Iqstel (IQST -3.39%), a diversified global telecommunications and technology services provider, reported earnings on Aug. 14, 2025. Shareholder equity stood at $14.29 million. The quarter saw the company surpass analyst forecasts, with GAAP revenue of $155.15 million exceeding the analyst estimate of $70.34 million and continuing to strengthen its financial standing, supported by organic growth in its core telecom business.
Company Overview and Strategic Focus
Iqstel is a provider of international voice, SMS, and fiber-optic connectivity services to businesses and telecom carriers. Its operations span 21 countries and are organized mainly around its telecommunication division, with efforts to diversify into other technology sectors.
The company’s business has focused on growth in its core telecommunications services while developing new offerings in artificial intelligence (AI), fintech solutions (financial technology products like payment and remittance platforms), and electric vehicles. The telecom segment, which provides services such as VoIP (voice over internet protocol), continues to generate the bulk of revenue, while product innovation and strategic acquisitions remain key to Iqstel’s expansion plans. Success in these newer areas depends on realizing growth in high-potential technology markets and integrating new acquisitions effectively.
Second Quarter Developments and Performance
The main story was continued organic growth in the core telecom segment. All reported revenue increases were organic, with no impact from acquisitions or one-off gains for the six months ended June 30, 2025. The company noted its current revenue mix is 80% telecom and 20% fintech. Subsidiaries such as Etelix, SwissLink Carrier, and Whisl Telecom drive this business, focusing on wholesale voice traffic. However, a detailed breakdown between voice and messaging was not provided for the quarter.
Financially, the telecom division delivered net income of $321,321, a 29.9% increase from $247,288 in Q1 2025. Adjusted EBITDA (non-GAAP) across operating businesses reached $1.1 million for the first six months of 2025, with management pointing to expected acceleration in the back half of the year. Gross margin improved by 7.65 percentage points year over year for the six months ended June 30, 2025.
The company’s fintech and emerging technology segments, which include financial services for cross-border money movement and new AI platforms, remain a small part of the revenue base, collectively making up about 20% of revenue for the first half of 2025. Key developments included preliminary launches of AI product families, such as airweb.ai (for digital customer support) and new partnerships for AI-driven cybersecurity. Strategic acquisitions are a stated priority, with management continuing to pursue new deals, especially in cybersecurity, but no new transactions closed during the period.
Capital structure developments were also notable. Shareholder equity reached $14.29 million. Shareholder equity increased from $11.9 million at December 31, 2024, to $14.29 million at June 30, 2025. This improvement came even as the company issued new shares totaling approximately $3.6 million in conversion value during May–June 2025; the market absorbed these without material share price declines, according to management. Assets per share stood at $17.41, while shareholder equity per share reached $4.08 at June 30, 2025, up from $3.37 per share at June 30, 2024. There was no update on workforce expansion, with headcount stable at 100 employees across all divisions.
Outlook and What to Watch
For the second half of fiscal 2025, management projects revenue of $210 million for the second half, supported by strong preliminary July revenue results of $35 million. If achieved, this would set the company on a $400 million annualized revenue run rate by year-end, with a $340 million revenue target for FY2025. The company continues to target a $15 million annualized Adjusted EBITDA (non-GAAP) run rate, which would require significant growth from the current $1.1 million adjusted EBITDA figure for the first half. No explicit forward guidance on per-share earnings was provided in the release.
Leadership did not announce any dividend. Investors and analysts will be monitoring the pace of telecom segment growth, concrete progress in newer technology product families, and any material mergers or acquisitions that could alter the revenue mix. Capital management remains an area to watch, particularly in light of ongoing share issuances tied to the company’s growth initiatives.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
