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II

iQSTEL Inc (IQST)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue was $102.8M, up 42% QoQ vs $72.1M and up 90% YoY vs $54.2M; the company also reported adjusted EBITDA of $0.68M and reaffirmed its FY-2025 revenue forecast of $340M .
  • Results materially beat thin Wall Street consensus: revenue beat by ~$18.3M vs $84.6M estimate and EPS beat versus a -$0.41 consensus (Primary EPS actual -$0.2559; note GAAP diluted EPS was -$0.6785)* [GetEstimates: S&P Global] [GetFinancials: S&P Global].
  • Strategic catalysts: debt-free status (no convertible notes/warrants), segment mix of ~80% Telecom / ~20% Fintech, Globetopper contribution, and AI–cybersecurity expansion via Cycurion; company plans a $500,000 dividend in shares by Dec 31, 2025 .
  • Run-rate strengthened to $411.5M; 2026 organic revenue forecast set at $430M and management reiterated an EBITDA target of $15M for 2026, underpinning medium-term profitability ambitions .

What Went Well and What Went Wrong

What Went Well

  • Record net revenue of $102.8M with 42% sequential growth; management highlighted “consistent growth” and “strength of fundamentals,” maintaining confidence in hitting $340M FY-2025 revenue .
  • Clean capital structure: company reiterated debt-free status with no convertible notes or warrants outstanding, supporting flexibility and shareholder value creation .
  • Strategic execution: Globetopper acquisition (51%) supports a diversified mix (~80% Telecom / ~20% Fintech) and contributes to positive adjusted EBITDA; AI-cybersecurity partnership with Cycurion advances product roadmap .
    Quote: “With $12.23 in assets per share and $4.66 in equity per share, IQSTEL is financially stronger than ever…investors should expect this profitability trend to strengthen in the coming quarters.” — CEO Leandro Iglesias .

What Went Wrong

  • GAAP profitability remains a headwind: Q3 GAAP diluted EPS was -$0.6785* despite adjusted EBITDA turning positive; consolidated GAAP EBITDA remained negative* [GetFinancials: S&P Global].
  • Gross margin remains low-single-digit and below prior year levels (2.66% in Q3 2025 vs 3.72% in Q3 2024)*, reflecting telecom wholesale mix and intercompany eliminations dynamics [GetFinancials: S&P Global] .
  • Thin analyst coverage (only one estimate) limits visibility and may create volatility around prints and narrative shifts* [GetEstimates: S&P Global].

Financial Results

Headline Comparisons (YoY and QoQ)

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD)$54.25M [GetFinancials: S&P Global]$72.18M [GetFinancials: S&P Global]$102.87M [GetFinancials: S&P Global]
Diluted EPS - Continuing Ops ($)-$0.4010* [GetFinancials: S&P Global]-$0.8151* [GetFinancials: S&P Global]-$0.6785* [GetFinancials: S&P Global]
EBITDA ($USD)-$0.021M* [GetFinancials: S&P Global]-$0.481M* [GetFinancials: S&P Global]-$0.397M* [GetFinancials: S&P Global]
Gross Profit Margin (%)3.72% [GetFinancials: S&P Global]2.59%* [GetFinancials: S&P Global]2.66%* [GetFinancials: S&P Global]
EBIT Margin (%)-10.42%* [GetFinancials: S&P Global]-88.99%* [GetFinancials: S&P Global]-54.34%* [GetFinancials: S&P Global]

Values with an asterisk are retrieved from S&P Global.

Q3 2025 vs Wall Street Consensus

MetricConsensusActualBeat/(Miss)
Revenue ($USD)$84.59M* [GetEstimates: S&P Global]$102.87M* [GetEstimates: S&P Global]+$18.28M (Beat)* [GetEstimates: S&P Global]
Primary EPS ($)-$0.41* [GetEstimates: S&P Global]-$0.2559* [GetEstimates: S&P Global]+$0.1541 (Beat)* [GetEstimates: S&P Global]

Values retrieved from S&P Global.

Segment and KPIs

MetricQ3 2025
Revenue Mix (Telecom / Fintech)~80% / ~20%
Adjusted EBITDA ($)$683,189 total; Telecom $604,514; Fintech $78,675
Gross Revenue ($)$118.5M (incl. $15.7M intercompany)
Revenue Run Rate ($)$411.5M
Adjusted EBITDA Run Rate ($)$2.73M
Assets ($)$46.8M; $12.23 per share
Stockholders’ Equity ($)$17.8M; $4.66 per share
Shares Outstanding3,832,470

Additional context: Globetopper expected ~$16M Q3 revenue and ~$110k EBITDA, supporting Fintech contribution .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($)FY 2025$340M (reaffirmed previously) $340M (reaffirmed) Maintained
Revenue Run Rate ($)Current~$400M $411.5M Raised
Organic Revenue ($)FY 2026N/A (new disclosure)$430M New / Raised vs FY25
Adjusted EBITDA Target ($)FY 2026$15M (prior objective) $15M (reiterated) Maintained
Dividend (Shares)By 12/31/2025Announced $500,000 in shares Plans confirmed $500,000 in shares Maintained
Capital StructureCurrentGoal to eliminate convertibles Debt-free; no convertibles; no warrants Achieved

Earnings Call Themes & Trends

Note: No Q3 2025 earnings call transcript was available in our document catalog; themes below synthesize shareholder letters and press releases.

TopicPrevious Mentions (Q2 2025, Q1 2025)Current Period (Q3 2025)Trend
AI initiativesLaunch of IQ2Call.ai; ONAR partnership; proprietary AI platform development AI-powered call center services launched; Reality Border + MCP security integration Expanding deployment and security hardening
CybersecurityPlanned Cycurion partnership; stock swap envisioned Executed equity exchange; ARx integration; dividend tie-in Formalized alliance; product integration
Fintech expansionGlobetopper closed July 1; synergy plans; EBITDA positive trajectory Fintech EBITDA positive; mix ~20%; Globetopper contributing Q3 Scaling contribution within mix
Capital structureEquity growth; debt reduction; conversion to preferred shares Debt-free status; no convertibles/warrants Strengthened; cleaner
Revenue trajectoryQ1: $57.6M revenue; Q2: run-rate progress; July $35M Q3: $102.8M; run-rate $411.5M; FY25 $340M reaffirmed Upward momentum
Institutional interest / coverageInstitutions ~4% holdings; new research coverage Continued investor outreach; investor landing page Building awareness

Management Commentary

  • “Our third quarter results highlight not only our consistent growth but the strength of the company’s fundamentals… We remain deeply committed to increasing shareholder value through profitable growth, innovation, and disciplined execution.” — Leandro Iglesias, CEO .
  • “After becoming a dilutive debt-free company and achieving record revenue growth, IQSTEL is now in the best business and corporate shape in its history to reach our $15 million EBITDA target in 2026.” .
  • Strategic vision emphasizes scaling high-margin verticals (Fintech, AI, Cybersecurity) on top of a global telecom platform across 21 countries and 600+ operator relationships .

Q&A Highlights

No Q3 2025 earnings call transcript was found in the available document set; therefore, Q&A themes, clarifications, and tone shifts cannot be assessed from call materials at this time (we searched for “earnings-call-transcript” and found none) [ListDocuments: earnings-call-transcript (0 results)].

Estimates Context

  • Revenue beat: Actual $102.87M vs consensus $84.59M (+$18.28M), indicating stronger-than-expected execution and synergy capture.* [GetEstimates: S&P Global]
  • EPS beat: Primary EPS actual -$0.2559 vs -$0.41 consensus (+$0.1541), though GAAP diluted EPS remained negative (-$0.6785).* [GetEstimates: S&P Global] [GetFinancials: S&P Global]
  • Coverage remains thin (# of estimates = 1), suggesting potential volatility around future prints and the need for investor diligence.* [GetEstimates: S&P Global]

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue momentum is robust with a clear beat vs consensus and strong sequential growth; run-rate now $411.5M supports FY-2025 guidance confidence .
  • Balance sheet strength and debt-free status reduce financing risk and enhance M&A/operational flexibility; dividend in shares ($500,000) is an incremental shareholder-friendly action .
  • Strategic mix shift (Fintech/AI/Cybersecurity) and Globetopper integration are beginning to show in adjusted EBITDA; expect growing non-telecom margin contributions over the next 12–18 months .
  • Mind the gap between adjusted metrics and GAAP profitability; low gross margins and GAAP losses warrant monitoring until scaled higher-margin revenue drives consolidated profitability* [GetFinancials: S&P Global] .
  • Thin sell-side coverage increases narrative risk; proactive tracking of guidance milestones (FY25 $340M, FY26 $430M organic, $15M EBITDA) can anchor expectations .
  • Near-term trading: positive momentum catalysts (beats, dividend, debt-free status) vs valuation sensitivity to GAAP losses; medium-term thesis hinges on execution in AI/cybersecurity and Fintech to expand margins .

Appendix: Primary Sources Cross-Referenced

  • Q3 2025 8-K 2.02 press release (record revenue, adjusted EBITDA, run-rate, per-share metrics, debt-free status, dividend plan, segment mix) .
  • Q3 2025 press releases (financial highlights; strategic initiatives; AI launch; Cycurion partnership; reaffirmed guidance) .
  • Prior quarters’ materials (Q2 2025 press release/8-K; Q1 2025 shareholder letter) for trend analysis .

Values retrieved from S&P Global where noted by asterisks.