KORU Medical Systems Reports 18% Revenue Growth to $33.6 Million for Fiscal Year 2024

KORU Medical Systems, Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total net revenues reaching $33.6 million, an 18% increase from $28.5 million in the previous year. This growth was primarily driven by a 12.3% rise in domestic core revenues, which amounted to $25.2 million, and a 31.5% increase in international core revenues, totaling $6.0 million. Additionally, the company saw a substantial 61.9% increase in its novel therapies segment, contributing $2.4 million to the overall revenue.

The company's gross profit also improved, rising to $21.3 million, a 27.7% increase from the prior year's $16.7 million. This resulted in a gross margin of 63.4%, up from 58.6% in 2023, attributed to enhanced manufacturing productivity and a favorable product revenue mix. Operating expenses increased slightly to $27.8 million from $27.0 million, primarily due to higher compensation and benefits costs. KORU Medical's net loss for the year was $6.1 million, a significant reduction from the $13.7 million loss reported in 2023, reflecting improved operational efficiency.

Strategically, KORU Medical has focused on expanding its market presence, particularly in the subcutaneous immunoglobulin (SCIg) market, which is expected to grow due to increasing diagnoses of primary immunodeficiency diseases and the introduction of new treatment options. The company has also made investments in research and development, spending $5.3 million in 2024, aimed at enhancing its product offerings and preparing for future innovations.

Operationally, KORU Medical has maintained a workforce of 80 employees as of December 31, 2024, with a diverse representation of approximately 49% female and 43% minority employees. The company continues to rely on a small number of distributors, with three U.S. and three international distributors accounting for about 75% of its net revenues. This concentration poses risks, as fluctuations in distributor purchasing patterns can significantly impact financial results.

Looking ahead, KORU Medical anticipates continued growth driven by its strategic initiatives and market expansion efforts. The company plans to leverage its existing product lines while exploring new therapeutic areas, particularly in novel therapies that utilize its FREEDOM infusion system. However, the company acknowledges potential challenges, including regulatory compliance, competition, and the need for additional capital to support its growth objectives.