IQSTEL Inc. reported third‑quarter 2025 revenue of $102.9 million, a 21.7 % beat over the consensus estimate of $84.59 million and a 90 % year‑over‑year increase. The company posted an earnings‑per‑share loss of $0.68 versus the expected loss of $0.41, and a net loss of $2.33 million, reflecting a 42 % quarter‑over‑quarter revenue rise but continued profitability pressure.
Revenue growth was driven by a surge in high‑margin AI, fintech, and cybersecurity services. Demand from data‑center and cloud‑based AI deployments, coupled with the recent acquisition of Globetopper, expanded the fintech portfolio and contributed to the top‑line lift. The company’s partnership with Cycurion further strengthened its cybersecurity offerings, adding new revenue streams and reinforcing the shift toward higher‑margin verticals.
Profitability metrics underscored the company’s ongoing investment cycle. Gross profit reached $2.74 million, while operating income was a $0.56 million loss, leading to the $2.33 million net loss. The operating loss and margin compression were largely attributable to capital expenditures on AI platform development and cost inflation in support services, which offset the revenue gains and caused the EPS miss.
Management reaffirmed the full‑year 2025 revenue forecast of $340 million and a $400 million run‑rate, while also projecting an organic revenue forecast of $430 million for 2026. The guidance signals confidence in sustained top‑line growth, yet the company’s 10‑Q filing includes a going‑concern warning, highlighting substantial cash outflows and reliance on external financing as a near‑term risk.
CEO Leandro Iglesias emphasized the company’s commitment to achieving its $1 billion revenue target by 2027 and the importance of expanding into high‑margin AI, fintech, and cybersecurity services. He noted that disciplined cost management and strategic acquisitions are key to turning the current net‑loss trajectory into profitability while maintaining momentum in growth markets.
The going‑concern warning in the 10‑Q filing indicates that, despite revenue gains, the company faces significant cash pressure. The warning underscores the need for improved profitability and stronger cash flow generation to sustain operations and support future growth initiatives.
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