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KonaTel
(OTC:KTEL)
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Rating:38Underperform
Price Target:
$0.07
▼(-61.18% Downside)
Action:Downgraded
Date:09/09/26
The score is driven primarily by weak financial performance—ongoing losses, persistent cash burn, and negative equity—followed by a clearly bearish technical backdrop with the price below key moving averages. Valuation is unattractive due to negative earnings and no dividend support, while recent FCC-related regulatory scrutiny adds incremental downside risk.
Positive Factors
Improving Gross Margin
The improvement in gross margin indicates that KonaTel retained more revenue after direct service costs than in the prior annual period. If sustained, this can support better operating leverage and provide a stronger base for eventual profitability, although operating losses remain.
Negative Factors
Negative Stockholders’ Equity
Negative stockholders’ equity signals that accumulated losses have eroded the company’s capital base and reduced financial flexibility. It can complicate refinancing, constrain strategic investment, and increase reliance on external funding, while historical swings in equity indicate an unstable capital structure.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Gross Margin
The improvement in gross margin indicates that KonaTel retained more revenue after direct service costs than in the prior annual period. If sustained, this can support better operating leverage and provide a stronger base for eventual profitability, although operating losses remain.
Read all positive factors
KonaTel (KTEL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.60M
Dividend YieldN/A
Average Volume (3M)14.82K
Price to Earnings (P/E)―
Beta (1Y)-0.41
Revenue Growth-19.81%
EPS Growth77.89%
CountryUS
Employees11
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.02
Shares Outstanding43,979,065
10 Day Avg. Volume24,105
30 Day Avg. Volume14,821
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)33.74
Price to Sales (P/S)1.53
P/FCF Ratio-6.80
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
KonaTel Business Overview & Revenue Model
Company Description
KonaTel, Inc. delivers comprehensive telecommunications solutions to both individual consumers and corporate clients, operating in retail and wholesale capacities. The company is structured into two distinct divisions: Hosted Services and Mobile S...
How the Company Makes Money
KonaTel primarily makes money by selling wireless service plans (voice, messaging, and data) to end customers under its own brands and programs, collecting recurring service revenue while paying wholesale network access costs to the underlying car...
KonaTel Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
18
Very Negative
Cash Flow
12
Very Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.90M | 8.45M | 15.50M | 18.22M | 20.02M | 12.84M |
| Gross Profit | 2.00M | 2.61M | 3.41M | 3.37M | 4.99M | 5.73M |
| EBITDA | -935.14K | -2.67M | 4.79M | -3.11M | -2.54M | 1.47M |
| Net Income | -1.03M | -2.65M | 4.49M | -3.94M | -2.95M | 622.99K |
Balance Sheet | ||||||
| Total Assets | 1.82M | 2.46M | 5.31M | 4.81M | 5.45M | 3.87M |
| Cash, Cash Equivalents and Short-Term Investments | 200.01K | 704.87K | 1.68M | 777.10K | 2.06M | 932.78K |
| Total Debt | 196.00K | 227.78K | 341.52K | 4.11M | 3.65M | 337.12K |
| Total Liabilities | 2.04M | 2.08M | 2.80M | 7.82M | 5.00M | 1.27M |
| Stockholders Equity | -222.72K | 384.20K | 2.51M | -3.01M | 455.36K | 2.61M |
Cash Flow | ||||||
| Free Cash Flow | -2.07M | -1.91M | -3.99M | -1.79M | -1.82M | 201.93K |
| Operating Cash Flow | -2.07M | -1.91M | -3.99M | -1.79M | -1.82M | 211.93K |
| Investing Cash Flow | 700.15K | 850.15K | 8.56M | 0.00 | 10.00K | -10.00K |
| Financing Cash Flow | 82.50K | 82.50K | -3.66M | 513.50K | 2.93M | 15.66K |
KonaTel Technical Analysis
Negative
0.17
Price Trends
0.18
Negative
0.20
Negative
0.23
Negative
Market Momentum
-0.02
Positive
20.20
Positive
6.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KTEL, the sentiment is Negative. The current price of 0.17 is above the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.18, and below the 200-day MA of 0.23, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 20.20 is Positive, neither overbought nor oversold. The STOCH value of 6.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KTEL.
KonaTel Risk Analysis
KonaTel disclosed 38 risk factors in its most recent earnings report. KonaTel 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 2 New Risks
1.
Our business strategy may be unsuccessful, and we may be unable to address the risks we face in a cost-effective manner, if at all. If we are unable to successfully accomplish these tasks, our business will be harmed, and we may fail. Q4, 2023
2.
Economic, political and market conditions may adversely affect our business, financial condition and operating results. Q4, 2023
KonaTel Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $192.87M | 41.41 | 6.23% | 1.28% | 25.49% | 27.81% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
47 Neutral | $15.78M | -0.69 | -0.93% | ― | -12.14% | -111.36% | |
45 Neutral | $9.85M | -0.43 | -81.23% | ― | 39.28% | 10.85% | |
43 Neutral | $13.45M | -1.65 | -46.64% | ― | -54.27% | -15.08% | |
38 Underperform | $3.60M | -3.02 | -525.31% | ― | -19.81% | 77.89% |
* Communication Services Sector Average
KTEL
KonaTel
0.07
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5.71
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IQST
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UCL
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0.42
-2.15
-83.58%
KonaTel Corporate Events
Legal ProceedingsRegulatory Filings and Compliance
KonaTel Faces FCC Scrutiny Over Lifeline Compliance Issues
Negative
Aug 28, 2026
On August 13, 2026, KonaTel reported that its majority-owned affiliate IM Telecom had received a July 27, 2026 notice from the U.S. Federal Communications Commission alleging violations of rules governing the Lifeline Advantage Program. IM Telecom...
Legal ProceedingsRegulatory Filings and Compliance
KonaTel Faces FCC Lifeline Compliance Review Through Affiliate
Negative
Aug 14, 2026
On August 13, 2026, KonaTel reported that its majority-owned affiliate IM Telecom, LLC had received a notice on July 27, 2026 from the U.S. Federal Communications Commission alleging violations of rules governing the Lifeline program. IM Telecom h...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.