KORU Medical Systems offers a durable, recurring SCIg platform and emerging profitability, but execution, customer concentration, and delayed pipeline catalysts make the $4.73 five-year target a measured asymmetric-upside opportunity.
Overview
KORU Medical Systems designs and sells mechanical, patient-centric subcutaneous infusion systems, with revenue from Core pump and consumable sales plus Pharma Services and Clinical Trials. Its Freedom60 and FreedomEDGE systems compete through battery-free operation, constant pressure, comfort, and compatibility with labeled SCIg therapies. **The core franchise is unusually recurring and defensive:** more than 60,000 chronic patients use the platform, consumables generate over 75% of core sales, and recurring consumables contribute approximately $750–$1,000 per patient annually. Q2 2026 revenue rose 18.2% year over year to $12.05 million, gross margin reached 65.1%, adjusted EBITDA increased to $0.86 million, and GAAP net income returned at $252,449, the first profit since 2019. FY2021–FY2025 revenue CAGR was 15.0%. Management narrowed FY2026 revenue guidance to $47.5–$48.5 million but raised gross-margin guidance to 62%–64% and reaffirmed positive adjusted EBITDA. At roughly $3.30, valuation is 3.26x trailing EV/Sales. Near-term catalysts include European PFS timing, Deferoxamine, connected monitoring, and Q4 cash generation; the key offsets are customer concentration, liquidity, and Phesgo withdrawal.