KORU Medical Systems Reports 22.1% Revenue Growth in Q1 2026

KORU Medical Systems, Inc. reported a significant increase in financial performance for the first quarter of 2026, with net revenues reaching $11.8 million, a 22.1% rise from $9.6 million in the same period last year. This growth was primarily driven by an 11.7% increase in domestic core revenues, which totaled $7.7 million, and a 35.2% increase in international core revenues, amounting to $3.3 million. Additionally, the company saw a substantial 166.0% increase in its pharma services and clinical trials segment, contributing $740,711 to total revenues. Gross profit for the quarter was $7.2 million, reflecting a 19.6% increase from $6.0 million in the prior year, although gross margin decreased slightly to 61.5% from 62.8%.

Operating expenses for KORU Medical rose to $8.1 million, up from $7.3 million in the previous year, largely due to increased selling, general, and administrative expenses, which grew by 10.5% to $6.6 million. Research and development expenses also increased by 18.1% to $1.3 million. The company reported a net loss of $807,078 for the quarter, a 30.8% improvement compared to a net loss of $1.2 million in the same period last year. This reduction in net loss was attributed to higher gross profit, which offset the increase in operating expenses.

In terms of operational developments, KORU Medical's inventory increased to $4.5 million, reflecting a $0.8 million rise from the end of 2025, indicating anticipated future demand. The company maintained a cash position of $8.8 million as of March 31, 2026, and reported a net cash inflow from operating activities of $14,663, a notable improvement from the cash outflow of $237,467 in the prior year. The company has not drawn on its $5 million revolving credit facility, which was recently amended to extend its maturity and lower the interest rate floor.

Strategically, KORU Medical announced the retirement of CEO Linda Tharby, who will transition to a non-executive advisory role by June 30, 2026. This change is part of a broader organizational strategy as the company continues to focus on expanding its market presence and enhancing its product offerings. The company is also exploring potential tariff refunds related to U.S. government tariffs on imported materials, although it has not recorded any benefits from these potential refunds at this time.

Looking ahead, KORU Medical anticipates that its current cash reserves, operational cash flows, and available credit will be sufficient to meet its financial requirements for at least the next twelve months. However, the company acknowledges that future capital needs may necessitate additional financing through debt or equity, depending on various factors including sales growth, product development, and market conditions. The company remains committed to investing in research and development to support its long-term strategic goals.