KORU Medical Systems (KRMD) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $12 million, up 18–18.2% year-over-year, with net income improving by 222% to $0.25 million, marking a return to profitability.

• Gross margin rose to 65.1% from 63.5% year-over-year, driven by manufacturing efficiencies and favorable mix.

• Strategic initiatives included acquisition of connected monitoring technology and withdrawal of the U.S. Phesgo 510(k) to focus on higher-volume biologics.

• Expanded international business by 59–59.1% year-over-year, driven by distributor purchases, pre-filled syringe conversions, and new patient starts in EU markets.

• Maintained strong domestic growth, with core revenue up 12–12.4% year-over-year, outperforming the SCIg market and expanding market share.

Financial highlights

• Q2 2026 revenue: $12 million, up 18–18.2% year-over-year; H1 revenue: $23.8 million, up 20–20.1%.

• Gross profit for Q2: $7.8 million, up 21.2%; gross margin: 65.1% (up from 63.5%); H1 gross margin: 63.3%.

• Net income for Q2: $0.25–$0.3 million; H1 net loss narrowed to $0.55–$0.6 million, a 60% improvement.

• Adjusted EBITDA for Q2: $0.9 million, up from $0.02–$0.3 million prior year.

• Cash and equivalents at June 30, 2026: $8.3 million; Q2 cash usage: $0.5 million.

Outlook and guidance

• Full-year 2026 revenue guidance narrowed to $47.5–$48.5 million (15–18% growth); gross margin guidance raised to 62–64%.

• Positive adjusted EBITDA and year-end cash balance expected to exceed $7.5 million.

• Long-term targets: $100 million revenue, gross margins above 65%, and EBITDA margins of 20%+.

• Management expects cash, operations, and available credit to be sufficient for at least the next twelve months.

• Longer-term initiatives may require additional debt or equity financing depending on growth and market conditions.