Kestra Medical Posts 63% Revenue Growth to $24.6M, GAAP Loss Widens to $34.2M
Kestra Medical Technologies reported Q3 revenue of $24.6 million, a 63% year-over-year increase, but widened its GAAP net loss to $34.2 million as operating expenses were $47.7 million. The company expanded gross margin to 52.6% and secured Florida Medicaid and VA supply approval, aiming to establish about 130 sales territories.
1. Q3 Financial Results
Kestra Medical delivered Q3 revenue of $24.6 million, a 63% increase year over year. Operating expenses rose to $47.7 million, driving a GAAP net loss of $34.2 million and an adjusted EBITDA loss of $21.2 million.
2. Margin Expansion and Unit Economics
Gross margin improved to 52.6%, up nine percentage points year over year, marking nine consecutive quarters of sequential expansion. The company remains on track to achieve over 70% gross margins in the coming years.
3. Market Access and Sales Expansion
Kestra gained approval as a Florida managed Medicaid provider and was added to the U.S. Department of Veterans Affairs supply schedule. The sales organization is scaling toward approximately 130 territories by fiscal year-end to deepen market penetration.
4. Operational Challenges
The company continues working to contract with regional and local payers, indicating incomplete market access. Underutilization in the wearable cardioverter-defibrillator market persists, with six out of seven indicated patients not yet protected by one.