KORE Group Holdings 2025 Q3 Earnings Narrowed Net Loss by 34.5% Despite Revenue Decline

KORE Group Holdings reported mixed results in Q3 2025, missing revenue estimates while narrowing its net loss. The company suspended guidance due to ongoing strategic review discussions and reported a 12% increase in adjusted EBITDA, reflecting operational improvements.

Revenue

Total revenue declined 0.3% to $68.69 million in Q3 2025, down from $68.92 million in the prior-year period. Services remained the largest contributor at $57.07 million, while IoT Connectivity drove the majority of revenue with $54.42 million. IoT Solutions added $2.64 million, and Products and Hardware segments each accounted for $11.62 million. The sequential growth in Connectivity Revenue marked the second consecutive quarter of improvement.

Earnings/Net Income

KORE narrowed its net loss to $12.71 million in Q3 2025, a 34.5% reduction from $19.41 million in the prior-year quarter. Earnings per share improved to a loss of $0.64 from $1.00, reflecting a 36.0% improvement. Despite sustained losses over five years, the 34.5% reduction in net loss indicates progress toward profitability.

Post-Earnings Price Action Review

The stock experienced volatile post-earnings performance, surging 11.65% in a single trading day but declining 10.68% over the subsequent full week. Month-to-date, the stock rallied 28.43%, reflecting mixed investor sentiment.

CEO Commentary

CEO Ron Totton emphasized operational execution, highlighting a 9% year-over-year increase in Total Connections to 20.5 million and a 12% rise in Adjusted EBITDA to $14.5 million. He expressed confidence in sustained Connectivity demand through 2026, underscoring IoT Connectivity as a core growth driver.

Guidance

KORE suspended guidance for the remainder of 2025 due to uncertainty around potential strategic transactions with Searchlight and Abry. The company provided no quantitative targets for 2025 or 2026, focusing instead on qualitative optimism about Connectivity trends.

Additional News

KORE Group Holdings is navigating a strategic review following a $5/share buyout proposal from Searchlight Capital Partners and Abry Partners. The board formed a special committee to evaluate the acquisition of outstanding shares, which could redefine the company’s trajectory. Meanwhile, the firm reiterated its commitment to innovation, launching KORE One, a unified customer platform, and a new connectivity offering with automated switching. The strategic review and potential transaction underscore the company’s focus on long-term value creation amid evolving market dynamics.