KORU Medical Systems, Inc. (KRMD) Cash Flow Statement

Several quarters show operating cash flow moving opposite to reported net income, such as 2025Q4 where a net loss of $486.9K coincided with $1.1M of operating cash inflow. This pattern suggests that working capital timing and non-cash charges such as stock-based compensation of $457.8K to $972.8K per quarter are driving the gap more than underlying profitability. Investors should monitor whether the 2026Q2 positive net income of $252.4K is matched by sustained cash generation rather than treating a single converted quarter as evidence of durable earnings quality.

The trajectory is characterized by sharp reversals rather than gradual improvement, with the -24.5% margin in 2024Q3 reflecting a heavy capex quarter of $1.1M. Capex intensity has been uneven, ranging from 0.3% to 13.2% of revenue, which makes the free cash flow line highly sensitive to timing of equipment investment. The reported figures do not yet establish a consistent positive free cash flow run rate, and the recent negative 2026Q2 result warrants further investigation into whether it reflects a temporary working capital outflow or a weakening underlying position.

The lumpy profile suggests that capital spending is driven by discrete projects or equipment purchases rather than a recurring maintenance cadence, and it is difficult to separate maintenance from growth capex from the reported data alone. Depreciation and amortization remained relatively flat between $179.2K and $237.5K per quarter, so the spikes in capex are not matched by an obvious step-up in the asset base being depreciated. Analysts should treat the mismatch between capex timing and depreciation as a signal to request further detail on the nature of these investments.

The magnitude of working capital movements relative to reported operating cash flow indicates that collections, inventory, and payables timing exert more influence on cash results than the underlying earnings base. The 2024Q4 inflow of $1.6M sits alongside a $1.6M net loss, which suggests the period's cash result was largely a balance sheet timing effect rather than operational improvement. The data does not disclose receivables or inventory detail, so the source of these swings cannot be confirmed and should be investigated before drawing conclusions about working capital efficiency.