KORU Medical swings to $218K profit in Q3 2026
Updated 2026 guidance calls for revenue of $48.0–$48.5 million and year-end cash greater than $8.0 million.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
KORU Medical Systems, Inc. reported third-quarter 2026 net revenue of $11.6 million, up 11.2% year over year, and gross profit of $7.5 million, up 20.5%. Gross margin was 65.2%, compared with 60.2% a year earlier. GAAP net income was $218,103, versus a net loss of $777,966; adjusted EBITDA, a non-GAAP measure, was $1,313,257 versus $89,197.
Domestic core revenue rose 31.6% to $8.1 million; international core revenue fell 16.5% to $3.1 million, and pharma services and clinical trials revenue fell 27.4% to $424,374. Reported comparisons reflected Q3 2025 distributor purchasing patterns and a higher prior-year international comparison base. Normalized domestic and international core revenue grew 10.1% and 23.2%, respectively; adjustments netted to zero for total revenue. Cash and cash equivalents were $7.4 million as of September 30, 2026.
KORU revised 2026 revenue guidance to $48.0–$48.5 million from $47.5–$48.5 million and gross-margin guidance to 63%–64% from 62%–64%. It reiterated positive adjusted EBITDA for the full year and raised year-end cash guidance to greater than $8.0 million from greater than $7.5 million. It also reported two new sales and distribution agreements in Europe and Africa.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter revenue rose 11.2% to $11.6 million year over year.
- Moderate pointGAAP net income reached $218,103, versus a $777,966 loss a year earlier.
- Moderate pointAdjusted EBITDA reached $1,313,257, versus $89,197 a year earlier.
- Moderate pointGross profit rose 20.5% to $7.5 million year over year.
Negative
- Minor pointPharma services and clinical trials revenue fell 27.4% to $424,374.
8-K Event Classification
Key Figures
Key Terms
adjusted EBITDA financial
adjusted diluted EPS financial
gross margin financial
Normalized Revenue financial
Earnings Snapshot
2026 revenue of $48.0–$48.5 million, representing 17%–18% year-over-year growth; gross margin of 63%–64%; positive adjusted EBITDA; year-end cash greater than $8.0 million.
FAQ
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What were KRMD's third-quarter 2026 revenue and earnings?
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area
code (
______________________________________________
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [_]
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
(a) Public Announcement or Release.
On November 10, 2026, KORU Medical Systems, Inc. (the “Company”) issued a press release announcing its financial results for the third fiscal quarter ended September 30, 2026 and updating financial guidance for the fiscal year ended December 31, 2026. The Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. A related conference call will be held on November 10, 2026 at 4:30pm Eastern Time.
KORU Medical is making reference to non-GAAP financial measures in both the press release and the conference call. Our management believes that investors’ understanding of KORU Medical’s performance is enhanced by disclosing the non-GAAP financial measures of “adjusted EBITDA” and “adjusted diluted EPS” (each as defined below) as a reasonable basis for comparison of our ongoing results of operations. KORU Medical strongly encourages investors to review its consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by KORU Medical may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Non-GAAP measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. A reconciliation of GAAP to non-GAAP results is provided in the attached Exhibit 99.1 press release.
We define adjusted EBITDA as earnings (net (loss)/income) before depreciation and amortization, interest (income), net, litigation expense and stock-based compensation expense. We believe that adjusted EBITDA is used by investors and other users of our financial statements as a supplemental financial measure that, when viewed with our GAAP results and the accompanying reconciliation, we believe provides additional information that is useful to gain an understanding of the factors and trends affecting our business. We also believe the disclosure of adjusted EBITDA helps investors meaningfully evaluate and compare our cash flow generating capacity from quarter to quarter and year to year. adjusted EBITDA is used by management as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations.
We present adjusted diluted earnings per share (“adjusted diluted EPS”) after eliminating items that we believe are not part of our ordinary operations and affect the comparability of the periods presented. Adjusted diluted EPS includes adjustments from reported diluted earnings per share for depreciation and amortization, interest (income), net, litigation expense and stock-based compensation expense. We believe adjustments for these items allow investors to better understand our underlying operating results and facilitate comparisons between the periods shown. Management uses adjusted diluted EPS as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations.
The information contained in this Item 2.02 of the Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
| Exhibit No. | Description | ||
| 99.1 | Press Release, dated November 10, 2026 | ||
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document) |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KORU Medical Systems, Inc. (Registrant) | ||
| Date: November 10, 2026 | By: | /s/ Adam Kalbermatten |
| Adam Kalbermatten Chief Executive Officer | ||
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EXHIBIT 99.1
KORU Medical Systems Announces Third Quarter 2026 Results Including Second Consecutive Quarter of Positive Net Income and Adjusted EBITDA
MAHWAH, NJ – November 10, 2026 – KORU Medical Systems, Inc. (NASDAQ: KRMD) (“KORU Medical” or the “Company”), a leading medical technology company focused on the development, manufacturing, and commercialization of innovative and patient-centric large volume subcutaneous infusion solutions, today reported financial results for the third quarter ended September 30, 2026.
Third Quarter 2026 and Recent Highlights
| ● | Net revenues grew 11% over the prior year period to $11.6 million; year to date net revenues grew 17% to $35.4 million |
| ● | Gross profit grew 20% over the prior year period to $7.5 million, driven by gross margin improvement from 60.2% to 65.2% |
| ● | Net income improved by $1.0 million to $0.2 million compared to a net loss of $0.8 million in prior year period |
| ● | Adjusted EBITDA increased to $1.3 million from $0.1 million in the prior year period |
| ● | Signed two new sales and distribution agreements with partners in Europe and Africa, expanding our geographic footprint internationally |
| ● | Revising full-year 2026 revenue guidance to $48.0 - $48.5 million, representing year-over-year growth of 17% - 18%, compared to the previous guidance range of $47.5 - $48.5 million. |
“Total Revenue of $11.6 million represents another quarter of consistent above-market growth for KORU, driven by our recurring patient base,” said Adam Kalbermatten, President and CEO of KORU Medical. “We also delivered positive net income and adjusted EBITDA for the second consecutive quarter, demonstrating the scalability of our business model. As anticipated, our year-over-year revenue growth moderated in the third quarter compared to the first half of 2026, reflecting in part the timing of our entry into a competitive non-tender market in Europe. With that market launch now behind us, we anticipate revenue growth to reaccelerate in the fourth quarter for a strong finish to the year. We are encouraged by our geographic expansion, specialty pharmacy partnerships, and pipeline advancements and plan to continue investing resources in our long-term growth strategy as we move forward.”
2026 Third Quarter Financial Results
| Three Months Ended September 30, |
Change from Prior Year | % of Net Revenues | ||||||||||||||
| 2026 | 2025 | $ | % | 2026 | 2025 | |||||||||||
| Net Revenues | ||||||||||||||||
| Domestic Core | $ | 8,058,131 | 6,122,365 | $ | 1,935,766 | 31.6% | 69.6% | 58.9% | ||||||||
| International Core | 3,084,050 | 3,695,524 | (611,474 | ) | (16.5% | ) | 26.7% | 35.5% | ||||||||
| Total Core | 11,142,181 | 9,817,889 | 1,324,292 | 13.5% | 96.3% | 94.4% | ||||||||||
| Pharma Services and Clinical Trials | 424,374 | 584,274 | (159,900 | ) | (27.4% | ) | 3.7% | 5.6% | ||||||||
| Total | $ | 11,566,555 | 10,402,163 | $ | 1,164,392 | 11.2% | 100% | 100% | ||||||||
Total net revenues increased $1.2 million, or 11.2%, to $11.6 million for the three months ended September 30, 2026, as compared to $10.4 million in the prior year period.
Domestic core revenues were $8.1 million, an increase of $1.9 million, or 31.6%, compared to the prior-year period. Approximately $1.2 million of the increase reflected lower orders from a U.S. distributor in the third quarter of 2025, when the distributor purchased a portion of its KORU products through one of our international distributors and reduced its inventory levels. The remaining increase was primarily driven by higher pump and consumable volumes, new patient starts, and market share gains within existing accounts.
International core revenues were $3.1 million, a decrease of 16.5% compared to the prior-year period. The decrease primarily reflected a higher prior-year comparison base, which included shipments to a distributor in a strategic market in anticipation of demand associated with conversions from vials to prefilled products, as well as purchases by an international distributor for subsequent resale in the U.S. The decrease was partially offset by growth in new patient starts within existing international markets.
As discussed above, purchases through the international distributor for resale in the U.S. affected the geographic mix of Core revenues in the prior-year period and, consequently, the year-over-year comparisons of Domestic and International Core revenues.
Pharma services and clinical trials net revenues were $0.4 million, a decrease of 27.4% compared to the prior-year period, primarily reflecting lower purchases of products for use in a customer's clinical trial program.
Gross profit increased $1.3 million, or 20.5%, to $7.5 million in the three months ended September 30, 2026, as compared to $6.3 million in the prior year period, primarily driven by gross margin and volume growth. Gross margin increased to 65.2% for the three months ended September 30, 2026, as compared to 60.2% in the prior year period, primarily driven by lower manufacturing costs, higher than average selling prices from our geographical customer mix and lower tariff costs driven by tariff related rebates.
Total operating expenses increased $0.2 million, or 3.2%, to $7.4 million for the third quarter of 2026 primarily driven by an increase of $0.3 million in research and development. The increase in research and development expenses was primarily due to higher salary and stock compensation related to headcount additions, including employees added in connection with our technology asset acquisition.
Net income increased $1.0 million to $0.2 million or $0.00 per diluted share for the third quarter of 2026, compared to a net loss of ($0.8) million, or ($0.02) per diluted share, for the prior year period. Adjusted EBITDA for the quarter was $1.3 million, or $0.02 per adjusted diluted share versus $0.1 million or $0.00 per adjusted diluted share in the prior year period. A reconciliation of adjusted EBITDA to the most directly comparable GAAP measures is provided at the end of this press release.
Cash and cash equivalents were $7.4 million as of September 30, 2026, reflecting cash usage of $0.9 million in the third quarter of 2026.
Updated 2026 Guidance
| ● | Revising full-year 2026 revenue guidance to $48.0 - $48.5 million, representing year-over-year growth of 17% - 18%, compared to the previous guidance range of $47.5 - $48.5 million. |
| ● | Revising full year 2026 gross margin to be between 63 - 64%, from prior range of 62 – 64% |
| ● | Reiterating positive adjusted EBITDA for the full year |
| ● | Raising year-end cash balance to be greater than $8.0 million, from prior guidance of greater than $7.5 million |
Conference Call and Webcast Details
The Company will host a live conference call and webcast to discuss these results and provide a corporate update on Tuesday, November 10, 2026, at 4:30 PM ET.
To participate in the call, please dial (877) 407-0784 (domestic) or (201) 689-8560 (international). The live webcast will be available on the IR Calendar on the News/Events page of the Investors section of KORU Medical’s website.
Non-GAAP Measures
This press release includes the non-GAAP financial measures “adjusted diluted EPS” and “adjusted EBITDA” that are not in accordance with, nor an alternate to, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material effect on KORU Medical’s reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company’s financial results. Non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with GAAP financial results. Reconciliations of the Company’s non-GAAP measures are included at the end of this press release.
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About KORU Medical Systems
KORU Medical Systems develops, manufactures, and commercializes innovative and patient-centric large volume subcutaneous infusion solutions that improve quality of life for patients around the world. The Freedom Syringe Infusion System (the “Freedom System”) currently includes the Freedom60® and FreedomEDGE® Syringe Infusion Drivers, Precision Flow Rate Tubing™ and HigH-Flo Subcutaneous Safety Needle Sets™. The Freedom System, which received its first FDA clearance in 1994, is used for self-administration in the home by the patient and/or delivery in an ambulatory infusion center by a healthcare professional. Through its Pharma Service and Clinical Trials business, KORU Medical provides products for use by biopharmaceutical companies in feasibility/clinical trials during the drug development process and, as needed, is capable of customizing the Freedom System for clinical and commercial use across multiple drug categories. For more information, please visit www.korumedical.com.
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. All statements that are not historical fact are forward-looking statements, including, but not limited to, anticipated revenue growth in the fourth quarter and financial guidance and expected operating performance for fiscal 2026. Forward-looking statements discuss the Company’s current expectations and projections relating to its financial position, results of operations, plans, objectives, future performance, and business. Forward-looking statements can be identified by words such as “anticipate”, “potential”, “guidance”, and “expect”. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, ability to adapt new technology, uncertainties associated with inflation, tariffs, war and other geopolitical conflicts, customer ordering patterns, availability and costs of raw materials and labor and our ability to recover such costs, future operating results, growth of new patient starts and the Ig market, our compliance with Food and Drug Administration and foreign authority regulations and the outcome of regulatory audits, introduction and adoption of competitive products, acceptance of and demand for new and existing products, ability to penetrate new markets, success in enforcing and obtaining patents, reimbursement related risks, government regulation of the home health care industry, success of our research and development effort, expanding the market of the Freedom System, demand in the SCIg market, availability of sufficient capital if or when needed, dependence on key personnel, the impact of recent accounting pronouncements, and those risks and uncertainties included under the captions “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, which is on file with the SEC and available on our website at www.korumedical.com/investors and on the SEC website at www.sec.gov. All information provided in this release and in the attachments is as of November 10, 2026. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.
Investor Contact:
Louisa Smith
investor@korumedical.com
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KORU MEDICAL SYSTEMS, INC.
BALANCE SHEETS
| September 30, | December 31, | ||||||
| 2026 | 2025 | ||||||
| (UNAUDITED) | |||||||
| ASSETS | |||||||
| CURRENT ASSETS | |||||||
| Cash and cash equivalents | $ | 7,364,200 | $ | 8,872,212 | |||
| Accounts receivable, net | 6,382,020 | 5,972,252 | |||||
| Inventory, net | 4,691,949 | 3,678,131 | |||||
| Other receivables | 601,294 | 557,653 | |||||
| Prepaid expenses and other current assets | 1,097,918 | 908,542 | |||||
| TOTAL CURRENT ASSETS | 20,137,381 | 19,988,790 | |||||
| Property and equipment, net | 4,004,237 | 4,471,386 | |||||
| Intangible assets, net of accumulated amortization of $572,949 and $527,949 as of September 30, 2026 and December 31, 2025, respectively | 1,683,726 | 684,841 | |||||
| Capitalized software development costs, net | 206,863 | — | |||||
| Operating lease right-of-use assets | 2,653,308 | 2,956,192 | |||||
| Other assets | 98,970 | 98,970 | |||||
| TOTAL ASSETS | $ | 28,784,485 | $ | 28,200,179 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable | $ | 1,875,343 | $ | 2,267,473 | |||
| Accrued expenses | 3,418,114 | 4,828,830 | |||||
| Note payable | 332,479 | — | |||||
| Other liabilities | 18,468 | 27,722 | |||||
| Accrued payroll and related taxes | 578,261 | 531,972 | |||||
| Finance lease liability | 130,257 | 124,913 | |||||
| Operating lease liability | 438,712 | 413,448 | |||||
| TOTAL CURRENT LIABILITIES | 6,791,634 | 8,194,358 | |||||
| Finance lease liability, net of current portion | 51,572 | 78,675 | |||||
| Operating lease liability, net of current portion | 2,546,190 | 2,879,224 | |||||
| TOTAL LIABILITIES | 9,389,396 | 11,152,257 | |||||
| STOCKHOLDERS’ EQUITY | |||||||
| Common stock, $0.01 par value, 75,000,000 shares authorized, 50,375,678 and 49,790,934 shares issued 46,375,176 and 46,370,432 shares outstanding as of September 30, 2026, and December 31, 2025, respectively | 503,757 | 497,909 | |||||
| Additional paid-in capital | 57,650,483 | 52,449,339 | |||||
| Treasury stock, 4,018,526 and 3,438,526 shares as of September 30, 2026 and December 31, 2025, respectively, at cost | (6,405,793 | ) | (3,882,494 | ) | |||
| Accumulated deficit | (32,353,358 | ) | (32,016,832 | ) | |||
| TOTAL STOCKHOLDERS’ EQUITY | 19,395,089 | 17,047,922 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 28,784,485 | $ | 28,200,179 | |||
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KORU MEDICAL SYSTEMS, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| NET REVENUES | $ | 11,566,555 | $ | 10,402,163 | $ | 35,376,599 | $ | 30,232,038 | |||||
| Cost of goods sold | 4,020,471 | 4,137,592 | 12,752,917 | 11,445,362 | |||||||||
| Gross Profit | 7,546,084 | 6,264,571 | 22,623,682 | 18,786,676 | |||||||||
| OPERATING EXPENSES | |||||||||||||
| Selling, general and administrative | 5,867,903 | 5,994,661 | 18,235,907 | 17,338,183 | |||||||||
| Research and development | 1,281,040 | 933,107 | 3,821,004 | 3,242,505 | |||||||||
| Depreciation and amortization | 210,023 | 204,482 | 617,585 | 631,326 | |||||||||
| Total Operating Expenses | 7,358,966 | 7,132,250 | 22,674,496 | 21,212,014 | |||||||||
| Net Operating Income /(Loss) | 187,118 | (867,679 | ) | (50,814 | ) | (2,425,338 | ) | ||||||
| Non-Operating Income/(Expense) | |||||||||||||
| Gain/(Loss) on currency exchange | (11,752 | ) | 11,790 | (57,246 | ) | 61,571 | |||||||
| Gain/(Loss) on disposal of fixed assets, net | (1 | ) | — | (406,269 | ) | — | |||||||
| Other income | — | 3,206 | — | 3,205 | |||||||||
| Interest income, net | 60,738 | 74,567 | 201,603 | 226,698 | |||||||||
| TOTAL OTHER (EXPENSE)/INCOME | 48,985 | 89,563 | (261,912 | ) | 291,474 | ||||||||
| INCOME / (LOSS) BEFORE INCOME TAXES | 236,103 | (778,116 | ) | (312,726 | ) | (2,133,864 | ) | ||||||
| Income Tax Benefit (Expense) | (18,000 | ) | 150 | (23,800 | ) | (17,206 | ) | ||||||
| NET INCOME/(LOSS) | $ | 218,103 | $ | (777,966 | ) | $ | (336,526 | ) | $ | (2,151,070 | ) | ||
| NET INCOME / (LOSS) PER SHARE | |||||||||||||
| Basic | $ | 0.00 | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.05 | ) | ||
| Diluted | $ | 0.00 | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.05 | ) | ||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | |||||||||||||
| Basic | 46,239,985 | 46,238,819 | 46,229,137 | 46,140,347 | |||||||||
| Diluted | 46,731,836 | 46,238,819 | 46,229,137 | 46,140,347 | |||||||||
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KORU MEDICAL SYSTEMS, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
| Nine Months Ended | |||||||
| September 30, | September 30, | ||||||
| 2026 | 2025 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net Loss | $ | (336,526 | ) | $ | (2,151,070 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Stock-based compensation expense and warrant expense | 2,067,152 | 1,740,727 | |||||
| Depreciation and amortization | 617,585 | 631,326 | |||||
| Loss on disposal of fixed assets | 406,269 | — | |||||
| Loss on write-off of intangible assets | 21,890 | — | |||||
| Non-cash leasing charges | (6,007 | ) | — | ||||
| Changes in operating assets and liabilities: | |||||||
| Decrease/(Increase) in accounts receivable | (409,768 | ) | 390,139 | ||||
| Decrease/(Increase) in other receivables | (43,641 | ) | 38,151 | ||||
| Decrease/(Increase) in inventory | (1,013,818 | ) | (1,608,041 | ) | |||
| Decrease/(Increase) in prepaid expenses and other assets | (189,376 | ) | (224,063 | ) | |||
| Increase/(Decrease) in accounts payable | (392,131 | ) | 222,193 | ||||
| Increase/(Decrease) in accrued payroll and related taxes | 46,289 | (355,335 | ) | ||||
| Increase/(Decrease) in other liabilities | (9,255 | ) | (26,377 | ) | |||
| Increase/(Decrease) in accrued expenses | (1,410,717 | ) | 709,999 | ||||
| NET CASH FLOWS FROM OPERATING ACTIVITIES | (652,054 | ) | (632,351 | ) | |||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchases of property and equipment | (422,289 | ) | (524,735 | ) | |||
| Purchases of intangible assets | (571,804 | ) | (3,400 | ) | |||
| Capitalized software development costs | (206,863 | ) | — | ||||
| NET CASH FLOWS FROM INVESTING ACTIVITIES | (1,200,956 | ) | (528,135 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Proceeds from exercise of employee stock options | 197,600 | 89,025 | |||||
| Borrowings from insurance finance indebtedness | 403,869 | 406,751 | |||||
| Payments on insurance finance indebtedness | (71,390 | ) | (342,972 | ) | |||
| Payments for taxes related to net share settlement of equity awards | (81,059 | ) | (27,536 | ) | |||
| Payments on finance lease liability, net of asset | (104,022 | ) | (81,710 | ) | |||
| NET CASH FLOWS FROM FINANCING ACTIVITIES | 344,998 | 43,558 | |||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (1,508,012 | ) | (1,116,928 | ) | |||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 8,872,212 | 9,580,947 | |||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 7,364,200 | $ | 8,464,019 | |||
| Supplemental Information | |||||||
| Cash paid during the nine months ended September 30 for: | |||||||
| Interest | $ | 11,714 | $ | 36,690 | |||
| Income Taxes | $ | 23,800 | $ | 17,206 | |||
| Non-cash Financing Activity | |||||||
| During the nine months ended September 30, 2026, the Company acquired an intangible asset for $961,035, of which $500,000 was settled through the issuance of 125,628 shares of common stock | — | ||||||
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KORU MEDICAL SYSTEMS, INC.
SUPPLEMENTAL INFORMATION
(UNAUDITED)
| Three Months Ended | Nine Months Ended | ||||||||||||
| Reconciliation of GAAP Net Income /(Loss) | September 30, | September 30, | |||||||||||
| to Non-GAAP Adjusted EBITDA: | 2026 | 2025 | 2026 | 2025 | |||||||||
| GAAP Net Income (Loss) | $ | 218,103 | $ | (777,966 | ) | $ | (336,526 | ) | $ | (2,151,070 | ) | ||
| Depreciation and Amortization | 210,023 | 204,482 | 617,585 | 631,326 | |||||||||
| Interest (Income), Net | (60,738 | ) | (74,567 | ) | (201,603 | ) | (226,698 | ) | |||||
| Tax Expense (Refund) | 18,000 | (150 | ) | 23,800 | 17,206 | ||||||||
| Stock-based Compensation Expense | 927,869 | 737,398 | 2,067,152 | 1,850,732 | |||||||||
| Adjusted EBITDA | $ | 1,313,257 | $ | 89,197 | $ | 2,170,408 | $ | 121,496 | |||||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | |||||||||||||
| Basic | 46,239,985 | 46,238,819 | 46,229,137 | 46,140,347 | |||||||||
| Diluted | 46,731,836 | 46,238,819 | 46,229,137 | 46,140,347 | |||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| Reconciliation of Reported Diluted EPS | September 30, | September 30, | |||||||||||
| to Non-GAAP Adjusted Diluted EPS: | 2026 | 2025 | 2026 | 2025 | |||||||||
| Reported Diluted Earnings Per Share | $ | 0.00 | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.05 | ) | ||
| Stock-based Compensation Expense | 0.02 | 0.02 | 0.04 | 0.04 | |||||||||
| Adjusted Diluted Earnings Per Share | $ | 0.02 | $ | (0.00 | ) | $ | $0.04 | $ | (0.01 | ) | |||
| Reconciliation of Reported Revenue to Normalized Revenue — Q3 2025 ($ in millions, rounded) | ||||||
| Revenue Category | Q3 2025 Reported | Normalization Adjustment | Q3 2025 Normalized | Q3 2026 Reported | Reported Y/Y Growth | Normalized Y/Y Growth |
| Domestic Core | $6.1 | $1.2 | $7.3 | $8.1 | 31.6% | 10.1% |
| International Core | $3.7 | ($1.2) | $2.5 | $3.1 | (16.5%) | 23.2% |
| Total Core | $9.8 | $0.0 | $9.8 | $11.2 | 13.5% | 13.5% |
| Pharma Services & Clinical Trials | $0.6 | — | $0.6 | $0.4 | (27.4%) | (27.4%) |
| Total Revenue | $10.4 | $0.0 | $10.4 | $11.6 | 11.2% | 11.2% |
* Normalization adjustments reflect certain distributor purchasing patterns in Q3 2025 and net to zero at both the Total Core and Total Revenue levels. Revenue amounts are rounded to the nearest $0.1 million, and year-over-year growth rates are calculated using unrounded amounts.
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