KORU Medical Systems reported third‑quarter 2025 results that surpassed expectations, with net revenue rising 27.2% to $10.4 million, a 21% increase in gross profit to $6.3 million, and a gross margin of 60.2%—slightly below the 63.4% margin recorded in the same quarter last year. The company’s net loss narrowed to $0.8 million, while adjusted EBITDA turned positive at $0.09 million, a 121% improvement over the prior year’s loss. Earnings per share were $‑0.02 versus the consensus estimate of $‑0.03, a beat of $0.01 per share.
The revenue growth was driven largely by a 230% surge in international sales, offsetting a modest 5% decline in domestic revenue. New pharmaceutical collaborations contributed to the international uptick, while the core subcutaneous infusion business continued to expand. The company’s focus on prefilled syringes and the Freedom system has helped capture growing demand in overseas markets.
Gross margin compression to 60.2% was attributed to higher manufacturing costs, tariff impacts, and a shift in geographic sales mix toward lower‑margin regions. Management noted that while volume and mix improvements supported profitability, the cost pressures from raw materials and trade duties weighed on the margin. The company is actively managing these headwinds through cost‑control initiatives and supply‑chain optimization.
KORU raised its full‑year 2025 revenue guidance to $40.5–$41.0 million, up from the previous $39.5–$40.5 million range, and reiterated a gross margin target of 61–63%. The company also highlighted positive cash flow from operations and a cash balance of $8.5 million, underscoring its path toward sustained profitability.
CEO Linda Tharby said, “During the third quarter we continued to make progress on our key strategic goals. We achieved our second consecutive quarter of more than 20% revenue growth, driven by a strong core SCIg business, while delivering positive adjusted EBITDA and cash flow generation. We also announced two new pharmaceutical collaborations, creating opportunities to reach broader patient populations.” CFO Tom Adams added, “We are pleased to report our second consecutive quarter of revenue above $10 million with 27% year‑over‑year growth, and we remain focused on maintaining margins in the 61–63% range while working toward a long‑term goal of 65%.”
Investors responded positively to the results, citing the revenue beat, the raised guidance, and the strong international demand as key drivers of confidence in KORU’s growth trajectory.
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