The company is evolving from a Telecom and Technology business into a Global Connectivity & AI Technology Corporation
NEW YORK, Aug. 14, 2025 /PRNewswire/ -- IQSTEL Inc. $(IQST)$ today announced its financial results for the second quarter ended June 30, 2025, reporting substantial growth in shareholder equity, improved gross margins, and increased profitability in its telecom division.
Q2 2025 Highlights:
-- Net Shareholder Equity increased from $11.9 million in December 2024 to
$14.29 million as of June 30, 2025 -- not yet including the benefit of a
$3.5 million debt reduction announced in July, expected to be reflected
in Q3.
-- Gross Revenues (before intercompany eliminations) up 17% year-over-year
for the first six months of 2025, increasing from $132.58 million in H1
2024 to $155.15 million in H1 2025, with 100% of this growth being
organic.
-- Gross Margin improved by 7.45% compared to the same period in 2024.
-- Telecom Division Net Income rose 29.94% quarter-over-quarter to $321,321,
with EBITDA of $1.1 million for the first half of 2025.
-- Assets per Share: $17.41 | Equity per Share: $4.84 (pre-debt reduction
impact).
"Our Q2 results confirm the strength of our balance sheet, the profitability of our core business, and the scalability of our operations," said Leandro Jose Iglesias, CEO of IQSTEL. "With accelerating adjusted EBITDA and the positive impact of our debt reduction coming in Q3, we are well-positioned for a strong second half of 2025."
SHAREHOLDERS LETTER
IQSTEL Inc. -- Q2 2025 Shareholders Letter
Dear Shareholders,
We are pleased to share with you the highlights from our Q2 2025 results, which reflect the continued strength of our operations, the resilience of our business model, and our ongoing commitment to creating shareholder value.
Strong Balance Sheet and Shareholder Value Creation
Net Shareholder's Equity increased from $11,900,263 at December 31, 2024 to $14,288,000 by June 30, 2025 -- a clear demonstration of the strength of our balance sheet and our ability to build value for shareholders.
This $14.29 million in equity does not yet include the impact of the $3.5 million debt reduction, which occurred in Q3, and will be reflected in our Q3 2025 Form 10-Q and is expected to have a very significant positive effect on equity per share.
Additionally, between May and June 2025, approximately $3.6 million was converted into common shares, and these issuances were fully absorbed by the market before July -- during which the stock price remained stable above $10/share. Importantly, these new share issuances did not negatively impact our Net Shareholder's Equity ratio. In fact, Net Shareholder's Equity per issued share improved from $3.37 as of June 30, 2024, to $4.08 as of June 30, 2025.
Revenue Growth Driven by Organic Performance
For the six months ended June 30, 2025, Gross Revenue (before intercompany eliminations) was up 17% year-over-year for the first six months of 2025, increasing from $132.58 million in H1 2024 to $155.15 million in H1 2025, with 100% of this growth being organic.
While net consolidated revenue (after intercompany eliminations) was lower compared to the prior year, this was due to a higher volume of intercompany transactions -- part of our strategic initiative to optimize operations across subsidiaries.
This approach allows us to:
-- Leverage more efficient routing for our voice and SMS services, -- Reduce costs, and -- Improve service delivery.
These synergies enhance our gross margins and strengthen our competitive position. Importantly, 100% of our revenue during both the three and six-month periods ended June 30, 2025, came from organic growth. This underscores the strength and scalability of our current operations.
Margin Expansion
Our consolidated gross margin percentage for the six months ended June 30, 2025, increased by 7.65% compared to the same period in 2024. This improvement reflects the benefits of intercompany collaboration, operational alignment, and our integrated service portfolio. We expect this margin expansion trend to continue in the second half of the year.
Telecom Division Profitability
Net income for the telecom division increased 29.94% quarter-over-quarter, from $247,288 in Q1 2025 to $321,321 in Q2 2025. This growth was driven by improved operational performance and revenue gains.
The telecom division delivered positive EBITDA of $1,106,314 for the first six months of 2025, reinforcing the consistent profitability of our core business.
Per Share Value Metrics
-- Assets: $51.4 million ($17.41 per share)
-- Stockholders' Equity: $14.29 million ($4.84 per share) -- not yet
reflecting the upcoming $3.5 million debt reduction impact in Q3.
Adjusted EBITDA Growth
Adjusted EBITDA for our operating businesses reached $1.1 million for the first six months of the year. We expect this figure to accelerate significantly during the second half of 2025 as we further align our operations and roll out high-margin products.
What Shareholders Can Expect Over the Next 6 to 18 Months
-- Strategic Shift to a GLOBAL CONNECTIVITY & AI TECHNOLOGY
CORPORATIONIQSTEL has already begun transitioning from a Telecom & Tech
corporation to a Global Connectivity & AI Technology Corporation. Our AI
R&D unit, www.RealityBorder.com , has developed proprietary technologies
such as www.airweb.ai and www.iq2call.ai, which are expected to continue
enhancing our telecom, fintech, and cybersecurity services. A clear
example of this innovation is our agreement with ONAR to develop
AI-powered customer support agents, reducing ONAR's costs and improving
efficiency.
-- Accelerating AI Cybersecurity Through Cycurion PartnershipOur partnership
with Cycurion is expected to speed the development of next-generation
AI-based cybersecurity solutions. We recently announced that IQSTEL and
Cycurion plan to become sibling companies through an equity share
exchange, with the definitive agreement planned for execution this
quarter.
-- M&A Strategy to Boost EBITDAWe are actively pursuing acquisitions that
will put us on track to reach our goal of a $15 million Adjusted EBITDA
run rate.
-- Strong Organic Growth MomentumWe are on track to achieve $210 million
revenue in the second half of 2025. We recently announced preliminary
revenue of $35 million for the month of July, setting the stage for a
$400 million revenue run rate, achieved five months ahead of year-end.
Our current revenue mix is 80% telecom and 20% fintech. Following our
vision to become a $1 billion revenue company by 2027.
-- Closing the Valuation GapWe will continue working to grow Adjusted EBITDA,
as many companies in our sector trade at 10x--20x EBITDA. Bridging this
gap is a key priority to increase shareholder value. We invite investors
to review the Litchfield Hills Research report on IQSTEL, which issued
a Buy rating with a price target range of $18--$22, page:
https://hillsresearch.com/current-research/
-- Rising Institutional InterestSome institutional investors have already
begun taking positions in IQSTEL in the open market, as disclosed, and we
expect this trend to accelerate. This information is publicly available
on Nasdaq's institutional holding page:
https://www.nasdaq.com/market-activity/stocks/iqst/institutional-holdings
We will keep sharing our plans and our vision, and we remain fully committed to increasing shareholder value every day.
Building for the Next Decade
Q2 2025 results demonstrate that IQSTEL is building sustainable value -- with a stronger balance sheet, higher margins, profitable telecom operations, accelerating adjusted EBITDA, and a clear roadmap for growth over the next 18 months.
IQSTEL continues to prepare for sustained growth well beyond its current planning horizon.
"We think long-term," said Leandro Iglesias, CEO of IQSTEL. "Our strategies are designed not only to deliver strong results in the coming years but also to ensure IQSTEL is ready to lead our industry into the next decade."
Thank you for your continued trust and support. We are building a great global corporation together.
Sincerely,
Leandro Jose Iglesias
President & CEO
IQSTEL Inc. (NASDAQ: IQST)
About IQSTEL Inc.
IQSTEL Inc. (NASDAQ: IQST) is a multinational technology company providing advanced solutions across Telecom, High-Tech Telecom Services, Fintech, AI-Powered Telecom Platforms, and Cybersecurity. With operations in 21 countries and a team of 100 employees, IQSTEL serves a broad global customer base with high-value, high-margin services. Backed by a strong and scalable business platform, the company is forecasting $340 million in revenue for FY-2025, reinforcing its trajectory toward becoming a $1 billion tech-driven enterprise by 2027.
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