KORE Group Holdings, Inc. reported a total revenue of $72.1 million for the first quarter of 2025, a decrease of 5% from $76.0 million in the same period of 2024. The decline was primarily attributed to a 7% drop in services revenue, which fell to $55.4 million from $59.6 million, largely due to reduced revenue from isolated account churn and one-time customer overages recognized in the previous year. Conversely, product revenue saw a slight increase, rising to $16.7 million from $16.3 million, driven by higher SIM activation fees.
The company's operating loss improved to $2.5 million in Q1 2025, compared to a loss of $7.4 million in Q1 2024. This improvement was supported by a significant reduction in selling, general, and administrative expenses, which decreased by 22% to $27.7 million, down from $35.4 million. The decrease in expenses was attributed to lower salaries and related costs, as well as reduced office-related expenses following restructuring efforts in 2024. KORE's net loss for the quarter was $14.9 million, a decrease from a net loss of $17.6 million in the prior year.
Operationally, KORE reported a total of 19.8 million connections as of March 31, 2025, up from 19.7 million at the end of 2024, reflecting growth from the acquisition of Twilio's IoT business. The average connections count for the quarter was 19.7 million, compared to 18.1 million in the same period last year. The company also noted a dollar-based net expansion rate of 99% for the trailing twelve months, an increase from 94% in the previous year, indicating improved customer retention and revenue growth from existing customers.
Looking ahead, KORE Group Holdings is focused on enhancing liquidity and managing its capital structure amid ongoing economic challenges. The company has deferred payments on preferred dividends, which amounted to approximately $29.5 million as of March 31, 2025. KORE plans to continue this strategy to preserve cash for operational needs. The company also has $60.8 million in purchase commitments, with $22.1 million expected to be fulfilled in 2025. Despite the current financial pressures, KORE remains committed to its strategic initiatives and aims to leverage its position in the IoT market for future growth.
About KORE Group Holdings, Inc.
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