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KORE Group Holdings (KORE)
NYSE:KORE
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KORE Group Holdings
(NYSE:KORE)
Rating:51Neutral
Price Target:
$2.50
▼(-1.96%Downside)
Positive Factors
Earnings
4Q24 results show improvement at both Connectivity and IoT Solutions.
Revenue Growth
Connectivity delivered revenue growth, rising connections, and higher ARPU, reinforcing its role as KORE's growth engine.
Negative Factors
ARPU Decline
ARPU was down 5% due in part to lower price points associated with some new customer wins.
Balance Sheet
Balance sheet challenges persist.
KORE Group Holdings (KORE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$47.19M
Dividend YieldN/A
Average Volume (3M)13.18K
Price to Earnings (P/E)―
Beta (1Y)0.31
Revenue Growth-1.52%
EPS Growth22.36%
CountryUS
Employees539
SectorCommunication Services
Sector Strength83
IndustryTelecommunications Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding17,160,060
10 Day Avg. Volume17,158
30 Day Avg. Volume13,180
Financial Highlights & Ratios
PEG Ratio-524.70
Price to Book (P/B)-1.54K
Price to Sales (P/S)0.00
P/FCF Ratio20.11
Enterprise Value/Market Cap0.67
Enterprise Value/Revenue0.03
Enterprise Value/Gross Profit0.20
Enterprise Value/Ebitda-0.17
Forecast
1Y Price Target
$6.00Price Target Upside135.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
KORE Group Holdings Business Overview & Revenue Model
Company DescriptionKORE Group Holdings (KORE) is a global leader in Internet of Things (IoT) solutions and managed IoT connectivity services. The company operates within the technology and telecommunications sectors, offering a comprehensive portfolio of IoT-related products and services. KORE specializes in enabling secure and reliable connectivity for IoT devices across various industries, including healthcare, logistics, automotive, and industrial sectors. Their solutions encompass IoT management platforms, application enablement, and global connectivity services.
How the Company Makes MoneyKORE Group Holdings generates revenue through several key streams. Primarily, the company earns money by providing managed IoT connectivity services, where they charge businesses for the data usage and connectivity required for IoT devices. This includes offering SIM cards and data plans that enable devices to communicate over cellular networks. Additionally, KORE offers IoT solutions and platforms that help businesses deploy and manage their IoT applications efficiently, generating revenue through subscription and service fees. The company also benefits from strategic partnerships with telecommunications operators and technology providers, which enhance their service offerings and expand their reach globally. These partnerships often involve revenue-sharing agreements and collaborative projects that contribute to KORE's earnings.
KORE Group Holdings Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: 21.43%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment with significant achievements in operational efficiency, positive cash flow, and strategic wins in various sectors. However, this was counterbalanced by declines in revenue, IoT Connectivity, ARPU, and non-GAAP margins. While the company showed positive momentum in specific areas, challenges remain in achieving consistent revenue growth.Q1-2025 Updates
Positive Updates
Positive Free Cash Flow
KORE Group Holdings delivered two consecutive quarters of positive free cash flow, with $0.6 million in Q1 2025.
Increased Connections
Total connections increased by 8%, nearing the 20 million mark, indicating growth in the company's IoT Connectivity sector.
Improved Adjusted EBITDA Margin
Adjusted EBITDA margin improved by 60 basis points to 20% in Q1 2025.
Operational Expense Reduction
A $7.6 million decrease in operating expenses in the quarter compared to the same period a year ago.
Notable Wins in Various Sectors
Several wins in cloud communications, global HVAC manufacturing, multinational IoT alliances, and remote patient monitoring, contributing $2.1 million in estimated annual recurring revenue.
Negative Updates
Decline in Revenue
Total revenue for the first quarter decreased by $3.9 million or approximately 5% year-over-year to $72.1 million.
Decrease in IoT Connectivity Revenue
IoT Connectivity revenue of $53.9 million decreased approximately 7% year-over-year.
Reduced Average Revenue Per User (ARPU)
ARPU for the current quarter was $0.91 compared to $1.05 in Q1 2024, due to previous high usage and recent additions in lower ARPU use cases.
Decreased Non-GAAP Margin
Overall non-GAAP margin in Q1 2025 was 54%, a decrease of 97 basis points compared to the first quarter in the prior year.
Company Guidance
During the first quarter of 2025, KORE Group Holdings provided financial guidance that emphasizes a focus on sustainable growth and profitability. The company reported a revenue of $72 million, a decrease of $4 million compared to the previous year, and an adjusted EBITDA of $14.5 million, reflecting a slight decline but an improvement in margin by 60 basis points to 20%. KORE achieved a second consecutive quarter of positive free cash flow, generating $2.9 million in cash flow from operations, up $1 million year-over-year, and free cash flow of $0.6 million. The quarter saw an 8% increase in total connections, nearing 20 million, and the introduction of the eARR metric to better illustrate recurring revenue growth. The company's strategic focus on customer intimacy, product innovation, and operational excellence is expected to drive continued improvement, with 2025 projections including revenue between $288 million to $298 million, adjusted EBITDA growth of 19%, and a significant free cash flow increase of 443% year-over-year.KORE Group Holdings Financial Statement Overview
Summary
KORE Group Holdings faces significant financial challenges. The company's income statement reveals substantial losses with deeply negative profit margins. The balance sheet shows financial instability with negative equity, and while there are some signs of cash flow improvement, these are insufficient to offset the broader financial concerns.Income Statement
KORE Group Holdings' income statement reveals significant weaknesses. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 55.7%, which is solid. However, the net profit margin is deeply negative at -43.9%, indicating substantial losses. The company has seen inconsistent revenue growth, with a slight decline of 1.3% from the previous year. Additionally, the EBIT margin is -22.8% and the EBITDA margin is -8.8%, both reflecting operational inefficiencies.32
Negative
Balance Sheet
The balance sheet of KORE Group Holdings presents concerning figures. The debt-to-equity ratio is not meaningful due to negative stockholders' equity, signaling financial distress. The equity ratio is also negative, further underscoring the company's liabilities exceeding its assets. Return on equity is not calculable due to negative equity, hinting at potential insolvency risks.25
Negative
Cash Flow
Cash flow analysis shows some positive aspects. The operating cash flow to net income ratio is negative, indicating inefficiency in translating profits into cash. However, the free cash flow to net income ratio is more favorable at 0.02, suggesting some capacity to generate cash. The free cash flow growth rate is positive, marking a recovery from previous negative levels, but overall cash flow sustainability remains a challenge.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 282.25M | 286.09M | 276.61M | 268.45M | 248.22M | 213.76M | Gross Profit |
| 157.28M | 159.93M | 148.05M | 139.29M | 125.99M | 115.83M | EBIT |
| -64.41M | -102.79M | 9.80M | -27.43M | -16.15M | -9.54M | EBITDA |
| -24.84M | -41.99M | -67.27M | -28.07M | 40.04M | 35.46M | Net Income Common Stockholders |
| -124.06M | -146.08M | -167.04M | -105.42M | -24.45M | -35.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 27.14M | 19.41M | 27.14M | 34.65M | 85.98M | 10.32M | Total Assets |
| 586.98M | 455.83M | 586.98M | 689.91M | 759.60M | 700.02M | Total Debt |
| 309.52M | 307.22M | 309.52M | 430.34M | 402.90M | 302.93M | Net Debt |
| 282.38M | 287.81M | 282.38M | 395.70M | 316.92M | 292.61M | Total Liabilities |
| 550.01M | 555.43M | 550.01M | 508.46M | 487.46M | 679.80M | Stockholders Equity |
| 36.97M | -99.60M | 36.97M | 181.45M | 272.14M | 20.22M |
| Cash Flow | Free Cash Flow | ||||
| 1.98M | -3.55M | -26.65M | -1.07M | -28.18M | 14.50M | Operating Cash Flow |
| 10.88M | 9.91M | -6.42M | 15.48M | -14.76M | 26.47M | Investing Cash Flow |
| -11.05M | -13.46M | -20.23M | -62.55M | -13.42M | -11.60M | Financing Cash Flow |
| -3.11M | -3.78M | 18.91M | -3.81M | 104.05M | -12.72M |
KORE Group Holdings Technical Analysis
Positive
2.55
Price Trends
2.42
Positive
2.40
Positive
2.22
Positive
Market Momentum
0.05
Negative
58.68
Neutral
68.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KORE, the sentiment is Positive. The current price of 2.55 is above the 20-day moving average (MA) of 2.36, above the 50-day MA of 2.42, and above the 200-day MA of 2.22, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 58.68 is Neutral, neither overbought nor oversold. The STOCH value of 68.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KORE.
KORE Group Holdings Risk Analysis
KORE Group Holdings disclosed 46 risk factors in its most recent earnings report. KORE Group Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The ultimate effect of the 1-for-5 reverse stock split on the market price of our common stock cannot be predicted with any certainty and shares of our common stock have likely experienced decreased liquidity as a result of such reverse stock split. Q3, 2024
2.
We face risks related to the restatement of our previously issued condensed consolidated financial statements and financial information for the interim financial period for the second quarter of 2024, which may adversely impact our business. Q3, 2024
3.
Our liabilities exceed our assets, which may have a material adverse effect on our ability to raise further equity capital, refinance our debt on favorable terms or at all, or issue new debt. Q3, 2024
KORE Group Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $59.72M | 17.54 | 18.28% | ― | 7.65% | 196.83% | |
61 Neutral | $14.27B | 5.87 | -4.20% | 3.70% | 2.75% | -35.76% | |
55 Neutral | $48.75M | ― | -28.40% | ― | 7.16% | -90.90% | |
51 Neutral | $47.19M | ― | 174.77% | ― | -1.52% | 22.36% | |
49 Neutral | $42.74M | ― | -56.08% | ― | -7.35% | -1093.79% | |
40 Underperform | $25.43M | ― | -130.56% | ― | -26.11% | 57.68% | |
38 Underperform | $39.27M | ― | -123.16% | ― | -15.07% | 33.40% |
* Communication Services Sector Average
Performance Comparison
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KORE Group Holdings
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FLNT
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IZEA
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2.90
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UCL
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1.64
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BODI
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3.67
-4.84
-56.87%
KORE Group Holdings Corporate Events
Executive/Board Changes
KORE Group Appoints New CFO Anthony Bellomo
Neutral
Jun 2, 2025
On June 2, 2025, KORE Group Holdings announced the appointment of Anthony Bellomo as Executive Vice President, Chief Financial Officer, and Treasurer, succeeding Paul Holtz, who departed from the role on May 30, 2025. Bellomo, who brings extensive financial leadership experience from Mitel Networks Corporation, will help KORE focus on profitable growth. Holtz will remain as a non-executive advisor until June 30, 2025, to ensure a smooth transition.
The most recent analyst rating on (KORE) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on KORE Group Holdings stock, see the KORE Stock Forecast page.
Business Operations and Strategy
KORE Group Unveils New Investor Presentation
Positive
May 28, 2025
KORE Group Holdings announced that starting May 29, 2025, it will begin using a new Investor Presentation for discussions with investors and analysts throughout the fiscal year. The presentation highlights the company’s strategic focus on profitable revenue growth, cost optimization, and investment in next-generation eSIM products. With a strong emphasis on customer engagement and operational transformation, KORE aims to enhance its market position and drive growth in the IoT sector. The company continues to expand its global reach, offering managed services in over 180 countries and maintaining a robust customer base, including Fortune 500 enterprises.
The most recent analyst rating on (KORE) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on KORE Group Holdings stock, see the KORE Stock Forecast page.
Delistings and Listing ChangesRegulatory Filings and Compliance
KORE Group Restores NYSE Compliance After Filing Delay
Positive
May 6, 2025
KORE Group Holdings, Inc. had failed to timely file its Annual Report for the fiscal year ended December 31, 2024, resulting in a non-compliance notice from the New York Stock Exchange on April 16, 2025. However, after filing the report on April 30, 2025, the company was notified on May 1, 2025, that it is now in compliance with NYSE regulations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.