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KonaTel

KTEL
11
Telecommunications Services · Communication Services
Price
$0.15
+0.00 (+0.00%)
Market Cap
$6.5M
Winston Score
11
Winston is worried
Weak fundamentals across most pillars.
Based on the IPO prospectus (annual filing). This score will refine automatically once the company reports its first quarters.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Weak
Cash Flow
Weak
Stability
Good
Valuation
Data not available

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)

Winston Score History

The full picture

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.

Growth Profile

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

Revenue Growth

-13.4% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+83.5% 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

Insider ownership roughly steady over the past year

Cash Runway

~2 months

$350,013 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.

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Quality

Profit per sale
Gross Margin
30.9%
Modest — 30.9% gross margin
Profit after running costs
Operating Margin
-31.7%
Losing money on operations — -31.7%
Return on the money invested
ROCE
-697.1%
Weak — -697.1% return on capital

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

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Growth

Sales growth
Sales YoY
-45.5%
Shrinking sales (-45.5% YoY)
Profit growth
EPS YoY
-160.6%
Earnings shrinking (-160.6% YoY)

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

How steady the profit is
EPS Consistency
N/A
Data not available

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
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

What it owes vs what it owns
Debt / Equity
0.00
Conservative — low debt load (0.00)
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
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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