KORU Medical Systems held its second quarter earnings conference call on August 5, addressing financial results for the period ending June 30. President and CEO Adam Kalbermatten reported record quarterly revenues of $12 million, reflecting 18% growth compared to the prior year period. The company’s domestic core revenue reached $8 million, up 12% year-over-year, driven by new patient starts and market share gains in the subcutaneous immunoglobulin market. International core revenue totaled $3.5 million, up 59% year-over-year, supported by high volumes of pumps and consumables as distributors converted patients to prefilled syringe formats.
A significant milestone for the company was achieving positive net income, the first occurrence since 2019. Gross margin improved to 65.1% in the quarter, up from 63.5% in the prior year period, driven by manufacturing cost reductions, higher average selling prices, and a more favorable customer mix. The company ended the quarter with $8.3 million in cash and achieved positive cash flow from operations despite the quarter-to-quarter cash usage that had been previously expected.
Management announced a strategic pivot regarding oncology expansion. KORU withdrew its FDA application for Phesgo in the United States but indicated plans to continue pursuing international opportunities with the molecule. The company stated it would focus on alternative high-volume oncology biologics for its initial U.S. entry. Additionally, KORU announced the acquisition of a connected monitoring technology asset designed to enhance patient experience and generate real-time data insights for specialty pharmacies and pharmaceutical partners. Management characterized the technology integration as a multiyear development initiative.
Regarding guidance, the company narrowed full-year revenue expectations to a range of $47.5 million to $48.5 million, citing delays in specific international regional launches. Management attributed the timing shift to the need to establish proper distribution and reimbursement pathways in non-tender markets, deferring some revenue recognition to 2027. Gross margin guidance was raised to 62% to 64%, reflecting benefits from an extended supplier contract. The company maintains confidence in long-term targets of $100 million in revenue, gross margins above 65%, and EBITDA margins of 20% or greater.
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