KORE Group (KORE) Q1 2026 earnings summary

Executive summary

• Entered into a definitive Merger Agreement to be acquired by KONA Parent, L.P. in an all-cash transaction valued at approximately $726 million, including debt assumption, with closing expected in Q2 or Q3 2026; each share to be converted into $9.25 cash.

• Revenue for Q1 2026 was $65.8M, down 9% year-over-year, driven by a 40% drop in products/IoT Solutions revenue, partially offset by growth in IoT Connectivity.

• Net loss widened to $28.5M from $14.9M year-over-year, primarily due to increased SG&A, transaction-related expenses, and a significant non-cash loss on warrant liabilities.

• Adjusted EBITDA rose to $15.4M, up from $14.5M YoY.

• Free cash flow improved to $2.7M, up from $0.6M YoY.

Financial highlights

• Services/IoT Connectivity revenue: $55.9M (+1% YoY); Products/IoT Solutions revenue: $10.0M (-40% YoY).

• Gross profit: $26.9M (GAAP), gross margin 40.8%; Non-GAAP gross margin 59.4%.

• Cash provided by operations was $4.7M, up $1.9M YoY.

• Cash on hand: $28.9M; $25M undrawn on revolving credit facility.

Outlook and guidance

• Transaction to close in Q2 or Q3 2026, subject to regulatory and shareholder approvals; no forward financial guidance provided.

• Management expects continued quarter-to-quarter earnings volatility and growth in IoT Connectivity and Total Connections.