IQSTEL Inc. Reports 89.6% Revenue Growth in Q3 2025 Despite Net Loss

IQSTEL Inc. reported significant financial results for the third quarter and the first nine months of 2025, showcasing a substantial increase in revenue. For the three months ended September 30, 2025, the company generated revenues of $102.87 million, a notable increase of 89.6% compared to $54.25 million in the same period of 2024. For the nine months ended September 30, 2025, total revenues reached $232.68 million, up 26.2% from $184.35 million year-over-year. Despite this growth, the company reported a net loss of $2.33 million for the third quarter, compared to a loss of $773,004 in the prior year, and a net loss of $5.82 million for the nine months, up from $3.32 million in 2024.

The increase in revenue was primarily driven by heightened activity across most subsidiaries, particularly in the telecommunications sector, which accounted for 94% of total revenues. The company also benefited from the acquisition of GlobeTopper LLC, which contributed to the revenue growth. However, the cost of revenue also rose significantly, totaling $100.13 million for the third quarter, compared to $52.23 million in the same quarter of 2024, reflecting the direct correlation between increased sales and associated costs.

Operationally, IQSTEL has expanded its customer base, with 31 customers representing 87.4% of revenue for the nine months ended September 30, 2025, compared to 22 customers for the same period in 2024. The company has also maintained a presence in 20 countries and employed approximately 100 staff members. The integration of GlobeTopper is expected to enhance operational synergies and contribute to future revenue growth. The company’s strategic focus remains on leveraging its telecommunications division to support the development of new business lines, including fintech and electric vehicles.

In terms of financial health, IQSTEL reported total current assets of $29.84 million and current liabilities of $28.74 million as of September 30, 2025, resulting in a positive working capital of $1.1 million. The company utilized $2.6 million in operating activities during the nine months, slightly higher than the $2.53 million used in the same period of 2024. The increase in cash used in operations was attributed to a larger net loss and changes in operating assets and liabilities, particularly in accounts receivable and accounts payable.

Looking ahead, IQSTEL aims to strengthen its liquidity and capital resources through increased sales and potential financing arrangements. The company is also focused on operational improvements and cost-cutting measures to enhance profitability. Despite the challenges posed by ongoing losses, management remains optimistic about the company’s growth trajectory and the potential for positive cash flow as it continues to integrate its subsidiaries and expand its service offerings.