KORE Group Holdings, Inc.KORE

KORE Group Holdings, Inc. Revenue Disclosure

10-KFiled Mar 31, 20263 min read
REVENUE RECOGNITION
Disaggregated Revenue

The table below sets forth a summary of revenue by major service line and product category:

For the Year Ended December 31,
(in thousands)20252024
Services:
IoT Connectivity (1)
$216,725 $223,391 
IoT Solutions10,553 10,856 
$227,278 $234,247 
Products:
Hardware (2)(3)
$58,667 $51,840 
Total$285,945 $286,087 

(1) Includes connectivity-related revenue from IoT Connectivity and IoT Solutions.
(2) Includes hardware-related revenue from IoT Connectivity and IoT Solutions.
(3) Includes $3.8 million and $4.6 million of bill-and-hold arrangements for the years ended December 31, 2025 and 2024, respectively.
The table below sets forth a summary of revenue by geographic area:

For the Year Ended December 31,
(in thousands)20252024
United States$241,181 $241,718 
Other countries (1)
44,764 44,369 
Total$285,945 $286,087 

(1) No single country in “other countries” exceeded 10% of the total revenue for the years ended December 31, 2025 and 2024.

Contract Assets

The following table sets forth the change in contract assets, which consists of unbilled receivables that are included in accounts receivable, net and other non-current assets on the consolidated balance sheets as of December 31, 2025 and 2024:

December 31,
(in thousands)20252024
Beginning balance$3,513 $2,173 
Revenue recognized during the period but not billed (1)
5,308 3,271 
Amounts reclassified to accounts receivable(3,360)(1,931)
Ending balance$5,461 $3,513 

(1) Net of financing component of $0.6 million and $0.3 million as of December 31, 2025 and 2024, respectively.

Contract Liabilities

The table below sets forth the change in contract liabilities, or deferred revenue:

December 31,
(in thousands)20252024
Beginning balance$8,509 $9,044 
Amounts billed but not recognized as revenue9,059 8,492 
Revenue recognized from balances held at the beginning of the period(8,509)(9,044)
Foreign exchange32 17 
Ending balance$9,091 $8,509 

Remaining Performance Obligations

Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations that are unsatisfied, or partially unsatisfied, at the end of the reporting period. Remaining performance obligations estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustments for revenue that has not materialized, and adjustments for currency. As of December 31, 2025 the Company had approximately $62.5 million of remaining performance obligations on contracts with an original duration of one year or more. The Company expects to recognize approximately 45% of these remaining performance obligations in 2026, with the remaining balance recognized through 2030.

The Company has variable consideration of approximately $1.8 million and $3.1 million that was constrained revenue and excluded from the transaction price for the years ended December 31, 2025 and 2024, respectively.

Costs to Obtain and Fulfill a Contract

The Company did not have material costs related to obtaining a contract, or fulfilling a contract that are not addressed by other accounting standards, with amortization periods greater than one year for the years ended December 31, 2025 and 2024.
Customer Concentrations

The Company did not have any single customer that accounted for more than 10% of total revenue or related accounts receivable for the years ended, and as of, December 31, 2025 and 2024.

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Apr 30, 2025
2023Apr 15, 2024
2022Apr 7, 2023
2021Mar 30, 2022

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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