Fundamental comparison – KORE’s Q2 2025 results show a double‑digit revenue lift (≈20% YoY) and a 35% jump in Adjusted EBITDA, accompanied by a record‑high number of active connections and a positive free‑cash‑flow conversion after a year‑long cash‑burn cycle. In the IoT‑connectivity universe, the only pure‑play peers that have delivered comparable top‑line momentum in the same quarter are Sierra Wireless (SW) and Digi International (DGII). Both firms posted modest 8‑12% revenue growth and flat EBITDA, reflecting the broader slowdown in carrier‑side IoT spend. KORE’s growth rate outpaces the sector median (~12%) and its operating margin (~14% vs. the sector average of ~9%). The free‑cash‑flow generation also puts KORE ahead of the IoT‑hyperscalers such as PTC and Qualcomm, which still report negative free cash flow for the quarter due to heavy R&D spend. In short, KORE is the clear out‑performer on both top‑line growth and profitability among the listed IoT connectivity specialists.
Market and technical outlook – The earnings beat and upbeat guidance pushed KORE’s stock up ~5% on the day, and the stock now trades just above its 200‑day moving average with a bullish RSI 58 and a bullish flag formation on the 1‑month chart. Volume has been above the 20‑day average, suggesting institutional participation. Compared to peers, KORE’s price‑to‑sales ratio (~2.1x) remains modest relative to the sector average (2.8x) while its EV/EBITDA (~12x) is lower than the industry mean (~15x), indicating a relative valuation discount despite stronger fundamentals.
Actionable insight – The combination of ** superior Q2 fundamentals, a more attractive valuation, and a technically positive set‑up** makes KORE a buy‑on‑dip candidate when the stock pulls back to the 200‑day MA (around $9.30‑$9.45) with a stop just below $9.00. Conversely, a break below the 20‑day EMA (≈$9.80) could trigger a short‑term corrective move, but the underlying earnings momentum still supports a medium‑term long position, especially against peers that are still struggling with cash‑flow and slower growth. Consider allocating a modest position (5‑10% of a tech‑focused allocation) and monitor sector‑wide news on carrier IoT pricing, as any broad‑based pricing pressure could compress margins across the peer group.