📊 KRMD Key Takeaways
Is KORU Medical Systems, Inc. (KRMD) a Good Investment?
KORU demonstrates strong fundamentals with 22.2% revenue growth and exceptional 61.5% gross margins, indicating solid product-market fit and differentiation. However, the company remains unprofitable with negative free cash flow (-$31.5K) and operating losses (-$807.1K), creating execution risk. With $8.8M in cash and minimal debt, the balance sheet provides runway for growth investments, but management must demonstrate a credible path to profitability before positive cash flow inflection.
KORU Medical is delivering strong 22% revenue growth with robust 62% gross margins and improving losses, supported by positive operating cash flow, ample liquidity, and minimal leverage. With operating leverage emerging, the path to break-even appears achievable if growth persists and operating expenses remain disciplined.
KORU Medical Systems, Inc. Key Strengths (KRMD)
- Strong revenue growth trajectory at 22.2% YoY with market traction
- Exceptional gross margins of 61.5% indicating strong pricing power and product differentiation
- Fortress balance sheet with $8.8M cash, 2.33x current ratio, and minimal debt leverage (0.03x D/E)
- Improving profitability trend with EPS loss declining 53.8% YoY, approaching breakeven
- Double-digit revenue growth (+22% YoY) with 62% gross margin indicating strong unit economics
- Solid balance sheet and liquidity: current ratio 2.44x, low debt (0.03x D/E), $8.9M cash
- Improving EPS and positive operating cash flow with near-breakeven FCF
KRMD Stock Risks: KORU Medical Systems, Inc. Investment Risks
- Negative free cash flow (-$31.5K) and operating cash flow insufficient to cover capex, indicating unsustainable burn rate
- Current net losses of -$807.1K with -6.9% net margin require major operating leverage gains to reach sustainability
- Operating expenses too high relative to revenue; 7.4% operating margin deficit must compress significantly while maintaining growth momentum
- Potential need for future capital raise if cash burn accelerates or profitability timeline extends beyond current runway
- Still unprofitable with negative ROE/ROA and a -7% operating margin
- Execution and reimbursement/regulatory risks typical for med devices; potential customer concentration
- Sustained negative FCF could pressure cash if growth moderates
Key Metrics to Watch
- Quarterly operating margin trend and timeline to positive EBIT - critical inflection point for sustainability
- Free cash flow conversion and operating cash flow trend - watch for sustained positive FCF generation
- Gross margin sustainability as revenue scales - verify no margin compression as customer mix evolves
- Operating margin
- Operating cash flow and FCF conversion
KORU Medical Systems, Inc. (KRMD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.33x current ratio provides a solid financial cushion.
KRMD Profit Margin, ROE & Profitability Analysis
KRMD vs Healthcare Sector: How KORU Medical Systems, Inc. Compares
How KORU Medical Systems, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KORU Medical Systems, Inc. Stock Overvalued? KRMD Valuation Analysis 2026
Based on fundamental analysis, KORU Medical Systems, Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
KORU Medical Systems, Inc. Balance Sheet: KRMD Debt, Cash & Liquidity
KRMD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: KORU Medical Systems, Inc.'s revenue has grown significantly by 70% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.13 indicates the company is currently unprofitable.
KRMD Revenue Growth, EPS Growth & YoY Performance
KRMD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $9.6M | -$807.1K | $-0.02 |
| Q3 2025 | $8.2M | -$206.9K | $0.02 |
| Q2 2025 | $8.4M | -$206.9K | $0.00 |
| Q1 2025 | $8.2M | -$1.2M | $0.03 |
| Q3 2024 | $7.0M | -$988.7K | $-0.03 |
| Q2 2024 | $6.9M | -$988.7K | $-0.02 |
| Q1 2024 | $7.4M | -$1.9M | $-0.04 |
| Q3 2023 | $7.0M | -$1.2M | $-0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
KORU Medical Systems, Inc. Dividends, Buybacks & Capital Allocation
KRMD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for KORU Medical Systems, Inc. (CIK: 0000704440)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KRMD
What is the AI rating for KRMD?
KORU Medical Systems, Inc. (KRMD) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KRMD's key strengths?
Claude: Strong revenue growth trajectory at 22.2% YoY with market traction. Exceptional gross margins of 61.5% indicating strong pricing power and product differentiation. ChatGPT: Double-digit revenue growth (+22% YoY) with 62% gross margin indicating strong unit economics. Solid balance sheet and liquidity: current ratio 2.44x, low debt (0.03x D/E), $8.9M cash.
What are the risks of investing in KRMD?
Claude: Negative free cash flow (-$31.5K) and operating cash flow insufficient to cover capex, indicating unsustainable burn rate. Current net losses of -$807.1K with -6.9% net margin require major operating leverage gains to reach sustainability. ChatGPT: Still unprofitable with negative ROE/ROA and a -7% operating margin. Execution and reimbursement/regulatory risks typical for med devices; potential customer concentration.
What is KRMD's revenue and growth?
KORU Medical Systems, Inc. reported revenue of $11.8M.
Does KRMD pay dividends?
KORU Medical Systems, Inc. does not currently pay dividends.
Where can I find KRMD SEC filings?
Official SEC filings for KORU Medical Systems, Inc. (CIK: 0000704440) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KRMD's EPS?
KORU Medical Systems, Inc. has a diluted EPS of $-0.02.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is KRMD's fundamental grade?
Based on our AI fundamental analysis in May 2026, KORU Medical Systems, Inc. has a A grade with 66% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is KRMD stock overvalued or undervalued?
Valuation metrics for KRMD: ROE of -4.8% (sector avg: 15%), net margin of -6.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is KRMD's AI grade for 2026?
Our dual AI analysis gives KORU Medical Systems, Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KRMD's free cash flow?
KORU Medical Systems, Inc.'s operating cash flow is $14.7K, with capital expenditures of $46.2K. FCF margin is -0.3%.
How does KRMD compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -6.9% (avg: 12%), ROE -4.8% (avg: 15%), current ratio 2.33 (avg: 2).