Revenue growth reached 62.7% in 2026Q3, though operating margins remain severely constrained at -141.6% due to heavy commercial infrastructure spending.
| Sales/Revenue | 83.72M | 59.81M | 27.81M | 7.63M | 0 | 0 |
| Revenue Growth % | 110.07% | 115.05% | 264.53% | - | - | - |
| Cost of Goods Sold | 42.91M | 35.6M | 27.45M | 18.28M | 0 | 0 |
| COGS % of Revenue | - | 59.53% | 98.7% | 239.59% | - | - |
| Gross Profit | 40.81M | 24.21M | 362K | -10.65M | 0 | 0 |
| Gross Margin % | 48.75% | 40.47% | 1.3% | -139.59% | - | - |
| Gross Profit Growth % | - | 6587.85% | 103.4% | - | - | - |
| Operating Expenses | 184.42M | 130.59M | 85.42M | 69.77M | 32.71M | 29.32M |
| OpEx % of Revenue | - | 218.32% | 307.13% | 914.42% | - | - |
| Selling, General & Admin | 165.19M | 114.94M | 69.94M | 54.01M | 13.9M | 6.52M |
| SG&A % of Revenue | - | 192.15% | 251.44% | 707.92% | - | - |
| Research & Development | 19.24M | 15.65M | 15.49M | 15.76M | 18.81M | 22.8M |
| R&D % of Revenue | - | 26.17% | 55.69% | 206.5% | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -143.61M | -106.38M | -85.06M | -80.42M | -32.71M | -29.32M |
| Operating Margin % | -171.53% | -177.84% | -305.83% | -1054.01% | - | - |
| Operating Income Growth % | - | -25.06% | -5.77% | -145.88% | -11.56% | - |
| EBITDA | -141.77M | -98.41M | -73.5M | -75.57M | -32.29M | -28.84M |
| EBITDA Margin % | -169.34% | -164.52% | -264.27% | -990.38% | - | - |
| EBITDA Growth % | -117.98% | -33.89% | 2.73% | -134.04% | -11.95% | - |
| D&A (Non-Cash Add-back) | 1.84M | 7.97M | 11.56M | 4.86M | 420K | 478K |
| EBIT | -103.98M | -105.94M | -87.87M | -78.59M | -32.75M | -29.32M |
| Net Interest Income | 46K | -4.54M | -6.23M | -5.63M | -1.17M | 0 |
| Interest Income | -4.47M | 3.2M | 0 | 0 | 0 | 0 |
| Interest Expense | 7.46M | 7.73M | 6.23M | 5.63M | 1.17M | 0 |
| Other Income/Expense | -75K | -7.3M | -9.03M | -3.8M | -1.21M | 0 |
| Pretax Income | -143.68M | -113.68M | -94.1M | -84.22M | -33.91M | -29.32M |
| Pretax Margin % | -171.62% | -190.05% | -338.3% | -1103.84% | - | - |
| Income Tax | 204K | 135K | 24K | 15K | 187K | 148K |
| Effective Tax Rate % | -0.14% | -0.12% | -0.03% | -0.02% | -0.55% | -0.5% |
| Net Income | -144.83M | -113.81M | -94.12M | -84.24M | -34.1M | -29.47M |
| Net Margin % | -172.99% | -190.28% | -338.39% | -1104.04% | - | - |
| Net Income Growth % | -87.37% | -20.92% | -11.73% | -147.03% | -15.73% | - |
| Net Income (Continuing) | -109.72M | -113.81M | -94.12M | -84.24M | -34.1M | -29.47M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.74 | -5.13 | -2.04 | -1.75 | -0.69 | -0.59 |
| EPS Growth % | -132.94% | -151.47% | -16.57% | -153.62% | -16.95% | - |
| EPS (Basic) | - | -5.13 | -2.04 | -1.75 | -0.69 | -0.59 |
| Diluted Shares Outstanding | 52.84M | 49.53M | 49.53M | 49.53M | 49.53M | 49.53M |
| Basic Shares Outstanding | 52.84M | 49.53M | 49.53M | 49.53M | 49.53M | 49.53M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Unsustainable Operating Cash Burn
According to the latest quarterly filings, KMTS achieved a 62.7% year-over-year revenue growth rate in 2026Q3, signaling strong market adoption of the ASSURE platform as it aggressively challenges the incumbent WCD provider through a specialized, compliance-focused clinical interface and expanded hospital network penetration.
The consistent quarter-over-quarter revenue expansion suggests that the company's value proposition regarding patient compliance is resonating with prescribing physicians. However, investors should monitor whether this growth trajectory can be maintained without further dilutive capital raises, as the current revenue base remains insufficient to cover the company's substantial operating overhead.
As reported in financial statements, KMTS has improved its gross margin from 13.9% in 2024Q4 to 52.6% by 2026Q3, reflecting a significant optimization in unit manufacturing costs or a shift in the mix of service-based revenue relative to the initial hardware deployment phase.
While the upward trend in gross margin is encouraging, the current 52.6% level still lags behind established med-tech peers who typically operate with 60-70% margins. This suggests that the company may still be facing high depreciation costs on field equipment or has yet to achieve the manufacturing scale necessary to reach industry-standard profitability.
Based on the provided income statement data, KMTS continues to exhibit negative operating leverage, with SG&A expenses of $42.7M in 2026Q3 significantly outpacing the $12.9M gross profit, indicating that the company's commercial infrastructure is currently too costly relative to its top-line output.
The persistent gap between revenue growth and operating expenses suggests that management is prioritizing market share acquisition over immediate bottom-line discipline. Investors should look for signs of SG&A stabilization as a percentage of revenue, as the current burn rate appears to be a structural hurdle to achieving long-term operational viability.
Analysis of recent SEC filings reveals that stock-based compensation has become a material component of the cost structure, reaching $10.1M in 2026Q3, which significantly exacerbates the reported net loss and complicates the assessment of the company's underlying operational efficiency and cash-based performance.
The high level of non-cash compensation relative to revenue suggests that management is heavily incentivized through equity, which may align interests but also masks the true cash cost of talent acquisition. This warrants further investigation into whether the company can retain its specialized sales force if equity-based incentives become less attractive due to market volatility.
Data from the income statement suggests that the company's aggressive expansion strategy may be unsustainable, as the $34.8M operating loss in 2026Q3 highlights a reliance on external funding that could be jeopardized if the current pace of revenue growth fails to translate into improved unit economics.
Short-term observers may focus on the risk that the company is essentially 'buying' revenue through excessive SG&A spending rather than building a self-sustaining business model. If the cost of acquiring each new patient does not decline significantly, the company may face a liquidity crunch that forces a pivot away from its current growth-at-all-costs trajectory.
Quick answers to the most common questions about buying KMTS stock.
For fiscal year 2025, KESTRA MEDICAL TECHNOLOGIES, LTD. (KMTS) reported total revenue of $59.8M.
KESTRA MEDICAL TECHNOLOGIES, LTD. (KMTS) reported a net loss of $113.8M for the fiscal year ending 2025.
KESTRA MEDICAL TECHNOLOGIES, LTD. (KMTS) reported an operating income of $-106.4M, resulting in an operating profit margin of -177.8%. This margin reflects the operational efficiency of the business before interest and taxes.
KESTRA MEDICAL TECHNOLOGIES, LTD. (KMTS) generated $24.2M in gross profit for the year, representing a gross profit margin of 40.5%. This demonstrates the company's core pricing power and production efficiency.