Kore Group Holdings Q2 2025 Earnings: Revenue Beats Estimates, Net Loss Down 80%

Kore Group Holdings reported Q2 2025 earnings, with revenue of $71.3M, beating estimates, and a net loss of $16.9M, an 80% improvement from last year. Adjusted EBITDA rose to $16.7M, a 46% increase from the prior year. The company's total connections increased by 8% to 20.1 million, and free cash flow enhanced to $1.6 million.

KORE Group Holdings (KORE), a prominent player in the IoT sector, reported its second-quarter (Q2) 2025 earnings, showcasing significant revenue growth and improved profitability. The company reported a total revenue of $71.3 million, representing a 5% year-over-year (YoY) increase, and a net loss of $16.9 million, which marked an 80% improvement from the previous year's loss of $83.6 million. Adjusted EBITDA rose to $16.7 million, a 46% increase from the prior year [1].

The company's strong performance was driven by a 25% YoY increase in IoT Solutions Revenue to $15.2 million. This growth was accompanied by a 1% YoY increase in IoT Connectivity Revenue to $56.1 million. The non-GAAP gross margin improved to 56.9%, indicating a more efficient operational environment. Additionally, the company reported a positive free cash flow of $1.6 million for the third consecutive quarter [1].

Despite the net loss, KORE's financial health appears robust, with a Fair overall financial health score according to InvestingPro data. The company's focus on expanding IoT solutions and AI initiatives is evident in its strategic investments and operational upgrades. The new Chief Financial Officer, Anthony Bellomo, brings valuable expertise to the team, further enhancing the company's financial strategy [1].

The stock price of KORE closed at $2.38, marking a 2.1% increase in regular trading. Analysts maintain a consensus recommendation of 2.5 (between Buy and Hold), with price targets ranging from $3 to $9. The company provided revenue guidance for 2025, projecting between $288 million and $298 million, and anticipating adjusted EBITDA between $62 million and $67 million, alongside a free cash flow projection of $10 million to $14 million [1].

Looking ahead, KORE faces several challenges, including potential supply chain disruptions, market saturation, macroeconomic pressures, and technological advancements. However, the company remains focused on its long-term growth strategy, emphasizing AI adoption and workforce innovation [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-kore-group-holdings-q2-2025-shows-revenue-growth-93CH-4194171