KonaTel

KTEL

Telecommunications Services · Communication Services

Price

$0.22

+0.00 (+0.00%)

Market Cap

$9.7M

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Share count rising — dilution

+1.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 42.9M (2021) → 43.7M (2025)

KonaTel, Inc. is a small U.S. telecommunications company that provides wireless phone and data services to customers. It operates as a Mobile Virtual Network Operator (MVNO), meaning it does not own its own cell towers but instead leases network capacity from larger carriers and resells it to end users. The company focuses on serving low-income Americans through government-subsidized programs like the FCC's Lifeline and Affordable Connectivity Program.

KonaTel earns revenue by selling prepaid wireless plans and devices, with a significant portion tied to federal subsidy reimbursements rather than direct consumer payments. It operates entirely within the United States and is a very small company with a market cap under $100 million. The business faces real risk because it depends heavily on government programs that can be reduced or eliminated by policy changes — the Affordable Connectivity Program was shut down in 2024, which directly threatens KonaTel's core revenue stream.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-17.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+69.5% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$716,910/ year

↑ Rising (+409% vs prior year)

8.5% of revenue

Below sector average (12%)

R&D investment increasing — building for the future

Insider Activity

56.5%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~4 months

$704,867 cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Short runway — potential dilution ahead through share issuance

Cash watch

KonaTel has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

35.9%

Modest — 35.9% gross margin

Operating Margin

-25.7%

Losing money on operations — -25.7%

ROCE

-130.5%

Weak — -130.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-45.5%

Shrinking sales (-45.5% YoY)

EPS YoY

-160.7%

Earnings shrinking (-160.7% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-22.6%

Burning cash (-22.6%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

—

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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