iQSTEL Inc. reported its financial results for the first quarter of 2025, revealing a revenue increase to $57.6 million, up from $51.4 million in the same period last year, marking a growth of approximately 12%. Despite this increase in revenue, the company experienced a net loss of $1.1 million, compared to a loss of $580,216 in the first quarter of 2024. The gross profit for the quarter was $1.9 million, reflecting a gross margin of about 3.4%, which is an improvement from the previous year's gross profit of $1.4 million.
The financial statements indicate significant changes in the company's balance sheet compared to the end of 2024. Total assets decreased to $42 million from $79 million, primarily due to a substantial reduction in accounts receivable, which fell from $57.2 million to $22 million. Current liabilities also decreased significantly from $63.8 million to $30.3 million, largely due to a reduction in accrued liabilities. The company's cash position declined to $1.1 million from $2.5 million, reflecting cash used in operations and financing activities.
Operationally, iQSTEL has made strides in customer concentration, with 19 customers accounting for 86% of revenue in Q1 2025, compared to 8 customers for the same percentage in Q1 2024. The company continues to maintain a presence in 20 countries and has approximately 100 employees. The Telecom Division remains the primary revenue driver, offering services such as VoIP, SMS, and IoT solutions. The company is also expanding its product lines, including a developing Fintech ecosystem and an Electric Vehicle business line.
The filing notes that the company is facing challenges related to cash flow and profitability, raising concerns about its ability to continue as a going concern. Management indicated that future cash requirements will focus on operational development and marketing efforts. The company may need to raise additional capital through public or private offerings or loans, although there is no assurance that such financing will be available. The outlook remains cautious, with management emphasizing the need to successfully execute its business plan to achieve profitable operations in the future.
About iQSTEL Inc
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