IQSTEL (NASDAQ: IQST) lifts 2025 revenue 11.9% and targets $1B
Rhea-AI Filing Summary
iQSTEL Inc. reported FY 2025 results with revenue of $316.9 million, an 11.9% increase from 2024, and record quarterly and annual performance. Gross profit rose to about $9–9.46 million, while stockholders’ equity grew from $11 million to roughly $16 million, a 37% gain.
The company generated over $2.7 million in adjusted EBITDA from its Telecom and Fintech segments and highlighted a clean capital structure with no convertible notes or warrants. SMS volume expanded from 13.9 billion to 17.4 billion messages, and gross margin improved from 2.74% to 3.46%, reflecting routing and platform efficiencies.
Management emphasized iQSTEL’s global distribution platform, reaching more than 600 telecom operators and about 2.3 billion end users across 21 countries. The company is entering higher-margin verticals in AI, cybersecurity, and digital health and articulated a goal to reach $1 billion in annual revenue within the next 24 months while continuing EBITDA expansion.
Positive
- Strong top-line and equity growth: 2025 revenue reached $316.9 million, up 11.9% year over year, while stockholders’ equity increased about 37% to roughly $16 million, signaling both scale expansion and a stronger capital base.
- Margin and EBITDA improvement with clean capital structure: Gross margin rose from 2.74% to 3.46%, adjusted EBITDA exceeded $2.7 million, and the company reported no convertible notes or warrants, reducing financing overhang.
- High-margin growth strategy on a large platform: iQSTEL is leveraging relationships with 600+ telecom operators and access to 2.3 billion end users to launch AI, cybersecurity, and digital health services, targeting $1 billion annual revenue within 24 months.
Negative
- None.
Insights
iQSTEL posts double-digit 2025 growth and pivots toward higher-margin AI, cybersecurity, and digital health.
iQSTEL delivered revenue of $316.9 million, up 11.9% year over year, with gross profit around $9–9.46 million and stockholders’ equity rising 37% to roughly $16 million. Adjusted EBITDA from core Telecom and Fintech operations exceeded $2.7 million, indicating the base business is profit-generating.
Operationally, SMS volume grew from 13.9 billion to 17.4 billion messages and gross margin improved from 2.74% to 3.46%, helped by intercompany routing and platform consolidation. The balance sheet message is discipline: no convertible notes and no warrants, with positive working capital cited on the call.
Strategically, management is reframing iQSTEL as a global distribution platform with relationships to 600+ operators and access to 2.3 billion end users. They outlined a push into AI-enhanced telecom services, cybersecurity offerings via partners, and a new digital health vertical, alongside a stated ambition to reach $1 billion annual revenue within 24 months. Subsequent filings and earnings updates will show how quickly these high-margin services scale on top of the existing $400 million revenue run rate.
8-K Event Classification
Key Figures
Key Terms
adjusted EBITDA financial
gross margin financial
clean capital structure financial
digital health technical
intercompany routing technical
forward-looking statements regulatory
Earnings Snapshot
Management outlined a goal to reach $1 billion in annual revenue within the next 24 months and to expand EBITDA through high-margin AI, cybersecurity, and digital health services.
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02 Results of Operations and Financial Condition.
On April 6, 2026, iQSTEL Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter and full year ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Item 2.02 (including Exhibit 99.1) is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01 Regulation FD Disclosure.
On April 7, 2026, the Company held a conference call to discuss its fourth quarter and full year 2025 financial results. A transcript of the conference call is furnished as Exhibit 99.2 to this Current Report on Form 8-K. In connection with the conference call, the Company also used a slide presentation, a copy of which is furnished as Exhibit 99.3 to this Current Report on Form 8-K.
The information in this Item 7.01 (including Exhibits 99.2 and 99.3) is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.(d) Exhibits
| Exhibit No. | Description |
| 99.1 | Press Release dated April 6, 2026, announcing FY 2025 financial results (furnished herewith). |
| 99.2 | Transcript of Earnings Conference Call held on April 7, 2026 (furnished herewith). |
| 99.3 | Slide Presentation used during the April 7, 2026 Earnings Conference Call (furnished herewith). |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
iQSTEL Inc.
/s/ Leandro Iglesias
Leandro Iglesias
Chief Executive Officer
Date: April 10, 2026
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IQST - IQSTEL Reports FY 2025 Financial Results and Enters Next Phase of EBITDA Expansion
Company Strengthens Its Global Platform and Positions for High-Margin Growth Across AI, Cybersecurity, and Digital Health
NEW YORK, April 6th, 2026 — 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.
Media and Investor Relations:
Ethan Walfish
Head of Investor Relations
IQSTEL Inc.
300 Aragon Avenue, Suite 375
Coral Gates, FL 33134
Email: ir@iqstel.com
IQSTEL Inc.
Q4 2025 and Full Year 2025 Financial Results
Event Date/Time: April 7, 2026 — 8:30 a.m. E.T.
Length: 39 minutes
Corporate participants
Ethan Walfish
SW Investor Relations — Head of Investor Relations
Leandro Iglesias
IQSTEL Inc. — Chief Executive Officer
Alvaro Quintana
IQSTEL Inc. — Chief Financial Officer
Conference Call Participants
Barry Sine
Litchfield Hills Research — Analyst
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PRESENTATION
Operator
Thank you for standing by. At this time, I would like to welcome everyone to the IQSTEL Investor Conference Call to discuss Q4 2025 and full year 2025 financial results. All lines have been placed on mute to prevent any background noise.
After the speakers’ remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press *, followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press *, 1 again.
I would now like to turn the conference over to Ethan Walfish, Head of Investor Relations.
Sir, the floor is yours.
Ethan Walfish — Head of Investor Relations, SW Investor Relations
Good morning, and thank you for joining IQSTEL’s fourth quarter and full year 2025 earnings call. Joining me today, I’m pleased to have Leandro Iglesias, Chief Executive Officer; and Alvaro Quintana, Chief Financial Officer.
The recording of today’s call will be archived and available in the Investor Relations portion of our website for a minimum of 30 days.
During the call, we will make forward-looking statements, such as dialogue regarding our revenue expectations or forecasts for remaining quarters in the full fiscal year of 2026 and 2027. These statements are based on our current expectations and information available as of today and are subject to a variety of risks, uncertainties, and assumptions.
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Actual results may differ materially as a result of various risk factors that have been described in our periodic filings with the SEC. As a result, we caution you against placing undue reliance on these forward-looking statements.
We assume no obligation to update any forward-looking statements as a result of new information or future events, except as required by law. In addition, other risks are more fully described in the IQSTEL’s public filings with the US Securities and Exchange Commission, which can be reviewed at www.sec.gov.
Yesterday, April 6, 2026, the Company filed the SEC its Form 10-K for Q4 and full year 2025 and, afterwards, issued a press release announcing those financial results. So participants of this call, who may not have already done so, may wish to look at those documents as we provide a summary of the results on this call.
With that, I will now turn the call over to our CEO, Leandro Iglesias.
Leandro Iglesias — Chief Executive Officer, IQSTEL Inc.
Thank you very much, Ethan. Thank you.
Let’s talk a little bit about the strategic overview of the Company. And 2025 has been a year of strong execution and continued growth for IQSTEL.
We have successfully expanded our global business platform, reaching approximately $316.9 million in revenue, representing 11.9 percent year-over-year growth, while strengthening our equity position by 37 percent.
But more importantly than the numbers, we have built a high scalable global commercial platform. Today, IQSTEL reaches over 600 of the largest telecom operators worldwide, has access to approximately 2.3 billion end users through our customers, operates across 21 countries and multiple regions.
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This is not just a telecom operation. This is a global distribution platform. Over the past year, we have grown from tens of million dollars in revenue to a current $400 million run rate revenue, building the foundation for the next phase of our company.
We are entering nowadays in the new stage of the Company that we named the transition of the Company. This transition phase, the first phase, was about the building the platform and scaling the revenue. And the second phase, where we are today, is about expanding the EBITDA and profitability.
Our core businesses, Telecom and Fintech, are already generating over $2.7 million adjusted EBITDA, providing the strength of our model, now also operating with clean capital structure, with no convertible notes and no warrants. This gives us a very solid foundation to grow efficiently and create shareholder value.
From operational perspective, we continue to improve both scale and efficiency. SMS traffic increased from 13.9 billion to 17.4 billion messages, representing 25.18 percent growth, reinforcing our focus on higher-margin services.
At the same time, gross margin improved significantly, increasing 26.28 percent from 2.74 percent to 3.46 percent, driven by a better service mix, increased focus on higher-margin segments, and operational efficiency improvements. Additionally, our company routing and platform consolidation strategy are contributing directly to margin expansion.
I want to take a moment to emphasize what we believe is the most important asset of our company is our business platform. We already have trusted relationships with global telecom partners, a proven B2B sales engine, and a global footprint. This allows us to deploy new service globally, scale quickly without heavy investment, and increase revenue per customers. And this is what makes IQSTEL unique.
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This margin growth strategy we are leveraging this platform to introduce high-tech, high-margin services, including artificial intelligence, cybersecurity, digital health. These services share key characteristics. All of them have recurring revenue models, higher margin, and strong scalability. And most importantly, they can deploy through our existing customer base. We don’t need to build a distribution channel; we already have it.
We are particularly excited about our entry into the digital health market. This is a multibillion-dollar global opportunity, driven by aging populations, rising healthcare costs, and the shift toward remote care. By leveraging our Telecom platform, we believe that we can become in a key distribution channel for digital health services globally.
Even under conservative assumptions, including penetration of less than 1 percent of our reachable base of 2.3 billion users, this represents a multibillion-dollar revenue opportunity over time. And this is a very important step in our transformation into a high-tech platform company. We will provide in more details on this vertical in the near future.
Looking forward, our strategy remains clear: achieve $1 billion in revenue within the next 24 months, expand EBITDA through higher-margin services, and continue strengthening our balance sheet. We believe that we are in very strong position to execute this plan.
In summary, we have built the platform. Now we’re expanding the margins, and we are entering in a new high-growth vertical. We believe that this combination creates a very compelling opportunity for long-term shareholders and value creation.
Thank you.
Alvaro Quintana — Chief Financial Officer, IQSTEL Inc.
Thank you, Leandro. From a financials perspective, we are pleased with our performance during 2025. For 2025, IQSTEL delivered another year of scale expansion and margin improvement, driven by disciplined execution across all business lines.
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Revenue reached $316 million, up 12 percent year over year, with QXTEL contributing 39 percent of total revenue and validating our acquisition strategy with immediate material impact.
Our gross margin increased 14 percent, rising to $9.46 million, supported by the decisive shift toward higher-margin SMS and Fintech revenue, as well as routing efficiencies across the group. SMS volume surged 25 percent, reinforcing this margin trajectory and positioning us for continued expansion.
Telecom remained a profitable engine, generating $1.9 million in operating income, while Fintech delivered $27.9 million in its first full year, an important diversification milestone that strengthens our revenue mix and reduces dependency on legacy voice.
We closed the year with positive working capital of $1.56 million, a stable liquidity position, interoperational controls across subsidiaries, integration synergies from QXTEL and GlobeTopper are already flowing through P&L, and we expect additional leverage as we scale artificial intelligence commercialization.
Our financial posture is clear. We are growing. We are expanding margins. We are building a more diversified, higher-quality revenue base. The foundation is in place for continued acceleration. We remain focused on operational discipline, efficiency, and profitability.
Ethan Walfish
Thank you, Alvaro. And with that, we are now ready to take questions.
Q&A
Operator
Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press *, then the number 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press *, 1 again.
Your first question comes from Barry Sine with Litchfield Hills Research. Your line is open.
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Barry Sine — Litchfield Hills Research
Hey. Hello, gentlemen. Couple questions, if you don’t mind. First of all, a very exciting announcement on digital healthcare, and I’m looking forward to the additional details, but a couple questions on that.
So if I think about that market, obviously a huge market. One opportunity is obviously telemedicine, although you do need to still have a human licensed doctor on the other end. You talk in your announcement about data over IoT devices for healthcare monitoring and also predictive technology.
Could you give us a little more—and I guess you’re going to roll out more information at the telecom conference in May in Washington—could you give us a little more information on what you’re looking to do? What those services are likely to entail? Will they be telemedicine? What are you looking to do in healthcare?
Leandro Iglesias
Thank you, Barry. Thank you very much for being here and asking this question. Well, listen, we are really excited about this opportunity. We are in the process to adding value to our current business relations that we have with the largest telecommunications companies around the world. And basically, one of the things that we identify is that all of them are needing services for the aging people in order to supervise the information, the signal, the vital signals of the aging people, where they are, if they slip in the floor or something.
And in that sense, today, we issued a press release because we reached an MOU with a Taiwan company that is providing not only the technology; they provide the devices for all the aging people. That basically, they are entering in—gathering the information using the telecom networks and offering to the end users in the telecom, in the mobile users, to using like a watch or another devices, gathering information about all the vital information, and entering this information into an AI platform and analyze the situation and call to emergencies or asking for supervising, and these kind of services is that we are going to offer.
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At this point, we reached an agreement, already an agreement with this company. We are working on the products and services, and we are planning to launch them in 40 days in the International Telecom Week in Washington. And our idea is to offer to our customers a solution they can offer to the end users and taking advantage that we have built these relations that our customers trust in us.
And we are going to offer something very valuable for the end users: this collecting data and monitoring the health of the aging people. So that’s the strategy that we are following. At this point, we are working in the portfolio of products that we are going to launch and preparing all the marketing materials, but we are really excited about this opportunity, Barry.
Barry Sine
Okay. Then for—
Alvaro Quintana
And let me add something about this, Barry. Remember, we have 600 interconnections agreements with the biggest mobile and telecom operators around the world. They serve 2.3 billion end users. So just imagine the huge opportunity that we have here by providing our customers, the telecom operators, the opportunity to pass through their end users these kinds of services and devices. This is where the opportunity lies.
Barry Sine
Okay. That’s very helpful. I wanted to also ask a question. If we look at the results that you’ve just reported—and I haven’t read the 10-K yet; seen the 10-K yet, and that’ll have a lot more detail—but over the last couple of years, you’ve done a number of acquisitions. I don’t know if my number’s right, but I count nine major acquisitions.
And you still, when we’ve talked, they were different software platforms. You were looking to, first of all, get everything onto an integrated voice platform. Then you were going to do SMS next. If you could give us a sense of where we are on that integration process. What are the financial impacts? Are there still margin improvements to come in 2026 and future as a result of that integration? Is it all done?
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And then also, on those prior acquisitions, you have a lot of acquisitions where you initially bought 51 percent, but you have the rights to go up to 49 percent. Where are we on that process? And particularly, the one I’m really interested, obviously, is QXTEL. So if you could talk a little about that, please?
Leandro Iglesias
Sure, Barry. But, listen, this is not a question. This is like three questions, so no problem. We are going to try to address all of them. Listen, our first—let’s start talking about the minority interest acquisitions that we are in the process to perform.
In some of the companies that we acquired at 51 percent, we have been working with them in the process to complete the acquisition of the minority interest because our vision is to create one single big corporation with all the services in order to reduce the technical and technological platform costs, reduce the executive payroll, increase the synergies, maximize the opportunities between the different markets, and different traffic that we have in the switch.
So this is something that we are in the process, and we are going to execute this plan this year. Our idea is to close those acquisitions, and we have the goal to take the control about the 100 percent on the companies that is going to represent the 95 percent of our revenue and the 95 percent of our EBITDA and net income and cash. So it is something that is going to happen, is planned to going to happen this year. And this is something that is very valuable to us in order to gather all of our operations and create the maximum synergies possible.
But at the same time, we have been working on getting one single platform for all the subsidiaries. At this point today, we have three full subsidiaries running in the same platform. That is QXTEL, ETELIX and SWISSLINK. They are running in full in the whole business for the voice. And we are moving the SMS business too this year. That’s the plan.
So we are going to have like the 95 percent of the revenue and the EBITDA in one single platform too. So our idea is clear, is to create a corporation having everything in one platform and increase the synergies and reduce the cost.
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The initial impact that we have predicted for having all the companies in one single platform is in two avenues. The first avenue is in cost reductions about the technological side. And the second avenue is about the synergies that you are going to create and having this seamless management through the different companies and interconnections and all the things.
Listen, we have been doing this process for almost a year. We started in 2025, and this process has been complex process. Remember that when we say that we have 600 high-value interconnections with the largest telecommunications companies around the world, we are talking about technical interconnections, security standpoints, commercial standpoints, agreements standpoints.
So to move everything to one single platform is something that we’ve started. And listen, we don’t want to miss anything of the opportunities in this process. And we have to be—this has to be done seamless in order for our customers and our vendors and our employees too.
So at this point, the plan is having the 100 percent of the companies for the 95 percent and 5—and 95 percent of the revenue and the EBITDA and net income. And the 95 percent of the revenue is going to be in one single platform. And we are in this process.
And I’m giving you a number that is our expectations. I believe that Alvaro could drill down this number. But we think that we are going to save around $500,000, $0.5 million per year, just in savings and cost reductions for having everything one single platform.
I don’t know, Alvaro, if you can give more details about all this strategy.
Alvaro Quintana
Sure. Barry, there is a figure that you will see in the 10-K. That is the intercompany revenue is showing in a couple of tables in the 10-K. And that number went from $22 million in 2024 to $41 million in 2026. So we almost doubled the business that is being done among all our subsidiaries. That means, in practical sense, that, for example, ETELIX is sending traffic to SWISSLINK or QXTEL or Whisl or smarvis, taking advantage of better cost termination and better quality.
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So that’s a clear example of how we are managing the synergies among all our subsidiaries. That is also impacting our gross margin percentage that increased 26 percent from 2024 to 2025. So synergies are there. We are proving our business model is working.
And, as Leandro mentioned, we are just in the first phase. Now we are implementing a reduction in operational costs, administrative costs. We are finalizing the integration in just one, switching platform for all subsidiaries or most of them. So I think the numbers are right and are already impacting our own financial results.
Barry Sine
Okay. That’s very helpful. My next question, you have recently publicly laid out a roadmap for acquisitions in 2026. And, Leandro, I know that in the past, almost all of your acquisitions, maybe all of them, have been of companies where you’ve been in the business for many decades, and you’ve made a lot of relationships. And most of the acquisitions in the past have been companies that were run by people that you’ve known and worked with for many, many years. Is that still the model?
And then the acquisitions that you’ve laid out for this year, are you still leveraging that? And then how many more of these do you have in your back pocket that you could pull the trigger on, companies where you know the CEO, you work with them, and you could grow the Company through acquisition?
Leandro Iglesias
Thank you, Barry. You put me in a tough situation, telling this to the—let me try to answer this without saying something that I cannot say. Well, listen, the path of our company is clear. We have the intention to acquire a couple of companies, and we have the goal to reach the $50 million EBITDA run rate for this year.
So to do that, we have two acquisitions in the radar. One has been already negotiated. We are entering in the purchase agreement. But it’s something that we are going to do this year, that is going to be a new thing for the shareholders, is when we are going to send a proxy to the shareholders, explaining all the economics of behind this acquisition to get the approval from them. That’s the first thing, so.
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But each of them is going to add around $5 million to $6 million EBITDA. And in both cases, we are talking about three to four years payment terms contingency to results. So it’s something that is not going to put pressure in our cash flow and is going to be very manageable for—managed for us those acquisitions.
And in one of the companies is the same case, Barry, is people that I have been working with them for 10, 15 years. And the other is a company that has been introduced by one of our subsidiaries and has a very, very strong value because it’s going to add like eight countries in penetration and something. And we are really excited about this process.
But, listen, the new here in this process is that we are going to file this to the—in a proxy and asking the—explaining to the shareholders what is going to be the decision and what economical is going to be with this acquisition. And they are going to vote about this. And we are on track on this. Listen, we have—like the current business that we have, we are in the process to having all the businesses move to one single platform, the minority interest acquisition, and third one complete those acquisitions with this.
And, listen, the big picture of this is that this picture is going to be that we are going to have present around 20, 30 countries around the world. And we are going to have like 50 to 700 larger interconnections and business relations with the largest telecom companies around the world. And we are really excited about this, all this process and everything.
But, listen, if—we have been working like in telecommunications adding fintech services at the same time. We have a lot of products and services with AI that we have been—that we have launched, and we have started to generate the traction, the commercial traction for them because we only—we want to be perceived by the market, like a high-tech telecommunications company. And we are adding AI services over our current services.
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But more than this, in this event in Washington, we are going to launch our cybersecurity solutions for the telecom industry because we have a sibling company, that is Securium, that we are going to use their platform to sell to our customers too. And in addition, we are going to launch our digital health services too. So we are in this process of growth creating new verticals and taking advantage of the business relations that we have.
If I have to say something, summarizing in like a pitch elevator about our company, our company is way more than a telecommunication or technology company. Our company is a very sophisticated business distribution channel around all the largest telecommunications companies around the world, that we have been building these relations for years, selling millions of dollars. They trust in us, and this is the right time to taking advantage of those B2B relations with the top executives on those companies and start offering high services, high technological services and high value, high margins.
And we are like in this point that the Company is going to start to generate new revenue streams with high margin. And we are really excited about all this process, in addition, of course, of the things that I said about the acquisitions and growing our current business and improving the platform and everything. We are in this turning point for the Company, for the growing and the things that we are going to be, because we have something very valuable.
Listen, you have us, maybe too, to try to build all those relations, and maybe you need years and invest millions of dollars to try to build those relations. And this is—the business relations that we have is the real value of our company nowadays. And it’s going to be in—right now, the management is working to take an advantage of this and explore it.
Alvaro, I don’t know if you want to add anything at this point.
Alvaro Quintana
No, I think you summarized it very well.
Leandro Iglesias
Perfect.
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Barry Sine
And one more question, if you don’t mind. Leandro, you just mentioned you’re looking to have a presence in 30 countries. One of those countries, Venezuela, is obviously very important to the Company, as well as to the executives personally, and we’ve seen some very positive changes recently in Venezuela. Do you see opportunities, as a result of the changes that are happening in Venezuela, that you can—that IQSTEL can take advantage of?
Leandro Iglesias
Sure. Well, listen, when we were talking about 30 countries, we are thinking in eight, nine countries in other continents, is different than America. But Venezuela is a particular case because Alvaro and I were born in Venezuela, even though I moved from Venezuela 12 years ago. I have been living in other countries, in Spain, so, because Spain is like the centre of our operation because we have operations in 21 countries, and it’s strategically for the operation.
But talking about Venezuela, at this point, we are exploring things, and we have been evaluating to start exploring what are going to be the participation of IQSTEL could have in Venezuela nowadays. To be completely honest, all the meetings that we have had, they see that being a NASDAQ US company, or the current political trend that Venezuela has is a strength, to be completely honest.
And we—but, listen, we want to—whatever we are going to do in Venezuela is something related with technology in high technological services, high-margin services. And we want to be sure that it’s going to be a solid step, whatever we are going to do. But of course, Barry, to be completely straightforward, we are evaluating this, but we haven’t carried this, bring this to the Board of Directors yet, because we want to have the whole plan development before to start moving ahead. It’s just a thing that we are evaluating so far.
I don’t know, Alvaro, because this is part of the things that you are leading, that you can say about this—
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Alvaro Quintana
No, we are keeping an eye on the situation of how it’s been developing. Of course, we have a direct contact with CEOs and the C-levels in the telecom operators in Venezuela. We used to do business with them, with all of them, in the past. And of course, the opportunity is there. And we were—we are going to take advantage of our knowledge of the market, our connections. And of course, if that brings a value to our business, we are going to do it for sure.
Barry Sine
Okay. Thank you very much, gentlemen. Those are my questions.
Operator
Once again, if you would like to ask a question, please press *, then the number 1 on your telephone keypad.
That concludes our question-and-answer session. I would now like to turn the conference back over to Leandro Iglesias, President and CEO (sic) [CEO], for any further remarks.
Leandro Iglesias
Thank you. I truly believe that I want to say something to take away of this call. And we are in the process to improve the communications with our shareholders and creating value for our shareholders. We added a professional IR firm to improve the communication. And we promise that we are going to start giving these earning calls in a quarterly basis with the intention to having the opportunity to all the shareholders asking us about the Company and everything. And we are going to be keeping working on this path.
But, listen, and to take away of this call, I want to say something. We have been developing this great company that we have, creating 600 business relations with the largest telecommunications companies around the world. And we have the 2.3 billion of end users to reach through them.
And more than this, I want that you see IQSTEL more than a telecommunications company that it is entering in fintech and in other technologies. See IQSTEL like a powerful distribution channel to the largest telecommunications companies around the world to offer them high-tech, high-margin services.
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Listen, we already have in the Company things that maybe you need years and millions dollars to invest to create those relations. And maybe you cannot make it, and we already have in the Company. And we are, right now, in the process to taking advantage of all those relations, improving value-added services and high-technology services to our customers. And we are really excited.
And we are pretty sure that, sooner than later, the market is going to understand that the real value of our company is not just the revenue and all the things that we have. It’s a commercial business platform that we have, and this distribution channel. And we are really excited about the launch of cybersecurity in 40 days and the launch of digital health services because, in the case of digital health services—and we issued a press release today about this—just using conservative projection, it’s a multibillion business opportunity for us.
And we are in this point where the Company’s going to turning the corner and start growing the business in a very fantastic way. And over the next months, you are going to see the transformation where the Company is nowadays, where the Company’s going to be becoming in a $1 billion revenue company. And we are really excited because of the moment that we are living nowadays.
And, Alvaro, do you want to add anything?
Alvaro Quintana
So, basically, say thank you to all the people that joined the call. We are very pleased with your presence here. No. We are working hard, continue doing business every day for the good of our shareholders. And basically say thank you for your support for looking after our company. Goodbye, everybody.
Leandro Iglesias
Goodbye and thank you very much for supporting and attending to this earnings call. Thank you.
Operator
This concludes today’s call. Thank you so much for attending. You may now disconnect and have a wonderful rest of your day.
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www.iqstel.com FY 2025 Earnings Call investors @iqstel.com Q4 & Full Year 2025 Results April 7, 2026 (NASDAQ: IQST)
FY 2025 Financial Highlights IQSTEL delivered record revenue and continued margin expansion in FY 2025, driven by disciplined execution across all business lines. $2.7 million $42.3 million IN TOTAL ASSETS IN ADJUSTED EBITDA 12% $16.3 million IN NET STOCKHOLDER EQUITY YEAR - OVER - YEAR GROWTH In FY25 , we achieved: 316.9 million in revenue $ 2
Operational Highlights Operational Highlights 3 ● SMS volume: 17.4 billion messages (+25% YOY) ● Gross margin improved to 3.46% (up 26% YOY) ● 600+ global telecom operator relationships ● 2.3 billion end - users reachable through customers ● Operations across 21 countries ● Clean capital structure: no convertible notes, no warrants TELECOM AI CYBERSECURITY DIGITAL HEALTH AI - enhanced telecom services and proprietary white - label solutions. Market estimated at $200B with 35 - 40% CAGR. Next - generation cybersecurity solutions deployed through our existing B2B telecom relationships. High - margin, recurring revenue model. Multi - billion - dollar opportunity serving aging populations via our telecom distribution. Even <1% penetration of 2.3B users = transformational revenue.
200 400 600 800 1000 Our 2027 Vision 2027 2025 2026 High - Margin Growth Strategy Leveraging our global telecom platform of 600+ operators and 2.3 billion reachable users to deploy high - margin services across three key verticals. Platform Advantage Leveraging existing relationships with major telecom clients to drive cross - selling and maximize revenue potential. Revenue path: $316.9M (FY2025) → $400M run rate → $1B by 2027 4
Digital Health — A New Vertical IQSTEL is entering the digital health market, a multi - billion - dollar global opportunity driven by aging populations, rising healthcare costs, and the shift toward remote care. Our global telecom platform gives us a unique distribution advantage. $400B+ 15 - 20% ANNUAL CAGR GLOBAL MARKET SIZE <1% $27.9M FINTECH DIV. FY 2025 REVENUE PENETRATION FOR MAJOR OPPORTUNITY 2.3B reachable users through our telecom platform $ 5
www.iqstel.com Thank you investors @iqstel.com Q4 & Full Year 2025 Results April 7, 2026 (NASDAQ: IQST) Leandro Iglesias President & CEO Alvaro Quintana CFO & Director