KORU Medical Systems Announces +20% Fourth Quarter and Full Year 2025 Revenue Growth, Positive Adjusted EBITDA and Initiates Full Year 2026 Guidance

KORU Medical Systems Announces +20% Fourth Quarter and Full Year 2025 Revenue Growth, Positive Adjusted EBITDA and Initiates Full Year 2026 Guidance MAHWAH, N.J.--( BUSINESS WIRE)--KORU Medical Systems, Inc. (NASDAQ: KRMD) (“KORU Medical” or the “Company”), a leading medical technology company focused on the development, manufacturing, and commercialization of innovative and patient-centric large volume subcutaneous infusion solutions, today reported financial results for the fourth quarter and full year ended December 31, 2025. The Company also initiated guidance for the full year 2026.

Recent Highlights

“Our fourth quarter and full year performance reflect the meaningful progress we have made building a stronger, more scalable business positioned to meet the evolving needs of the subcutaneous infusion market,” said Linda Tharby, President and CEO of KORU Medical. “Demand for immunoglobulin therapy remains robust, supporting continued growth in our recurring patient base, and we continue to gain momentum with International Core expansion. At the same time, our 510(k) filings and clearances are broadening our platform beyond Ig and into new therapeutic areas, further expanding our patient base. We enter 2026 with a proven ability to execute on our strategy, a compelling set of additional growth opportunities, and a continued commitment to shareholder value generation.”

2025 Fourth Quarter Financial Results

Three Months Ended December 31,

Change from Prior Year

% of Net Revenues

2025

2024

2025

2024

Net Revenues

Domestic Core

7,844,822

6,657,182

1,187,639

17.8

72.0

75.3

International Core

2,576,886

1,504,108

1,072,778

71.3

23.7

17.0

Total Core

10,421,708

8,161,291

2,260,417

27.7

95.7

92.3

Pharma Services and Clinical Trials

473,620

677,309

(203,689

)

(30.1

4.3

7.7

Total

10,895,328

8,838,600

2,056,728

23.3

100

Total net revenues increased $2.1 million, or 23.3%, to $10.9 million for the fourth quarter of 2025. Domestic core growth of 17.8% was primarily due to subcutaneous immunoglobulin (SCIg) market growth driven by new patient starts and market share gains. International core growth of 71.3% was primarily due to increased penetration in established markets and subcutaneous immunoglobulin (SCIg) market growth driven by new patient starts. PST net revenues for the fourth quarter of 2025 were $0.5 million, a decrease of 30.1% over the prior year period, primarily driven by lower NRE collaboration revenue resulting from the timing of project milestones.

Gross profit increased $1.3 million, or 22.6%, to $6.8 million for the fourth quarter of 2025, compared to the fourth quarter of 2024. Gross margin was 62.6%, a decrease of 30 basis points, compared to 62.9% in the prior year period. The decrease in gross margin was primarily driven by higher material cost and tariffs, mostly offset by customer mix resulting in higher average selling prices.

Total operating expenses increased $0.2 million, or 3.0%, to $7.4 million for the fourth quarter of 2025 primarily driven by 2024 performance-based compensation expenses.

Net loss decreased $1.1 million to $0.5 million or ($0.01) per diluted share for the fourth quarter of 2025, compared to a net loss of $1.6 million, or ($0.03) per diluted share, for the prior year period. Adjusted EBITDA for the quarter was $0.5 million, or $0.01 per diluted share versus ($0.70) million or ($0.02) per diluted share in the prior year period. A reconciliation of adjusted EBITDA and adjusted diluted EPS to the most directly comparable GAAP measures is provided at the end of this press release.

2025 Full Year Financial Results

Years Ended December 31,

Change from Prior Year

% of Net Revenues

2025

2024

2025

2024

Net Revenues

Domestic Core

27,992,436

25,214,613

2,777,823

11.0

68.1

74.9

International Core

10,881,183

6,043,979

4,837,204

80.0

26.5

18.0

Total Core

38,873,619

31,258,592

7,615,027

24.4

94.5

92.9

Pharma Services and Clinical Trials

2,253,747

2,387,871

(134,124

)

(5.6

5.5

7.1

Total

41,127,366

33,646,463

7,480,903

22.2

100

Total net revenues increased $7.5 million, or 22.2%, to $41.1 million, for the year ended December 31, 2025, as compared with the same period last year. Domestic core growth of 11.0% was primarily attributed to subcutaneous immunoglobulin (SCIg) market growth and new account share gains. International core growth of 80.0% was primarily driven by SCIg market growth driven by new patient starts, increased penetration in several established EU markets, and entry into multiple new geographic markets. PST net revenues decreased $0.1 million, or 5.6%, driven by lower NRE collaborations revenues resulting from the timing of project milestones partially offset by higher clinical trial orders when compared to the prior year.

Gross profit increased $4.3 million, or 20.0%, to $25.6 million, in the year ended December 31, 2025, compared to the same period in 2024, driven by the increase in net revenues of $7.5 million partially offset by an increase in manufacturing costs. Gross margin decreased to 62.3% in the year ended 2025 compared to 63.4% for the year ended 2024, primarily driven by higher materials costs, tariff-related charges, and geographic sales mix from outside the United States, partially offset by higher average selling prices in the US market.

Total operating expenses increased $0.8 million, or 2.9%, to $28.6 million in the year ended December 31, 2025 compared to $27.8 million from the same period last year driven primarily by compensation and legal fees.

Net loss decreased $3.4 million to $2.6 million or ($0.06) per diluted share for the year ended December 31, 2025, compared to a net loss of $6.1 million, or ($0.13) per diluted share, for the prior year period, driven by higher gross profit of $4.3 million, partially offset by an increase in operating expense of $0.8 million. Adjusted EBITDA for the full year was $0.6 million, or $0.01 per diluted share versus ($2.5) million or ($0.06) per diluted share in the prior year period. A reconciliation of adjusted EBITDA and adjusted diluted EPS to the most directly comparable GAAP measures is provided at the end of this press release.

Cash and cash equivalents were $8.9 million as of December 31, 2025, reflecting cash generation of $0.4 million for fourth quarter of 2025 and cash usage of $0.7 million for the full year 2025.

2026 Guidance

KORU Medical expects:

Conference Call and Webcast Details

The Company will host a live conference call and webcast to discuss these results and provide a corporate update on Thursday, March 12, 2026, at 4:30 PM ET.

To participate in the call, please dial (877) 407-0784 (domestic) or (201) 689-8560 (international). The live webcast will be available on the IR Calendar on the News/Events page of the Investors section of KORU Medical’s website.

Non-GAAP Measures

This press release includes the non-GAAP financial measures “adjusted diluted EPS” and “adjusted EBITDA” that are not in accordance with, nor an alternate to, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material effect on KORU Medical’s reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company’s financial results. Non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with GAAP financial results. Reconciliations of the Company’s non-GAAP measures are included at the end of this press release.

About KORU Medical Systems

KORU Medical Systems develops, manufactures, and commercializes innovative and patient-centric large volume subcutaneous infusion solutions that improve quality of life for patients around the world. The Freedom Syringe Infusion System (the “Freedom System”) currently includes the Freedom60 ® and FreedomEDGE ® Syringe Infusion Drivers, Precision Flow Rate Tubing™ and HigH-Flo Subcutaneous Safety Needle Sets™. The Freedom System, which received its first FDA clearance in 1994, is used for self-administration in the home by the patient and/or delivery in an ambulatory infusion center by a healthcare professional. Through its Pharma Service and Clinical Trials business, KORU Medical provides products for use by biopharmaceutical companies in feasibility/clinical trials during the drug development process and, as needed, is capable of customizing the Freedom System for clinical and commercial use across multiple drug categories. For more information, please visit www.korumedical.com.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. All statements that are not historical fact are forward-looking statements, including, but not limited to, financial guidance and expected operating performance for fiscal 2026. Forward-looking statements discuss the Company’s current expectations and projections relating to its financial position, results of operations, plans, objectives, future performance, and business. Forward-looking statements can be identified by words such as “guidance”, “expect” and “will”. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, uncertainties associated with SCIg market growth, prefilled syringe penetration, plasma supply, clinical trial activity and success, approval and commercialization of new drug indications, the shift to increased healthcare delivery in the home, new patient diagnoses, customer ordering patterns, global and regional instability, innovation and competition, labor and supply price increases, inflationary impacts, labor supply, and those risks and uncertainties included under the captions “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, which is on file with the SEC and available on our website at www.korumedical.com/investors and on the SEC website at www.sec.gov. All information provided in this release and in the attachments is as of March 12, 2026. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.

KORU MEDICAL SYSTEMS, INC.

BALANCE SHEETS

December 31,

2025

2024

ASSETS

CURRENT ASSETS

Cash and cash equivalents

8,872,212

9,580,947

Accounts receivable, net

6,209,950

5,720,750

Inventory, net

3,678,131

2,803,669

Other receivables

319,955

277,193

Prepaid expenses and other current assets

908,542

749,851

TOTAL CURRENT ASSETS

19,988,790

19,132,410

Property and equipment, net

4,471,386

4,290,515

Intangible assets, net of accumulated amortization of $527,949 and $458,538 at December 31, 2025 and December 31, 2024, respectively

684,841

730,279

Operating lease right-of-use assets

2,956,192

2,966,341

Other assets

98,970

TOTAL ASSETS

28,200,179

27,218,515

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES

Accounts payable

2,267,473

1,649,969

Accrued expenses

4,828,830

3,924,184

Note payable

—

271,152

Other liabilities

27,722

29,269

Accrued payroll and related taxes

531,972

811,401

Finance lease liability

124,913

115,587

Operating lease liability

413,448

400,258

TOTAL CURRENT LIABILITIES

8,194,358

7,201,820

Finance lease liability, net current portion

78,675

202,613

Operating lease liability, net of current portion

2,879,224

3,000,403

TOTAL LIABILITIES

11,152,257

10,404,836

Commitments and contingencies (Refer to Note 9)

STOCKHOLDERS’ EQUITY

Common stock, $0.01 par value, 75,000,000 shares authorized, 49,790,934 and 49,377,617 shares issued; 46,370,432 and 45,957,115 shares outstanding at December 31, 2025, and December 31, 2024, respectively

497,909

493,776

Additional paid-in capital

52,449,339

49,581,303

Treasury stock, 3,438,526 and 3,438,526 shares at December 31, 2025 and December 31, 2024, respectively, at cost

(3,882,494

)

(3,882,494

)

Accumulated Deficit

(32,016,832

)

(29,378,906

)

TOTAL STOCKHOLDERS’ EQUITY

17,047,922

16,813,679

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

28,200,179

27,218,515

KORU MEDICAL SYSTEMS, INC.

STATEMENTS OF OPERATIONS

For the Years Ended

December 31,

2025

2024

NET REVENUES

41,127,366

33,646,463

Cost of goods sold

15,523,287

12,314,605

Gross Profit

25,604,079

21,331,858

OPERATING EXPENSES

Selling, general and administrative

23,378,807

21,631,674

Research and development

4,387,214

5,257,942

Depreciation and amortization

810,500

888,473

Total Operating Expenses

28,576,521

27,778,089

Net Operating Loss

(2,972,442

)

(6,446,231

)

Non-Operating Income/(Expense)

Income/(loss) on foreign currency exchange

53,097

(45,991

)

Other income/(expense)

9,906

(16,160

)

Interest income, net

293,403

444,642

TOTAL OTHER INCOME

356,406

382,491

LOSS BEFORE TAXES

(2,616,036

)

(6,063,740

)

Income tax expense

(21,890

)

(2,893

)

NET LOSS

(2,637,926

)

(6,066,633

)

NET LOSS PER SHARE

Basic

(0.06

)

(0.13

)

Diluted

(0.06

)

(0.13

)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

Basic

46,187,077

45,802,701

Diluted

46,187,077

45,802,701

KORU MEDICAL SYSTEMS, INC.

STATEMENTS OF CASH FLOWS

For the Years Ended

December 31,

2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES

Net Loss

(2,637,926

)

(6,066,633

)

Adjustments to reconcile net loss to net cash used in operating activities:

Stock-based compensation expense and warrant expense

2,713,539

2,623,920

Depreciation and amortization

810,500

888,473

Loss/(Gain) on disposal of fixed assets

(6,700

)

16,160

Non-cash leasing charges

(97,840

)

243,394

Changes in operating assets and liabilities:

Increase in accounts receivable

(489,199

)

(1,675,540

)

Decrease/(Increase) in inventory

(874,462

)

677,632

Decrease/(Increase) in prepaid expenses and other assets

(196,682

)

220,133

Increase in accounts payable

617,504

674,776

Increase/(Increase) in accrued payroll and related taxes

(279,429

)

348,460

Decrease in other liabilities

(1,547

)

(483,250

)

Increase in accrued expenses

904,647

2,212,757

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

462,405

(319,718

)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of property and equipment

(932,517

)

(1,297,427

)

Proceeds on disposals of property and equipment

6,700

8,500

Purchases of intangible assets

(23,973

)

(44,115

)

NET CASH USED IN INVESTING ACTIVITIES

(949,790

)

(1,333,042

)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from exercise of employee stock options

186,165

—

Borrowings from insurance finance indebtedness

406,751

487,516

Payments on insurance finance indebtedness

(677,903

)

(530,707

)

Payments for taxes related to net share settlement of equity awards

(27,536

)

(97,379

)

Payments on finance lease liability, net of asset

(108,827

)

(107,963

)

NET CASH USED IN FINANCING ACTIVITIES

(221,350

)

(248,533

)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(708,735

)

(1,901,293

)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

9,580,947

11,482,240

CASH AND CASH EQUIVALENTS, END OF YEAR

8,872,212

9,580,947

Supplemental Information

Cash paid during the years for:

Interest

55,546

71,934

Income taxes

14,850

—

KORU MEDICAL SYSTEMS, INC.

SUPPLEMENTAL INFORMATION

(UNAUDITED)

A reconciliation of our non-GAAP measures is below:

December 31,

to Non-GAAP Adjusted EBITDA:

2025

2024

2025

2024

GAAP Net Loss

(486,856

)

(1,558,249

)

(2,637,926

)

(6,066,632

)

Tax Benefit

—

(185,542

)

—

(1,078,066

)

Allowance for Tax Benefit

—

185,542

—

1,078,066

Reorganization Charges

—

496,255

Depreciation and Amortization

179,174

211,454

810,500

888,473

Interest Income, Net

(66,705

)

(80,459

)

(293,403

)

(444,642

)

Tax Expense (Refund)

4,684

—

21,890

—

Stock-based Compensation Expense

862,807

699,789

2,713,539

2,623,920

Non-GAAP Adjusted EBITDA

493,104

(727,465

)

614,600

(2,502,626

)

Weighted average number of common shares

46,302,746

45,907,001

46,187,077

45,802,701

Three Months Ended

Twelve Months Ended

Reconciliation of Reported Diluted EPS

December 31,

to Non-GAAP Adjusted Diluted EPS:

2025

2024

2025

2024

Reported Diluted Earnings Per Share

(0.01

)

(0.03

)

(0.6

)

(0.13

)

Tax Benefit

—

Allowance for Tax Benefit

—

Reorganization Charges

—

0.01

Depreciation and Amortization

—

0.02

Interest Income, Net

—

(0.01

)

(0.01

)

Tax Expense (Refund)

—

Stock-based Compensation Expense

0.02

0.01

0.06

Non-GAAP Adjusted Diluted Earnings Per Share

0.01

(0.02

)

0.01

(0.06

)

*Numbers presented are rounded to the nearest whole cent

Allowance for nonrealization of deferred tax assets (DTA). We have excluded the effect of recording a full valuation allowance on our deferred tax assets in the fourth quarter ended 2024 in the amount of $0.2 million and $1.1 million for the full year ended 2024.

Reorganization Charges. We have excluded the effect of reorganization charges in calculating our non-GAAP measures. In 2024 we incurred severance expenses related to the reorganization of the leadership team, which we would not have otherwise incurred in periods presented as part of continuing operations.

Stock-based Compensation Expense. We have excluded the effect of stock-based compensation expense in calculating our non-GAAP measures. We record non-cash compensation expenses related to grants of equity-based awards for executives, employees, consultants, and directors. Depending upon the size, timing and the terms of the grants, the non-cash compensation expense may vary significantly but is expected to recur in future periods.