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KORE Group Holdings Reports First Quarter 2025 Results

On May 15, 2025, KORE Group Holdings, Inc. (NYSE: KORE) released its financial and operational results for the first quarter of 2025, marking a noteworthy period for the company specializing in Internet of Things (IoT) solutions. As a global leader in IoT connectivity and analytics, KORE has demonstrated substantial growth, particularly in key operational metrics.

Key Highlights

In Q1 2025, KORE achieved significant milestones:
1. Total Connections: KORE reported an increase in total connections to 19.8 million, which reflects a 8% growth from 18.3 million in the same quarter of the previous year. This upward trend indicates growing demand for KORE's IoT services and solutions.
2. Operational Cash Flow: The cash provided by operations surged to $2.9 million, marking a 51% increase compared to the same quarter last year. This positive cash flow was recorded for the second consecutive quarter, underscoring KORE's improved operational efficiency.
3. Free Cash Flow: KORE's free cash flow grew to $0.6 million, showcasing a dramatic 121% rise year-over-year, signifying robust financial health and liquidity.
4. Cost Reduction: The company successfully reduced its operating expenses to $41.6 million, down 15% from $49.1 million in Q1 2024, largely due to restructuring efforts initiated in August 2024. This illustrates KORE's commitment to optimizing its operational framework for enhanced performance.
5. IoT Solutions Margin: The IoT Solutions Margin improved to 33.0%, a remarkable 210 basis points increase from last year, showcasing the company’s ability to enhance profitability within its solutions segment.

Management Insights

Ron Totton, KORE's President and CEO, expressed enthusiasm about the quarter's results, noting the solid operational performance driven by a growth in cash flow and connections. Totton remarked, "We had a solid quarter of operating performance with growth in cash provided by operations and free cash flow. Posting a consecutive quarter of positive cash flow is indicative of our strategic direction. We added several exciting new customers during this timeframe and are nearing the milestone of 20 million total connections—a significant achievement for KORE. Strong demand for new IoT connections is expected to translate into increased connectivity revenue as the year unfolds."

Additionally, KORE increased its focus on expanding its indirect channel during the quarter, which is part of its strategy aimed at profitable growth and leveraging the brand strength.

Financial Metrics Summary

Below is a summary of KORE's financial performance for the three months ending March 31, 2025:

• - Total Revenue: $72.1 million, which represents a decrease from $75.975 million recorded in the same quarter in 2024.
• - IoT Connectivity Revenue: $53.9 million (75% of total revenue), compared to $57.9 million (76% of total revenue) last year.
• - IoT Solutions Revenue: $18.2 million (25% of total revenue), showing a slight increase from $18.1 million (24% of total revenue) a year ago.

Future Outlook

Looking ahead, KORE maintains an optimistic outlook with a projected annual revenue range of $288 million to $298 million for the twelve months ending December 31, 2025. The Adjusted EBITDA is expected to be between $62 million and $67 million, while the free cash flow is anticipated to range between $10 million and $14 million.

Conference Call Details

Following the results announcement, KORE management conducted a conference call to elaborate on the financial outcomes and share insights about business strategies and the future outlook. Attendees were encouraged to engage in a question-and-answer session to address any inquiries.

For more information, you can visit KORE's investor relations website at www.korewireless.com where additional financial details and resources are available.

About KORE

KORE Group Holdings is recognized as a pioneer in delivering mission-critical IoT solutions and services, designed to enhance operational efficiency and business results for organizations of all sizes. The company excels in demystifying the complexities of IoT with its extensive knowledge, global reach, and tailored solutions. As KORE continues to innovate and expand its service offerings, it remains committed to driving impactful outcomes for its clients.

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