0001161697-26-000052
SEC filingKORU Medical Systems reported FY 2025 net revenues of $41.1M, a 22.2% increase from $33.6M in FY 2024. Despite revenue growth, the company recorded a net loss of $2.6M, a significant improvement from the $6.1M net loss in the prior year. Gross profit increased to $25.6M with a gross margin of 62.3%, up from 63.4% in FY 2024. Operating expenses totaled $28.6M, with R&D spending decreasing to $4.4M from $5.3M. The company generated positive operating cash flow of $462K, though cash decreased by $709K due to investing activities. Key drivers included domestic revenue growth to $30.2M (up 9.9%) and international revenue growth to $10.9M (up 77.4%). The company maintains $8.9M in cash with total assets of $28.2M and stockholders' equity of $17.0M.
KORU Medical Systems reported FY 2025 net revenues of $41.1M, representing 22.2% growth from $33.6M in FY 2024. The company significantly reduced its net loss to $2.6M from $6.1M in the prior year, a 56.5% improvement. Gross profit increased to $25.6M from $21.3M, though gross margin declined slightly to 62.3% from 63.4%. Operating expenses totaled $28.6M, with selling, general and administrative expenses of $23.4M and research and development expenses of $4.4M. The company generated positive operating cash flow of $462K, reversing the negative $320K from FY 2024. Total assets stood at $28.2M with stockholders' equity of $17.0M and cash of $8.9M as of December 31, 2025.
Revenue growth was driven by strong performance across both domestic and international markets. Domestic revenue (US and Canada) increased 9.9% to $30.2M from $27.5M in FY 2024. International revenue grew 77.4% to $10.9M from $6.1M. The company's revenue is derived from three business sources: domestic core (US and Canada), international core, and pharma services and clinical trials. Core revenues consist of sales of syringe drivers, tubing and needles for subcutaneous drug delivery, primarily for immunoglobulin treatments. Pharma services and clinical trials include product revenue for feasibility studies and non-recurring engineering services. Approximately 77% of net revenues came from nine distributors, with one US distributor contributing 29%.
Gross margin declined to 62.3% from 63.4% despite gross profit increasing to $25.6M from $21.3M. Cost of goods sold was $15.5M, representing 37.7% of revenue compared to 36.6% in the prior year. Operating loss improved to $3.0M from $6.4M, reflecting better expense management. Research and development spending decreased to $4.4M from $5.3M, while selling, general and administrative expenses increased to $23.4M from $21.6M. Depreciation and amortization expense was $810K. The company recorded other income of $356K, primarily from interest income of $293K and foreign currency exchange gains of $53K.
The company generated positive operating cash flow of $462K, driven by net loss of $2.6M adjusted for non-cash items including stock-based compensation of $2.7M and depreciation of $810K. Working capital changes included increases in accounts receivable ($489K) and inventory ($874K), offset by increases in accounts payable ($618K) and accrued expenses ($905K). Investing activities used $950K for purchases of property and equipment ($933K) and intangible assets ($24K). Financing activities used $221K primarily for payments on insurance finance indebtedness. Cash decreased by $709K to $8.9M. Total current assets were $20.0M with current liabilities of $8.2M, resulting in current ratio of 2.44. Total liabilities were $11.2M with stockholders' equity of $17.0M.
The company faces several risk factors including dependence on a few distributors (77% of revenue from nine distributors), single-source suppliers for components, regulatory requirements for FDA clearance and EU MDR compliance by December 2028, competition in the infusion market, and potential impacts from economic conditions and foreign currency exchange. Management's strategy focuses on expanding leadership in subcutaneous immunoglobulin markets while extending into emerging subcutaneous drug therapies. The company estimates at least 170 large-volume drugs are in clinical development utilizing subcutaneous infusion. KORU intends to partner with biopharmaceutical companies during clinical development and commercialize products post-launch. The company maintains a $5M revolving credit facility and $5M term loan facility with financial covenants including a minimum Adjusted Quick Ratio of 1.25 to 1.00.