What are the implications of the increased number of connections for KORE's long‑term market share and competitive positioning?

Fundamental view – why the connection surge matters

KORE’s Q2‑2025 release highlighted a “double‑digit” rise in the number of active IoT connections (up ~30% YoY) alongside expanding revenue, a 22% jump in adjusted EBITDA and a record‑high free‑cash‑flow conversion. In the pure‑play IoT‑hyperscaler space, connections are the closest proxy to platform “stickiness” and future recurring‑revenue upside. A growing connection base deepens KORE’s data‑pipeline, lowers churn risk, and gives the firm leverage to cross‑sell higher‑margin solutions (edge‑compute, device‑management, analytics). As the IoT market is still in the early‑stage of adoption—projected to exceed $1.5 trillion by 2030—KORE’s expanding footprint positions it to capture a larger slice of the “last‑mile” connectivity tier, tightening its competitive moat against telco‑incumbents (e.g., Verizon, AT&T) that rely more on legacy voice‑data bundles.

Technical & market dynamics

The connection‑driven fundamentals have already been priced in: KORE’s shares have broken above the 20‑day SMA and are testing the $6.00‑$6.30 resistance band that coincides with the 50‑day SMA. Momentum indicators (RSI ~62, MACD bullish crossover) remain intact, suggesting the rally still has room to run, especially if the company issues forward‑looking guidance on connection growth for FY‑2025. A pull‑back to the 20‑day SMA (~$5.80) could serve as a low‑‑risk entry point for a short‑to‑‑medium‑term upside play, with a target at the $6.30 resistance and a stop just below $5.55 (the recent trough).

Actionable take‑away

• Bullish bias: The expanding connection base underpins a durable revenue engine, supporting a higher valuation multiple versus peers. Consider a buy‑on‑dip at $5.80–$5.90 with a 12‑month target of $6.30–$6.50, assuming the company continues to beat connection‑growth expectations.
  
• Watch‑list triggers: Any guidance that narrows connection growth or signals heightened cap‑ex constraints could cap upside; conversely, a beat‑and‑beat on FY‑2025 connection targets would likely push the stock toward $6.70‑$7.00 as the market re‑prices the long‑term growth story.
  

Overall, the surge in IoT connections is a strong catalyst for KORE’s long‑term market‑share expansion and should be reflected in a moderately bullish positioning while respecting technical pull‑back levels for risk management.