KORE Group (KORE) investor relations material

Executive summary

• Revenue grew 5% year-over-year to $71.3 million in Q2 2025, with net loss narrowing to $16.9 million and Adjusted EBITDA rising 46% to $16.7 million.

• Achieved third consecutive quarter of positive free cash flow, reaching $1.6 million, and cash from operations improved to $4.1 million.

• Total IoT connections grew 8% year-over-year to 20.1 million, reflecting strong customer demand and new business wins.

• Introduced new CFO, continued execution of a five-pillar value creation plan, and launched new AI initiatives and infrastructure upgrades.

• Focus remains on core IoT service offerings, with non-core services being wound down and restructuring ongoing.

Financial highlights

• Q2 2025 revenue was $71.3 million, with IoT Connectivity revenue at $56.1 million (up 1%) and IoT Solutions at $15.2 million (up 25%).

• Adjusted EBITDA increased by $5.3 million to $16.7 million, with margin improving to 23.4%.

• Net loss narrowed to $16.9 million from $83.6 million, mainly due to the absence of a prior-year goodwill impairment.

• Gross profit margin was 35.1% (GAAP), with non-GAAP margin at 56.9% for the quarter.

• Cash and restricted cash stood at $21.0–$21.3 million as of June 30, 2025.

Outlook and guidance

• Full-year 2025 guidance reiterated: revenue of $288–$298 million, adjusted EBITDA of $62–$67 million, and free cash flow of $10–$14 million.

• Expects continued positive free cash flow for the remainder of 2025.

• Management expects annualized cash tax savings of $1.5–$3.5 million from new tax legislation, with impact still being evaluated.

• No acquisitions planned; focus remains on organic growth and cost control.

• Industry outlook remains strong, with IoT market CAGRs forecasted at 9–10.5%.