Kestra Medical Technologies Ltd Q1 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Travis Steed - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Congrats on another quarter. Maybe to start on guidance. Nice to see raised by more than the beat. Just helping us understand kind of what's driving the confidence to raise this much in beginning of the year and how to think about any cadence over the course of the year as we update our models?

Question: Travis Steed - Bofa Merrill Lynch Asset Holdings Inc - Analyst : All right. Great. And I wanted to maybe double-click on some of the end network mix things you mentioned. Just kind of understanding like what you guys are doing on the ground to improve the mix, where the mix can be over the course of this year and next few years and maybe to think about the impact on gross margins as well as to go forward?

Question: Rick Wise - Stifel, Nicolaus & Company Inc - Analyst : Two things I'd like to follow up on a little bit. One, actually, you just touched on in your response to Travis, Brian, this notion, and you've said it from the beginning, this notion of expanding into areas where there's greater in-network opportunity or however, I should phrase the words, I know you know what I mean. Where are you in that process? And I mean, is there any way to quantify or give us a more granular understanding of like what happened in the last few months and what's going to happen now this year in terms of that kind of move, so just so we better understand where you are?

Question: Rick Wise - Stifel, Nicolaus & Company Inc - Analyst : Great. And Vaseem, I just wanted to touch on the -- as we reflect on the quarterly flow, I mean, obviously, this is a good quarter. You had a solid raise, very encouraging setting the stage as I think about the rest of the year. But help us think about the quarterly flow and I mean, with these extra wonderful few million we're adding to our model, is -- do we take our current models and -- is it more back-end loaded? Does it change the quarterly cadence? Just help us make sure our models are in the right place, if you would.

Question: Larry Biegelsen - Wells Fargo Securities LLC - Analyst : Two for me. One, on the conversion rate, one back on market share. So Vaseem, what is the guidance assume for the year-over-year increase in the conversion rate? It looks relatively small, a relatively small increase is assumed for the fiscal year versus the first quarter, which looks like about 700 basis points. And secondly, if I heard correctly, in network is now almost 80%, which is relatively high what are the drivers to get you to that

Question: Larry Biegelsen - Wells Fargo Securities LLC - Analyst : That's helpful. Brian, on market share, the press release talked about category leadership. So I guess my question is maybe back to math 14%. Where do you think you are today? And is it prescription share, fitting share -- and what's the -- how long is it going to take to achieve category leadership?

Question: David Roman - Goldman Sachs - Analyst : Key topic at last week's HRX conference was on compliance rates and that it still remains a key barrier on WCD utilization. Can you just detail a little further what you are seeing and how compliance rates are evolving across your user base as experience grows?

Question: David Roman - Goldman Sachs - Analyst : That's very helpful. And just the second question is just on the cadence of OpEx investments through the course of the year. Last quarter, we had talked about some of the investments the new commercial offer was making. We've discussed the new territory manager expansion today, but any color on the pace of those investments through the rest of the year and what those might be focused on? I think the name of the game is going to be steady and measured. We are adding to our commercial footprint, as we've talked about. I think last quarter, we talked about the prior quarter, we got a little bit aggressive with some of our OpEx because we had an opportunity to really invest in the leadership team and the training capability of all these new reps, et cetera. Now as we go into our new fiscal year, we have a business plan for the year. We're executing to it with pretty tight precision at this point. And what you're going to see is steady additions to the team so that we can consume those new territories and those new territory managers and provide them with all the support that they need to be successful. And I think that's really the strategy behind of the base. This is not a -- this is not one of those categories where you can just say, hey, I'm going to go out and hire as many reps as I can as quickly as I can. That's not the game. We want high-quality reps that are going to come in, do a great job of serving our customers and their patients and really build a durable commercial team. That's our strategy.