KORE(KORE) - 2025 Q2 - Quarterly Results

KORE Second Quarter 2025 Results Second Quarter 2025 Company Highlights KORE achieved strong Q2 2025 growth: revenue up 5% to $71.3 million, Adjusted EBITDA up 46% to $16.7 million, and positive Free Cash Flow - CEO Ron Totton highlighted that investments in profitable growth are paying off, with over 1.5 million new connections added in the last year, strong new business signings, and healthy growth from existing customers[4] Q2 2025 Key Financial & Operational Metrics (YoY) | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Revenue | $71.3M | +5% | | Total Connections | 20.1M | +8% | | Net Loss | $16.9M | 80% improvement | | Adjusted EBITDA | $16.7M | +46% | | Cash from Operations | $4.1M | +$0.1M | | Free Cash Flow | $1.6M | +$1.7M | Revenue Breakdown by Segment (Q2 2025 vs Q2 2024) | Segment | Q2 2025 Revenue | % of Total | Q2 2024 Revenue | % of Total | | :--- | :--- | :--- | :--- | :--- | | IoT Connectivity | $56.1M | 79% | $55.8M | 82% | | IoT Solutions | $15.2M | 21% | $12.1M | 18% | 2025 Financial Outlook The company reiterated its full-year 2025 financial guidance for revenue ($288-298 million) and Adjusted EBITDA ($62-67 million) Full Year 2025 Financial Guidance | Metric | Guidance Range | | :--- | :--- | | Revenue | $288 million to $298 million | | Adjusted EBITDA | $62 million to $67 million | | Free Cash Flow | $10 million to $14 million | Financial Reconciliations This section provides detailed reconciliations of GAAP to non-GAAP measures, including Net Loss to Adjusted EBITDA and Free Cash Flow Reconciliation of Net Loss to Adjusted EBITDA Q2 2025 Net Loss of $16.9 million reconciled to Adjusted EBITDA of $16.7 million, adjusted for D&A, interest, and restructuring Net Loss to Adjusted EBITDA Reconciliation (Q2 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net loss | $(16,878) | | Depreciation and amortization | $13,576 | | Interest expense, net | $13,073 | | Integration-related restructuring costs | $7,522 | | Foreign currency (gain) | $(3,524) | | Adjusted EBITDA | $16,707 | Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Q2 2025 Net Cash from Operating Activities of $4.1 million yielded Free Cash Flow of $1.6 million after capital expenditures Free Cash Flow Reconciliation (Q2 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net cash provided by operating activities | $4,101 | | Purchases of property and equipment | $(1,283) | | Additions to intangible assets | $(1,482) | | Proceeds from sale of assets | $250 | | Free cash flow | $1,586 | Reconciliation of Gross Margin to Non-GAAP Margin Q2 2025 overall GAAP Gross Margin was 35.1%, with Non-GAAP Margin at 56.9% after adjustments, varying by segment Margin Reconciliation by Segment (Q2 2025) | Segment | GAAP Gross Margin % | Non-GAAP Margin % | | :--- | :--- | :--- | | IoT Connectivity | 35.4% | 60.0% | | IoT Solutions | 34.1% | 45.3% | | Overall | 35.1% | 56.9% | Definitions and Disclosures This section defines non-GAAP financial measures, key operational metrics, and includes a cautionary note on forward-looking statements - Adjusted EBITDA is defined as EBITDA adjusted for items management views as distorting operating results, such as stock-based compensation, integration costs, and foreign currency gains/losses[13] - Free Cash Flow is defined as net cash from operating activities minus cash used for investing activities, primarily capital expenditures, and is used as a measure of liquidity[16] - "Total Connections" represents all IoT Connectivity services connections, including eSIMs, and is a principal measure used by management to assess business growth[20][21] - The report contains a safe harbor statement cautioning that forward-looking statements are subject to risks and uncertainties and should not be unduly relied upon[22]