KORU Medical Systems Reports Record Growth and Optimism

Repro-Med Systems, Inc. ((KRMD)) has held its Q1 earnings call. Read on for the main highlights of the call.

KORU Medical Systems’ Earnings Call Highlights Strong Growth and Optimism

KORU Medical Systems reported strong growth across its core and international business segments, leading to record revenues and an improved gross margin. The company raised its revenue guidance for 2025, demonstrating confidence in continued growth. Despite some challenges in clinical trials revenue and tariff impacts, the overall performance and strategic progress are positive.

Record Revenue Growth

KORU Medical Systems achieved a record revenue of $9.6 million for the first quarter of 2025, representing an 18% increase over the prior year. This milestone underscores the company’s robust performance and strategic initiatives that have driven substantial growth.

Core Business Expansion

The core business grew 21% in the quarter, driven by new patient starts, increased market share, and deeper penetration into new and existing geographies. This expansion highlights the company’s effective strategies in capturing market opportunities and solidifying its presence.

International Growth

International business achieved 36% growth, driven by patient growth and new distributor relationships in the Middle East and North Africa. This significant international expansion reflects KORU’s successful global outreach and strategic partnerships.

Gross Margin Improvement

Reported gross margin improved by 50 basis points to 62.8% compared to the previous year. This improvement indicates the company’s enhanced operational efficiency and cost management strategies.

Raised 2025 Revenue Guidance

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. This optimistic outlook is a testament to KORU’s confidence in its continued growth trajectory.

Pipeline Expansion

Plans to submit two additional commercialized drugs for 510(k) clearance for the Freedom Infusion System by the end of 2025, bringing the total pipeline to five planned submissions. This expansion is crucial for sustaining long-term growth and innovation.

Positive Cash Flow Expectation

The company expects to generate positive cash flow from operations in 2025. This expectation reflects KORU’s strong financial health and operational efficiency.

Prefilled Syringe Tender Win

Secured a key prefilled syringe tender win with a major pharmaceutical partner in the EU, marking a significant milestone. This win is pivotal for enhancing KORU’s market position and expanding its product offerings.

Decline in Pharma Services and Clinical Trials Revenue

Pharma Services and Clinical Trials revenues declined by 39% compared to the prior year due to lower clinical trial orders. This decline highlights a challenge that the company needs to address to stabilize this segment.

Impact of Tariffs

Tariffs are expected to have a nearly 100 basis point impact on gross margins for the year. This impact poses a challenge to maintaining optimal profitability levels.

Forward-Looking Guidance

During the call, KORU Medical Systems provided updated guidance for fiscal year 2025, reflecting a robust performance in the first quarter. The company reported a record revenue of $9.6 million for Q1, marking an 18% increase compared to the previous year. This growth was driven by a 21% increase in their core business, attributed to recurring revenue, new patient starts, and increased market share. As a result, KORU raised its full-year revenue guidance to a range of $38.5 million to $39.5 million, representing a year-over-year growth of 15% to 17%. The company also reaffirmed its gross margin target of 61% to 63% and expects to generate positive cash flow from operations in 2025. Additionally, they plan to submit two more drugs for 510(k) clearance by the end of the year, expanding their pipeline to five planned submissions.

In summary, KORU Medical Systems’ earnings call highlighted a strong performance with record revenue growth and strategic expansions both domestically and internationally. Despite challenges in clinical trials revenue and tariff impacts, the company remains optimistic about its future, as evidenced by its raised revenue guidance and positive cash flow expectations. This positive outlook and strategic progress make KORU a company to watch in the coming years.