Kestra Medical (KMTS) Q3 2023 Earnings Report

Revenue: $8.2777 million; Cost of Revenue: $7.3970 million; Gross Profit: $0.8800 million; Gross Margin: 10.63%; Research & Development: $3.7350 million; Selling, General & Administrative: $17.0910 million; Operating Expenses: $20.8260 million; Total Expenses: $28.2230 million; EBITDA: -$16.5910 million; EBITDARatio: -200.447% (relative to revenue); Operating Income: -$19.9460 million; Operating Margin: -24.098% (approx. -2.41% when expressed as a ratio to revenue); Total Other Income/Expenses: -$1.6590 million; Income Before Tax: -$21.6050 million; Income Tax Benefit/Expense: $0.0140 million; Net Income: -$21.6190 million; Net Income Margin: -26.12%; EPS: -$0.47; Weighted Avg Shares Outstanding: 49.5338 million; Free Cash Flow: -$20.7640 million; Net Cash Provided by Operating Activities: -$15.7960 million; Cash at End of Period: $15.4540 million; Cash at Beginning of Period: $24.3180 million; Net Change in Cash: -$8.8640 million; Operating Cash Flow: -$15.7960 million; Capital Expenditures: -$4.9680 million.

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The QQ3 2023 results signal a high-risk, high-reward investment profile typical of early-stage medtech platforms. The company generated $8.28 million in revenue with a 10.6% gross margin but posted a substantial net loss of $21.62 million and negative free cash flow of $20.76 million, with $15.45 million in cash at quarter-end. A net financing inflow of $11.90 million cushioned liquidity, but the company faces a tenuous runway absent a meaningful revenue ramp or cost optimization. The key catalysts to watch include evidence of commercial traction for the Cardiac Recovery System and related digital solutions, improvements in gross margins through scale and payer alignment, and the availability of additional capital to support ongoing operations. Investors should weigh the potential for a multi-year product-cycle lift against the risk of continued cash burn and capital raising needs.