KORU Medical 2025 Q1 Earnings Revenue Grows 17.5% Amid Narrowed Losses

KORU Medical (KRMD) reported its fiscal 2025 Q1 earnings on May 7th, showcasing a notable increase in revenue and a reduction in net losses compared to the previous year. The company achieved a revenue of $9.64 million, marking a 17.5% increase from Q1 2024. KORU Medical raised its full-year 2025 revenue guidance, indicating confidence in future growth. Despite the challenges, KORU's strategic initiatives appear to be yielding positive results, as evidenced by the improved financial metrics and raised guidance.

Revenue

KORU Medical reported a substantial increase in total revenue to $9.64 million for Q1 2025, up from $8.20 million in the same period last year, reflecting a 17.5% growth. This surge was primarily driven by new patient starts and market share gains domestically and internationally. The core business contributed significantly, with domestic revenues rising to $6.9 million and international revenues expanding to $2.4 million, driven by geographical expansion and strategic partnerships. However, pharma services and clinical trials experienced a decline due to lower clinical trial revenue.

Earnings/Net Income

KORU Medical managed to narrow its losses to $0.03 per share in Q1 2025, improving from a $0.04 loss per share in Q1 2024. The net loss was reduced to $1.17 million, a remarkable 39.8% improvement from the previous year. Though the company reported a loss, the reduction in net loss indicates improving financial health, with positive potential for future earnings.

Post-Earnings Price Action Review

The strategy of buying KORU Medical shares after a revenue increase and holding them for 30 days has yielded a 22% return over the past five years. This approach has proven resilient in challenging market conditions, benefiting from consistent revenue growth averaging 6.7% annually. Despite this, the stock price fell by 12% per year, offsetting some of the revenue gains. Strategic timing of revenue raises often coincided with positive market reactions, enhancing returns amidst broader market fluctuations. The effectiveness of this strategy lies in careful risk management and timely buying decisions, which helped navigate downturns and capitalize on uptrends. Although the strategy delivered slightly better returns than the expected market average of 36%, its success hinges on future market conditions and company performance.

CEO Commentary

"We are off to a strong start this year, with over 20% growth in our core business driven by new patient starts and continued market share gains both domestically and internationally, all contributing to the expansion of our recurring revenue base," said Linda Tharby, President and CEO of KORU Medical. She emphasized that despite a challenging macroeconomic backdrop, the positive momentum gives confidence in the ability to deliver throughout the year, as the company advances its novel therapies pipeline and plans to submit two previously commercialized drugs for FDA 510(k) clearance by year-end.

Guidance

KORU Medical raised its full-year 2025 revenue guidance to a range of $38.5 million to $39.5 million, representing a 15% to 17% growth from the prior range of $38.0 million to $39.0 million. The company reiterated full-year gross margin guidance of 61% to 63% and expects to achieve positive cash flow from operations for the full year 2025.

Additional News

Recently, KORU Medical Systems announced plans to submit two commercialized drugs for FDA 510(k) clearance, aiming to enhance its product portfolio with the Freedom Infusion System™. The company also highlighted its ongoing efforts in geographical expansion, particularly in the Middle East and North Africa, facilitated by new distributor relationships. Furthermore, KORU Medical is focusing on strengthening its presence in historically e-pump dominated markets, leveraging its innovative infusion solutions to capture a larger market share. These strategic moves are expected to drive growth and diversify revenue streams in the coming quarters.