📊 KTEL Key Takeaways
Is KTEL a Good Investment? Thesis Analysis
KonaTel exhibits severe financial distress with persistent operating losses (-$2.2M on $6.5M revenue), declining revenue (-14.9% YoY), and negative operating cash flow (-$1.4M). The company maintains minimal equity ($423K) with a current ratio of 0.93x, indicating both operational insolvency and working capital stress. Without demonstrated turnaround evidence, the unsustainable burn rate poses significant downside risk.
Why Buy KTEL? Key Strengths
- Positive gross margin of 29.4% indicates core business retains basic pricing power
- Cash position of $1.2M provides near-term operational runway
- Minimal long-term debt reduces financial obligations
KTEL Investment Risks to Consider
- Persistent operating losses and declining revenue with no evidence of stabilization
- Negative operating cash flow of $1.4M is structurally unsustainable and depletes reserves
- Current ratio of 0.93x combined with minimal stockholders equity creates severe liquidity vulnerability
Key Metrics to Watch
- Cash burn rate and months of runway remaining
- Revenue trend stabilization or continued deterioration
- Operating cash flow path to positive territory
KTEL Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
KTEL Profitability Ratios
KTEL vs Default Sector
How KonaTel, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KTEL Overvalued or Undervalued?
Based on fundamental analysis, KonaTel, Inc. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
KTEL Balance Sheet & Liquidity
KTEL 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: KonaTel, Inc.'s revenue has grown significantly by 95% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.09 indicates the company is currently unprofitable.
KTEL Growth Metrics (YoY)
KTEL Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.2M | -$45.1K | $0.00 |
| Q2 2025 | $2.2M | -$1.1M | $-0.03 |
| Q1 2025 | $2.2M | -$917.5K | $-0.02 |
| Q3 2024 | $3.1M | -$113.2K | $0.00 |
| Q2 2024 | $4.3M | -$1.1M | $-0.03 |
| Q1 2024 | $4.0M | -$914.7K | $-0.02 |
| Q3 2023 | $4.7M | -$113.2K | $0.00 |
| Q2 2023 | $4.6M | -$1.2M | $-0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
KTEL Capital Allocation
KTEL SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for KonaTel, Inc. (CIK: 0000845819)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KTEL
What is the AI rating for KTEL?
KonaTel, Inc. (KTEL) has an AI rating of STRONG SELL with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are KTEL's key strengths?
Claude: Positive gross margin of 29.4% indicates core business retains basic pricing power. Cash position of $1.2M provides near-term operational runway.
What are the risks of investing in KTEL?
Claude: Persistent operating losses and declining revenue with no evidence of stabilization. Negative operating cash flow of $1.4M is structurally unsustainable and depletes reserves.
What is KTEL's revenue and growth?
KonaTel, Inc. reported revenue of $6.5M.
Does KTEL pay dividends?
KonaTel, Inc. pays dividends, with $0.3M distributed to shareholders in the trailing twelve months.
Where can I find KTEL SEC filings?
Official SEC filings for KonaTel, Inc. (CIK: 0000845819) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KTEL's EPS?
KonaTel, Inc. has a diluted EPS of $-0.05.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KTEL a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, KonaTel, Inc. has a STRONG SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KTEL stock overvalued or undervalued?
Valuation metrics for KTEL: ROE of -507.8% (sector avg: 15%), net margin of -33.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy KTEL stock in 2026?
Our dual AI analysis gives KonaTel, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KTEL's free cash flow?
KonaTel, Inc.'s operating cash flow is $-1.4M, with capital expenditures of $22.4K. FCF margin is -22.3%.
How does KTEL compare to other Default stocks?
Vs Default sector averages: Net margin -33.1% (avg: 12%), ROE -507.8% (avg: 15%), current ratio 0.93 (avg: 1.8).