KORE Group Holdings Reports 5% Revenue Growth in Q2 2025, Improves Operating Loss

KORE Group Holdings, Inc. reported its financial results for the second quarter of 2025, revealing total revenue of $71.3 million, a 5% increase from $67.9 million in the same period last year. The company's revenue for the first half of 2025 was $143.4 million, slightly down from $143.8 million in the first half of 2024. The revenue growth was primarily driven by a 41% increase in product sales, which reached $14.9 million, compared to $10.6 million in the prior year. However, service revenue declined by 2% to $56.3 million, attributed to reduced overage usage charges and the sale of certain intangible assets.

KORE's operating loss for the second quarter was $5.2 million, a significant improvement from a loss of $76.7 million in the same quarter of 2024. The company reported a net loss of $16.9 million for the quarter, compared to a net loss of $83.6 million in the prior year. The reduction in losses was aided by lower operating expenses, which decreased to $44.6 million from $115.3 million, largely due to the absence of a goodwill impairment charge that had impacted the previous year’s results.

Operationally, KORE reported a total of 20.1 million connections as of June 30, 2025, up from 19.7 million at the end of 2024. The average connections count for the second quarter was 20.1 million, compared to 18.5 million in the same quarter of 2024. The company also noted a dollar-based net expansion rate (DBNER) of 99% for the trailing twelve months, indicating strong customer retention and growth among existing clients. KORE's cash position improved, with $21.3 million in cash and restricted cash at the end of the quarter, compared to $19.7 million at the beginning of the year.

Strategically, KORE has been restructuring its operations to focus on core service offerings while winding down non-core services. The company sold certain intellectual property assets in the second quarter and plans to exit one of its facilities in the third quarter of 2025. KORE is also evaluating the impact of recent tax legislation, which could yield annual cash tax savings between $1.5 million and $3.5 million. Looking ahead, KORE anticipates continued challenges in meeting its long-term liquidity needs, particularly given its high leverage and the deferral of preferred dividends owed to its affiliate, Searchlight. The company is exploring various financing options to bolster its liquidity and sustain operations.