Arizona Tribune - KonaTel Reports Fiscal Year 2025 Results

DALLAS, TX / ACCESS Newswire / April 20, 2026 / KonaTel, Inc. (OTCQB:KTEL) (www.konatel.com), a voice/data communications holding company, today announced financial results for the year ended December 31, 2025.

Full Fiscal Year 2025 Financial Highlights (2025 vs. 2024)

• Revenues of $8.5 million compared to $15.5 million for the year ended December 31, 2024. The decrease in revenue was due to fewer activations within the Company's Mobile Services segment as a result of reduced government subsidized revenues due to the cancellation of the Affordable Connectivity Program (the "ACP") on June 1, 2024.

• Gross profit of $2.61 million or 30.9% gross profit margin compared to $3.41 million for the year ended December 31, 2024, or 22.0% gross profit margin. The increase in gross profit margin percentage was directly related to a focus on higher margin product offerings during the year.

• GAAP net loss $(2.6) million, or $(0.06) per diluted share, compared to net income $4.8 million, or $0.11 per diluted share, in the year ended December 31, 2024, which includes the IM Telecom 49% ownership sale.

• Non-GAAP net loss of $(2.5) million, or $(0.06) per diluted share, compared to a non-GAAP net loss of $(3.6 million, or $(0.08) per diluted share, in the year ended December 31, 2024, which excludes the proceeds from the IM Telecom 49% ownership sale in 2024.

• Cash and cash equivalents declined from $1.7 million in 2024 to $704,867 as of December 31, 2025.

Quarterly Financial Highlights (Q4 2025 vs. Q4 2024)

• Revenues of $1.97 million, a decrease of 17.0% compared to $2.38 million. This decrease was directly related to the decline in government subsidized revenues within the Mobile Services segment.

• Gross profit was $721,040 or 36.6% gross profit margin, compared to $677,723, or 28.5% gross profit margin. The increase in gross profit was directly related to a decrease in customer acquisition costs and a focus on higher margin product offerings.

• Total operating expenses decreased from $1.8 million in Q4 2024, compared to $1.2 million in Q4 2025. This decrease was due primarily to decreases in payroll and application development costs.

• GAAP net loss was $(496,765), or $(0.01) per diluted share compared to $(1.3) million, or $(0.03) per diluted share. The loss for the three months ended December 31, 2025, was impacted by reduced total operating expenses.

• Non-GAAP net income was $259,171, or $0.01 per diluted share, compared to non-GAAP net loss of $(113,082) million, or $(0.00) per diluted share. This improvement came primarily from a decline in stock-based compensation and legal expenses in Q4 of 2025.

Sean McEwen, Chairman and CEO of KonaTel stated, "Ending in late 2024 and throughout 2025, we dedicated substantial software development resources to expand our recurring revenue, hosted services telecommunications platform to include a variety of enhanced and new wholesale services. As previously discussed, we have focused our primary development effort on the expansion of our cellular-based wholesale POTS ("Plain Old Telephone Service") solution."

"We continue to monitor the FCC's Lifeline reform, which started to accelerate in Q1-2026. When complete, we will evaluate our Lifeline opportunities at that time. In the meantime, we spent 2025 on initial deployment of our POTS service, including the development of logistical processes and a national installation/deployment solution tailored specifically for the reseller market. After installation, we collect monthly recurring revenue which we expect to last for many years as these types of commercial communication lines have very little churn."

"We now support over 700 installations through our wholesale partner network. Now that we have validated our recurring revenue model, we plan to substantially expand our base throughout 2026 and beyond."

"From the FCC and industry reports, at the start of 2025, there were estimated to be approximately 40 million traditional (i.e., "copper wire") POTS lines in the USA. Of those 40 million lines, about 22 million were estimated to support commercial solutions, including elevator phones, monitoring systems, fire alarms, point-of-sale, and other systems that require analog access to the national telephone network."

McEwen continued, "After the FCC deregulated mandatory POTS support in 2019, wireline carriers and resellers started to shift their POTS customers to alternative non-wireline solutions. In fact, in January 2026, AT&T announced that it received FCC approval to terminate approximately 30% of its national copper-wire voice network by the end of this year. With the advent of POTS replacement services, like ours, carriers and resellers are more aggressively moving their customers to new internet/wireless based POTS solutions before portions of the national copper wire voice network are discontinued and negatively impact their clients."

"With national wireline carriers, including AT&T, Lumen, and Verizon signaling retirement of their copper-wire voice networks through the end of the decade, along with over 2,000 national Competitive Local Exchange Carriers (CLECs") and wireline resellers that need to replace copper wire POTS lines, the opportunity to capture a meaningful portion of the POTS replacement market will continue to accelerate."

McEwen concluded, "Rather that pursuing end-user opportunities (i.e., one customer at a time), our wholesale POTS marketing approach is based on customized partnerships with national CLECs and wireline resellers who bring us large scale deployments. We believe this strategy gives a competitive advantage and the fastest path to growth."

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 (www.apeiron.io), 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 Application Programming Interfaces ("APIs"). KonaTel's other 51% owned subsidiary, IM Telecom, dba "Infiniti Mobile" (www.infinitimobile.com), is an FCC authorized wireless Lifeline carrier with an FCC approved wireless Lifeline Compliance Plan, authorized to provide government subsidized cellular service to low-income American families. 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]

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KonaTel, Inc.
Consolidated Balance Sheets

KonaTel, Inc.
Consolidated Statements of Operations

SOURCE: KonaTel

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R.Garcia--AT