Revenue grew 63% year-over-year, driven by a 58% increase in prescriptions and improved revenue per fit from a higher mix of in-network patients.

Gross margin expanded for the ninth consecutive quarter to 52.6%, benefiting from the rental model's inherent unit economics and volume-driven depreciation leverage.

Management attributes market acceleration to a combination of factors, including the expansion of Kestra's commercial team and clinical data from both Kestra and its competitor that revealed higher-than-understood patient risk during the first 90 days post-hospitalization.

The sales organization reached 100 active territories by calendar year-end 2025, with new hires successfully matching the productivity curves of established reps.

Strategic positioning shifted toward market expansion as clinical data encourages physicians to prescribe wearable cardioverter defibrillators (WCDs) for previously unprotected patients.

In-network billing mix improved to the low 80% range, up from 70% at the time of the IPO, significantly enhancing revenue cycle management efficiency.

Operational leverage is being reinvested into commercial expansion and innovation to build a durable, long-term growth engine.

Fiscal year 2026 revenue guidance was raised to $93,000,000, assuming continued prescription growth and further improvements in revenue cycle management.

Management targets 70% plus gross margins within the next few years, driven by steady increases in volume and cost-improvement projects for disposables.

The sales force is on track to reach 130 territories by April 2026, with ongoing evaluation of whether to accelerate hiring further in fiscal 2027.

Integration of BioBeat’s cuffless blood pressure monitoring technology is expected to differentiate the Assure system and capture additional market share by providing novel diagnostic insights.

Future market doubling or tripling is contingent upon updates to clinical guidelines, which the company is pursuing by working to publish the ACE PAS study results.

Received FDA approval for a new Assure algorithm update designed to further reduce false alarms and inappropriate shocks, enhancing patient compliance and safety.

Secured status as an approved Florida managed Medicaid provider, signing two of the state's four largest plans to remove a significant barrier in a high-volume market.

Added to the Federal Supply Schedule for the U.S. Department of Veterans Affairs, granting access to an integrated network covering 9,000,000 members.

Entered into a strategic collaboration with BioBeat Technologies for an exclusive license and co-development agreement that included a $5,000,000 equity investment in MyoV to expand the Assure system's diagnostic capabilities.

Growth is fueled by a larger commercial footprint and clinical data from both Kestra and its competitor highlighting elevated patient risk.

Management noted that the incumbent competitor is also being forced to expand the market to offset Kestra's market share gains.

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Approximately 70% to 75% of growth is derived from shifting market share away from the incumbent in existing accounts.

About 25% of growth is coming from entirely new prescribers, representing the early stages of category expansion.

Management has not seen any impact from the competitor's new larger WCD, characterizing it as a slow launch that cannot replace a massive legacy fleet overnight.

Kestra maintains differentiation through product design, while the competitor focuses on ease of order processing and insurance coverage.

The 46% conversion rate in Q3 was a significant improvement over the prior year period's 43%, despite typical second-half headwinds like January deductible resets.

Management explained that January deductible resets and strategic claim holds usually make the second half of the fiscal year lower than the first half.

CapEx spending, such as the $9,000,000 invested this quarter, is used to build inventory ahead of new sales territory deployments.

The model assumes 10% of fittings come from new units and 90% from reconditioned units, supporting a predictable CapEx path of roughly $30,000,000 annually.

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