IQSTEL Inc. Reports Revenue Growth Amid Rising Losses and Operational Expenses in Q1 2025

Company Overview

IQSTEL Inc. (OTCBB: IQST) operates primarily in the telecommunications sector, offering services such as voice over IP, SMS, and IoT solutions across 20 countries. The company has accumulated significant interconnections, aiming to grow consistently, with projections of $340 million in revenues for 2025.

Positive Aspects of the Income Statement:

• Revenue Growth: Revenue for Q1 2025 reached $57,632,816, an increase of 12% compared to Q1 2024's $51,414,878.
• Gross Profit Improvement: Gross profit improved to $1,934,958 from $1,379,026 year-over-year, indicating a 40% increase.
• Reduced Revenue Concentration: The company now has 19 customers making up 86% of revenue, up from 8 customers last year, enhancing its stability.

Negative Aspects of the Income Statement:

• Operating Loss: Despite increasing revenues, the company incurred an operating loss of $604,226, worsening from a loss of $183,452 in Q1 2024.
• Net Loss: There was a larger net loss of $1,144,461 for Q1 2025, compared to $580,216 in Q1 2024, driven by higher operational and interest expenses.
• Increased Operating Expenses: Operating expenses surged to $2,539,184 from $1,562,478, with a significant increase in salaries and benefits affecting profitability.

Key Statistics:

• Total Assets: $42,020,365 (March 31, 2025)
• Total Liabilities: $30,464,559 (March 31, 2025)
• Current Ratio: Current Assets of $26,043,799 versus Current Liabilities of $30,279,641 resulting in negative working capital of $4,235,842.
• Basic Loss Per Share: $(0.44) for Q1 2025, compared to $(0.37) in Q1 2024.
• Cash Balance: $1,085,046 at the end of Q1 2025, a reduction from $2,510,357 at the end of 2024.

Overall, while IQSTEL Inc. shows promising revenue growth and improving gross profit margins, the continuing operational losses and rising expenses are key concerns impacting the company’s financial health. Strategies to reduce costs and enhance profitability will be critical as the company moves forward.