IQSTEL Inc. Reports Q2 2025 Financial Results with Revenue Decline and Increased Operating Loss

IQSTEL Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $72.2 million, a decrease of 8.2% from $78.6 million in the same quarter of 2024. For the first half of 2025, revenue was slightly lower at $129.8 million compared to $130.1 million in the prior year. The company's gross profit for the six months ended June 30, 2025, was $3.8 million, reflecting a 7.5% increase from $3.5 million in the same period of 2024. Despite the decline in revenue, the gross margin improved due to operational synergies and cost management strategies.

The company experienced a significant increase in operating expenses, which rose to $5.1 million for the first half of 2025, up from $4.1 million in the previous year. This increase was primarily attributed to higher salaries, technology expenses, and costs associated with the integration of its subsidiary, QXTEL. Consequently, IQSTEL reported an operating loss of $1.3 million for the first half of 2025, compared to a loss of $525,555 in the same period of 2024. The net loss for the second quarter was $2.3 million, compared to a loss of $2.0 million in the prior year.

Operationally, IQSTEL has maintained a presence in 20 countries and has over 100 employees. The company reported a customer base of 603 active interconnection agreements, which is crucial for its telecommunications services. The company’s strategic focus on enhancing its Telecom Division, which remains the primary revenue generator, is evident as it continues to explore synergies among its subsidiaries to optimize operations and reduce costs.

In terms of financial health, IQSTEL's total current assets decreased to $35.6 million as of June 30, 2025, down from $63.0 million at the end of 2024. Current liabilities also decreased to $36.8 million, resulting in a negative working capital of $1.3 million. The company reported cash used in operating activities of $1.6 million for the first half of 2025, a reduction from $3.2 million in the same period of 2024. This indicates improved cash flow management despite ongoing losses.

Looking ahead, IQSTEL is focused on consolidating its operations and enhancing liquidity through increased sales and potential financing arrangements. The company is also exploring strategic partnerships and acquisitions to bolster its market position. However, management has acknowledged the need for additional capital to support its business plan, emphasizing the uncertainty surrounding future funding availability.