iQSTEL (IQST) Q4 2025 earnings summary

Executive summary

• Achieved $316.9 million in revenue for FY 2025, up 12% year-over-year, with a $400 million run-rate and a 37% increase in equity position.

• Expanded global platform to 21 countries, reaching 2.3 billion end users through 600+ telecom operator relationships.

• Entered high-growth verticals including digital health, AI, and cybersecurity, leveraging telecom distribution channels.

• Transitioned to a new phase focused on EBITDA and profitability expansion, supported by a clean capital structure with no convertible notes or warrants.

• Targeting $1 billion in revenue within 24 months and $50 million EBITDA run-rate in 2026.

Financial highlights

• Revenue reached $316.9 million in 2025, up 12% year-over-year; QXTEL contributed 39% of total revenue.

• Gross margin improved to 3.46%, a 26% year-over-year increase, with gross profit rising to $9.46 million.

• SMS volume surged 25%, reaching 17.4 billion messages, supporting margin expansion.

• FinTech segment contributed $27.9 million in its first full year, diversifying revenue.

• Adjusted EBITDA exceeded $2.7 million, reflecting operational efficiency.

Outlook and guidance

• Strategy to achieve $1 billion revenue in 24 months, expand EBITDA through high-margin services, and strengthen the balance sheet.

• Two acquisitions planned for 2026, each expected to add $5–6 million EBITDA, with payment terms contingent on results and minimal cash flow pressure.

• Launch of digital health and cybersecurity services expected within 40 days, targeting multi-billion dollar opportunities.

• Focused on scaling new service offerings in AI, cybersecurity, and digital health.