📊 KTEL Key Takeaways
Is KonaTel, Inc. (KTEL) a Good Investment?
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.
Fundamentals are weak: revenue declined double‑digits while operating and net margins remain deeply negative with significant cash burn. Liquidity is tight (sub‑1.0 current/quick ratios) and equity is thin, elevating going‑concern and dilution risk despite minimal long‑term debt. YoY loss improvement is encouraging but insufficient without evidence of sustained revenue stabilization and positive operating cash flow.
KonaTel, Inc. Key Strengths (KTEL)
- 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
- No long‑term debt; low financial leverage
- Gross margin ~29% demonstrates baseline unit economics
- YoY improvement in net loss and EPS
KTEL Stock Risks: KonaTel, Inc. Investment Risks
- 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
- Liquidity strain with current ratio <1 and negative FCF
- Revenue contraction and weak operating leverage pressuring margins
- Severely negative ROE/ROA and poor interest coverage indicating fragile financial health
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
- Operating cash flow (trend to break‑even)
- Current ratio / net working capital
KonaTel, Inc. (KTEL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
KTEL Profit Margin, ROE & Profitability Analysis
KTEL vs Telecom Sector: How KonaTel, Inc. Compares
How KonaTel, Inc. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KonaTel, Inc. Stock Overvalued? KTEL Valuation Analysis 2026
Based on fundamental analysis, KonaTel, Inc. has mixed fundamental signals relative to the Telecom 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.
KonaTel, Inc. Balance Sheet: KTEL Debt, Cash & Liquidity
KTEL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: KonaTel, Inc.'s revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.11 reflects profitable operations.
KTEL Revenue Growth, EPS Growth & YoY Performance
KTEL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.9M | -$282.6K | $-0.01 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
KonaTel, Inc. Dividends, Buybacks & Capital Allocation
KTEL SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 83% combined 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. ChatGPT: No long‑term debt; low financial leverage. Gross margin ~29% demonstrates baseline unit economics.
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. ChatGPT: Liquidity strain with current ratio <1 and negative FCF. Revenue contraction and weak operating leverage pressuring margins.
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 grade reflects both perspectives for balanced insights.
What is KTEL's fundamental grade?
Based on our AI fundamental analysis in June 2026, KonaTel, Inc. has a C grade with 83% confidence. Review the strengths and risks sections above for full context. 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: 14%). Compare these metrics with sector averages to assess valuation.
What is KTEL's AI grade for 2026?
Our dual AI analysis gives KonaTel, Inc. a combined C grade 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 Telecom stocks?
Vs Telecom sector averages: Net margin -33.1% (avg: 14%), ROE -507.8% (avg: 15%), current ratio 0.93 (avg: 1).