KORU Medical Systems(KRMD) - 2025 Q1 - Quarterly Results

Q1 2025 Financial & Operational Highlights KORU Medical achieved record Q1 2025 net revenues of $9.6 million, an 18% year-over-year increase, driven by 21% core business growth and new patient starts, leading to raised full-year guidance and planned 510(k) submissions Overview KORU Medical achieved record Q1 2025 net revenues of $9.6 million, an 18% year-over-year increase, driven by 21% core business growth and new patient starts, leading to raised full-year guidance and planned 510(k) submissions Q1 2025 Key Performance Indicators | Metric | Q1 2025 ($) | Change vs. Q1 2024 | | :--- | :--- | :--- | | Net Revenues | $9.6 million | +18% | | Core Business Net Revenues | $9.4 million | +21% | | Gross Profit | $6.0 million | +19% | | Gross Margin | 62.8% | +50 bps | | Ending Cash Balance | $8.7 million | - | | Quarterly Cash Usage | $0.8 million | - | - The CEO attributed the strong performance to over 20% growth in the core business, driven by new patient starts and market share gains in both domestic and international markets[3] - The company announced plans to submit for FDA 510(k) clearance for two commercialized drugs with the Freedom Infusion System™ in 2025[6] Q1 2025 Financial Performance Analysis This section analyzes the company's Q1 2025 financial results, detailing revenue drivers, profitability improvements, and cash flow position Net Revenues Total net revenues for Q1 2025 increased 17.5% to $9.6 million, driven by 20.8% growth in the Total Core business to $9.4 million, despite a decrease in Pharma Services and Clinical Trials revenue Net Revenues Breakdown (Three Months Ended March 31) | Revenue Segment | 2025 ($) | 2024 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Domestic Core | $6,927,964 | $5,953,865 | +16.4% | | International Core | $2,428,662 | $1,790,483 | +35.6% | | Total Core | $9,356,626 | $7,744,348 | +20.8% | | Pharma Services and Clinical Trials | $278,449 | $453,450 | -38.6% | | Total Net Revenues | $9,635,075 | $8,197,798 | +17.5% | - Domestic core revenue growth was driven by higher pump and consumable volumes from new patient starts and market share gains[4] - International core revenue growth was primarily due to higher volumes from geographical expansion and a tender win with an Ig pharma partner, including approximately $0.4 million of distributor stocking[4] Profitability Analysis Gross profit increased 18.5% to $6.0 million with gross margin expanding 50 basis points to 62.8%, leading to a significant reduction in net loss to $(1.2) million or $(0.03) per share Profitability Metrics (Three Months Ended March 31) | Metric | 2025 ($) | 2024 ($) | Change ($) | | :--- | :--- | :--- | :--- | | Gross Profit | $6.0 million | $5.1 million | +$0.9M | | Gross Margin | 62.8% | 62.3% | +50 bps | | Total Operating Expenses | $7.3 million | $7.1 million | +$0.2M | | Net Loss | $(1.2) million | $(1.9) million | +$0.7M | | Net Loss Per Share | $(0.03) | $(0.04) | +$0.01 | - The increase in gross margin was primarily driven by favorable changes in product revenue mix[5] - Operating expenses increased due to higher compensation for temporary staff and legal fees, partially offset by lower severance and R&D expenses[7] Cash Flow and Financial Position The company concluded Q1 2025 with $8.7 million in cash, reflecting $0.8 million in cash usage, while Adjusted EBITDA significantly improved to a loss of $(0.2) million - Cash and cash equivalents were $8.7 million as of March 31, 2025, with a cash usage of $0.8 million in Q1[10] Adjusted EBITDA (Three Months Ended March 31) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Adjusted EBITDA | ($0.2) million | ($0.9) million | | Adjusted Diluted EPS | $0.00 | ($0.02) | Full Year 2025 Guidance This section outlines KORU Medical's updated financial projections for the full year 2025, including revenue, gross margin, and cash flow from operations Updated Guidance KORU Medical raised its full-year 2025 revenue guidance to $38.5 million to $39.5 million and reiterated gross margin guidance of 61% to 63%, expecting positive cash flow from operations Full Year 2025 Guidance | Metric | Updated Guidance ($) | Prior Guidance ($) | | :--- | :--- | :--- | | Net Revenues | $38.5 - $39.5 million | $38.0 - $39.0 million | | Gross Margin | 61% - 63% (Reiterated) | 61% - 63% | | Cash Flow from Operations | Positive (Reiterated) | Positive | Financial Statements This section presents the detailed financial statements, including balance sheets, statements of operations, and statements of cash flows for the reported periods Balance Sheets As of March 31, 2025, total assets remained stable at $27.2 million, while total liabilities increased to $10.9 million and total stockholders' equity decreased to $16.3 million Selected Balance Sheet Items | Account | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Cash and cash equivalents | $8,735,834 | $9,580,947 | | Total Current Assets | $18,999,028 | $19,132,410 | | Total Assets | $27,216,167 | $27,218,515 | | Total Current Liabilities | $7,799,277 | $7,201,820 | | Total Liabilities | $10,871,136 | $10,404,836 | | Total Stockholders' Equity | $16,345,031 | $16,813,679 | Statements of Operations For Q1 2025, the company reported a net loss of $(1.2) million or $(0.03) per share, a significant improvement from the $(1.9) million loss in Q1 2024, driven by higher revenues and gross profit Statement of Operations Summary (Three Months Ended March 31) | Account | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net Revenues | $9,635,075 | $8,197,798 | | Gross Profit | $6,046,335 | $5,103,298 | | Total Operating Expenses | $7,291,340 | $7,064,664 | | Net Operating Loss | $(1,245,005) | $(1,961,366) | | Net Loss | $(1,166,237) | $(1,935,958) | | Net Loss Per Share | $(0.03) | $(0.04) | Statements of Cash Flows Net cash used in operating activities improved to $(0.2) million for Q1 2025, with total net decrease in cash of $(0.8) million for the quarter Cash Flow Summary (Three Months Ended March 31) | Activity | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | $(237,467) | $(346,720) | | Net Cash Used in Investing Activities | $(446,838) | $(133,083) | | Net Cash Used in Financing Activities | $(160,808) | $(182,120) | | Net Decrease in Cash | $(845,113) | $(661,923) | | Cash at End of Period | $8,735,834 | $10,820,317 | Supplemental Information This section provides additional financial details, including reconciliations of GAAP to non-GAAP financial measures for a clearer understanding of underlying performance Reconciliation of GAAP to Non-GAAP Measures This section reconciles GAAP net loss to non-GAAP Adjusted EBITDA, which improved to $(0.2) million in Q1 2025, and GAAP diluted EPS to non-GAAP adjusted diluted EPS, with key adjustments for stock-based compensation and litigation expenses Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA | Line Item | Q1 2025 ($) | Q1 2024 ($) | | :--- | :--- | :--- | | GAAP Net Loss | $(1,166,237) | $(1,935,958) | | Stock-based Compensation | $697,590 | $699,718 | | Depreciation and Amortization | $217,357 | $231,369 | | Litigation Expense | $133,411 | $— | | Interest (Income), Net | $(73,180) | $(37,187) | | Adjusted EBITDA | $(191,059) | $(942,729) | - Non-GAAP calculations exclude the effects of reorganization charges, stock-based compensation expense, and litigation expenses related to a patent infringement claim[28][29][30]