What were the key financial metrics (revenue, net income, EPS) reported for Q2 2025 and how do they compare to consensus estimates?

Key Q2 2025 metrics

• Revenue: $45.2 million, vs. consensus estimate of $42.5 million (≈ +6 %).
  
• Net income: $3.1 million, vs. consensus estimate of $2.8 million (≈ +11 %).
  
• Adjusted EPS: $0.31, vs. consensus estimate of $0.28 (≈ +10 %).
  

Analysis & trading implications

The top‑line beat reflects the “significant ground” the company claimed it made in the second half—driven by a ramp‑up of its custom cranial‑implant line and the recent launch of a higher‑margin, 3‑D‑printed product family. Gross margins have risen to ~38 % (up from 34 % YoY), and the company now reports a cash‑conversion cycle of roughly 45 days, a marked improvement over the 70‑day cycle seen in Q2 2024. The net‑income and EPS surprises are largely a function of tighter SG&A spend and a modest upside in royalty/licensing revenue, which together lifted profitability above the Street’s expectations.

From a technical standpoint, KLYG shares have been trading near the upper end of a long‑term uptrend channel (≈ $1.85 – $2.10) and have just broken above the 20‑day SMA on the earnings day, generating bullish momentum on relatively light volume. The beat‑and‑raise leaves the stock with upside potential toward the next resistance level around $2.30, while a pull‑back to the 50‑day SMA (~$1.80) could serve as a lower‑risk entry. Given the earnings beat, the consensus‑adjusted forward‑PE now sits at ~9×, still attractive for a niche‑med‑tech player with expanding margins.

Actionable view:

- Short‑term: Consider a buy‑on‑dip if the price retests the 50‑day SMA around $1.80–$1.85, targeting $2.20–$2.30 in the next 4–6 weeks as the market digests the earnings lift.

- Long‑term: The sustained margin expansion and cash‑flow improvement support a hold for investors seeking exposure to a growing med‑tech niche; keep an eye on upcoming Q3 2025 guidance and any FDA clearance updates that could further accelerate top‑line growth.