In This Article:
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Revenue: $9.6 million, an 18% increase over the prior year.
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Domestic Core Revenue: $6.9 million, a 16% increase over the prior year.
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International Core Revenue: $2.4 million, a 36% increase over the prior year.
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Gross Margin: 62.8%, a 50 basis point improvement over the prior year.
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Cash Balance: $8.7 million at the end of the quarter.
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Net Loss: $1.2 million, a 36% improvement over the prior year.
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Revenue Guidance for 2025: Increased to $38.5 million to $39.5 million, representing 15% to 17% growth.
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Gross Margin Guidance for 2025: Reaffirmed at 61% to 63%.
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Operating Expenses: Expected to be $26 million to $27 million, excluding stock compensation.
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Cash Flow from Operations: Expected to be positive for the full year 2025.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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KORU Medical Systems Inc (NASDAQ:KRMD) reported a record revenue of $9.6 million for Q1 2025, marking an 18% increase over the prior year.
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The company achieved a gross margin of 62.8%, a 50 basis point improvement compared to the same period last year.
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International revenue grew by 36%, driven by patient growth and new distributor relationships in the Middle East and North Africa.
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KORU Medical Systems Inc (NASDAQ:KRMD) plans to submit two additional commercialized drugs for 510(k) clearance by the end of 2025, expanding their pipeline.
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The company raised its 2025 revenue guidance to a range of $38.5 million to $39.5 million, representing a 15% to 17% year-over-year growth.
Negative Points
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Pharma Services and Clinical Trials revenues declined by 39% over the prior year due to lower clinical trial orders.
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The international business may experience uneven quarterly revenues due to distributor stocking, impacting Q2 numbers.
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Tariff-related pressures are expected to impact gross margins, with an estimated 100 basis point effect included in the guidance.
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The company faces challenges in expanding its presence in historically e-pump dominated markets.
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There is uncertainty regarding the full commercial potential of new drugs being pursued independently without pharma partners.
Q & A Highlights
Q: How does KORU Medical Systems plan to pursue new drugs without current pharmaceutical partnerships, and what are the strategic implications? A: Linda Tharby, President and CEO, explained that KORU is leveraging strong relationships with specialty pharmacies to pursue drugs like antibiotics and iron chelation independently. These drugs are already being used with KORU's products in home settings, and the company sees potential for revenue growth with less than one-year paybacks on investments. KORU is exploring other drugs that could transition from hospital to home use, with oncology drugs being a potential area for partnership with pharma companies.