Kestra Medical Technologies, Ltd. (NASDAQ: KMTS) announced a proposed underwritten public offering of 5,500,000 common shares, with a 30‑day option for underwriters to purchase an additional 825,000 shares at the offering price. The book‑running syndicate includes BofA Securities, Piper Sandler, J.P. Morgan, Goldman Sachs & Co. LLC, and Wells Fargo Securities.
The company plans to use the proceeds to expand sales and marketing, accelerate research and development and clinical studies, and bolster working capital and general corporate purposes. Kestra’s market capitalization stands at roughly $1.39 billion, and the offering represents a significant capital‑raising milestone for a commercial‑stage wearable medical‑device firm focused on cardiovascular disease monitoring and therapeutic intervention.
In its most recent quarterly report, Kestra posted revenue of $19.4 million for fiscal 2026 Q1, up 52% year‑over‑year, and a net loss of $0.5 USD per share. Gross margin improved to 50.0% from 39.6% in the prior year, driven by a higher mix of high‑margin commercial contracts and operational leverage. Cash and cash equivalents were approximately $175 million, giving the company a debt‑to‑equity ratio of 22.5% and a strong liquidity position.
The financing will support the company’s strategy to deepen its commercial footprint, particularly in the wearable defibrillator market, while funding key R&D initiatives such as the Cardiac Recovery System platform. Management expects the capital raise to accelerate product commercialization and to position Kestra for eventual profitability, even though analysts do not anticipate profitability in the current fiscal year.
CEO Brian Webster said, “Revenue is expected to grow by over 50% in the second quarter and continues to exceed our FY26 plan, reflecting sustained commercial momentum as Kestra grows and penetrates the wearable defibrillator market.” He added that the company’s improving gross margin reflects attractive unit economics and positive leverage inherent in its business model.
The offering is subject to market conditions and SEC effectiveness, with no confirmed completion date. Nonetheless, the announcement signals Kestra’s intent to scale its operations and invest in growth initiatives, marking a pivotal step in its commercial expansion.
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