IQSTEL Inc. reported fiscal‑year‑ended‑December 31 2025 results that marked a transition toward profitability, with total revenue of $316.9 million, up 11 % from the prior year. The company’s telecom platform continued to scale, while high‑margin digital services—AI, cybersecurity, fintech, and digital health—were layered on top of the existing infrastructure, driving the revenue growth.
Revenue was largely driven by the telecom segment, which accounted for 91 % of total sales, while fintech contributed 9 %. Voice services represented 59.83 % of the company’s revenue mix. The mix shift toward higher‑margin services helped lift gross profit to $9.46 million, a 14.3 % increase from FY 2024, and supported an EBITDA of $2.7 million and a net income of nearly $2 million, the first positive net income in the company’s history.
The improvement in margins is attributed to operational efficiencies, including intercompany routing optimization and platform consolidation, which reduced cost of service delivery. These initiatives, combined with the growing demand for the company’s high‑margin digital offerings, enabled the company to achieve a gross margin that could reach up to 40 % as recurring revenue models mature. The EBITDA and net income figures reflect disciplined cost control and the early stages of a profitable business model.
Management reiterated its confidence in the company’s strategic pivot, targeting $1 billion in revenue within 24 months and consolidated net profitability within 12 months. The guidance signals a belief that the high‑margin services will continue to scale and that the company’s platform can support sustained growth. The company’s clean capital structure, with no convertible notes or warrants outstanding, supports this outlook, but the guidance also underscores the need for continued investment in technology and market expansion.
Despite the positive financials, auditors expressed substantial doubt about IQSTEL’s ability to continue as a going concern, citing an accumulated deficit of $43.3 million as of December 31 2025. The company remains reliant on external financing to sustain operations and fund its growth initiatives. This risk factor highlights the importance of monitoring liquidity and capital deployment as the company pursues its ambitious revenue target.
Leandro Iglesias, President and CEO, emphasized that the company is “entering a clear inflection point” as the telecom platform scales and high‑margin services are layered on top. CFO Alvaro Quintana noted that FY 2025 “delivered another year of scale expansion and margin improvement, driven by disciplined execution across all business lines.” These statements reinforce the company’s narrative of transformation from a low‑margin wholesale carrier to a higher‑margin digital services platform, while acknowledging the ongoing financial risks that must be managed as the company scales.
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