In addition to the impressive revenue figures, Kestra expanded its gross margin to 52.6%, up from 43.4% in the same quarter last year. The company also raised its fiscal year 2026 revenue guidance to $93 million, reflecting a 55% increase compared to fiscal year 2025. This adjustment indicates strong confidence in the company's operational execution and market strategy.
Brian Webster, President and CEO of Kestra, expressed satisfaction with the company's performance, stating, "Kestra delivered another strong quarter of financial performance, generating revenue growth of 63% while expanding gross margin to over 52%. We also continued to execute on several key operational objectives, including rapid growth of the commercial organization and entrance into a strategic collaboration with Biobeat Technologies."
Despite the positive revenue growth, the company reported a GAAP net loss of $34.2 million for the quarter, compared to a loss of $21.8 million in the prior year. This increase in losses is attributed to higher operating expenses, which totaled $47.7 million, including $1.5 million in non-recurring costs. Adjusted EBITDA loss was reported at $21.2 million, compared to a loss of $16.3 million in the previous year.
Kestra's cash and cash equivalents stood at $291 million as of January 31, 2026, bolstered by the net proceeds from a public offering of 6.9 million common shares that closed in December 2025. The company is focused on maintaining its growth trajectory while managing its operational costs effectively.
Overall, Kestra Medical Technologies is positioned for continued growth in the wearable medical device market, with a strong emphasis on operational execution and strategic partnerships. The company's ability to increase revenue guidance while expanding margins reflects a positive outlook for its future performance.
