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Revenue grew 63% year-over-year, driven by a 58% increase in prescriptions and improved revenue proportionally with a higher mix of in-network patients.
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Net income expanded for the ninth consecutive quarter to 52.6%, benefiting from the economic unit’s natural rental model and volume-driven depreciation.
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Management attributed the speed to market to a combination of factors, including the expansion of Kestra’s commercial team and clinical data from both Kestra and its competitor that revealed greater patient risk during the first 90 days of hospitalization.
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The sales organization reached 100 active positions by the end of the 2025 calendar year, with new hires effectively matching the production curves of established reps.
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The strategic focus has shifted to market expansion as clinical data encourages physicians to offer wearable cardioverter defibrillators (WCDs) to previously unprotected patients.
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The internal charge mix of the network has improved to a low of 80%, from 70% at the time of the IPO, which greatly improves the efficiency of the revenue cycle.
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Workforce is reinvested in commercial expansion and innovation to create a long-lasting, long-term growth engine.
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Revenue guidance for fiscal year 2026 increased to $93,000,000, taking into account continued prescription growth and continued improvements in revenue cycle management.
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Management is aiming for 70% plus revenue within the next few years, due to continued increases in capacity and projects to improve the cost of waste materials.
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The sales force is on track to reach 130 positions by April 2026, with ongoing evaluation of whether to accelerate additional hiring in fiscal 2027.
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The integration of BioBeat blood pressure monitoring technology is expected to differentiate the Assure system and capture additional market share by providing novel diagnostic information.
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The future doubling or tripling of the market depends on the revisions of the clinical guidelines, which the company is pursuing by working to publish the results of the ACE PAS study.
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It received FDA approval for a new update to the Assure algorithm designed to further reduce false alarms and inappropriate shocks, improving patient compliance and safety.
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Secured status as an approved managed Medicaid provider in Florida, signing two of the state’s four largest programs to remove a significant barrier to the high-volume market.
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Added to the Federal Supply Schedule of the US Department of Veterans Affairs, providing access to an integrated network of 9,000,000 members.
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Entered into a strategic partnership with BioBeat Technologies for an exclusive license and development agreement that includes a $5,000,000 equity investment in MyoV to expand the diagnostic capabilities of the Assure system.
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Growth is fueled by strong commercial momentum and clinical data from both Kestra and its competitor highlighting high patient risk.
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Management noted that the incumbent is also forced to expand the market to reduce Kestra’s market share.
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About 70% to 75% of the growth is derived from the market share shift of the participant in the existing accounts.
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About 25% of the growth comes from entirely new suppliers, who represent the early stages of the category’s growth.
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Management has yet to see an impact from a major new WCD competitor, describing it as a slow launch that will not replace large legacy fleets overnight.
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Kestra maintains its uniqueness through product design, while the competitor focuses on processing ease of order and insurance coverage.
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The 46% conversion rate in Q3 was a significant improvement over the year-ago period’s 43%, despite typical second-half headwinds such as the January reset of deductions.
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Management explained that January’s deductible refunds and strategic claim holdings typically make the second half of the fiscal year less than the first half.
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CapEx spending, such as the $9,000,000 invested this quarter, is used to build inventory prior to the deployment of a new sales location.
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The model assumes 10% of input from new units and 90% from refurbished units, supporting a projected CapEx approach of approximately $30,000,000 per year.
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