KORU Medical Stays Profitable for a Second Straight Quarter as Gross Margin Tops 65%, Sending Shares Up 21%
KORU Medical Systems, Inc. (NASDAQ: KRMD) shares climbed about 21% Wednesday after the subcutaneous infusion company posted its second straight quarter of positive net income and adjusted EBITDA. Third-quarter revenue rose 11% to $11.6 million, while gross margin widened to 65.2% from 60.2% a year earlier. KORU also tightened its 2026 revenue outlook toward the upper end and raised its year-end cash target. As a result, the stock posted one of the biggest gains in the PRISM MedTech Index today.
Key Points
- Q3 revenue grew 11% to $11.6 million. Year-to-date revenue is up 17% to $35.4 million.
- Gross margin rose five points to 65.2%, which lifted gross profit 20% to $7.5 million.
- Net income came in at $0.2 million, compared with a $0.8 million loss a year ago. Adjusted EBITDA rose to $1.3 million from $0.1 million.
- 2026 guidance is now $48.0–$48.5 million in revenue and 63%–64% gross margin. The year-end cash target rises to more than $8.0 million.
KORU Medical (KRMD) Turns Margin Gains Into Profit
KORU makes the FREEDOM Syringe Infusion System, which lets patients give large-volume subcutaneous drugs, such as immunoglobulin, to themselves at home. In the third quarter, its core business grew 13.5% to $11.1 million.
Domestic core revenue jumped 31.6% to $8.1 million. Much of that jump came from a timing effect: a distributor cut its inventory in the year-ago quarter, which held that period’s sales down. Without that effect, domestic growth was about 10%. Meanwhile, international core revenue fell 16.5% to $3.1 million because of the same distributor timing. Without it, international sales grew about 23%.
The margin story stood out most. Gross profit rose 20.5%, nearly twice as fast as revenue, as gross margin expanded to 65.2%. At the same time, operating expenses rose just 3.2% to $7.4 million. As a result, KORU turned higher sales into $0.2 million of net income and $1.3 million of adjusted EBITDA, up from $0.1 million a year earlier.
CEO Adam Kalbermatten called the quarter “another quarter of consistent above-market growth.” He also said management expects revenue growth to pick up again in the fourth quarter.
Why the Stock Moved So Sharply
Expectations were low going in. Last quarter, KORU trimmed its revenue range and withdrew its U.S. filing to use its system with the oncology drug Phesgo. The stock then fell about 21% before this report. So the third quarter’s profit and margin gains eased worries that growth was fading without a plan for profitability.
Growth did slow from the first half of 2026. However, management tied part of that slowdown to KORU’s entry into a competitive non-tender market in Europe, where sales go through direct contracts rather than public tenders. Management says that launch is now complete. KORU also signed two new distribution agreements, one with a partner in Europe and one in Africa.
KRMD Tightens Its 2026 Outlook
For the full year, KORU now expects:
- Revenue: $48.0–$48.5 million, or 17%–18% growth (prior range $47.5–$48.5 million)
- Gross margin: 63%–64% (prior range 62%–64%)
- Adjusted EBITDA: positive for the year (reiterated)
- Year-end cash: more than $8.0 million (prior target: more than $7.5 million)
KORU ended September with $7.4 million in cash after using $0.9 million during the quarter. In addition, the company bought a technology asset for $961,000, paying $500,000 of that in stock.
What It Means for the PRISM MedTech Index
After today’s move, KORU’s market value sits around $176 million. The stock is up roughly 61% since the PRISM MedTech Index launched on January 2, 2024. PRISM MarketView has followed KORU’s shift from growth toward profits, including its record Q2 earnings and its third straight quarter of double-digit growth in 2024.
Going forward, investors will watch whether fourth-quarter growth picks up as management expects. They’ll also watch whether the new distribution partners and specialty pharmacy deals keep margins above 63%.
