KORU Medical Systems (KRMD) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of $9.6 million, up 18% year-over-year, driven by strong core business and international expansion, with core business revenues rising 21%.

• Gross profit increased 19% to $6.0 million, with gross margin improving to 62.8%, and 75% of revenue is recurring.

• Net loss narrowed to $1.2 million from $1.9 million in Q1 2024, primarily due to higher gross profit and modest operating expense growth.

• Announced plans for FDA 510(k) submissions for two commercialized drugs on the Freedom Infusion System in 2025, expanding the pipeline to five planned submissions.

• Raised 2025 revenue guidance to $38.5–$39.5 million, representing 15–17% growth, and reaffirmed gross margin and positive cash flow expectations.

Financial highlights

• Domestic core revenue grew 16.4% to $6.9 million; international core revenue increased 36% to $2.4 million, with new geographic entries and a key prefilled syringe tender win.

• Pharma services and clinical trials revenue declined 39% year-over-year to $0.3 million due to lower clinical trial activity.

• Gross margin was 62.8% in Q1 2025, up 50 basis points year-over-year, driven by favorable product sales mix.

• Q1 net loss was $1.2 million, a 36% improvement year-over-year.

• Cash and cash equivalents stood at $8.7 million at quarter-end, with $0.8 million cash usage in Q1.

Outlook and guidance

• 2025 revenue guidance raised to $38.5–$39.5 million, representing 15–17% year-over-year growth; gross margin guidance reiterated at 61–63%.

• Positive cash flow from operations expected for full year 2025.

• Operating expenses (excluding stock comp) expected at $26–$27 million, with under $2 million in capital equipment investments.

• Management expects cash on hand and cash flows from operations to be sufficient for at least the next twelve months.

• The company is evaluating the impact of newly announced U.S. tariffs but does not currently expect a material effect on revenues or cost of goods.