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IQST - IQSTEL Reports FY 2025 Financial Results and Enters Next Phase of EBITDA Expansion

(Very Positive)
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IQST (NASDAQ: IQST) reported full-year 2025 results and outlined a shift toward higher-margin services. Revenue rose to $316.9M (+11.9%) and gross profit to $9.46M (+14.3%); stockholders' equity reached $16.3M (+37%).

SMS traffic grew to 17.4 billion messages (+25.18%), and the company says core Telecom and Fintech generate over $2.7M in adjusted EBITDA as it targets EBITDA expansion via AI, cybersecurity, and digital health.

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Positive

  • Revenue +11.9% to $316.9M year-over-year
  • Gross profit +14.3% to $9.46M
  • Equity +37.0% to $16.3M
  • SMS traffic +25.18% to 17.4 billion messages
  • Adjusted EBITDA $2.7M+ from core Telecom and Fintech

Negative

  • Low gross margin of 3.46% in Q4 2025
  • High concentration with ~80% revenue from Telecom services

News Market Reaction – IQST

-8.59%
9 alerts
-8.59% Session close to close
+8.9% Peak Tracked
-10.1% Trough Tracked
$8.31M Market Cap
1.0x Rel. Volume

In the Apr 7 session, IQST declined 8.59%, reflecting a notable negative market reaction. Argus tracked a peak move of +8.9% during that session. Argus tracked a trough of -10.1% from its starting point during tracking. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -8.6% in the session following this news. A negative reaction despite improving 2025...
Analysis

The stock moved -8.6% in the session following this news. A negative reaction despite improving 2025 metrics would fit the mixed history around IQST earnings, where some strong reports preceded declines, like the -3.39% move after Q2 2025. The latest release highlights revenue of $316.9M and better margins, but recent filings also reference continued losses and financing needs, which could amplify downside if sentiment turns cautious.

Key Figures

2025 revenue: $316.9M 2025 gross profit: $9.46M Stockholders' equity: $16.3M +5 more
8 metrics
2025 revenue $316.9M Full year 2025 vs $283.2M in 2024, +11.9%
2025 gross profit $9.46M Full year 2025 vs $8.27M in 2024, +14.3%
Stockholders' equity $16.3M Year-end 2025 vs $11.9M in 2024, +37.0%
SMS traffic 2025 17.4B messages Up from 13.9B messages, 25.18% growth
Q4 gross margin 3.46% Up from 2.74% in Q4 2024, +26.28%
Revenue run rate $400M Current annualized revenue run rate cited by management
Adjusted EBITDA run rate Over $2.7M Core Telecom and Fintech businesses
Revenue target $1B Annual revenue goal within the next 24 months

Previous Earnings Reports

3 past events · Latest: Nov 14 (Positive)
Same Type Pattern 3 events
Date Event Sentiment 24h Move Catalyst
Nov 14 Q3 2025 earnings Positive +12.7% Record Q3 2025 revenue and positive adjusted EBITDA with stronger balance sheet.
Aug 14 Q2 2025 earnings Positive -3.4% Strong Q2 2025 results with equity growth and margin expansion highlighted.
Dec 30 Q3 2024 results Positive -0.2% ONAR Q3 2024 growth update including strategic alliance with iQSTEL.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings updates have usually been received positively on average, but reactions are mixed, with both strong rallies and modest sell-offs following prior reports.

Recent Company History

Recent earnings-related news for IQST has highlighted rapid revenue growth, margin expansion, and strengthening equity. In Q2 2025, management emphasized rising gross margin and improved net income and EBITDA. The Q3 2025 release reported record quarterly revenue of $102.8M and adjusted EBITDA of $683,189, reinforcing the growth narrative. Earlier, a partner’s Q3 2024 update referenced a strategic alliance with iQSTEL. Today’s full-year 2025 results continue this theme of scaling revenue and pursuing EBITDA expansion from a larger base.

Key Terms

gross margin, stockholders' equity, adjusted EBITDA, revenue run rate, +2 more
6 terms
gross margin financial
"Gross margin improved significantly, increasing 26.28%, from 2.74% in Q4 2024 to 3.46% in Q4 2025"
Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.
View in glossary
stockholders' equity financial
"Stockholders' Equity | $16.3M | $11.9M | +37.0 %"
Stockholders' equity is the portion of a company's assets that belongs to its owners after all debts and obligations are paid; think of it as the value left for shareholders if the company sold everything and paid off what it owes. Investors watch it because it shows the company's net worth, indicates how much of growth is funded by owners versus debt, and helps assess financial health and the potential for future dividends or stock value increases — like the equity in a house after the mortgage is settled.
adjusted EBITDA financial
"core Telecom and Fintech businesses are already generating positive Net Income and adjusted EBITDA"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
revenue run rate financial
"growing our operations to a $400 million revenue run rate while maintaining a clean capital structure"
Revenue run rate is an annualized estimate of a company's future sales based on its most recent revenue over a short period—for example, multiplying one month’s revenue by 12 to project a year. Investors use it as a quick snapshot of current business momentum, like using a car’s current speed to estimate how far it will travel in a year, but it can be misleading if recent results are unusual or seasonal.
convertible notes financial
"Importantly, IQSTEL maintains a clean capital structure:No convertible notes outstanding"
Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.
warrants financial
"Importantly, IQSTEL maintains a clean capital structure:No convertible notes outstandingNo warrants outstanding"
Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.
View in glossary

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Company Strengthens Its Global Platform and Positions for High-Margin Growth Across AI, Cybersecurity, and Digital Health

NEW YORK, April 6, 2026 /PRNewswire/ -- IQSTEL Inc. (NASDAQ: IQST), a rapidly growing global telecommunications and technology company, today reported its financial results for the fourth quarter and full year ended December 31, 2025.

Financial Performance Overview (2025 vs. 2024)

IQSTEL continued to expand its global business platform, delivering consistent revenue growth and strengthening its equity base:

Metric

2025

2024

Growth

Revenue

$316.9M

$283.2M

+11.9 %

Gross Profit

$9.46M

$8.27M

+14.3 %

Stockholders' Equity

$16.3M

$11.9M

+37.0 %

Operational Performance

From an operational standpoint, SMS traffic increased from 13.9 billion to 17.4 billion messages, representing a 25.18% growth, reinforcing the Company's strategic focus on higher-margin services.

Gross margin improved significantly, increasing 26.28%, from 2.74% in Q4 2024 to 3.46% in Q4 2025, reflecting enhanced operational efficiency and a more favorable service mix.

Additionally, intercompany routing and platform consolidation initiatives have further improved efficiency. These strategies optimize operations by leveraging more efficient routing alternatives, directly contributing to margin expansion.

"Over the past several years, we have successfully built a strong and scalable global business platform, growing our operations to a $400 million revenue run rate while maintaining a clean capital structure.

Our core Telecom and Fintech businesses are already generating positive Net Income and adjusted EBITDA, providing a solid foundation for the next phase of our growth.

We are now entering a new stage focused on expanding EBITDA through high-margin services such as AI, cybersecurity, and digital health. By leveraging our global platform and relationships with over 600 telecom operators, we believe we are uniquely positioned to accelerate growth and create significant long-term value for our shareholders."  - said Leandro Iglesias, CEO of IQSTEL

A Proven and Scalable Business Platform

Over the past several years, IQSTEL has successfully built a strong and scalable commercial platform, growing its business from tens of millions of dollars in revenue to a current $400 million revenue run rate, with approximately:

  • 80% generated by Telecom services
  • 20% generated by Fintech services

The Company's core operating businesses — Telecom and Fintech — currently generate over $2.7 million in adjusted EBITDA, demonstrating the strength and profitability of its operations.

Importantly, IQSTEL maintains a clean capital structure:

  • No convertible notes outstanding
  • No warrants outstanding

This provides a strong and disciplined financial foundation for future growth and shareholder value creation.

A Unique Global Distribution Platform

IQSTEL has developed a highly valuable global business platform that already reaches:

  • Over 600 of the largest telecom operators around the world
  • Approximately 2.3 billion end users through its partners
  • Presence across 21 countries in four continents

This platform represents a powerful and scalable global distribution engine, positioning IQSTEL as an attractive partner for companies seeking to penetrate the telecom industry at scale.

As a result, IQSTEL is uniquely positioned to rapidly commercialize new technology services across a broad and established customer base.

Entering the Next Phase: EBITDA Expansion Through High-Margin Services

Having successfully built its commercial platform, IQSTEL is now entering a new phase focused on EBITDA and Net Income expansion, driven by the introduction of high-tech, high-margin services, including:

  • Artificial Intelligence (AI)
  • Cybersecurity solutions
  • Digital Health services

These new verticals are expected to:

  • Improve overall margin profile
  • Accelerate EBITDA growth
  • Enhance long-term shareholder value

By leveraging its existing global platform, IQSTEL can scale these services efficiently without requiring significant additional infrastructure investment.

Outlook and Strategic Direction

IQSTEL remains focused on executing a clear and disciplined growth strategy:

  • Achieving $1 billion in annual revenue within the next 24 months
  • Expanding EBITDA through higher-margin service offerings
  • Continuing to strengthen its balance sheet and capital structure

Conference Call Participant Details
April 7, 2026 at 8:30am ET

North American Toll Free: 1-888-880-3330 or 1-646-357-8766
Audience URL: https://app.webinar.net/xGlRbGoba5n

About IQSTEL Inc.
IQSTEL Inc. (NASDAQ: IQST) is a global telecom and technology company operating in 21 countries with over 600 Telecommunication Carrier Interconnections. The company delivers international voice, SMS, messaging, connectivity, and mobile financial services to telecom operators and enterprise customers worldwide. Built through a decade of organic growth and strategic acquisitions, IQSTEL is now expanding into AI-powered communications and cybersecurity through its RealityBorder.com AI Division and Cycurion partnership.

For more information, please visit www.IQSTEL.com.

Official Investors Landing Page: www.landingpage.iqstel.com

Safe Harbor Statement:
Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other information relating to our future activities or other future events or conditions. Words such as "anticipate," "believe," "estimate," "expect," "intend", "could" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates, and projections about our business based partly on assumptions made by management. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to successfully market our products and services; our continued ability to pay operating costs and ability to meet demand for our products and services; the amount and nature of competition from other telecom products and services; the effects of changes in the cybersecurity and telecom markets; our ability to successfully develop new products and services; our ability to complete complementary acquisitions and dispositions that benefit our company; our success establishing and maintaining collaborative, strategic alliance agreements with our industry partners; our ability to comply with applicable regulations; our ability to secure capital when needed; and the other risks and uncertainties described in our prior filings with the Securities and Exchange Commission.

These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may and are likely to differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release, and IQSTEL Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/iqst---iqstel-reports-fy-2025-financial-results-and-enters-next-phase-of-ebitda-expansion-302734932.html

SOURCE iQSTEL

FAQ

What were IQST (NASDAQ: IQST) full-year 2025 revenue and growth rates?

IQST reported $316.9M in revenue for 2025, a +11.9% increase year-over-year. According to the company, this reflects expanded global operations and higher SMS traffic volumes during the year.

How did IQST's SMS traffic change in 2025 and why does it matter for IQST (IQST)?

SMS traffic rose to 17.4 billion messages, up 25.18% year-over-year. According to the company, higher traffic supports scale, higher-margin routing, and revenue opportunities across telecom and fintech partners.

What is IQST's 2025 profitability picture and adjusted EBITDA for core businesses?

IQST's 2025 gross profit was $9.46M with core Telecom and Fintech generating over $2.7M in adjusted EBITDA. According to the company, these metrics underpin its plan to expand EBITDA through higher-margin services.

What strategic shift did IQST announce on April 6, 2026 for future growth?

IQST said it will pursue EBITDA expansion via AI, cybersecurity, and digital health verticals. According to the company, the global telecom platform will be leveraged to scale these higher-margin services efficiently.

What balance-sheet and capital-structure details did IQST disclose for 2025 (IQST)?

IQST reported $16.3M in stockholders' equity, up 37%, and stated there are no outstanding convertible notes or warrants. According to the company, this is part of a clean capital structure narrative.