Financial Analysis

14. Commitments and Contingencies The Company considers the likelihood of loss or impairment of an asset, or the incurrence of a liability, as well as the ability to reasonably estimate the amount of loss, in determining loss contingencies. An estimated loss contingency is accrued when information available prior to issuance of the consolidated financial statements indicates that it is probable that an asset has been impaired or a liability has been incurred at the date of the consolidated financial statements, and the amount or range of loss can be reasonably estimated. Legal costs are expensed as incurred. Gain contingencies are not recognized until they are realized or realizable. From time to time, the Company may become involved in litigation relating to claims arising from the ordinary course of business. The Company enters into indemnification agreements with its officers and directors, and the Companys bye-laws include similar indemnification obligations to its officers and directors. To date, there have been no claims under any indemnification provisions, and therefore there is no accrual of such amounts as of April 30, 2026 and 2025. The Company is unable to determine the maximum potential impact of these indemnifications on the future results of operations. Management believes that there are currently no other claims or actions pending against the Company where the ultimate disposition could have a material effect on the Companys results of operations, financial co …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

7. Long-Term Debt On September 29, 2023, the Company entered into a Credit Agreement with a lender that provided a Senior Secured Delayed Draw Term Loan Facility (as amended, the Term Loan 2024) in an aggregate principal amount of up to $ 60,000 and matures on September 29, 2028 . Borrowings are made available in up to three tranches, the first of which is available upon closing of the agreement, which included committed equity funding of at least $ 75,000 , and two follow on tranches of $ 7,500 which became available before November 1, 2024, and February 1, 2025, dependent upon achievement of revenue milestones of trailing twelve-month revenues of $ 50,000 and $ 70,000 , respectively. The Term Loan 2024 bears interest equal to the sum of Term Secured Overnight Financing Rate plus 7.25 % for each interest period which is measured monthly and is payable on the last day of each fiscal quarter. Through March 31, 2025, the Company had the ability to pay-in-kind up to 2 % of the payable interest. The Term Loan 2024 requires a minimum level of cash of $ 3,000 and certain revenue thresholds based upon trailing twelve-month revenue results. The revenue covenant began to be measured on April 30, 2024. On September 29, 2023, the Company drew an initial $ 45,000 . In connection with the first draw, the Company incurred a 1 % facility fee of the total available loan amount of $ 60,000 upon the draw of the first tranche of $ 600 and legal fees of $ 1,753 for both the Company and the lende …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

8. Fair Value Measurement The following table presents the Companys fair value hierarchy for its classified assets and liabilities measured at fair value on a recurring basis as of April 30, 2026 and 2025. Level 1 Level 2 Level 3 April 30, 2026 Assets Money market funds $ 22,146 $ $ U.S. treasury securities 195,338 Total assets $ 22,146 $ 195,338 $ Liabilities Warrant liabilities 1,369 Total liabilities $ $ $ 1,369 April 30, 2025 Liabilities Warrant liabilities 8,097 Total liabilities $ $ $ 8,097 The Company classifies its money market funds, which are valued based on quoted market prices in active markets with no valuation adjustment, as cash equivalents within the fair value hierarchy. The fair value and amortized cost of available-for-sale marketable securities as of April 30, 2026 are presented in the following table: Gross Unrealized Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Assets Money market funds $ 22,146 $ $ $ 22,146 U.S. treasury securities 195,556 ( 218 ) 195,338 Total $ 217,702 $ $ ( 218 ) $ 217,484 As of April 30, 2026 available-for-sale marketable securities are classified as follows in the consolidated balance sheet: Category: Cash and cash equivalents $ 54,993 Short-term investments 96,724 Long-term investments 65,767 Total $ 217,484 Short-term investments have a contractual maturity date that is one year or less from the respective balance sheet date. Long-term investments have a contractual maturity date that is more than one year f …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

13. Income Taxes The components of loss before income taxes are as follows: 2026 2025 U.S. Operations $ ( 116,148 ) $ ( 105,417 ) Foreign Operations ( 15,171 ) ( 8,262 ) Total $ ( 131,318 ) $ ( 113,679 ) In 2025, the Company completed its restructuring in connection with its initial public offering. The Companys parent company is based in Bermuda and is a resident for Irish tax purposes. Its subsidiaries are in the Cayman Islands, Ireland, and the U.S. Under the current laws of Bermuda and the Cayman Islands, the Company is not subject to tax on income. However, the Company and its subsidiaries are subject to taxation in Ireland, the U.S. federal government, and various states. As a result of the restructuring completed in connection with the initial public offering, the Companys effective tax rate varies from the statutory Irish tax rate due to the effect of U.S. federal income taxes, state income taxes and research and development credits. The Companys effective tax rate could fluctuate from quarter to quarter based on variations in the estimated and actual level of pre-tax income or loss by jurisdiction, changes in enacted tax laws and regulations, and changes in estimates regarding the realizability of deferred tax assets. As of April 30, 2026 and 2025, the Company provided a full valuation allowance against its net deferred tax assets that we believe, based on the weight of available evidence, are not more likely than not to be realized. Income tax expense for the year e …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

5. Leases The Company had two operating leases for office space that commenced on May 1, 2020 and January 1, 2021 with a 48-month term and 40-month term, respectively. The Company determined at the commencement of both leases that it is reasonably certain that the Company will not exercise the option to extend the terms of either lease. The office leases have variable lease payments to reimburse the lessor for costs, such as insurance and taxes but do not depend on an index rate and are excluded from the measurement of the lease liability and are recognized in operating expense. In June 2021, the Company amended its office lease that began on May 1, 2020 to expand the leased space, commencing on September 1, 2021. The amendment is subject to all terms and conditions of the original office lease agreement and were set to expire in April 2024. In October 2023, the Company amended the existing office lease to expire in April 2029. The Company has the option to renew for 3 or 5 years upon expiration of the extended term at prevailing market rates . The October 2023 office lease amendment provided rent abatement from November 1, 2023 through April 30, 2024. The same amendment further provided a tenant improvement allowance of $ 943 to be used as rent abatement or tenant improvement reimbursement by June 2026, and $ 786 specifically for tenant improvement reimbursement. In August 2024, the Company amended its office lease to allow for two additional months of rent abatement and for …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which enhances transparency and decision usefulness of income tax disclosures, primarily related to the income tax rate reconciliation and income taxes paid information. The Company adopted ASU 2023-09 prospectively during the year ended April 30, 2026. The adoption of the amendments in ASU 2023-09 impacted the Companys disclosures in the notes to the consolidated financial statements and did not have a material impact on its consolidated balance sheets, results of operations or cash flows. Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) (ASU 2024-03) , requiring disclosure in the notes to the financial statements for specified information about certain costs and expenses. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027; however early adoption is permitted and can be applied either prospectively or retrospectively. The Company is evaluating the impact that this ASU will have on its financial statement disclosures. In July 2025, the FASB issued ASU 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025- …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

2. Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC) and generally accepted accounting principles in the United States of America (US GAAP) and include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Companys reporting currency is the U.S. dollar. Certain prior period amounts have been reclassified to conform to the current period presentation. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of expenses during the reporting period. Estimates are required as part of determining the collectability of lease payments for revenue recognition, estimated useful lives of property and equipment, losses for unreturned property and equipment, share-based compensation expense, fair value of warrants and valuation allowance for deferred tax assets. The Company bases its estimates on historical experience and other market-specific or relevant assumptions that it believes …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

9. Common Shares The Company had 100,000,000 Common Shares authorized and 58,383,924 and 51,348,656 Common Shares issued and outstanding with a par value of $ 1.00 per Common Share as of April 30, 2026 and April 30, 2025 , respectively. Each Common Share is entitled to one vote .

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"17. Subsequent Event On July 10, 2026, Kestra Medical Technologies, Inc. (the ""Borrower""), a wholly-owned subsidiary of the Company, and other credit parties thereto (the Credit Parties), entered into a loan agreement (the ""Loan Agreement) with BPCR Limited Partnership and BioPharma Credit Investments V (Master) LP (each, a Lender) and BioPharma Credit PLC, as collateral agent. The Loan Agreement provides for a five-year senior secured term loan facility of up to $ 200.0 million, divided into four tranches: (i) a committed Tranche A Loan in an aggregate principal amount of $ 75.0 million (the Tranche A Loan) which was funded on July 10, 2026 (the Tranche A Closing Date); (ii) a committed Tranche B Loan in an aggregate principal of $ 25.0 million (the Tranche B Loan) which may be requested, subject to certain limited conditions, at the Borrowers option through July 31, 2027; (iii) a committed Tranche C Loan in an aggregate principal amount of $ 50.0 million (the Tranche C Loan) which is available to the Borrower upon reaching a trailing twelve-month revenue of $ 150.0 million and which may be requested on or prior to June 30, 2028 and (iv) an uncommitted Tranche D Loan for acquisitions at the Company's option in aggregate principal amount of $ 50.0 million (the Tranche D Loan and collectively with the Tranche A Loan, the Tranche B Loan, and the Tranche C Loan, the Term Loans), subject to certain limited conditions and upon approval of the Lenders, on such date mutually agr …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

14. Commitments and Contingencies From time to time, the Company may become involved in litigation relating to claims arising from the ordinary course of business. The Company considers the likelihood of loss or impairment of an asset, or the incurrence of a liability, as well as the ability to reasonably estimate the amount of loss, in determining loss contingencies. An estimated loss contingency is accrued when information available prior to issuance of the unaudited interim condensed consolidated financial statements indicates that it is probable that an asset has been impaired or a liability has been incurred at the date of the unaudited interim condensed consolidated financial statements, and the amount or range of loss can be reasonably estimated. Legal costs are expensed as incurred. Gain contingencies are not recognized until they are realized or realizable. The Company enters into indemnification agreements with its officers and directors, and the Companys certificate of incorporation and bylaws include similar indemnification obligations to its officers and directors. To date, there have been no claims under any indemnification provisions, therefore there is no accrual of such amounts as of October 31, 2025 and April 30, 2025. The Company is unable to determine the maximum potential impact of these indemnifications on the future results of operations. Management believes that there are currently no other claims or actions pending against the Company where the ultima …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

7. Long-Term Debt On September 29, 2023, the Company entered into a Credit Agreement with a lender that provided a Senior Secured Delayed Draw Term Loan Facility (as amended, the Term Loan 2024) in an aggregate principal amount of up to $ 60.0 million and matures on September 29, 2028 . Borrowings are made available in up to three tranches, the first of which is available upon closing of the agreement, which included committed equity funding of at least $ 75 million, and two follow on tranches of $ 7.5 million which became available before November 1, 2024, and February 1, 2025, dependent on upon achievement of revenue milestones of trailing twelve-month revenues of $ 50.0 million and $ 70.0 million, respectively. The Term Loan 2024 bears interest equal to the sum of Term Secured Overnight Financing Rate plus 7.25 % for each interest period which is measured monthly and is payable on the last day of each fiscal quarter. Through March 31, 2025, the Company had the ability to pay-in-kind up to 2 % of the payable interest. The Term Loan 2024 requires a minimum level of cash of $ 3.0 million and certain revenue thresholds based upon trailing twelve-month revenue results. The revenue covenant began to be measured on April 30, 2024. On September 29, 2023, the Company drew an initial $ 45.0 million. In connection with the first draw, the Company incurred a 1 % facility fee of the total available loan amount of $ 60.0 million upon the draw of the first tranche of $ 600 and legal fees …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

8. Fair Value Measurement The following table presents the Companys fair value hierarchy for its classified assets and liabilities measured at fair value on a recurring basis as of October 31, 2025 and April 30, 2025: Level 1 Level 2 Level 3 October 31, 2025 Assets Cash and cash equivalents $ 175,424 $ $ Restricted cash 334 Total assets $ 175,758 $ $ Liabilities Warrant liabilities 1,977 Total liabilities $ $ $ 1,977 April 30, 2025 Assets Cash and cash equivalents $ 237,595 $ $ Restricted cash 334 Total assets $ 237,929 $ $ Liabilities Warrant liabilities 8,097 Total liabilities $ $ $ 8,097 The Company classifies its money market funds, which are valued based on quoted market prices in active markets with no valuation adjustment, as cash and cash equivalents within the fair value hierarchy. As of October 31, 2025 and April 30, 2025, the fair value of the long-term debt, net of discounts, approximated $ 48,330 and $ 47,330 , respectively. The fair value of long-term debt was determined using quoted market prices, when available, or discounted cash flows based on various factors, including maturity schedules and current market rates. Long-term debt has been classified as Level 2 of the fair value hierarchy. There were no transfers into or out of the Level 1, 2 or 3 fair value hierarchies during the six months ended October 31, 2025 and 2024. Warrant Liabilities As of October 31, 2025, the Company recorded warrant liabilities from issuance of warrants to the lender of the Term L …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

13. Income Taxes The following table presents details of the provision for income taxes and effective tax rates: Three Months Ended October 31, Six Months Ended October 31, 2025 2024 2025 2024 Provision for income taxes $ 34 $ 8 $ 67 $ 15 Effective tax rate 0.11 % - 0.03 % 0.11 % - 0.03 % The Company is based in Bermuda and is a resident of Ireland for tax purposes. The Company has subsidiaries in the Cayman Islands, Ireland and the U.S. Under the current laws of Bermuda and the Cayman Islands, the Company is not subject to tax on income. However, the Company and its subsidiaries are subject to taxation in Ireland, the U.S. federal government, and various states. The Company accounts for the provision for income taxes in accordance with ASC 740, Income Taxes , which requires an estimate of the annual effective tax rate for the full year to be applied to the interim period, taking into account year-to-date amounts and projected results for the full year. The Companys effective tax rate varies from the statutory Irish tax rate due to the impact of the valuation allowance and the effect of state income taxes and research and development credits. The Companys effective tax rate could fluctuate from quarter to quarter based on variations in the estimated and actual level of pre-tax income or loss by jurisdiction, changes in enacted tax laws and regulations, and changes in estimates regarding the realizability of deferred tax assets. As of October 31, 2025 and April 30, 2025 , the …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

5. Leases In June 2021, the Company amended its office lease that began on May 1, 2020 to expand the leased space, commencing on September 1, 2021. The amendment is subject to all terms and conditions of the original office lease agreement and were set to expire in April 2024. In October 2023, the Company amended the existing office lease to expire in April 2029. The Company has the option to renew for 3 or 5 years upon expiration of the extended term at prevailing market rates. The October 2023 office lease amendment provided rent abatement from November 1, 2023 through April 30, 2024. The same amendment further provided a tenant improvement allowance of $ 943 to be used as rent abatement or tenant improvement reimbursement by June 2026, and $ 786 specifically for tenant improvement reimbursement. In August 2024, the Company amended its office lease to allow for two additional months of rent abatement and for the amount to be used specifically for tenant improvement reimbursement to be used for rent abatement or tenant improvements. In February 2025, the Company further amended its office lease to expand the leased space, commencing on April 1, 2025. In May 2025, the Company entered into a new lease agreement for an office in Texas, commencing on May 15, 2025. The lease is set to expire on May 31, 2026. Operating lease expense was as follows for the periods below: Three Months Ended October 31, Six Months Ended October 31, 2025 2024 2025 2024 Operating lease expense $ 222 $ …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Accounting Pronouncements Not Yet Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which enhances transparency and decision usefulness of income tax disclosures, primarily related to the income tax rate reconciliation and income taxes paid information. The guidance is effective for public business entities for annual reporting periods beginning after December 15, 2024. The Company does not anticipate a material impact to the required financial statement disclosure as a result of this ASU. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) (ASU 2024-03) , requiring disclosure in the notes to the financial statements for specified information about certain costs and expenses. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027; however early adoption is permitted and can be applied either prospectively or retrospectively. The Company is evaluating the impact that this ASU will have on its financial statement disclosures. In July 2025, the FASB issued ASU 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025-05) , requiring election of a practical expedient when esti …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

2. Significant Accounting Policies Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the SEC and generally accepted accounting principles in the United States of America (US GAAP) and include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Companys reporting currency is the U.S. dollar. The unaudited interim condensed consolidated balance sheet as of April 30, 2025, included herein, was derived from the audited financial statements as of that date. Certain information and disclosures normally included in the financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such regulations. Accordingly, these unaudited interim condensed consolidated financial statements and accompanying footnotes should be read in conjunction with the Companys financial statements as of and for the years ended April 30, 2025 and 2024. The results for the interim periods are not necessarily indicative of results for the full year. In the opinion of management, all adjustments, of a normal recurring nature, considered necessary for a fair statement have been included in the unaudited interim condensed consolidated financial statements. The Company believes that the disclosures provided herein are adequate to prevent the information presented from …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

9. Common Shares The Company had 100,000,000 Common Shares authorized and 51,449,053 and 51,348,656 Common Shares issued and outstanding with a par value of $ 1.00 per Common Share as of October 31, 2025 and April 30, 2025 , respectively. Each Common Share is entitled to one vote .

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17. Subsequent Event Closing of Public Offering On December 4, 2025, the Company completed a public underwritten offering and issued an aggregate of 6,900,000 common shares at a price of $ 23.00 per share, resulting in net proceeds to the Company of $ 149.2 million, after deducting underwriting discounts but before expenses paid by the Company. The aggregate number of common shares offered pursuant to the public offering included 900,000 common shares issued pursuant to the exercise in full of the underwriters option to purchase additional shares. The common shares were sold pursuant to an Underwriting Agreement, dated December 2, 2025, between the Company and BofA Securities, Inc., Piper Sandler & Co., J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC as representatives of the underwriters named therein. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing