iQSTEL 2025 Q1 Earnings Misses Targets as Net Loss Widens 97.2%

iQSTEL Inc. reported its fiscal 2025 Q1 earnings on May 15th, 2025, revealing a revenue increase of 12.1% year-over-year to $57.63 million. Despite the revenue growth, the company missed expectations with a net loss of $1.14 million, a significant 97.2% increase compared to the previous year, primarily attributed to strategic investments and expansion costs. The company maintained its guidance, targeting $340 million in revenue for FY-2025, with the expectation of achieving a $400 million run rate by year-end as it continues to focus on telecom and technology services.

Revenue
The total revenue of iQSTEL has shown a commendable increase of 12.1%, reaching $57.63 million in Q1 2025, up from $51.41 million in Q1 2024, showcasing the company's growth trajectory.

Earnings/Net Income
iQSTEL's losses deepened to $0.44 per share in 2025 Q1 from a loss of $0.37 per share in 2024 Q1, representing an 18.9% wider loss. Meanwhile, the company's net loss widened to $1.14 million, a significant increase of 97.2% from the $580,216 loss recorded in 2024 Q1. The EPS results indicate financial challenges for the company.

Post-Earnings Price Action Review
The strategy of buying iQSTEL shares after its revenue raise on the financial report release date and holding for 30 days has consistently yielded positive results over the past five years. This tactical approach has generated an annualized return of 12.5%, surpassing the market average and demonstrating the strategy's effectiveness in capturing growth opportunities following revenue announcements. By capitalizing on the company's revenue momentum, investors have been able to benefit from market optimism and capitalize on post-announcement stock price adjustments. The strategy underscores the potential for strategic investment timing to enhance portfolio performance, particularly in volatile markets where responsive tactics can offer significant advantages.

CEO Commentary
"We are very pleased with our Q1 performance. Our business platform continues to demonstrate robust revenue generation, along with steady improvements toward profitability," said Leandro Iglesias, CEO of iQSTEL. He highlighted that the company achieved $57.6 million in revenue, a 12% increase year-over-year, and a 40% increase in gross profit to $1.93 million, reflecting the effectiveness of their strategic initiatives. Iglesias emphasized a commitment to enhancing operational quality and scaling high-margin products, with the company positioned for continued growth and success following its NASDAQ uplisting, which he views as a significant catalyst for future opportunities.

Guidance
iQSTEL provides a revenue target of $340 million for FY-2025, aiming for a year-end run rate of $400 million, with a revenue mix goal of 80% from telecom and 20% from technology services. The company anticipates achieving adjusted EBITDA exceeding $3 million and positive net income from its operating subsidiaries. The CEO expressed confidence in the company’s trajectory toward reaching $1 billion in annual revenue by 2027, underpinned by strategic acquisitions and organic growth.

Additional News
Recently, iQSTEL executed a strategic decision to uplist to NASDAQ, marking a significant milestone in its growth trajectory. This move involved a reverse stock split to meet listing requirements, enhancing the company’s visibility and credibility in the financial markets. Additionally, iQSTEL announced a transformative acquisition plan, signing a Memorandum of Understanding to acquire a 51% stake in GlobeTopper, a fintech leader, which aims to expand its fintech division and strengthen its revenue outlook. Furthermore, iQSTEL unveiled its innovative eSIM and Roaming Connectivity Services platform, led by its subsidiary QXTEL, at ITW 2025, paving the way for new growth opportunities in high-tech telecom services.