KonaTel Reports Second Quarter 2025 Results
KonaTel (OTCQB:KTEL) reported challenging Q2 2025 financial results, with revenues declining 50.3% to $2.2 million compared to Q2 2024. The significant revenue drop was primarily attributed to reduced activations in the Mobile Services segment following the cancellation of the Affordable Connectivity Program (ACP).
The company reported a GAAP net loss of $(1.19) million, or $(0.03) per share, while maintaining a cash position of $1.5 million. Despite challenges, gross profit margins improved to 25.5% from 20.7% year-over-year. KonaTel is actively pursuing revenue diversification through its CPaaS cloud platform expansion and awaiting regulatory approval in California for a potential new partnership launch by end of 2025.
KonaTel (OTCQB:KTEL) ha riportato risultati finanziari difficili nel secondo trimestre 2025, con ricavi in calo del 50,3% a 2,2 milioni di dollari rispetto al Q2 2024. Il marcato calo dei ricavi 猫 stato principalmente causato dalla riduzione delle attivazioni nel segmento Mobile Services a seguito della cancellazione del programma Affordable Connectivity (ACP).
La societ脿 ha registrato una perdita netta secondo i principi contabili GAAP di 1,19 milioni di dollari, pari a 0,03 dollari per azione, mantenendo una posizione di cassa di 1,5 milioni di dollari. Nonostante le difficolt脿, il margine lordo 猫 migliorato al 25,5% rispetto al 20,7% su base annua. KonaTel sta attivamente cercando di diversificare le entrate tramite l'espansione della sua piattaforma cloud CPaaS e attende l'approvazione normativa in California per il possibile avvio di una nuova partnership entro la fine del 2025.
KonaTel (OTCQB:KTEL) inform贸 resultados financieros complicados en el segundo trimestre de 2025, con ingresos que cayeron un 50,3% hasta $2,2 millones respecto al Q2 de 2024. La significativa disminuci贸n de ingresos se debi贸 principalmente a la reducci贸n de activaciones en el segmento Mobile Services tras la cancelaci贸n del programa Affordable Connectivity (ACP).
La compa帽铆a registr贸 una p茅rdida neta GAAP de $1,19 millones, o $0,03 por acci贸n, manteniendo una posici贸n de efectivo de $1,5 millones. A pesar de los retos, el margen bruto mejor贸 al 25,5% desde el 20,7% interanual. KonaTel est谩 buscando diversificar sus ingresos mediante la expansi贸n de su plataforma cloud CPaaS y espera la aprobaci贸n regulatoria en California para un posible lanzamiento de asociaci贸n a finales de 2025.
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KonaTel (OTCQB:KTEL) a annonc茅 des r茅sultats financiers difficiles pour le deuxi猫me trimestre 2025, avec des revenus en baisse de 50,3% 脿 2,2 millions de dollars par rapport au T2 2024. Cette forte diminution des revenus est principalement due 脿 la baisse des activations dans le segment Mobile Services suite 脿 l'annulation du programme Affordable Connectivity (ACP).
La soci茅t茅 a enregistr茅 une perte nette GAAP de 1,19 million de dollars, soit 0,03 dollar par action, tout en maintenant une tr茅sorerie de 1,5 million de dollars. Malgr茅 les difficult茅s, la marge brute s'est am茅lior茅e 脿 25,5% contre 20,7% sur un an. KonaTel cherche activement 脿 diversifier ses revenus via l'expansion de sa plateforme cloud CPaaS et attend l'approbation r茅glementaire en Californie pour un 茅ventuel lancement de partenariat d'ici la fin 2025.
KonaTel (OTCQB:KTEL) meldete herausfordernde Finanzergebnisse f眉r das zweite Quartal 2025, mit einem Umsatzr眉ckgang von 50,3% auf 2,2 Millionen US-Dollar im Vergleich zum Q2 2024. Der deutliche Umsatzr眉ckgang wurde haupts盲chlich auf geringere Aktivierungen im Bereich Mobile Services nach der Einstellung des Affordable Connectivity Program (ACP) zur眉ckgef眉hrt.
Das Unternehmen verzeichnete einen GAAP-Nettogewinnverlust von 1,19 Millionen US-Dollar, bzw. 0,03 US-Dollar pro Aktie, und hielt eine Barposition von 1,5 Millionen US-Dollar. Trotz der Herausforderungen verbesserte sich die Bruttomarge von 20,7% auf 25,5% im Jahresvergleich. KonaTel verfolgt aktiv die Diversifizierung der Einnahmen durch den Ausbau seiner CPaaS-Cloudplattform und wartet in Kalifornien auf die beh枚rdliche Genehmigung f眉r einen m枚glichen Partnerschaftsstart bis Ende 2025.
- Gross profit margin improved to 25.5% from 20.7% year-over-year
- Higher Average Revenue Per User (ARPU) activations in Mobile Services segment
- Operating expenses reduced to $1.7M from $2.2M through cost optimization
- Maintained healthy cash position of $1.5M
- Revenue declined 50.3% to $2.2M due to ACP Program cancellation
- GAAP net loss of $(1.19M) in Q2 2025
- Cash decreased from $3.7M to $1.5M year-over-year
- Mobile Services revenues decreased 81% in first six months of 2025
Diversified Hosted Services Expansion
DALLAS, TX / / August 19, 2025 / KonaTel, Inc. (OTCQB:KTEL) (), a voice/data communications holding company, today announced financial results for the three-month period ended June 30, 2025.
Second Quarter 2025 Financial Summary
Revenues of
$2.2 million , down50.3% compared to the second quarter last year. The decrease in revenue, as discussed with our year-end 2024 results, relates to fewer activations within the Company's Mobile Services ("Lifeline") segment as a result of reduced government subsidized revenues from the cancellation of the Affordable Connectivity Program (the "ACP Program").Gross profit of
$550,240 , down38.8% compared to the second quarter last year.Operating loss of
$(1,198,558) compared to operating loss of$(1,254,362) in the second quarter last year.GAAP net loss of
$(1,187,641) , or$(0.03) per share, compared to GAAP net loss of$(1,109,697) , or$(0.03) per share, in the second quarter last year.Non-GAAP net loss of
$(942,182) , or$(0.02) per diluted share, compared to a Non-GAAP net loss of$(884,571) , or$(0.02) per diluted share, in the second quarter of last year.Generally, Q2 revenue, gross profit and non-GAAP income were on par with Q1.
Cash remained healthy at
$1.5 million , and we have already taken significant steps to further reduce cash burn as our new growth initiatives gain traction.
Sean McEwen, Chairman and CEO of KonaTel stated, "As previously stated in our 2024 10K filing, congress' failure to re-fund the ACP Program has negatively impacted our business. We continue to aggressively pursue third-party relationships to expand our Lifeline operation, and we are currently awaiting regulatory approval in the state of California to potentially launch a new partnership before the end of 2025.
As part of our ongoing revenue diversification/derisking efforts, we continue to invest in the expansion of our CPaaS ("Communications Platform as a Service") cloud platform, including wholesale SMS and POTS ("Plain Old Telephone Service") wholesale cellular replacement service, specifically designed for telecommunications carriers and resellers."
McEwen closed, "The unpredictable behavior of Congress during 2024 negatively impacted our business, but we shifted our development and sales efforts into new areas of expansion. We continue to believe one of our strong advantages comes from our established wholesale cloud CPaaS platform, that supports a variety of services, including termination/origination, VoIP/SIP, SMS, POTS, Mobile Data, and Mobile Voice solutions.
Management's focus on our CPaaS business is providing a foundation to derisk the Company through the addition of future, low attrition recurring revenue services, and if we are successful with new distribution partnerships within our government subsidized Lifeline cellular service, we expect to see additional revenues."
Quarterly Financial Summary (Q2 2025 vs. Q2 2024)
Revenue of
Gross profit was
Total operating expenses were
GAAP net loss was
Non-GAAP net loss was
Balance Sheet
The Company ended the quarter with
Year-to-Date Financial Detail (First Six Months of 2025 vs. First Six Months of 2024)
Revenues decreased
Gross profit was
Total operating expenses were
GAAP net loss was
Non-GAAP net loss was
About KonaTel
KonaTel provides a variety of retail and wholesale telecommunications services, including mobile voice/text/data service supported by national U.S. mobile networks, mobile numbers, SMS/MMS services, IoT mobile data service, and a range of hosted cloud services. KonaTel's subsidiary, Apeiron Systems (), is a global cloud communications service provider employing a dynamic "as a service" (CPaaS/UCaaS/CCaaS/PaaS) platform. Apeiron provides voice, messaging, SD-WAN, and platform services using its national cloud network. All Apeiron's services can be accessed through legacy interfaces and rich communications APIs. KonaTel's other subsidiary, Infiniti Mobile (), is an FCC authorized national wireless ACP and Lifeline carrier with an FCC approved wireless Lifeline Compliance Plan, licensed to provide government subsidized cellular service to low-income American families across forty (40) states. KonaTel is headquartered in Plano, Texas.
Safe Harbor Statement
This Press Release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this Press Release. This Press Release should be considered in light of the disclosures contained in the filings of KonaTel and its "forward-looking statements" in such filings that are contained in the EDGAR Archives of the SEC at www.sec.gov.
Contacts
D. Sean McEwen
[email protected]
-- Unaudited Balance Sheets and Statements of Operations Follow -
KonaTel, Inc.
Consolidated Balance Sheets
(unaudited)
June 30, | December 31, | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and Cash Equivalents | $ | 1,491,346 | $ | 1,679,345 | ||||
Accounts Receivable, Net | 509,571 | 1,533,015 | ||||||
Inventory, Net | 118,242 | 163,063 | ||||||
Prepaid Expenses | 75,349 | 94,496 | ||||||
Other Current Assets | 310,988 | 112,170 | ||||||
Total Current Assets | 2,505,496 | 3,582,089 | ||||||
Property and Equipment, Net | 13,563 | 15,128 | ||||||
Other Assets | ||||||||
Intangible Assets, Net | 323,468 | 323,468 | ||||||
Right of Use Asset | 257,499 | 319,549 | ||||||
Notes Receivable | 850,000 | 1,000,000 | ||||||
Other Assets | 74,328 | 74,328 | ||||||
Total Other Assets | 1,505,295 | 1,717,345 | ||||||
Total Assets | $ | 4,024,354 | $ | 5,314,562 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities | ||||||||
Accounts Payable and Accrued Expenses | $ | 2,675,605 | $ | 2,277,597 | ||||
Right of Use Operating Lease Obligation - Current | 78,457 | 113,740 | ||||||
Income Tax Payable | 184,051 | 184,051 | ||||||
Total Current Liabilities | 2,938,113 | 2,575,388 | ||||||
Long Term Liabilities | ||||||||
Right of Use Operating Lease Obligation - Long Term | 195,999 | 227,776 | ||||||
Total Long-Term Liabilities | 195,999 | 227,776 | ||||||
Total Liabilities | 3,134,112 | 2,803,164 | ||||||
Commitments and Contingencies | ||||||||
Stockholders' Equity | ||||||||
Common stock, $.001 par value, 50,000,000 shares authorized 43,541,140 outstanding and issued at June 30, 2025, and 43,503,658 outstanding and issued at December 31, 2024 | 43,541 | 43,504 | ||||||
Additional Paid In Capital | 10,699,743 | 10,215,767 | ||||||
Accumulated Deficit | (9,853,042 | ) | (7,747,873 | ) | ||||
Total Stockholders' Equity | 890,242 | 2,511,398 | ||||||
Total Liabilities and Stockholders' Equity | $ | 4,024,354 | $ | 5,314,562 | ||||
KonaTel, Inc.
Consolidated Statements of Operations
(unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenue | $ | 2,158,656 | $ | 4,343,179 | $ | 4,327,370 | $ | 9,979,016 | ||||||||
Cost of Revenue | 1,608,416 | 3,443,472 | 3,125,237 | 7,951,804 | ||||||||||||
Gross Profit | 550,240 | 899,707 | 1,202,133 | 2,027,212 | ||||||||||||
Operating Expenses | ||||||||||||||||
Payroll and Related Expenses | 1,081,633 | 1,341,046 | 2,192,333 | 2,793,146 | ||||||||||||
Operating and Maintenance | 2,069 | 1,421 | 3,489 | 2,965 | ||||||||||||
Credit Loss | 13,910 | - | 13,910 | 1,448 | ||||||||||||
Professional and Other Expenses | 325,750 | 231,302 | 483,181 | 341,525 | ||||||||||||
Utilities and Facilities | 48,528 | 59,332 | 94,939 | 110,118 | ||||||||||||
Depreciation and Amortization | 782 | 2,449 | 1,565 | 4,899 | ||||||||||||
General and Administrative | 64,975 | 44,573 | 114,962 | 105,968 | ||||||||||||
Marketing and Advertising | 5,396 | 27,031 | 10,482 | 61,027 | ||||||||||||
Application Development Costs | 172,967 | 387,800 | 351,493 | 593,883 | ||||||||||||
Taxes and Insurance | 32,788 | 59,115 | 63,981 | 113,550 | ||||||||||||
Total Operating Expenses | 1,748,798 | 2,154,069 | 3,330,335 | 4,128,529 | ||||||||||||
Operating Loss | (1,198,558 | ) | (1,254,362 | ) | (2,128,202 | ) | (2,101,317 | ) | ||||||||
Other Income and Expense | ||||||||||||||||
Gain on Sale | - | - | - | 9,247,726 | ||||||||||||
Interest Expense | - | - | (577 | ) | (104,329 | ) | ||||||||||
Other Income/(Expense), net | 10,917 | (4,763 | ) | 23,610 | (68,693 | ) | ||||||||||
Total Other Income and Expenses | 10,917 | (4,763 | ) | 23,033 | 9,074,704 | |||||||||||
Income (Loss) Before Income Taxes | (1,187,641 | ) | (1,259,125 | ) | (2,105,169 | ) | 6,973,387 | |||||||||
Income Tax Expense (Benefit) | - | (149,428 | ) | - | - | |||||||||||
Net Income (Loss) | $ | (1,187,641 | ) | $ | (1,109,697 | ) | $ | (2,105,169 | ) | $ | 6,973,387 | |||||
Earnings (Loss) per Share | ||||||||||||||||
Basic | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.05 | ) | $ | 0.16 | |||||
Diluted | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.05 | ) | $ | 0.16 | |||||
Weighted Average Outstanding Shares | ||||||||||||||||
Basic | 43,537,102 | 43,412,602 | 43,536,341 | 43,301,670 | ||||||||||||
Diluted | 43,537,102 | 43,412,602 | 43,536,341 | 43,301,670 | ||||||||||||
SOURCE: KonaTel, Inc.
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