KORE Group Holdings Inc (KORE) 2025 Q3 法說會逐字稿

Greetings, and welcome to the KORE Group Holdings, Inc. third quarter 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.

各位好，歡迎參加 KORE 集團控股有限公司 2025 年第三季財報電話會議。（操作說明）提醒各位，本次會議正在錄音。

I would now like to turn the conference over to Vik Vijayvergiya, Vice President of Investor Relations and Corporate Development. Please go ahead.

現在我謹將會議交給投資人關係和企業發展副總裁 Vik Vijayvergiya。請繼續。

Thank you, operator. On today's call, we will refer to the third quarter 2025 earnings presentation which will be helpful to follow along with as well as the press release filed this afternoon that details the company's third quarter 2025 results. Both of these can be found on our Investor Relations page at ir.korewireless.com. Finally, a recording of the call will be available in the Investors section of the company's website later today.

謝謝接線生。在今天的電話會議上，我們將參考 2025 年第三季財報，以及今天下午發布的詳細介紹公司 2025 年第三季業績的新聞稿，以便大家更能理解。以上兩點皆可在我們的投資者關係頁面 ir.korewireless.com 上找到。此外，電話會議錄音將於今日稍晚在公司網站的投資者關係版塊提供。

The company encourages you to review the safe harbor statements, risk factors and other disclaimers contained on this slide and today's press release as well as in the company's filings with the Securities and Exchange Commission, which identify specific risk factors that may cause actual results or events to differ materially from those described in our forward-looking statements. The company does not undertake to publicly update or revise any forward-looking statements after this webcast.

本公司鼓勵您仔細閱讀本投影片和今天發布的新聞稿以及本公司向美國證券交易委員會提交的文件中所包含的安全港聲明、風險因素和其他免責聲明，這些聲明列出了可能導致實際結果或事件與我們的前瞻性聲明中所描述的結果或事件存在重大差異的具體風險因素。本公司不承諾在本次網路直播後公開更新或修改任何前瞻性聲明。

The company also notes that it will be discussing non-GAAP financial information on this call. The company is providing that information as a supplement to information prepared in accordance with accounting principles generally accepted in the United States, or US GAAP. You can find a reconciliation of these metrics to the company's reported GAAP results and the reconciliation tables provided in today's earnings release and presentation.

該公司也指出，將在本次電話會議上討論非GAAP財務資訊。本公司提供此資訊是為了補充依照美國公認會計原則（US GAAP）所編製的資訊。您可以在今天發布的收益報告和簡報中找到這些指標與公司報告的 GAAP 結果的核對錶和提供的核對錶。

I'll now turn the call over to Ron Totton, the company's President and Chief Executive Officer.

現在我將把電話交給公司總裁兼執行長羅恩·托頓。

Thank you, Vik, and good afternoon, everyone. For today's call, I'll provide an update on the company's business highlights for the third quarter and then turn the call over to Anthony Bellomo, the company's CFO, to go through the financial results.

謝謝你，維克，大家下午好。在今天的電話會議上，我將介紹公司第三季的業務亮點，然後將電話會議交給公司財務長安東尼·貝洛莫，由他來介紹財務表現。

As we look at our results for the third quarter, we delivered steadily improving operating performance with solid growth and profitability, while revenue held steady. Our revenue for the quarter was $68.7 million. Notably, our connectivity revenue increased 1.7% over Q2 2025, our second consecutive quarter of strong connectivity sequential growth. Adjusted EBITDA rose by 12% or $1.5 million to $14.5 million from Q3 2024, as we stay focused on operational excellence and profitability. Net loss also improved by $6.7 million due to the improved adjusted EBITDA, along with the tax benefit from recently enacted US legislation.

回顧第三季業績，我們實現了穩步提升的營運績效，實現了穩健成長和獲利，同時營收保持穩定。本季營收為6870萬美元。值得注意的是，我們的連接業務收入比 2025 年第二季度增長了 1.7%，這是我們連續第二個季度連接業務實現強勁的環比增長。經調整的 EBITDA 自 2024 年第三季起成長 12% 或 150 萬美元，達到 1,450 萬美元，因為我們將繼續專注於卓越營運和獲利能力。由於調整後 EBITDA 的改善以及美國近期頒布的法律帶來的稅收優惠，淨虧損也減少了 670 萬美元。

Now let's turn to a critical measure of our financial health and operational discipline, our cash flow. In the third quarter, we generated $1.1 million in cash from operations while our free cash flow improved $1.1 million over the same period last year. The steady improvement in our free cash flow profile is a direct result of our disciplined execution and our commitment to building a resilient and profitable business.

現在讓我們來看看衡量我們財務健康狀況和營運紀律的關鍵指標—現金流。第三季度，我們的營運活動產生了 110 萬美元的現金，而我們的自由現金流比去年同期增加了 110 萬美元。我們自由現金流狀況的穩定改善，直接得益於我們嚴謹的執行力以及我們致力於打造具有韌性和盈利能力的企業。

Our strategy is centered on our five pillar value creation plan, and this quarter's results demonstrate that plan in action. On slide 7, you can see clear tangible proof points on how our focused execution is translating into progress across the entire business. At the heart of our strategy is profitable growth and this quarter, we delivered driving a 12% increase in adjusted EBITDA. This financial discipline is complemented by strong commercial momentum as we secured $11.3 million in new and expansion eARR and grew our total connections to over 20.5 million. This growth is fueled by our commitment to both product innovation and customer intimacy.

我們的策略以五大支柱價值創造計畫為核心，本季的業績證明了該計畫的有效性。在第 7 張投影片中，您可以清楚地看到我們專注的執行如何轉化為整個業務的進步的具體證據。我們的策略核心是獲利成長，本季我們實現了這一目標，調整後 EBITDA 成長了 12%。這種財務紀律與強勁的商業勢頭相輔相成，我們獲得了 1130 萬美元的新增和擴展 eARR，並將我們的總連接數增長到超過 2050 萬。這一增長得益於我們對產品創新和客戶關係的重視。

This quarter, we launched KORE One, our unified customer platform and we completed a limited release of a new connectivity offering, providing proprietary automated switching and enhanced network resilience. With investments in our products, platform and infrastructure and with the launch of a new AI assistant KORE we've seen a greater than 50% reduction in support tickets while continuing to improve our customer E-score. It is this combination of superior products and deep partnership that differentiates us in the market and fuels our sales momentum.

本季度，我們推出了統一客戶平台 KORE One，並完成了新連接產品的有限發布，該產品提供專有的自動交換和增強的網路彈性。透過對產品、平台和基礎設施的投資，以及推出新的 AI 助理 KORE，我們的支援工單減少了 50% 以上，同時我們的客戶 E-score 也持續提升。正是這種卓越的產品和深厚的合作夥伴關係相結合，使我們在市場上脫穎而出，並推動了我們的銷售勢頭。

Underpinning all of this is our relentless drive for operational excellence powered by our winning team. We're becoming a leaner, more agile company by executing on our facility rationalization plan and aggressively deploying AI tools to boost productivity. Simultaneously, we are investing in our people, launching our internal AI evangelist program and new development tools to build a culture of accountability and continuous improvement.

這一切的背後，是我們不斷追求卓越營運的決心，以及我們這支優秀團隊的鼎力支持。透過執行設施合理化計劃並積極部署人工智慧工具來提高生產力，我們正在成為一家更精簡、更靈活的公司。同時，我們也在投資我們的人才，啟動了內部人工智慧佈道者計畫和新的開發工具，以建立一種問責制和持續改進的文化。

Now let's dive deeper into our KORE IoT Connectivity business on slide 8. The foundational metric for our recurring revenue model is our connection base, which continued its strong, steady growth. This quarter, we grew our total connections by 9% year over year to surpass 20.5 million. This is a direct result of our ability to win new logos and expand our share of wallet with existing customers.

現在讓我們在第 8 張幻燈片中更深入地了解我們的 KORE 物聯網連接業務。我們經常性收入模式的基礎指標是我們的用戶基礎，持續維持強勁、穩定的成長。本季度，我們的連線總數年增 9%，超過 2,050 萬。這直接得益於我們能夠贏得新客戶並擴大我們在現有客戶中的份額。

Turning now to slide 9, which illustrates our sales momentum in the forward-looking health of our business. We closed $11.3 million in new eARR this quarter. This is a direct result of our sales team's success in converting opportunities in the committed recurring revenue. This success is well balanced, coming from both winning new logos and expanding our relationship with existing customers and validates our land-and-expand strategy. And looking at our total pipeline, we closed at a healthy $80.3 million in eARR which, as a reminder, is purely connectivity-related opportunities.

現在來看第 9 張投影片，它展示了我們業務未來發展狀況的銷售動能。本季我們新增了1,130萬美元的eARR。這是我們銷售團隊成功將銷售機會轉化為已承諾的經常性收入的直接結果。這項成功是均衡的，既來自贏得新客戶，也來自擴大與現有客戶的關係，驗證了我們「先佔領市場，再擴張」的策略。從我們的整體專案儲備來看，我們最終實現了 8030 萬美元的健康 eARR，需要提醒的是，這完全是與網路連接相關的機會。

Our solid eARR closed one and healthy pipeline gives us strong visibility and a growing degree of confidence in our ability to deliver sustained, predictable revenue growth into the future. As we have done previously, here are just four examples from the quarter that showcase how we are winning in the marketplace, highlighting our unique value proposition.

我們穩健的已完成 eARR 和健康的銷售管道讓我們對未來實現持續、可預測的收入成長有很強的可見性和越來越大的信心。正如我們之前所做的那樣，這裡僅列舉本季的四個例子，展示我們如何在市場中取得成功，並突出我們獨特的價值主張。

First, a major win in fleet management with a leading provider who needed true multi-carrier capabilities and superior economics with our Super SIM technology. But just as importantly, they chose us because we acted as a true strategic partner, building a strong, responsive relationship at both the executive and technical levels.

首先，我們與一家領先的營運商在車隊管理方面取得了重大勝利，該營運商需要真正的多營運商功能和卓越的經濟效益，而我們的超級 SIM 技術正是為此而生。但同樣重要的是，他們選擇我們是因為我們扮演了真正的策略夥伴的角色，在管理階層和技術層面都建立了強大、積極回應的關係。

Next, we secured an exciting innovator in the anti-theft space. For their solution to work, connectivity must be flawless. They chose our Super SIM for its resilience and reliability enabling them to remotely access devices for GPS tracking and video transmission across different networks. This is a mission-critical application where good enough connectivity simply isn't an option.

接下來，我們找到了一位在防盜領域極具創新精神的優秀人才。要使他們的解決方案奏效，網路連線必須完美無瑕。他們選擇我們的超級 SIM 卡，因為它具有彈性和可靠性，使他們能夠遠端存取設備，進行 GPS 追蹤和跨不同網路的視訊傳輸。這是一個任務關鍵型應用，僅僅具備足夠的網路連線是不夠的。

Our third win highlights our leadership in the heavy regulated connected health space, a global health care leader selected KORE for their medical technologies initiative. They chose us for our deep expertise our proven compliance framework, including HIPAA and ISO certifications and our ability to provide a complete single vendor solution for hardware, logistics and global connectivity.

我們的第三場勝利凸顯了我們在監管嚴格的互聯醫療領域的領先地位，一個全球醫療保健領導者選擇 KORE 作為其醫療技術計劃的合作夥伴。他們選擇我們是因為我們擁有深厚的專業知識、成熟的合規框架（包括 HIPAA 和 ISO 認證）以及為硬體、物流和全球連接提供完整的單一供應商解決方案的能力。

Finally, I mentioned a win with a fast-growing AI-powered telematics company where they required high reliability for a video telematics and in-cabin sensing platform. While competitors offered lower cost, we demonstrated that the superior reliability, performance and long-term quality of our native SIM technology provided far greater value. They understood that for a mission-critical application, total cost of ownership and reliability are what truly matter.

最後，我提到了與一家快速發展的人工智慧驅動型車載資訊服務公司合作的成功案例，該公司需要高可靠性的視訊車載資訊服務和車內感測平台。雖然競爭對手的產品價格更低，但我們證明了我們自主研發的 SIM 卡技術具有更高的可靠性、性能和長期質量，能夠提供更大的價值。他們明白，對於關鍵任務型應用而言，總擁有成本和可靠性才是真正重要的。

The common thread connecting these diverse wins is clear. These market leaders required more than just connectivity. They needed a global and strategic partner to solve complex IoT challenges at scale. Our ability to deliver resilient technology navigate highly regulated industries and provide a complete end-to-end service are our differentiators. This is why we continue to win marquee customers and it is the engine behind our sustained growth.

這些看似不同的勝利之間有著明顯的共同點。這些市場領導者需要的不僅僅是連結性。他們需要一位全球戰略合作夥伴，以大規模解決複雜的物聯網挑戰。我們能夠提供具有彈性的技術，駕馭高度監管的行業，並提供完整的端到端服務，這是我們的優勢所在。這就是我們不斷贏得知名客戶的原因，也是我們持續成長的動力。

And now I'll turn the call over to Anthony to cover the financials in more detail.

現在我將把電話交給安東尼，讓他更詳細地介紹財務狀況。

Thanks, Ron, and thanks for those joining us this evening for our third quarter results. Total revenue for the third quarter was approximately flat year over year to $68.7 million. Breaking revenue down by business lines, IoT Connectivity revenue was flat at $56.7 million. Most notably, IoT Connectivity revenue showed sequential quarter over quarter growth of 1.7%, which followed the second quarter sequential growth of 3.2%. This sequential growth is a clear indication that our transformation is producing results.

謝謝羅恩，也謝謝今晚各位蒞臨我們第三季業績發表會。第三季總營收與去年同期基本持平，為 6,870 萬美元。以業務線細分收入，物聯網連接收入持平，為 5,670 萬美元。最值得注意的是，物聯網連接收入環比成長 1.7%，而第二季則是季增 3.2%。這種循序漸進的成長清楚地表明，我們的轉型正在產生效果。

IoT Solutions revenue was down slightly to the prior year at $11.9 million, driven primarily by timing of orders from customers. Overall, non-GAAP gross margin in Q3 2025 was 55.2%, down 147 basis points from the same quarter of the prior year. By business line, IoT Connectivity non-GAAP gross margin was down to 59.6% from 60.9% and IoT Solutions non-GAAP gross margin was down to 34.3% from 37% due to revenue mix.

物聯網解決方案收入較前一年略有下降，為 1,190 萬美元，主要原因是客戶訂單的時間表。整體而言，2025 年第三季非 GAAP 毛利率為 55.2%，較上年同期下降 147 個基點。依業務線劃分，由於收入結構變化，物聯網連接業務的非GAAP毛利率從60.9%下降到59.6%，物聯網解決方案業務的非GAAP毛利率從37%下降到34.3%。

Average revenue per user per month or ARPU for the current quarter was $0.94 compared to $1.01 in Q3 2024. The decrease in ARPU year over year was due to the recent additions to total connections coming from lower ARPU use cases. On a sequential basis, ARPU was unchanged from Q2 2025.

本季每用戶每月平均收入（ARPU）為 0.94 美元，而 2024 年第三季為 1.01 美元。ARPU年減的原因是近期新增的連線數來自ARPU較低的使用場景。從季度來看，ARPU 與 2025 年第二季相比沒有變化。

Operating expenses in the third quarter were $42.2 million, a decrease of $1.7 million compared to Q3 2024 due to cost savings from restructuring actions taken over the last 12 months. Adjusted EBITDA in the third quarter was $14.5 million, an increase of $1.5 million or 12% compared to the prior year. The $1.5 million increase in adjusted EBITDA was primarily attributable to lower operating expenses as discussed.

第三季營運支出為 4,220 萬美元，比 2024 年第三季減少了 170 萬美元，這是由於過去 12 個月採取的重組措施節省了成本。第三季調整後 EBITDA 為 1,450 萬美元，較上年同期增加 150 萬美元，增幅達 12%。經調整後的 EBITDA 增加 150 萬美元，主要歸因於營運費用的降低，如前文所述。

Net loss in the third quarter was $12.7 million compared to $19.4 million in the prior year. The decrease in our net loss was due to a tax recovery as the result of recent US tax legislation as well as the same factors that drove the improvement in adjusted EBITDA as described above.

第三季淨虧損為 1,270 萬美元，而上年同期淨虧損為 1,940 萬美元。淨虧損減少是由於近期美國稅收立法帶來的稅收返還，以及與上文所述調整後 EBITDA 改善相同的因素。

Finally, moving to cash flows. Cash provided by operations in the third quarter was $1.1 million, approximately flat with the prior year period. Free cash flow, measured by cash provided by operations, less cash used in investing activities improved by $1.1 million to negative $1.1 million in Q3 2025 compared to the prior year quarter due to our lower level of capitalized expenditures. As of September 30, 2025, cash and restricted cash was $19.6 million.

最後，我們來看現金流。第三季經營活動產生的現金流量為 110 萬美元，與去年同期基本持平。由於資本支出水準降低，2025 年第三季自由現金流（經營活動產生的現金減去投資活動使用的現金）較上年同期改善 110 萬美元，變為負 110 萬美元。截至 2025 年 9 月 30 日，現金及受限現金為 1,960 萬美元。

In closing, our solid third quarter performance is evidence that the company's transformation has begun to take hold.

總之，我們第三季穩健的業績證明，公司的轉型已經開始發揮作用。

And with that, I'll pass it back to you, Ron.

那麼，我就把麥克風交還給你了，榮恩。

Thank you, Anthony. As you may know, we recently announced that KORE received a letter from two existing investors in the company, Searchlight Capital Partners and Abry Partners on behalf of each of their affiliated funds. The letter indicated an interest in entering discussions to acquire all of KORE's common stock, not already held by Searchlight and Abry.

謝謝你，安東尼。正如您可能知道的那樣，我們最近宣布 KORE 收到了來自該公司現有兩家投資者 Searchlight Capital Partners 和 Abry Partners 的信函，分別代表他們各自的關聯基金。信中表示，有意就收購 KORE 所有普通股（Searchlight 和 Abry 尚未持有的股份）展開討論。

In addition, KORE's Board of Directors has formed a special committee to review, evaluate and negotiate a potential strategic transaction and any alternative. The potential range and timing of outcomes from the strategic review process, make it difficult to continue to provide an outlook that would meaningfully represent the range of expected outcomes.

此外，KORE 董事會已成立一個特別委員會，負責審查、評估和談判潛在的策略交易及任何替代方案。策略評估過程可能產生各種結果，而且結果出現的時間也各不相同，因此很難繼續提供一個能夠有意義地代表預期結果範圍的展望。

As a result, the company is suspending guidance for the remainder of fiscal year 2025. With that said, I want to emphasize we continue with business as usual with full attention on delivering innovation and service to our customers and working closely with our partners. I would like to express my deep appreciation and gratitude for our global KORE team.

因此，該公司暫停發布 2025 財年剩餘時間的業績指引。儘管如此，我仍要強調，我們將繼續照常開展業務，全力以赴為客戶提供創新和服務，並與我們的合作夥伴緊密合作。我謹向全球 KORE 團隊表達我深深的感激之情。

You've demonstrated an incredible focus on execution and innovation, not only by securing key wins but by doing so with a discipline that strengthens our entire business. I'm proud of the work you do every day to serve our customers and move our company forward. In closing, overall, we had a solid quarter. We improved our profitability, produced the second sequential quarter of strong connectivity revenue growth and continue to stay focused on managing operating expenses.

你展現了對執行和創新的非凡專注力，不僅取得了關鍵性的成功，而且還以一種能夠增強我們整個業務的嚴謹態度完成了這些工作。我為你們每天為服務客戶和推動公司發展所做的工作感到自豪。綜上所述，整體而言，我們本季表現穩健。我們提高了獲利能力，連續第二個季度實現了強勁的連接業務收入成長，並將繼續專注於控制營運費用。

Thank you, everyone, for joining today's earnings call. We look forward to updating you next quarter on our progress in the fourth quarter of 2025 and our full year results. Have a good evening. Thank you.

感謝各位參加今日的財報電話會議。我們期待在下個季度向您報告我們在 2025 年第四季的進展以及全年業績。祝你晚上愉快。謝謝。

This concludes today's conference. You may disconnect your lines at this time.

今天的會議到此結束。您可以在此時斷開線路。