The company is evolving from a Telecom and Technology business into a Global Connectivity & AI Technology Corporation
NEW YORK, Aug. 14, 2025 /PRNewswire/ — IQSTEL Inc. (NASDAQ:IQST) today announced its financial results for the second quarter ended June 30, 2025, reporting substantial growth in shareholder equity, improved gross margins, and increased profitability in its telecom division.
Q2 2025 Highlights:
- Net Shareholder Equity increased from $11.9 million in December 2024 to $14.29 million as of June 30, 2025 — not yet including the benefit of a $3.5 million debt reduction announced in July, expected to be reflected in Q3.
- Gross Revenues (before intercompany eliminations) up 17% year-over-year for the first six months of 2025, increasing from $132.58 million in H1 2024 to $155.15 million in H1 2025, with 100% of this growth being organic.
- Gross Margin improved by 7.45% compared to the same period in 2024.
- Telecom Division Net Income rose 29.94% quarter-over-quarter to $321,321, with EBITDA of $1.1 million for the first half of 2025.
- Assets per Share: $17.41 | Equity per Share: $4.84 (pre-debt reduction impact).
“Our Q2 results confirm the strength of our balance sheet, the profitability of our core business, and the scalability of our operations,” said Leandro Jose Iglesias, CEO of IQSTEL. “With accelerating adjusted EBITDA and the positive impact of our debt reduction coming in Q3, we are well-positioned for a strong second half of 2025.”
SHAREHOLDERS LETTER
IQSTEL Inc. – Q2 2025 Shareholders Letter
Dear Shareholders,
We are pleased to share with you the highlights from our Q2 2025 results, which reflect the continued strength of our operations, the resilience of our business model, and our ongoing commitment to creating shareholder value.
Strong Balance Sheet and Shareholder Value Creation
Net Shareholder’s Equity increased from $11,900,263 at December 31, 2024 to $14,288,000 by June 30, 2025 — a clear demonstration of the strength of our balance sheet and our ability to build value for shareholders.
This $14.29 million in equity does not yet include the impact of the $3.5 million debt reduction, which occurred in Q3, and will be reflected in our Q3 2025 Form 10-Q and is expected to have a very significant positive effect on equity per share.
Additionally, between May and June 2025, approximately $3.6 million was converted into common shares, and these issuances were fully absorbed by the market before July — during which the stock price remained stable above $10/share. Importantly, these new share issuances did not negatively impact our Net Shareholder’s Equity ratio. In fact, Net Shareholder’s Equity per issued share improved from $3.37 as of June 30, 2024, to $4.08 as of June 30, 2025.
Revenue Growth Driven by Organic Performance
For the six months ended June 30, 2025, Gross Revenue (before intercompany eliminations) was up 17% year-over-year for the first six months of 2025, increasing from $132.58 million in H1 2024 to $155.15 million in H1 2025, with 100% of this growth being organic.
While net consolidated revenue (after intercompany eliminations) was lower compared to the prior year, this was due to a higher volume of intercompany transactions — part of our strategic initiative to optimize operations across subsidiaries.
This approach allows us to:
- Leverage more efficient routing for our voice and SMS …