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- **Revenue Stability with Growth Momentum**: IoT Connectivity revenue grew sequentially for the second quarter, despite flat overall revenue, driven by new customer wins and expansion.
- **Profitability Improvement**: Adjusted EBITDA up 12% to $14.5 million, net loss reduced by $6.7 million, reflecting cost savings and tax benefits.
- **Strategic Acquisitions in Play**: Investors' interest in acquisition could reshape company direction, leading to suspended guidance for 2025.
- **Operational Excellence**: 50% reduction in support tickets via AI tools, highlighting efficiency gains.
- **Customer Expansion**: 20.5 million connections (9% YoY growth), $11.3 million new eARR, and $80.3 million pipeline underscore recurring revenue visibility.


**【CEO Summary Section】**
- **Revenue Performance**: Q3 2025 revenue of $68.7 million, with IoT Connectivity revenue growing sequentially by 1.7% (following 3.2% growth in Q2), driven by new and expanded customer relationships.
- **Profitability Metrics**: Adjusted EBITDA increased by 12% to $14.5 million, net loss improved by $6.7 million due to cost savings and tax benefits.
- **Strategic Initiatives**: Launched KORE One unified customer platform and a new AI-powered connectivity solution, reducing support tickets by over 50%.
- **Customer Growth**: Total connections surpassed 20.5 million (9% YoY growth), with $11.3 million in new eARR and a pipeline of $80.3 million in connectivity opportunities.
- **Strategic Review**: Received a letter from investors Searchlight Capital and Abry Partners expressing interest in a potential acquisition, leading to the formation of a special committee to evaluate alternatives. As a result, the company has suspended guidance for the remainder of 2025.

**【CFO Financial Commentary】**
- **Revenue Breakdown**: IoT Connectivity revenue flat at $56.7 million, IoT Solutions revenue down 1.7% to $11.9 million due to delayed orders.
- **Gross Margins**: Non-GAAP gross margin of 55.2%, down 147 basis points YoY (Connectivity: 59.6%, Solutions: 34.3%) due to lower-margin use cases and cost savings from restructuring ($1.7 million in operating expense reductions).
- **ARPU Trends**: ARPU of $0.94 (down 7% YoY, stable sequentially) reflecting new lower-ARPU connections.
- **Cash Flow**: $1.1 million in cash from operations, free cash flow improved by $1.1 million YoY due to reduced capital expenditures.
- **Liquidity**: $19.6 million in cash and restricted cash as of Q3 end.

**【Key Strategic Wins】**
- Secured multi-carrier fleet management deal leveraging Super SIM technology.
- Anti-theft solution provider chose KORE for mission-critical reliability.
- Global healthcare leader selected KORE for HIPAA-compliant end-to-end IoT solution.
- AI telematics company chose KORE for superior reliability over lower-cost alternatives.


KORE Group Holdings, Inc.(KORE)-20251113-2025 Q3 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

KORE

KORE fundamentals

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