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II

iQSTEL Inc (IQST)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 consolidated revenue was $72.18M, up 25.3% sequentially vs Q1 2025 ($57.63M), but down 8.2% year-over-year vs Q2 2024 ($78.64M). Gross profit was $1.87M with a 2.59% gross margin, and EBITDA was -$0.48M [GetFinancials, Q2’25: Revenues, Gross Profit, Gross Margin, EBITDA; Q1’25: Revenues; Q2’24: Revenues, Gross Profit, Gross Margin]*.
  • The company highlighted balance sheet strength: stockholders’ equity rose to $14.29M and assets were $51.4M ($17.41 per share), with telecom division net income of $321,321 in Q2 and H1 telecom EBITDA of $1.106M .
  • Against S&P Global consensus, IQST modestly beat revenue ($72.18M vs $70.34M) and beat EPS (-$0.44 vs -$0.50), while EBITDA missed (-$0.48M vs -$0.25M) [GetEstimates for Q2 2025, S&P Global]*.
  • Management reaffirmed FY-2025 revenue guidance at $340M and accelerated the $400M annualized run-rate to Q3 (prior target year-end), citing the consolidation of Globetopper and July revenue of ~$35M as catalysts .

What Went Well and What Went Wrong

What Went Well

  • Balance sheet and per-share value improved: net stockholders’ equity increased to $14.29M and equity per share to $4.84; assets per share reached $17.41 .
  • Telecom profitability strengthened: telecom division net income rose 29.94% QoQ to $321,321, and H1 telecom EBITDA reached $1.106M .
  • Run-rate pulled forward: preliminary H1 revenue was $128.8M and July revenue was ~$35M, supporting a $400M annualized run-rate in Q3, ahead of plan .
  • Quote: “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.” — CEO Leandro Iglesias .

What Went Wrong

  • EBITDA and net income remained negative at the consolidated level: Q2 EBITDA -$0.48M and net income -$2.41M [GetFinancials, Q2’25: EBITDA, Net Income]*.
  • YoY revenue decline: Q2 2025 revenue of $72.18M was below Q2 2024 revenue of $78.64M, despite management emphasizing organic growth and intercompany routing efficiencies [GetFinancials, Q2’25/Q2’24 Revenues]* .
  • Margin volatility: gross margin in Q2 2025 was 2.59%, lower than Q1 2025 (3.36%), with management citing synergies and intercompany transactions that optimize costs over time; the release noted margin improvements on an H1 basis (+7.45%/+7.65% vs prior year), suggesting mixed quarter-to-quarter dynamics [GetFinancials, Q2’25/Q1’25 Gross Margin]* .

Financial Results

Consolidated Performance vs Prior Periods

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$78.64 [GetFinancials, Q2’24 Revenues]*$57.63 [GetFinancials, Q1’25 Revenues]*$72.18 [GetFinancials, Q2’25 Revenues]*
Gross Profit ($USD Millions)$2.16 [GetFinancials, Q2’24 Gross Profit]*$1.93 [GetFinancials, Q1’25 Gross Profit]*$1.87 [GetFinancials, Q2’25 Gross Profit]*
Gross Margin (%)2.75% [GetFinancials, Q2’24 Gross Margin]*3.36% [GetFinancials, Q1’25 Gross Margin]*2.59% [GetFinancials, Q2’25 Gross Margin]*
EBITDA ($USD Millions)-$0.21 [GetFinancials, Q2’24 EBITDA]*-$0.46 [GetFinancials, Q1’25 EBITDA]*-$0.48 [GetFinancials, Q2’25 EBITDA]*
Diluted EPS - Continuing Ops ($)-0.9003 [GetFinancials, Q2’24 EPS]*-0.4403 [GetFinancials, Q1’25 EPS]*-0.8151 [GetFinancials, Q2’25 EPS]*

Note: Values marked with * are retrieved from S&P Global.

Results vs S&P Global Consensus (Q2 2025)

MetricConsensusActualSurprise
Revenue ($USD Millions)$70.34*$72.18*+$1.84M (beat)*
Primary EPS ($)-0.50*-0.4441*+$0.056 (beat)*
EBITDA ($USD Millions)-$0.25*-$0.48*-$0.23M (miss)*

All estimate values are retrieved from S&P Global.

Segment/Mix and KPIs

MetricQ2 2025Notes
Revenue Mix (Telecom / Fintech)~80% / ~20% (current run-rate) Mix disclosed in July and Q2 materials
Net Shareholders’ Equity ($USD Millions)$14.29 Excludes $3.5M debt reduction completed in July (impact in Q3)
Equity per Share ($)$4.84 Pre-debt-reduction impact
Assets ($USD Millions)$51.4 ($17.41 per share) Balance sheet strength highlighted
Telecom Division Net Income ($USD)$321,321 +29.94% QoQ vs $247,288
Telecom EBITDA (H1) ($USD Millions)$1.106 Operating business profitability

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue (FY)FY 2025$340M target (Q1 letter) $340M target reaffirmed Maintained
Annualized Revenue Run-rate2025$400M by year-end (Q1 letter) $400M run-rate in Q3 (accelerated) Raised/Accelerated
H2 RevenueH2 2025N/AOn track ~$210M if July level maintained New disclosure
Adjusted EBITDA (Operating Subsidiaries)FY 2025$3M+ target (Q1 letter) $3M+ reiterated through H2 scale Maintained
EBITDA Run-rate2026N/A$15M run-rate goal introduced New target
Revenue mix targetYE 2025 run-rate80% Telecom / 20% Tech Reiterated mix at current run-rate Maintained

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was available in our document corpus through Sept 30, 2025; analysis is based on 8-Ks and press releases [ListDocuments: earnings-call-transcript=none].

TopicPrevious Mentions (Q4 2024 & Q1 2025)Current Period (Q2 2025)Trend
AI/Technology InitiativesBuilding high-tech services (AI telecom, fintech, cybersecurity) to drive high-margin growth Launch of IQ2Call.ai and continued AI R&D (Airweb.ai) to enhance services Expanding execution
Run-rate AccelerationYE 2025 run-rate $400M target $400M annualized run-rate expected in Q3; July ~$35M Pulled forward
M&A and IntegrationActive pursuit of accretive acquisitions with positive EBITDA Globetopper consolidation begins July; plan for 2–3 targets adding ~$5M EBITDA each Execution phase
Margin ManagementQ1 gross margin 3.36%; YoY improvements H1 gross margin improvement cited (+7.45%/+7.65% YoY) and intercompany synergies Improving H1; mixed QoQ
Balance Sheet & EquityEquity $11.6M (Q1); strong governance, uplisting achieved Equity $14.29M (pre $3.5M debt reduction); assets per share $17.41 Strengthening
Institutional InterestN/AGrowing institutional holders disclosed; ~12 holders ~4% post-Nasdaq Increasing interest

Management Commentary

  • “Our Q2 results confirm the strength of our balance sheet, the profitability of our core business, and the scalability of our operations… we are well-positioned for a strong second half of 2025.” — Leandro Jose Iglesias, CEO .
  • “We are on track to achieve $210 million revenue in the second half of 2025… setting the stage for a $400 million revenue run rate.” .
  • “We think long-term… to ensure IQSTEL is ready to lead our industry into the next decade.” .

Q&A Highlights

Not applicable — no Q2 2025 earnings call transcript was available in the document corpus; therefore Q&A highlights and clarifications could not be assessed [ListDocuments: earnings-call-transcript=none].

Estimates Context

  • Revenue beat: Actual $72.18M vs consensus $70.34M; EPS beat: Actual -$0.4441 vs consensus -$0.50; EBITDA miss: Actual -$0.48M vs consensus -$0.25M. With only one estimate for EPS and revenue, dispersion is limited; the modest top-line beat coupled with EBITDA below expectations suggests mix and cost dynamics remained a headwind in Q2 [GetEstimates, S&P Global]*.
  • The acceleration of the annualized run-rate to Q3 and consolidation of Globetopper may lead to upward revisions to revenue forecasts, while EBITDA trajectories will depend on margin capture and operational streamlining highlighted by management .

All estimate values are retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue is scaling with sequential growth and an accelerated run-rate, supported by July’s ~$35M and Globetopper consolidation; near-term upside skew comes from sustained monthly volumes and execution on AI-driven offerings .
  • Despite revenue beats, EBITDA and net income at the consolidated level remain negative; monitoring margin capture from intercompany synergies and tech mix will be critical to bridge toward the $15M EBITDA run-rate goal [GetFinancials, Q2’25 EBITDA/Net Income]* .
  • Balance sheet strengthening (equity up to $14.29M; $3.5M debt reduction in Q3) underpins per-share value and capacity for disciplined M&A, an explicit lever for EBITDA scaling .
  • Institutional participation is rising post-uplisting; paired with external research support (Buy, $18–$22 target), potential valuation recalibration hinges on delivering EBITDA growth in H2 and 2026 .
  • Guidance is stable at $340M FY revenue with timelines pulled forward for the $400M run-rate; execution risk centers on monthly run-rate durability and margin improvement trajectory .
  • Actionable: near-term trading catalysts include monthly revenue updates and Q3 disclosures reflecting debt reduction and Globetopper impact; medium-term thesis anchors on AI/tech mix expansion and M&A-driven EBITDA scaling .

Notes:

  • Values marked with * in tables are retrieved from S&P Global.