KORU Medical Systems Delivers Third Straight Quarter of Double-Digit Growth, Raises 2024 Outlook Amid Strong Q3 Results

KORU Medical Systems, Inc. (NASDAQ: KRMD), a leader in innovative subcutaneous infusion solutions, reported strong financial results for Q3 2024, marking its third consecutive quarter of double-digit growth. The company raised its full-year 2024 revenue, gross margin, and year-end cash guidance, reflecting strong business performance and strategic advancements.

Q3 2024 Highlights:

• Net revenues of $8.2 million, representing a 17% year-over-year increase.
• Core business (U.S. and international) growth of 11% and a substantial 276% increase in novel therapies.
• Gross profit rose to $5.2 million, a 19% increase, with a gross margin of 63%, up 140 basis points from the previous year.
• Cash balance stood at $8.8 million, with a 60% improvement in year-to-date cash burn.

CEO Linda Tharby expressed satisfaction with the results, highlighting the company’s consistent revenue growth and improvements in gross margins. Tharby emphasized the strength in KORU’s chronic subcutaneous immunoglobulin (SCIg) patient base and the growing collaborations in novel therapies as more drugs transition to subcutaneous administration.

Revenue and Profit Details:

Domestic core revenues grew to $6.4 million, driven by increased consumable and pump volumes, while international revenues rose by 5.1%. The surge in novel therapies revenue was primarily due to clinical trial orders and milestone achievements in collaboration agreements.

Gross profit for the quarter reached $5.2 million, with an increase in gross margin driven by a favorable sales mix, improved profitability in services, and higher average selling prices. Operating expenses totaled $6.9 million, reflecting costs associated with new hires, bonus accruals, and structural changes.

Net loss for Q3 2024 was $1.6 million, with adjusted EBITDA improving from ($0.9) million in the prior year to ($0.4) million this quarter. Cash usage for the quarter was $1.7 million.

Raised 2024 Guidance:

• Full-year net revenue guidance increased to $32.75 – $33.25 million, up from previous guidance of $32.0 – $32.5 million.
• Gross margin guidance revised to 62% – 63%, up from 61% – 62%.
• Year-end cash balance guidance raised to greater than $8.8 million.

KORU Medical remains on track to achieve cash flow breakeven in Q4 2024 and expects to be cash flow positive for the full year of 2025.