KORU Medical Systems' Q1 2025: Unpacking Contradictions in Tariff Effects, Product Launch Timelines, and Revenue Contributions

Tariff impact on gross margins, next-generation pump launch timeline, PST segment contribution to revenue are the key contradictions discussed in KORU Medical Systems' latest 2025Q1 earnings call.



Revenue Growth and Market Share Expansion:
- KORU Medical Systems reported record revenue of $9.6 million for the first quarter of 2025, representing a 18% increase over the prior year.
- The growth was driven by an 21% increase in the core business, attributed to a solid base of recurring revenue, continued success in new patient starts, increased market share, and deeper penetration into both new and existing geographies.

International Business Growth:
- The international segment delivered strong revenues of $2.4 million, representing 36% growth over the prior year.
- This growth was driven by expansion into new geographies, a key tender win for prefilled syringes, and new distributor relationships in the Middle East and North Africa.

Pipeline Expansion and On-Label Drug Opportunities:
- KORU plans to submit 5 new drug indications for 510(k) clearance by the end of 2025, expanding its label with 2 commercialized drugs and 1 rare disease biologic.
- This expansion is part of KORU's strategy to increase revenue potential by pursuing drugs that are currently being used with the Freedom Infusion System but not yet on its label.

Operational Efficiency and Margin Improvement:
- The company reported a gross margin of 62.8%, an improvement of 50 basis points compared to the same period last year.
- This margin expansion was driven by favorable product mix and operational excellence programs, offsetting lower average selling prices outside the U.S.