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KORE Group Holdings (KORE)
NYSE:KORE
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KORE Group Holdings
(NYSE:KORE)
Rating:38Underperform
Price Target:
$2.00
▼( -13.42% 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
$39.64M
Dividend YieldN/A
Average Volume (3M)12.49K
Price to Earnings (P/E)―
Beta (1Y)0.36
Revenue Growth-1.52%
EPS Growth22.36%
CountryUS
Employees539
SectorCommunication Services
Sector Strength86
IndustryTelecommunications Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding17,160,060
10 Day Avg. Volume12,124
30 Day Avg. Volume12,490
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)-0.48
Price to Sales (P/S)0.00
P/FCF Ratio-11.89
Enterprise Value/Market Cap8.33
Enterprise Value/Revenue0.29
Enterprise Value/Gross Profit2.26
Enterprise Value/Ebitda-1.45
Forecast
1Y Price Target
$6.00Price Target Upside159.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
KORE Group Holdings Business Overview & Revenue Model
Company DescriptionKORE Group Holdings, Inc. provides Internet of Things (IoT) services and solutions worldwide. It offers connectivity, location-based, device solutions, and managed and professional services that are used in the development and support of IoT technology for the Machine-to-Machine market. The company provides Connectivity-as-a-Service; IoT solutions and analytics to fleet tracking companies; and asset monitoring, communications, and industrial IoT services. It serves customers operating in a range of sectors, including healthcare, fleet and vehicle management, asset management, communication services, and industrial/manufacturing. The company was founded in 2002 and is headquartered in Alpharetta, Georgia.
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 Financial Statement Overview
Summary
KORE Group Holdings faces significant financial challenges, including declining profitability, high financial leverage, and negative stockholders' equity. While cash flow management shows some improvement, the overall financial health remains weak.Income Statement
KORE Group Holdings shows a negative trend in profitability, with declining net income and EBIT, leading to negative margins. The gross profit margin remains relatively stable, but the company struggles with consistent revenue growth, only slightly increasing revenue over the past years.35
Negative
Balance Sheet
The company has a negative stockholders' equity, indicating financial distress with high leverage. The debt-to-equity ratio is concerningly high due to negative equity, and the equity ratio is negative, suggesting potential solvency issues.30
Negative
Cash Flow
KORE Group Holdings experienced a positive shift in operating cash flow in TTM, but free cash flow remains negative. The operating cash flow to net income ratio is positive, indicating some efficiency in cash flow generation compared to net loss, but free cash flow growth is lacking.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 286.09M | 276.61M | 268.45M | 248.22M | 213.76M | Gross Profit |
| 159.93M | 148.05M | 139.29M | 125.99M | 115.83M | EBIT |
| -102.79M | 9.80M | -27.43M | -16.15M | -9.54M | EBITDA |
| -41.99M | -67.27M | -28.07M | 40.04M | 35.46M | Net Income Common Stockholders |
| -146.08M | -167.04M | -105.42M | -24.45M | -35.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 19.41M | 27.14M | 34.65M | 85.98M | 10.32M | Total Assets |
| 455.83M | 586.98M | 689.91M | 759.60M | 700.02M | Total Debt |
| 307.22M | 309.52M | 430.34M | 402.90M | 302.93M | Net Debt |
| 287.81M | 282.38M | 395.70M | 316.92M | 292.61M | Total Liabilities |
| 555.43M | 550.01M | 508.46M | 487.46M | 679.80M | Stockholders Equity |
| -99.60M | 36.97M | 181.45M | 272.14M | 20.22M |
| Cash Flow | Free Cash Flow | |||
| -3.55M | -26.65M | -1.07M | -28.18M | 14.50M | Operating Cash Flow |
| 9.91M | -6.42M | 15.48M | -14.76M | 26.47M | Investing Cash Flow |
| -13.46M | -20.23M | -62.55M | -13.42M | -11.60M | Financing Cash Flow |
| -3.78M | 18.91M | -3.81M | 104.05M | -12.72M |
KORE Group Holdings Technical Analysis
Neutral
2.31
Price Trends
2.42
Negative
2.41
Negative
2.25
Positive
Market Momentum
-0.07
Positive
48.31
Neutral
42.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KORE, the sentiment is Neutral. The current price of 2.31 is below the 20-day moving average (MA) of 2.36, below the 50-day MA of 2.42, and above the 200-day MA of 2.25, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 48.31 is Neutral, neither overbought nor oversold. The STOCH value of 42.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $49.30M | 14.12 | 18.28% | ― | 7.65% | 196.83% | |
61 Neutral | $47.22M | ― | -28.40% | ― | 7.16% | -90.90% | |
60 Neutral | $14.21B | 6.47 | -3.76% | 3.69% | 2.48% | -35.46% | |
49 Neutral | $41.15M | ― | -56.08% | ― | -7.35% | -1093.79% | |
40 Underperform | $26.90M | ― | -130.56% | ― | -26.11% | 57.68% | |
38 Underperform | $34.78M | ― | -123.16% | ― | -15.07% | 33.40% | |
38 Underperform | $39.64M | ― | 174.77% | ― | -1.52% | 22.36% |
* Communication Services Sector Average
Performance Comparison
KORE
KORE Group Holdings
2.31
-1.20
-34.19%
UONE
Urban One
1.72
-0.30
-14.85%
FLNT
Fluent
1.68
-2.41
-58.92%
IZEA
IZEA Worldwide
2.95
0.17
6.12%
UCL
uCloudlink Group
1.34
-0.27
-16.77%
BODI
Beachbody Company
3.84
-4.50
-53.96%
KORE Group Holdings Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: 10.00%|
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 Corporate Events
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.