IQSTEL Reports FY 2025 Financial Results: Enters Next Phase of High-Margin Expansion

Key Highlights and Investor-Relevant Developments

• Revenue Growth: IQSTEL reported a significant year-over-year revenue increase, reaching \$316.9 million in 2025, up 11.9% from \$283.2 million in 2024.
• Gross Profit & Margin Expansion: Gross profit rose by 14.3% to \$9.46 million (from \$8.27 million), with gross margin improving 26.28%—from 2.74% in Q4 2024 to 3.46% in Q4 2025.
• Shareholder Equity Strengthened: Stockholders’ equity surged 37% to \$16.3 million from \$11.9 million, reflecting improved financial stability and a more robust balance sheet.
• Operational Growth: SMS traffic grew by 25.2%, from 13.9 billion to 17.4 billion messages, reinforcing the company’s competitive position in higher-margin services.
• EBITDA and Profitability: Core Telecom and Fintech businesses generated over \$2.7 million in adjusted EBITDA, demonstrating the profitability of IQSTEL’s operational base.
• Clean Capital Structure: IQSTEL has no convertible notes and no warrants outstanding, a critical indicator of financial discipline and lower dilution risk for shareholders.

Strategic Developments That Could Impact Share Value

• Pivot to High-Margin Verticals:
  IQSTEL is entering a new growth phase by expanding into high-margin services—specifically Artificial Intelligence (AI), Cybersecurity, and Digital Health. These verticals are expected to:
  • Improve overall margin profile
  • Accelerate EBITDA growth
  • Enhance long-term shareholder value

  This strategic transition is designed to leverage the company’s existing global platform and partnerships (over 600 telecom operators, 2.3 billion end users in 21 countries) without substantial new infrastructure investment.

• Ambitious Growth Targets:
  Management has set a target of reaching \$1 billion in annual revenue within the next 24 months. If achieved, this would represent a transformational leap and could significantly re-rate the company’s valuation.
• Operational Efficiencies:
  Initiatives such as intercompany routing and platform consolidation have already improved efficiency and contributed to margin expansion, setting the stage for more scalable and profitable growth.
• Attractive Platform for Partnerships and New Services:
  IQSTEL’s global distribution network makes it an appealing partner for companies wishing to access the telecom market at scale, and provides a foundation for the rapid commercialization of new technology services.

Company Outlook and Guidance

• Continued focus on executing a disciplined growth strategy.
• Emphasis on expanding EBITDA through high-margin service offerings.
• Ongoing efforts to strengthen the company’s balance sheet and capital structure.

Shareholder and Market Implications

Investors should note that the shift toward AI, Cybersecurity, and Digital Health is designed to accelerate profitability and could position IQSTEL as a leading growth story in the telecom and technology sector. The ambitious revenue target, improving margins, and clean capital structure all represent potential catalysts for share price appreciation.

The absence of convertible debt and warrants reduces dilution risk, making any potential upside more meaningful for existing shareholders. Additionally, the company’s ability to leverage its global network for new service rollouts enhances its competitive moat and opens the door for strategic partnerships or M&A activity.

Conference Call Details

• Date: April 7, 2026, at 8:30am ET
• Dial-In (North America): 1-888-880-3330 or 1-646-357-8766
• Webinar URL: https://app.webinar.net/xGlRbGoba5n

About IQSTEL

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 enterprises worldwide. IQSTEL is expanding into AI-powered communications and cybersecurity through its RealityBorder.com AI Division and Cycurion partnership.

For further information, visit www.IQSTEL.com or the official investor landing page: www.landingpage.iqstel.com.

Contact

Investor Relations:
Ethan Walfish, Head of Investor Relations
IQSTEL Inc.
300 Aragon Avenue, Suite 375
Coral Gates, FL 33134
Email: [email protected]

Disclaimer:
This article is for informational purposes only and does not constitute investment advice. Forward-looking statements in this article are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. IQSTEL undertakes no obligation to update any forward-looking statements. Investors should perform their own due diligence and consult with a qualified financial advisor before making investment decisions.

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