strength combine to limit the investable case despite the growth trajectory.
Thesis pillars
- Exceptional Revenue Growth Rate→Stable
- Improving Earnings Beat Cadence→Stable
- Severe Cash Burn Viability Risk→Stable
- +1 more pillar — see the Why tab for full reasoning
Kestra Medical Technologies, Lt (KMTS) Stock Analysis
Healthcare · Medical Instruments & Supplies
Sell if holding. At $28.68, A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: ASSURE WCD; Concentration risk — Customer: third-party payors.
Kestra Medical Technologies sells the ASSURE wearable cardioverter defibrillator, which protects patients at elevated risk of sudden cardiac arrest, alongside digital monitoring and patient support services. It leases the device month-to-month and bills Medicare, Medicaid and... Read more
Sell if holding. At $28.68, A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: ASSURE WCD; Concentration risk — Customer: third-party payors. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.2/10, moderate confidence.
Passes 6/8 gates (positive momentum, no SEC red flags, news events none recent, earnings proximity 59d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and clean insider activity. Suitability: aggressive.
About Kestra Medical Technologies, Lt
About Kestra Medical Technologies, Lt
Kestra Medical Technologies generated revenue of $59.8 million in the fiscal year ended April 30, 2025, up 115% from $27.8 million, while recording a net loss of $113.8 million and an accumulated deficit of $520.2 million. Its ASSURE wearable cardioverter defibrillator has been worn by over 20,000 patients since full commercial launch in August 2022. The company reported gross profit of $24.2 million versus $0.4 million a year earlier and over 330 team members.
Kestra earns revenue by leasing the ASSURE WCD to patients on a month-to-month basis and billing third-party payors, including Medicare, Medicaid and private insurers, based on patient wear time. The company assumes an average prescription of 3.4 months and an average Medicare rate of $3,519 per patient per month. Each device in the leased fleet can support roughly three patient wears per year after reprocessing, which the company says improves unit economics. In the United States, about 80 direct sales representatives and more than 40 sales and clinical support professionals work alongside a contracted network of over 300 patient specialists who fit and train patients. Components come from third-party medical technology suppliers. The 10-K describes a WCD market of $1.3 billion in 2023, roughly 85% of it in the United States, served for over 20 years by a single competitor until the ASSURE WCD received FDA approval in July 2021.
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Payor dependence frames the main exposure. The 10-K states that nearly all revenue comes from direct billing of third-party payors, and that coverage reaches over 285 million U.S. lives, about 90% of available lives. Changes to coverage or reimbursement rates may weigh on results, and revenue also varies with how long clinicians prescribe the device, since shorter wear times shrink billable months. The company expects to keep incurring losses for the next several years and may need additional equity or debt financing, although management believes existing cash will fund operations for at least the next 12 months.
See also: Healthcare · Medical Instruments & Supplies
From Kestra Medical Technologies, Lt's most recent 10-K filing, extracted October 11, 2026.
Recent developments
updated 2026-10-16Recent Developments — Kestra Medical Technologies, Lt
Latest news
- NEWS Kestra Medical Technologies Appoints Daniel Finney as Vice President of Research & Development - Quiver Quantitative — Quiver Quantitative positive
- NEWS Kestra Medical Technologies Appoints Daniel Finney as Vice President of Research & Development - quiverquant.com — quiverquant.com positive
- NEWS KESTRA MEDICAL TECHNOLOGIES Q1 2027 Earnings Preview: Recent $KMTS Insider Trading, Hedge Fund Activity, and More - Quiv — Quiver Quantitative neutral
- NEWS KESTRA MEDICAL TECHNOLOGIES Q1 2027 Earnings Preview: Recent $KMTS Insider Trading, Hedge Fund Activity, and More - quiv — quiverquant.com neutral
- NEWS Kestra Medical Technologies (KMTS) Fiscal Q1 2027 Earnings Call: Revenue Up 60%, Guidance Raised - TradingKey — TradingKey positive
Generated 2026-10-16T11:47:11Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Concentration Risks(10-K Item 1A)
- HIGHProductASSURE WCD10-K Item 1A: 'revenues from our ASSURE WCD and associated products and services delivered as part of our Cardiac Recovery System platform will continue to account for nearly all of our revenue'
- HIGHCustomerthird-party payors10-K Item 1A: 'We derive nearly all our revenue from the direct billing of various third-party payors, including Medicare, Medicaid, private payors and other healthcare-related organizations'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $28.68, A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Product: ASSURE WCD; Concentration risk — Customer: third-party payors. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $26.67. Score 5.2/10, moderate confidence.
Take-profit target: $32.98 (-8.1% upside). Prior stop was $26.67. Stop-loss: $26.67.
Concentration risk — Product: ASSURE WCD; Concentration risk — Customer: third-party payors; Analyst target reached - limited upside remaining.
Kestra Medical Technologies, Lt trades at a P/E of N/A (forward -14.0). TrendMatrix value score: 2.4/10. Verdict: Sell.
14 analysts cover KMTS with a consensus score of 4.3/5. Average price target: $30.
What does Kestra Medical Technologies, Lt do?Kestra Medical Technologies sells the ASSURE wearable cardioverter defibrillator, which protects patients at elevated...
Kestra Medical Technologies sells the ASSURE wearable cardioverter defibrillator, which protects patients at elevated risk of sudden cardiac arrest, alongside digital monitoring and patient support services. It leases the device month-to-month and bills Medicare, Medicaid and private payors, generating $59.8 million of revenue in the fiscal year ended April 30, 2025 with a net loss of $113.8 million. Only one other commercial WCD competes in the market.