KORE Group Holdings Q2 2025 Earnings Call: Reiterates 2025 Guidance, Positive Cash Flow

KORE Group Holdings has reiterated its 2025 guidance with a revenue target of $288M-$298M. The company's cash flow has turned positive for the third consecutive quarter. CEO Ronald Totton introduced new CFO Anthony Bellomo, highlighting his expertise in finance operations and strategic financial planning.

KORE Group Holdings, Inc. (KORE) has reiterated its 2025 financial guidance, projecting revenue in the range of $288 million to $298 million, adjusted EBITDA between $62 million and $67 million, and projected free cash flow between $10 million and $14 million [1]. The company's cash flow has turned positive for the third consecutive quarter, a significant milestone that strengthens its balance sheet and reduces reliance on external capital [1].

During the Q2 2025 earnings call, CEO Ronald Totton introduced Anthony Bellomo as the new Chief Financial Officer, highlighting his expertise in finance operations and strategic financial planning. Totton reported solid growth in both revenue and profitability for the quarter, noting that total revenue grew to $71.3 million, an increase of $3.4 million over the same period last year [1]. Adjusted EBITDA increased by $5.3 million to $16.7 million, and free cash flow was $1.6 million, marking the third consecutive quarter of positive free cash flow [1].

Operational metrics included crossing the 20 million connection milestone, with total connections growing 8% year-over-year to surpass 20.1 million [1]. Totton outlined continued investment in product innovation, including Super SIM offerings and AI-powered customer support, with the launch of KOREY, an AI-powered live assistant [1]. Bellomo, the new CFO, stated that IoT Connectivity revenue increased 1% to $56.1 million, while IoT Solutions revenue increased 25% to $15.2 million, driven by strong sales of connectivity-enabling hardware and services [1].

The company plans to maintain financial discipline and continue investment in AI and operational excellence as part of its value creation plan [1]. Despite positive financial results, KORE faces challenges in translating operational efficiency into consistent profitability. The company's gross margin in Q2 2025 was 56.9%, with non-GAAP IoT Solutions gross margin up 682 basis points year-over-year to 45.3% [1]. However, net loss for the quarter was $16.9 million, compared to $83.6 million in the prior year [1].

Analysts demonstrated a neutral to slightly positive tone, acknowledging the company's growth and positive cash flow but remaining cautious about the profitability challenges [1].

References:
[1] https://www.ainvest.com/news/kore-group-holdings-navigating-iot-growth-profitability-challenges-2508/