Kestra Medical Technologies reported Q4 2023 revenue of $10.054 million, up from $8.277 million in the prior quarter, signaling near-term topline acceleration in a nascent growth phase. Gross profit reached $1.397 million with a gross margin of 13.9%, up from 10.6% in Q3, indicating improved cost absorption as volumes scale. Despite the revenue uptick and gross margin expansion, the company generated substantial operating losses and negative free cash flow, with EBITDA of -$16.874 million and net income of -$22.284 million for the quarter. The operating cash burn was $14.948 million in the quarter, contributing to a cumulative cash balance of $8.583 million at quarter-end (down from $15.454 million at the start of the period). Financing activities provided $12.236 million, partially offsetting cash burn but leaving the business with a fragile liquidity runway absent additional capital or operating leverage.
Key Performance Indicators
Revenue
Stable
10.05M
QoQ: N/A | YoY: N/A
Gross Profit
Stable
1.40M
13.89% margin
QoQ: N/A | YoY: N/A
Operating Income
Stable
-20.35M
QoQ: N/A | YoY: N/A
Net Income
Stable
-22.28M
QoQ: N/A | YoY: N/A
EPS
Stable
-0.45
QoQ: N/A | YoY: N/A
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability:
- Q4 2023 revenue: $10.054 million; QoQ growth vs Q3 2023: +21.5% (8.277 million in Q3).
- Gross profit: $1.397 million; gross margin: 13.9% (up from 10.6% in Q3).
- Operating expenses: R&D $3.821 million; SG&A $17.925 million; total operating expenses $21.746 million; cost of revenue not separately disclosed beyond COGS.
- EBITDA: -$16.874 million; EBITDA margin: -16.78%.
- Operating income: -$20.349 million; operating margin: -2.02%.
- Net income: -$22.284 million; net income margin: -22.16%; EPS: -$0.45 on 49.533 million weighted-average shares.
Cash flow and liquidity:
- Net cash from operating activities: -$14.948 million.
- Capital expenditures: $4.201 million.
- Free cash flow: -$19.149 million.
- Net change in cash: -$6.871 million; cash at end of period: $8.583 million (from $15.454 million at start).
- Net cash provided by financing activities: $12.236 million.
Balance sheet and leverage:
- No debt data provided in the disclosed figures; liquidity remains tight given ongoing operating losses and negative free cash flow.
Strategic takeaway:
- The quarter demonstrates topline momentum and gross margin improvement, but sustaining profitability hinges on achieving higher scale, managing SG&A/r&D intensity, and securing additional capital or financing lines to support continued development and commercialization of the Cardiac Recovery System platform and related digital health services.
Income Statement
Metric
Value
YoY Change
QoQ Change
Key Financial Ratios
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.