KORE Group Holdings, Inc. (KORE): Business Model Canvas [Dec-2025 Updated]

Look, you need to cut through the noise surrounding KORE Group Holdings, Inc. (KORE) right now, especially with acquisition talk swirling. As someone who's spent two decades mapping out complex tech plays, I can tell you their business model is built on sheer scale and sticky recurring revenue. They aren't just selling SIMs; they are managing over 20.5 million global IoT connections, with their core Connectivity Revenue hitting \$56.7 million in Q3 2025, which is the engine driving their model-historically over 90% of total revenue is recurring. So, if you want to see exactly how they lock in those enterprise customers across Connected Health and Fleet using proprietary platforms like OmniSIM™ SAFE, dive into the nine building blocks below. It's a clear, no-fluff look at what you're actually investing in.

KORE Group Holdings, Inc. (KORE) - Canvas Business Model: Key Partnerships

You're mapping out the core relationships KORE Group Holdings, Inc. relies on to deliver its mission-critical IoT services. These partnerships are defintely crucial for scaling network access and distribution channels, which is where the real leverage is in the IoT hyperscaler space.

Global Network Access and Distribution Alliances

KORE Group Holdings, Inc. maintains extensive agreements that underpin its global reach. This is not just about having a presence; it's about the operational scale that supports over 20.5 million Total Connections as of September 30, 2025.

The network access is built on:

• Extensive global carrier agreements providing network access in over 200+ countries.
• A strategic alliance with TD SYNNEX, a leading global distributor and IT solutions aggregator, announced on July 30, 2025.

This alliance with TD SYNNEX makes KORE's OmniSIM® US connectivity plans available through their broad distribution network, aiming to shorten the path from concept to deployment for channel partners. KORE's gross margin on connectivity solutions remains healthy, reported at 55.72% in a recent period.

Hardware Sourcing and Technology Enablement

To provide end-to-end IoT offerings, KORE Group Holdings, Inc. relies on relationships beyond just connectivity. The company maintains key Original Equipment Manufacturer (OEM) relationships for hardware sourcing, which is noted as adding value by providing access to components not typically available through distribution partners like TD SYNNEX.

The technology enablement side involves partners supporting KORE's platform, which includes the KORE One platform and its proprietary IP, like the eSIM technology stack. While specific partner names aren't always public, the operational results reflect this ecosystem's success; for instance, IoT Solutions Revenue grew to $11.9 million in Q3 2025, representing 17% of total revenue.

Significant Equity Holders and Strategic Investment

The relationship with major financial partners is a key component, especially given the recent strategic review process. As of November 4, 2025, KORE announced the receipt of a non-binding proposal from these firms to acquire shares not already held by them.

Here's the breakdown of that investment interest:

This interest comes as KORE Group Holdings, Inc. reported a market capitalization of approximately $73.82 million as of that date, with institutional ownership at 33.39%. The company's Q3 2025 performance showed total revenue of $68.7 million and Adjusted EBITDA of $14.5 million.

The company's overall scale is evidenced by its connection base, which reached 20.5 million by September 30, 2025, up 9% from 18.8 million in the prior year period.

KORE Group Holdings, Inc. (KORE) - Canvas Business Model: Key Activities

The core of KORE Group Holdings, Inc.'s (KORE) business model revolves around the relentless execution of scaling its global IoT footprint while simultaneously driving operational efficiency and advancing next-generation technology adoption.

A primary key activity is the management and scaling of its massive global IoT connections base. As of the third quarter ended September 30, 2025, KORE announced that its Total Connections increased to 20.5 million, representing a 9% year-over-year growth from 18.8 million in the prior year period. This scaling effort is underpinned by a clear internal goal to reach the next milestone of 30 million connections.

KORE is heavily engaged in developing and deploying its proprietary IoT enablement platforms. This includes the continued offering of its OmniSIM™, which utilizes eUICC and Multi-IMSI technology to provide global, future-proofed connectivity by allowing devices to auto-provision to available networks. Furthermore, a significant activity is the preparation for and early deployment of technology based on the new GSMA SGP.32 eSIM standard, which promises zero-touch, global IoT connectivity. Early deployments of SGP.32 eSIM are anticipated through the second half of 2025.

Operational excellence and cost control are critical activities supporting the profitable growth strategy. For the third quarter of 2025, KORE managed its operating expenses to $42.2 million. This figure represented a decrease of $1.7 million compared to Q3 2024, which management attributed to cost savings realized from restructuring actions taken over the preceding twelve months. This discipline helped drive Adjusted EBITDA up 12% year-over-year to $14.5 million in Q3 2025.

The company's activities also center on providing comprehensive, end-to-end IoT solutions, analytics, and managed services, moving beyond pure connectivity. KORE is recognized as a provider of IoT Connectivity, Solutions and Analytics. The IoT Solutions segment generated revenue of $11.9 million in Q3 2025, though this was slightly down year-over-year due to the timing of customer orders. As the industry transitions, KORE is positioning itself to offer a managed services approach for the SGP.32 adoption, which includes end-to-end orchestration to simplify complex deployments.

Here's a quick look at some key operational metrics from Q3 2025:

To support these activities, KORE focuses on several strategic technology areas:

• Adopting the SGP.32 standard for Remote SIM Provisioning (RSP).
• Ensuring device and platform certification for the new eSIM standard throughout 2025.
• Leveraging its independent network to host OmniSIM for greater control.
• Providing secure access via VPNs and private APNs for its solutions.
• Preparing for the maturation of the 5G era and its impact on IoT acceleration.

The focus on these activities is designed to maintain KORE's position as a trusted global IoT partner, accelerating customer business outcomes. Finance: draft 13-week cash view by Friday.

KORE Group Holdings, Inc. (KORE) - Canvas Business Model: Key Resources

You're looking at the core assets KORE Group Holdings, Inc. (KORE) relies on to run its business as of late 2025. These aren't just line items; they're the engines driving their IoT hyperscaler model.

The foundation is definitely their proprietary software layer. You see the KORE One® Platform mentioned consistently, which is described as a robust, API-based, open-architecture, modular system. This platform is the base for their service offerings, including tools for enhanced security and connectivity management, like ConnectivityPro and SecurityPro. It's designed to simplify solution deployment and management for customers.

Their scale is best illustrated by the sheer number of devices they manage. As of the third quarter of 2025, KORE reported 20.5 million active IoT connections globally. That's a solid number, representing a 9% increase from the 18.8 million connections they had in the same period last year. This scale is supported by their global network infrastructure and carrier-agnostic agreements, allowing them to offer multi-carrier connectivity in over 200 countries and territories.

Here's a quick look at some of the key operational metrics reported for Q3 2025:

Also critical is their deep vertical expertise. Transforma Insights recognized KORE as a top-tier specialist in their 2025 report, specifically citing strengths in key sectors. If onboarding takes 14+ days, churn risk rises, but KORE's focus on specific industries helps streamline deployment.

This expertise is concentrated in areas like:

• Connected Health, where they maintain compliance like HIPAA and ISO certifications.
• Fleet management solutions.
• Industrial IoT deployments.

Finally, their intellectual property portfolio is anchored by this platform and their advancements in connectivity tech. They have leadership cited in eSIM innovation and connectivity management, especially with the adoption of standards like SGP.32, which redefines how eSIMs are deployed. This IP is what allows them to offer those carrier-agnostic solutions effectively.

Finance: draft 13-week cash view by Friday.

KORE Group Holdings, Inc. (KORE) - Canvas Business Model: Value Propositions

You're looking to understand the core value KORE Group Holdings, Inc. (KORE) delivers to its customers, which is all about making complex global Internet of Things (IoT) deployments manageable and reliable. Here are the hard numbers and facts that back up their claims as of late 2025.

Simplifying the complexity of global IoT deployment and management.

KORE Group Holdings, Inc. positions itself as a pioneer, leader, and trusted advisor whose purpose-built solutions simplify the complexity of IoT for organizations of all sizes. This simplification translates into measurable operational and business results for their clients. For instance, as of the third quarter of 2025, KORE was managing 20.5 million total IoT connections, up 9% from 18.8 million in the same period last year, demonstrating their ability to handle scale while simplifying management.

Mission-critical IoT solutions with high reliability and security.

The value proposition centers on dependability for mission-critical applications. KORE Group Holdings, Inc. has achieved a significant scale milestone, surpassing 20 million total IoT connections by mid-2025, which cements their role as a dependable global provider. This reliability is recognized externally; KORE was named a top-tier IoT specialist in the Transforma Insights 2025 Communications Service Provider IoT Peer Benchmarking Report on November 4, 2025. The company's focus on profitable growth is reflected in its financial performance, with Adjusted EBITDA growing to $14.5 million in Q3 2025, up 12% year-over-year.

Global reach and deployment agility across over 180 countries.

KORE Group Holdings, Inc. offers extensive global reach, supporting deployments across more than 180 countries globally, with managed services deployed across 23 countries and 45 carrier integrations. They operate as a global mobile virtual network operator (MVNO), offering multi-carrier connectivity in over 200 countries and territories. This global footprint has been instrumental for customers like Status Awareness Systems Australia, enabling them to grow into new regions.

Accelerating customers' business outcomes through deep IoT knowledge.

The company emphasizes that its deep IoT knowledge and experience accelerate and materially impact customers' business outcomes. This is evident in their revenue mix, where IoT Solutions Revenue grew by 25% year-over-year in Q2 2025, reaching $15.2 million, indicating successful deployment of advanced solutions. The overall 2025 revenue guidance, as stated in May 2025, was projected to be between $288 million and $298 million.

Single-pane-of-glass management for multi-carrier connectivity.

A key differentiator is the ability to provide a unified management experience, especially for multi-carrier needs. KORE secured a major win in fleet management specifically because the customer needed true multi-carrier capabilities and superior economics using KORE's SuperSIM technology. This capability is part of their portfolio which includes the KORE One Platform and eSIM technologies like OmniSIM and SuperSim.

Here's a snapshot of the operational scale supporting these value propositions as of late 2025:

The focus on advanced technology is clear, with KORE citing leadership in eSIM innovation and SGP.32 deployment focus as areas where they are investing to stay ahead.

Finance: draft 13-week cash view by Friday.

KORE Group Holdings, Inc. (KORE) - Canvas Business Model: Customer Relationships

Dedicated account management for large enterprise customers.

KORE Group Holdings, Inc. serves a base that has grown to over 20.5 million Total IoT Connections as of September 30, 2025. This scale suggests a tiered relationship structure where the largest enterprise deployments receive dedicated attention to manage the complexity inherent in mission-critical Internet of Things (IoT) environments.

Self-service and platform-based tools for connectivity management.

KORE Group Holdings, Inc. is unifying the customer experience on its core KORE One platform. To enhance this, the company introduced Corey, an AI powered live assistant, in the second quarter of 2025 to provide instant customer support. This platform approach supports self-service for routine connectivity management tasks.

Customer intimacy model focused on deep vertical expertise.

KORE Group Holdings, Inc. is recognized for its customer intimacy model, which is supported by deep vertical specialization. The company was cited in the 2025 Transforma Insights Benchmarking Report for its strengths in this area.

The focus areas where this expertise is applied include:

• Healthcare
• Fleet
• Industrial IoT

Proactive support for complex, mission-critical IoT deployments.

Customer testimonials highlight the value placed on KORE Group Holdings, Inc.'s hands-on approach to complex issues, which goes beyond just providing carrier-agnostic bandwidth solutions. One customer noted KORE's willingness to step in and solve complex challenges, calling their support proactive. This level of engagement is critical for mission-critical deployments where downtime is costly.

Long-term contracts for recurring connectivity services.

KORE Group Holdings, Inc. adopted eARR (Estimated Annual Recurring Revenue) as a key performance metric beginning in fiscal year 2025 to better reflect its recurring revenue business model. The company discontinued using TCV (Total Contract Value) as a key operational metric starting in fiscal year 2025. As of September 30, 2025, the sales funnel contained opportunities with an eARR of approximately $80 million. Customer retention, viewed from a revenue perspective using DBNER (Dollar-Based Net Expansion Rate), was 98% for the twelve months ended September 30, 2025.

The growth in the installed base, which drives recurring connectivity revenue, is a key indicator of successful long-term relationships:

The Dollar-Based Net Expansion Rate (DBNER) shows the following trend:

• Twelve Months Ended September 30, 2025: 98%
• Twelve Months Ended September 30, 2024: 95%

Finance: draft 13-week cash view by Friday.

KORE Group Holdings, Inc. (KORE) - Canvas Business Model: Channels

You're looking at how KORE Group Holdings, Inc. (KORE) gets its solutions-from connectivity to full-stack IoT enablement-into the hands of enterprise customers. Their channel strategy is clearly layered, balancing direct engagement for complex solutions with a broad partner network for scale.

The core of their go-to-market relies on a mix of direct sales and channel leverage. For instance, in the second quarter of 2025, the IoT Connectivity Revenue stood at $56.1 million, while IoT Solutions Revenue was $15.2 million. This split shows where the volume versus the high-touch sales effort lies. To be fair, the Solutions revenue grew a strong 25% year-over-year in Q2 2025, suggesting that direct engagement with large enterprises for complex deployments is paying off.

The direct sales force is definitely zeroed in on those big wins. KORE is recognized for its deep vertical specialization, particularly in sectors like healthcare, fleet, and industrial IoT. Landing a new partnership, like the one with Winnebago for their RV platform, is a direct sales success that contributes to the Solutions revenue stream, which was expected to deliver $2.1 million in estimated annual recurring revenue (eARR) from new business wins in Q1 2025.

The indirect channel is crucial for scaling the connectivity backbone. KORE explicitly noted an expansion of its indirect channel in the first quarter of 2025 as part of its focus on profitable growth. This channel likely drives a significant portion of the pure connectivity revenue. Consider the sheer scale: by the third quarter of 2025, KORE was supporting 20.5 million Total IoT Connections. That kind of scale requires partners to reach diverse customer bases efficiently.

Here's a quick look at how the revenue mix shifted between Q1 and Q2 2025, which gives you a hint about the channel dynamics:

When you look at the global distribution aspect, KORE emphasizes its extensive global carrier agreements, which is the foundation for supporting deployments across the world. While the prompt suggests operations in over 180 countries, the hard data shows momentum: Total Connections grew from 18.3 million at the end of Q1 2024 to 20.5 million by the end of Q3 2025. That's growth of over 2.2 million connections in a year, demonstrating their ability to scale globally, which is a key function of their channel and carrier relationships.

The proprietary digital platforms are the engine for managing this scale. KORE leverages its IoT enablement platforms, which include offerings like the KORE One Platform and KORE OmniCore. These platforms are critical for simplifying global IoT adoption and managing the connections. The growth in total connections is a direct indicator of the platform's effectiveness in onboarding and managing devices, moving from 19.8 million connections at the end of Q1 2025 to 20.5 million by the end of Q3 2025.

The global reach is supported by these digital tools and carrier relationships, allowing KORE to deliver on its promise of enabling customers to deploy and manage devices anywhere. This is underpinned by their operational scale, which is evidenced by the connection base:

• Total IoT Connections reached 20 million as of June 2025.
• Total IoT Connections reached 20.1 million by June 30, 2025.
• Total IoT Connections reached 20.5 million by September 30, 2025.
• The company is accelerating toward a next milestone of 30 million connections.

If onboarding takes 14+ days, churn risk rises; KORE needs its platforms to keep that cycle fast for enterprise adoption.

KORE Group Holdings, Inc. (KORE) - Canvas Business Model: Customer Segments

You're looking at the core customer base KORE Group Holdings, Inc. relies on to drive its Internet of Things (IoT) connectivity and solutions business. This isn't about small-scale projects; it's about massive, global deployments.

Large enterprises and organizations of all sizes globally form the foundation of KORE Group Holdings, Inc.'s revenue, primarily through its IoT Connectivity services. The sheer scale is best seen in the total active connections managed across their platform. As of the third quarter of 2025, KORE Group Holdings, Inc. reported 20.5 million Total Connections, which was up 9% year-over-year from the 18.8 million connections reported in the third quarter of 2024. This connectivity revenue stream is the most significant, accounting for 79% of total revenue for the year ended 2024. The pricing model here is typically per subscriber per month for the device's lifetime, often secured via multi-year contracts. Still, the Average Revenue per User (ARPU) per month saw a slight dip to $0.94 in Q3 2025, down from $1.01 in Q3 2024.

The company's strategy emphasizes capturing more wallet share from existing customers, evidenced by securing $11.3 million in new and expansion EARR (Estimated Annual Recurring Revenue) during the third quarter of 2025. This shows that while the total connection count grows, expansion within the existing enterprise base is a key driver.

KORE Group Holdings, Inc. focuses its efforts on specific, high-value verticals where IoT complexity is high. The company is recognized for its deep vertical focus, particularly in the following areas:

• Healthcare, including remote patient monitoring applications.
• Fleet and Vehicle management, serving telematics providers.
• Industrial IoT (IIoT) and manufacturing sectors.

The IoT Solutions segment, which includes device management and configuration services, is growing faster than pure connectivity, making these verticals crucial. In Q2 2025, IoT Solutions Revenue grew 25% year-over-year to $15.2 million, compared to a 1% year-over-year growth for IoT Connectivity Revenue, which was $56.1 million for that quarter.

Here's a look at the revenue contribution by segment based on the most recent full-year data available:

The focus on specialized sectors like Connected Health is a stated strength, with KORE Group Holdings, Inc. being cited as a top-tier IoT specialist for its leadership in these areas.

For Fleet Management and Asset Monitoring, KORE Group Holdings, Inc. provides the underlying connectivity that powers telematics providers. The total connection base of over 20.5 million as of Q3 2025 includes a significant portion dedicated to these mobile asset tracking use cases.

In the Industrial IoT (IIoT) and manufacturing sectors, the growth in IoT Solutions revenue points to deeper integration beyond simple connectivity. The IoT Solutions Margin improved to 33.0% in Q1 2025.

The company is also investing in advanced capabilities that serve customers needing AI-driven security and complex technology. KORE Group Holdings, Inc. launched a new AI assistant that reportedly reduced support tickets by over 50%, which directly benefits customers deploying complex, high-touch IoT security or management solutions.

• Total Connections reached 19.8 million in Q1 2025.
• IoT Solutions Revenue was $18.23 million in Q1 2025.
• Adjusted EBITDA grew 12% year-over-year to $14.5 million in Q3 2025.
• Total Revenue for Q3 2025 was $68.7 million.

Finance: draft 13-week cash view by Friday.

KORE Group Holdings, Inc. (KORE) - Canvas Business Model: Cost Structure

You're looking at the direct costs KORE Group Holdings, Inc. incurs to run its IoT hyperscaler and service delivery platform as of late 2025. Honestly, for a company focused on connectivity, the carrier fees are the biggest variable cost, but the public filings give us the consolidated view first.

The total Operating expenses for KORE Group Holdings, Inc. in the third quarter of 2025 were reported at exactly $42.2 million. That figure represented a decrease of $1.7 million compared to the third quarter of 2024, which management attributed to cost savings realized from restructuring actions executed over the preceding twelve months.

Regarding capital deployment, KORE Group Holdings, Inc. reported that Free Cash Flow improved by $1.1 million to negative $1.1 million in Q3 2025 compared to the prior year quarter. The driver for this improvement was explicitly stated as a lower level of capitalized expenditures for infrastructure and technology upgrades during the period.

The Cost of IoT Connectivity, which primarily covers carrier fees and network access costs, is embedded within the Cost of Revenue, which we can infer from the gross margin figures. The overall Non-GAAP Gross Margin for KORE Group Holdings, Inc. in Q3 2025 was 55.2%. This margin is the result of the blended performance across the two main business lines.

Technology development and platform maintenance costs, along with Sales, General, and Administrative (SG&A) expenses, are aggregated into the total Operating Expenses figure of $42.2 million for Q3 2025. Specific, segregated dollar amounts for these components weren't broken out in the latest disclosures, so you have to treat that $42.2 million as the ceiling for those overheads.

Here's a look at the revenue and margin structure that dictates the Cost of Goods Sold (COGS), which includes those critical carrier fees:

To be fair, understanding the true cost of connectivity requires knowing the COGS for the Connectivity segment, but we only have the margin. If the Connectivity Revenue was $56.7 million and the margin was 59.6%, the associated cost of revenue for that segment was approximately $22.91 million (calculated as $56.7 million (1 - 0.596)).

The cost structure is clearly weighted toward the direct costs of providing the network service, given the high revenue contribution from IoT Connectivity. You see the discipline in the OpEx reduction, which helped push Adjusted EBITDA up to $14.5 million, a 12% increase year-over-year.

• Cost of IoT Connectivity (Carrier Fees) is the largest component of COGS.
• Operating Expenses totaled $42.2 million in Q3 2025.
• Technology development and SG&A are bundled within Operating Expenses.
• Capital Expenditures were at a lower level in Q3 2025 compared to Q3 2024.
• Overall Non-GAAP Gross Margin stood at 55.2% for the quarter.

Finance: draft 13-week cash view by Friday.

KORE Group Holdings, Inc. (KORE) - Canvas Business Model: Revenue Streams

You're looking at the engine room of KORE Group Holdings, Inc. (KORE)'s value capture, which is heavily weighted toward the sticky, long-term nature of connectivity. The core of the revenue model is built around recurring service fees, which historically accounts for over 90% of total revenue. This high recurrence is what analysts like me focus on when assessing valuation stability.

Looking at the most recent hard data from the third quarter of 2025, the revenue streams are clearly segmented. The primary driver remains the connectivity piece. IoT Connectivity Revenue hit $56.7 million in Q3 2025, which management noted showed sequential quarter-over-quarter growth of 1.7% in that period. This is the highly recurring foundation we want to see growing.

The secondary stream comes from the more integrated offerings. IoT Solutions Revenue, which bundles hardware, software, and managed services, brought in $11.9 million in Q3 2025. While this segment is important for driving stickiness and higher-value contracts, it saw a slight decline in the quarter, which is something to watch as the company works through its transformation.

Here's a quick look at how the top line broke down in Q3 2025, based on the reported segment figures against the total revenue of $68.7 million for the quarter:

The overall health of the connectivity base, which underpins that recurring revenue, is measured by key performance indicators. You need to track these metrics to gauge future revenue durability. For instance, the Average Revenue Per User (ARPU) was reported at $0.94 per month in Q2 2025, and this figure held flat into Q3 2025. The total number of connections supporting this revenue base grew to 20.5 million by the end of Q3 2025, a 9% increase year-over-year.

Regarding the full-year outlook, KORE Group Holdings, Inc. had projected full-year 2025 revenue to be between $288 million and $298 million. However, you must note that management suspended this guidance in November 2025 due to ongoing discussions around a potential strategic transaction. This uncertainty means the final number will depend entirely on the outcome of that review process.

To summarize the key revenue-related statistics as of late 2025:

• Q3 2025 IoT Connectivity Revenue: $56.7 million.
• Q3 2025 IoT Solutions Revenue: $11.9 million.
• Historical Recurring Service Revenue Share: Over 90%.
• FY 2025 Revenue Projection (Pre-Suspension): $288 million to $298 million.
• ARPU (Q2/Q3 2025): $0.94 per month.
• Total Connections (End of Q3 2025): 20.5 million.

Finance: draft 13-week cash view by Friday.