KORU Medical Systems (KRMD) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 revenues of $8.8 million (23% growth) and full-year revenues of $33.6 million (18% growth), with double-digit growth across all business segments.

• Core business grew 16% for the year, outpacing the SCIg market, driven by market share gains, international expansion, and new geographies.

• Novel therapies (to be renamed Pharma Services and Clinical Trials) added four new collaborations in 2024 and two more in early 2025, expanding the pipeline to 15 collaborations.

• Gross margin improved to 63.4% for 2024, up 480 basis points year-over-year, driven by manufacturing efficiencies and favorable sales mix.

• Ended 2024 with a cash balance of $9.6 million, exceeding expectations, and generated positive cash flow in Q4, with a 68% reduction in annual cash burn.

Financial highlights

• Q4 2024 revenues reached $8.8 million, up 23% year-over-year; domestic core revenues were $6.7 million (+20%), international core $1.5 million (+14%), and novel therapies $700,000 (+122%).

• Full-year 2024 revenues were $33.6 million (+18%); domestic core $25.2 million (+12%), international core $6 million (+32%), novel therapies $2.4 million (+62%).

• Q4 gross profit increased 28.4% to $5.6 million; full-year gross profit up 27.7% to $21.3 million.

• Net loss narrowed to $6.1 million for 2024 from $13.7 million in 2023; EPS improved to ($0.13) from ($0.30) year-over-year.

• Adjusted EBITDA for 2024 was ($2.5 million), a 59% improvement year-over-year.

Outlook and guidance

• 2025 revenue guidance: $38–$39 million (13–16% growth), with sequential quarterly growth expected.

• Gross margin expected to remain at 61–63%, with some one-time product line costs in H2 2025.

• Operational cash flow positive for 2025; operating expenses (ex-stock comp) of $26–$27 million, with higher weighting in H1 due to R&D.

• Key 2025 milestones include three new pharmaceutical collaborations, Japan commercial sales, new product launches, and further international expansion.

• Domestic revenue growth expected at 10–15%, international at 20%+, and Pharma Services/Clinical Trials at $2–$3 million.