KORU Medical Systems (KRMD) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $11.8 million, up 22% year-over-year, marking a record start with strong domestic and international growth and significant gains in pharma services and clinical trials.

• Gross profit rose 20% to $7.2 million, with gross margin at 61.5%, slightly down due to higher production costs and tariffs.

• Net loss improved by 31% to $0.8 million, reflecting better gross profit despite higher expenses.

• Cash balance at quarter-end was $8.8 million, with minimal cash usage of $0.1 million and positive cash flow from operations.

• CEO transition underway, with Adam Kalbermatten set to succeed Linda Tharby on July 1st, and strategic focus on growth and pipeline expansion.

Financial highlights

• Domestic core revenues grew 12% year-over-year to $7.7 million, outpacing the SCIg market.

• International core revenues surged 35% year-over-year to $3.3 million, led by prefilled syringe conversions in Europe and strong distributor orders.

• Pharma services and clinical trials revenue increased 166% year-over-year to $0.7 million, driven by advancing collaborations and clinical trial product sales.

• Gross margin for Q1 was 61.5%, down 130 basis points year-over-year due to higher production costs and tariffs.

• Operating expenses increased 11% year-over-year to $8.1 million, reflecting higher SG&A and R&D costs.

Outlook and guidance

• Full year 2026 guidance reiterated: revenue of $47.5–$50 million (15–22% growth), gross margin 61–63%, positive adjusted EBITDA, and positive cash flow.

• Revenue expected to ramp in the second half as new clearances and prefilled geographies scale.

• Q2 anticipated as the heaviest cash usage quarter due to annual bonus payouts; positive cash flow expected in the back half.

• Long-term targets: $100 million revenue, gross margins above 65%, and EBITDA margins of 20%+.

• Management expects cash on hand, operating cash flows, and available credit to be sufficient for at least the next twelve months.