KORU Raises 2026 Revenue Outlook to $48.0–48.5 Million After Third-Quarter Results
Key Facts
KORU Medical Systems raised its fiscal 2026 revenue outlook to a range of $48.0–48.5 million, from $47.5–48.5 million, in its third-quarter results announcement issued on November 10. The company said the new range represents year-over-year growth of between 17% and 18%. The quarter ended on September 30, with revenue of $11.6 million, up 11.2% from the same period a year earlier. The company also posted net income of $0.2 million, after a net loss of $0.8 million a year earlier. The outlook increase coincided with upward revisions to its gross margin and year-end cash forecasts.
Revenue for the first nine months totaled $35.4 million, up 17.0% year over year, but quarterly growth slowed from the first half, Chief Executive Adam Kalbermatten said. Kalbermatten attributed this in part to the timing of the company's entry into a competitive European market that does not rely on tenders. He said the company's launch in that market was behind it, and management expects revenue growth to accelerate in the fourth quarter for a “strong finish to the year.” That outlook puts the final quarter at the forefront of the remaining period for achieving the new annual revenue range. The company did not provide a specific figure for expected fourth-quarter growth.
Core business growth was mixed across markets in the third quarter. Domestic core revenue rose 31.6% to $8.1 million, while international core revenue fell 16.5% to $3.1 million. Revenue from pharmaceutical services and clinical trials declined 27.4% to $0.4 million. The company attributed domestic strength to higher pump and consumable volumes, the start of treatment for new patients, and increased market share within existing accounts. It added that about $1.2 million of the domestic increase reflected lower orders from a U.S. distributor in the third quarter of 2025, which affected the year-over-year comparison.
The company said the decline in international revenue reflected a high comparison base that included shipments to a distributor in a strategic market and purchases by an international distributor for resale in the United States. Growth in new patient treatment starts in established international markets partly offset that effect. Across the first nine months, domestic and international core revenue remained on an upward trajectory: domestic revenue increased 18.0% to $23.8 million, and international revenue rose 18.5% to $9.8 million. By contrast, pharmaceutical services and clinical trials revenue for the period was $1.8 million, down 1.1%. The comparison between the two periods shows that weaker international revenue in the quarter did not erase its growth since the start of the year.
Gross margin in the third quarter rose to 65.2% of revenue, compared with 60.2% in the same period a year earlier, and gross profit increased 20.5% to $7.5 million. The company attributed the improvement to lower manufacturing costs, higher average selling prices and tariff-related refunds. It raised its full-year gross margin guidance to 63–64%, from 62–64%. The company also reported adjusted EBITDA of $1.3 million, compared with $0.1 million a year earlier. Operating expenses rose 3.2% to $7.4 million from $7.1 million, as a $0.3 million increase in research and development was partly offset by a $0.1 million decline in selling, general and administrative expenses.
The company ended September 30 with $7.4 million in cash and cash equivalents, after using $0.9 million in cash during the quarter. It raised its forecast for year-end 2026 cash to more than $8.0 million, from more than $7.5 million previously. It also reaffirmed its expectation of positive adjusted EBITDA for the full year. Announced expansion steps include signing two new sales and distribution agreements with partners in Europe and Africa, which the company said will broaden its international geographic reach. The company was scheduled to participate in the Craig-Hallum Alpha Select Conference on November 17, 2026.