iQSTEL Inc. reported a net revenue of $316.9 million for the fiscal year ending December 31, 2025, marking a 12% increase from $283.2 million in 2024. The company's financial performance was primarily driven by its telecommunications division, which accounted for 91% of total revenue, while the fintech segment contributed 9%. Despite the revenue growth, iQSTEL experienced a net loss of $8.5 million, compared to a loss of $5.2 million in the previous year. The increase in losses was attributed to higher operating expenses, including a non-cash goodwill impairment of $2.17 million and increased interest expenses related to financing for acquisitions.
The company underwent significant strategic developments, including the acquisition of GlobeTopper LLC, which was consolidated starting July 1, 2025. This acquisition is expected to enhance iQSTEL's fintech capabilities, particularly in digital gift card and incentives platforms. Additionally, the company has expanded its telecommunications services through its subsidiaries, which include Etelix, SwissLink, and QXTEL, among others. The telecom division's revenue mix evolved, with SMS services increasing to 36.6% of total revenue, while voice services accounted for 54.5%. This shift is seen as beneficial, as SMS services generally yield higher gross margins.
Operationally, iQSTEL reported a total of 100 employees and maintained a presence in 20 countries, including the USA, UK, and Switzerland. The company has established over 603 interconnection agreements globally, facilitating its telecommunications services. The total number of SMS messages processed increased by 25% year-over-year, reflecting growing engagement in this service area. However, the company also noted a concentration of revenue, with 37 customers accounting for 90% of total revenue, which poses a risk if any of these customers face financial difficulties.
Looking ahead, iQSTEL's management expressed concerns regarding its ability to continue as a going concern, citing an accumulated deficit of $43.3 million and the need for additional financing to support operations. The company plans to pursue further capital through private placements and debt financing, although no formal commitments have been secured. The outlook remains cautious, with management emphasizing the importance of achieving profitable operations and securing necessary funding to support ongoing business initiatives and growth strategies.
About iQSTEL Inc
IQSTEL Inc. is a global technology company providing telecommunications, fintech, electric vehicles, and AI-enhanced metaverse services. Its core business involves international voice, SMS, and connectivity solutions, serving carriers and enterprises worldwide. The company leverages its subsidiaries to deliver innovative communication, financial, mobility, and virtual content products, focusing on emerging markets and strategic acquisitions to expand its integrated digital ecosystem.
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