Kestra Medical Technologies (KMTS) Q2: Revenue Growth, Losses Deepen, Testing Bullish Scale Narratives

Kestra Medical Technologies (KMTS) has posted its Q2 2026 results with revenue of about $22.6 million and a basic EPS loss of $0.64, alongside net income excluding extraordinary items of negative $32.8 million, keeping profitability firmly in the red. The company has seen revenue move from $14.7 million in Q2 2025 to $22.6 million in Q2 2026, while quarterly EPS narrowed from a loss of $1.19 to a loss of $0.64 over the same period. Trailing twelve month net losses remain heavy at roughly $138.8 million. For investors, the story this quarter centers on how quickly those improving revenues can begin to ease the pressure on margins and turn the steep losses into something more sustainable.

See our full analysis for Kestra Medical Technologies.

With the numbers on the table, the next step is to line them up against the prevailing narratives around Kestra, to see where the growth story holds up and where market expectations might need a reset.

Curious how numbers become stories that shape markets? Explore Community Narratives

Revenue Climbs To 74.3 million Over The Past Year

• On a trailing twelve month basis, revenue reached about 74.3 million dollars, up from 35.9 million dollars at the start of 2025.
• What stands out for a generally bullish angle is that this 74.3 million dollars of trailing revenue sits alongside trailing net losses of 138.8 million dollars and a trailing EPS loss of 3.44 dollars. This means:
  • Losses have grown in absolute terms compared with the 93.7 million dollars of trailing net loss reported at Q2 2025, even as revenue nearly doubled over that span.
  • This combination of higher revenue with deeper trailing losses challenges a simple bullish story that scale alone is quickly pulling Kestra toward break even.

📊 Read the full Kestra Medical Technologies Consensus Narrative.

Quarterly Losses Remain Steep At 32.8 million

• In Q2 2026, Kestra recorded a net loss excluding extraordinary items of 32.8 million dollars, compared with 25.8 million dollars in Q1 2026 and 23.7 million dollars in Q2 2025.
• Bears often focus on how fast costs are running relative to sales, and the move from a 23.7 million dollar loss in Q2 2025 to 32.8 million dollars this quarter, while revenue rose from 14.7 million to 22.6 million dollars over the same periods, gives them support because:
  • The gap between revenue and net loss has stayed wide from quarter to quarter, with losses consistently larger than sales despite the top line increasing.
  • Trailing twelve month losses of 138.8 million dollars compared with 74.3 million dollars of trailing revenue underline that profitability has not yet tracked the stronger revenue base.

EPS Volatility Eases But Stays Negative

• Basic EPS has swung from a loss of 2.25 dollars in Q4 2025 to a smaller loss of 0.64 dollars in Q2 2026, with trailing twelve month EPS at a loss of 3.44 dollars.
• For investors looking at both bullish and bearish talking points, the recent narrowing of quarterly EPS losses compared with Q4 2025 sits against a backdrop where trailing EPS still deepened versus the 3.15 dollar loss at Q2 2025. This means:
  • The short term trend in quarterly EPS from a 2.25 dollar loss in Q4 2025 to a 0.50 dollar loss in Q1 2026 and 0.64 dollars in Q2 2026 suggests less severity than the worst recent quarter.
  • However, the trailing EPS path from a 3.15 dollar loss at Q2 2025 to a 5.13 dollar loss at Q4 2025 and then to a 3.44 dollar loss now highlights that the longer view still reflects heavy dilution of value per share from cumulative losses.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Kestra Medical Technologies's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Kestra's rapid revenue growth is still overshadowed by widening losses, persistent negative EPS and a business model that has yet to prove a clear path to sustainable profitability.

If you want exposure to growth without shouldering such heavy ongoing losses, use our stable growth stocks screener (2103 results) to focus on companies already turning consistent revenue gains into steadier earnings momentum.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com