KORE Reports First Quarter 2025 Results

PR Newswire

ATLANTA, May 15, 2025

Growth in Connections, Operating Cash and Free Cash Flow

ATLANTA, May 15, 2025 /PRNewswire/ -- KORE Group Holdings, Inc. $(KORE)$ ("KORE" or the "Company"), the global pure-play Internet of Things ("IoT") hyperscaler and provider of IoT Connectivity, Solutions, and Analytics, today reported financial and operational results for the quarter ended March 31, 2025.

Company Highlights

   -- Total Connections1 increased to 19.8 million, up 8% from 18.3 million in 
      the same period last year. 
 
   -- Cash provided by operations increased to $2.9 million, up 51% from the 
      same period a year ago, positive for the second consecutive quarter. 
 
   -- Free Cash Flow increased to $0.6 million, up 121% from the same period a 
      year ago, positive for the second consecutive quarter. 
 
   -- Operating Expense declined to $41.6 million, down 15% from $49.1 million 
      in the same period last year directly related to restructuring efforts 
      announced in August 2024. 
 
   -- IoT Solutions Margin rose to 33.0%, up 210 basis points from the same 
      period last year. 
 
   -- IoT Solutions Non-GAAP Margin rose to 39.9%, up 370 basis points from the 
      same period last year. 

"We had a solid quarter of operating performance with growth in cash provided by operations and Free Cash Flow, posting a consecutive quarter of positive cash flow. We added several exciting new customers in the quarter and continue to add new IoT connections as we approach 20 million Total Connections - an important milestone for KORE. We saw strong demand for new IoT connections that should convert to more Connectivity revenue as the year progresses," said Ron Totton, President and Chief Executive Officer of KORE.

"We also expanded our indirect channel in the quarter as part of our focus on profitable growth and are encouraged by the opportunities we are seeing and leveraging the KORE brand," added Totton.

 
____________________________ 
(1) See "Key Operational Metrics" below for definitions. 
 

The tables below summarize the Company's revenue and specific key operational metrics.

 
                                         Three Months Ended March 31, 
                                      ---------------------------------- 
($ in thousands)                            2025              2024 
                                      -----------------  --------------- 
IoT Connectivity                        $53,917    75 %   $57,884   76 % 
IoT Solutions                           $18,225    25 %   $18,091   24 % 
                                      ---------  ------  --------  ----- 
Total Revenue                           $72,142   100 %   $75,975  100 % 
                                      =========  ======  ========  ===== 
Period End Total Connections            19.8 million      18.3 million 
Average Total Connections for the 
 Period                                 19.7 million      18.1 million 
 
 ARPU*                                      $0.91             $1.05 
 
 DBNER*                                     99 %              94 % 
 
 
 
* See "Key Operational Metrics" below for definitions. 
 

2025 Financial Outlook

For the twelve months ending December 31, 2025, the Company continues to expect the following:

   -- Revenue in the range of $288 million to $298 million; 
 
   -- Adjusted EBITDA in the range of $62 million to $67 million; and 
 
   -- Free Cash Flow in the range of $10 million to $14 million. 

Conference Call Details

KORE management will hold a conference call today at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss its financial results, business highlights and outlook. Interim President and CEO Ron Totton and CFO Paul Holtz will host the call, followed by a question-and-answer session.

Webcast: Link

U.S. dial-in: (877) 407-3039

International dial-in: (215) 268-9922

Conference ID: 13753735

The conference call and a supplemental slide presentation to accompany management's prepared remarks will be available via the webcast link and for download via the investor relations section of the Company's website, ir.korewireless.com.

For the conference call, please dial in 5-10 minutes prior to the start time, and an operator will register your name and organization, or you may register here. If you have difficulty with the conference call, please contact KORE investor relations at (770) 280-0324. A replay of the conference call will be available approximately three hours after the conference call ends. It will remain on the investor relations section of the Company's website for 90 days. An audio replay of the conference call may be accessed by calling (877)-660-6853 or (201)-612-7415 using access code 13753735.

About KORE

KORE is a pioneer, leader, and trusted advisor delivering mission-critical IoT solutions and services. We empower organizations of all sizes to improve operational and business results by simplifying the complexity of IoT. Our deep IoT knowledge and experience, global reach, purpose-built solutions, and deployment agility accelerate and materially impact our customers' business outcomes. For more information, visit www.korewireless.com.

Non-GAAP Financial Measures

In addition to our results as determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operational performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors in assessing our operating performance.

EBITDA and Adjusted EBITDA

"EBITDA" is defined as net income (loss) before other non-operating expenses or income, income tax expense or benefit, and depreciation and amortization. "Adjusted EBITDA" is defined as EBITDA adjusted for unusual and other significant items that management views as distorting the operating results from period to period. Such adjustments may include stock-based compensation, integration and acquisition-related charges, tangible and intangible asset impairment charges, certain contingent liability reversals, transformation, and foreign currency transaction gains and losses. EBITDA and Adjusted EBITDA are intended as supplemental measures of our performance that are neither required by nor presented in accordance with GAAP. We believe that the use of EBITDA and Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company's financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, you should be aware that when evaluating EBITDA and Adjusted EBITDA, we may incur future expenses similar to those excluded when calculating these measures. In addition, our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies because all companies may not calculate Adjusted EBITDA in the same fashion.

Because of these limitations, EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using EBITDA and Adjusted EBITDA on a supplemental basis. You should review the reconciliation of net loss to EBITDA and Adjusted EBITDA below and not rely on any single financial measure to evaluate our business.

Free Cash Flow

Free Cash Flow is a non-GAAP measure defined as net cash used in operating activities - continuing operations, reduced by capital expenditures (consisting of purchases of property and equipment), purchases of intangible assets and capitalization of internal use software. We believe Free Cash Flow is an important liquidity measure of the cash that is available for operational expenses, investments in our business, strategic acquisitions, and for certain other activities such as repaying debt obligations and stock repurchases. Free Cash Flow is a key financial indicator used by management. Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. The use of Free Cash Flow as an analytical tool has limitations because it does not represent the residual cash flow available for discretionary expenditures. Because of these limitations, Free Cash Flow should be considered along with other operating and financial performance measures presented in accordance with GAAP.

Non-GAAP Margin

Non-GAAP Margin is a non-GAAP measure defined as non-GAAP Gross Profit ("Non-GAAP Profit") divided by revenue, expressed as a percentage. Non-GAAP Profit is a non-GAAP measure defined as gross profit excluding certain (i) inventory adjustments that may not be indicative of ongoing operations, (ii) depreciation and (iii) amortization.

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