{"url_path":"/sec/kmts/10-k/2026/item-7a","section_key":"item-7a","section_title":"Item 7A Quantitative and Qualitative Disclosures About Market Risk.","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-07-14","source_url":"https://www.sec.gov/Archives/edgar/data/1877184/0001193125-26-303397-index.html","accession_number":"0001193125-26-303397","cik":"0001877184","ticker":"KMTS","issuer_name":"KESTRA MEDICAL TECHNOLOGIES, LTD.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1877184/0001193125-26-303397-index.html","primary_entity_key":"0001877184","primary_entity_name":"KESTRA MEDICAL TECHNOLOGIES, LTD."},"word_count":467,"has_tables":true,"body_markdown":"Item 7A. Quantitative and Qualitative Disclosures About Market Risk.\n\nWe are exposed to market risk in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates.\n\nInterest Rate Risk\n\nWe had cash, cash equivalents, and investment balances of $262.2 million as of April 30, 2026. The primary goals of our investment policy are liquidity and capital preservation. We do not enter into investments for trading or speculative purposes. The carrying amount of our cash equivalents reasonably approximates fair value, due to the short maturities of these instruments. Our investments are exposed to market risk due to a fluctuation in interest rates, which may affect the fair market value of our investments in marketable securities. As of April 30, 2026, the effect of a hypothetical 1.00% (100 basis point) change in interest rates would have changed the fair value of our marketable securities by $1.5 million. Such change would only be realized if we sold the marketable securities prior to maturity.\n\nWe also are subject to interest rate risk under the Term Loan. All amounts outstanding under the Term Loan bear interest as a variable rate per annum equal to 5.50% plus three-month Secured Overnight Financing Rate (“SOFR”) with a SOFR floor of 3.25%. However, our exposure to interest rate risk is not significant, and a hypothetical 10% change in interest rates during any of the periods presented would not have had a material impact on our consolidated financial statements included elsewhere in this Annual Report.\n\nConcentrations of Credit Risk\n\nWe are subject to credit risk from cash balances we maintain that are in excess of federal depository insurance limits of $250,000 and certain cash balances in accounts located in Ireland which are not insured. As of April 30, 2026, we maintained cash, cash equivalents and investments of $262.2 million. As of April 30, 2025, we maintained cash, cash equivalents and restricted cash balances of $237.6 million. Cash, cash equivalents and restricted cash balances as of April 30, 2026 and 2025 were in excess of federal depository insurance limits. We have not experienced any losses in such accounts as of the date of this Annual Report, and we believe that we are not exposed to significant credit risk on our cash balances.\n\nInflation Risk\n\nOur consolidated results of operations and financial condition are presented based on historical cost. While it is difficult to accurately measure the impact of inflation due to the imprecise nature of the estimates required, we believe the effects of inflation, if any, on our results of operations and financial condition have been immaterial. There can be no assurance that future inflation will not have an adverse impact on our results of operations and financial condition."}