KRMD — KORU Medical Systems, Inc.

KORU Medical Systems (KRMD) Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: $12 million for Q2 2026, an 18% year-over-year increase; 20% growth for the first half of the year.
• Domestic Core Revenue: $8 million, up 12% year-over-year.
• International Core Revenue: $3.5 million, up 59% year-over-year.
• Pharma Services Revenue: $600,000, down 35% year-over-year due to timing of clinical trial orders.
• Gross Margin: Improved to 65.1% from 63.5% year-over-year.
• Net Income: Positive net income reported for the first time since 2019.
• Cash Position: Ended the quarter with $8.3 million, with minimal cash usage of $500,000.
• Adjusted EBITDA: Positive adjusted EBITDA of $900,000.

2. Strategic Updates and Business Highlights

• KORU is positioned as a leader in large volume subcutaneous infusion devices, focusing on home infusion for chronic patients.
• The company is expanding its product offerings and integrating smart technology to enhance patient experience and data collection.
• The acquisition of a connected monitoring technology asset aims to support patient adherence and provide real-time data insights for clinical trials.
• Strong growth in the international market driven by prefilled syringe conversions and new patient starts.
• Ongoing focus on expanding into secondary immunodeficiency (SID) and oncology markets.

3. Forward Guidance and Outlook

• Full Year Revenue Guidance: Narrowed to $47.5 million to $48.5 million, reflecting timing-related delays in international market launches.
• Gross Margin Guidance: Raised to 62% to 64%.
• Cash Guidance: Expected year-end cash balance greater than $7.5 million.
• Long-Term Targets: Aim for $100 million in revenue, gross margins above 65%, and EBITDA margins of 20% or greater.

4. Bad News, Challenges, or Points of Concern

• International Market Dynamics: Growth in international markets may moderate due to complexities in regional launches, particularly in non-tender markets.
• Phesgo Withdrawal: The decision to withdraw the Phesgo application for U.S. entry reflects challenges with the drug label, which may delay U.S. oncology market entry.
• Pharma Services Revenue Decline: Variability in clinical trial orders continues to impact revenue predictability in the pharma services segment.
• Execution Risks: The integration of new technology and expansion into new markets may take longer than anticipated, potentially affecting growth rates.

5. Notable Q&A Insights

• International Growth: Management expressed optimism about international opportunities but acknowledged that unlocking growth in non-tender markets will take time and effort.
• Connected Technology Acquisition: The acquisition is seen as a long-term investment, with potential benefits for patient communication and data collection, but it is still in early development stages.
• Oncology Strategy: The pivot from Phesgo to other oncology molecules reflects a strategic shift to focus on more attractive opportunities, with international efforts continuing.
• Market Growth Projections: The company remains confident in its ability to outperform the SCIG market domestically and is focused on expanding its total addressable market through new drug integrations.

Overall, KORU Medical Systems demonstrated strong financial performance in Q2 2026, with significant growth in both domestic and international markets, while also navigating challenges related to market dynamics and regulatory processes.