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IQSTEL Reports Impressive Financial Growth in Q1 2025

In a significant milestone for IQSTEL Inc. (NASDAQ: IQST), the company unveiled its Q1 2025 financial results, marking its inaugural letter to shareholders since its uplisting to the prestigious NASDAQ Capital Market. Under the leadership of CEO Leandro Iglesias, the multinational telecommunications firm has outlined a strategic roadmap that anticipates reaching $1 billion in annual revenue by 2027.

Key Financial Highlights

For the first quarter of 2025, IQSTEL reported revenues of $57.6 million, reflecting a 12% increase year-over-year. Additionally, the company achieved an Adjusted EBITDA of $0.59 million and a net income of $0.25 million in its telecom division. Gross profit showed substantial growth at $1.93 million, marking a 40% rise compared to the previous year. The gross margin also improved, rising to 3.36% from 2.68% in Q1 2024. The letter details that stockholders' equity increased to $11.6 million, illustrating positive corporate health.

Highlighting the effectiveness of its business strategies, IQSTEL’s growth is underpinned by synergies among subsidiaries that generated $13.4 million in revenue, with its flagship subsidiary, QXTEL, contributing approximately 37% to total revenues, predominantly from international markets.

Path to $1 Billion

The trajectory toward achieving the $1 billion revenue goal is built on continuous innovation and expansion within high-tech and telecommunications services. IQSTEL aims to secure a $400 million run rate by year-end, with technology services projected to contribute 20% of this total. The company, boasting over 100 employees and partnerships spanning more than 20 countries, is dedicated to broadening its global footprint.

Future Outlook

Looking towards 2025, IQSTEL has set ambitious targets that include burgeoning revenues of $340 million, exceeding $3 million in Adjusted EBITDA, and achieving 7-digit net income from operating subsidiaries. Notably, the revenue mix is expected to shift towards 80% telecom and 20% tech services, indicative of its strategic focus on diversification and sustainable growth.

With plans to actively pursue acquisitions in telecom, fintech, and cybersecurity sectors, IQSTEL is strategically positioned to enhance its operational leverage and capture new market opportunities. This aligns with its overarching vision for long-term value creation, improving shareholder confidence and corporate reputation.

Building on Strong Foundations

Over the past seven years, IQSTEL has demonstrated robust governance practices and a commitment to transparency. The company advanced its strategic goals without shareholder dilution, culminating in a successful NASDAQ uplisting - a testament to its financial resilience.

CEO Leandro Iglesias emphasized the importance of this uplisting for enhancing visibility and institutional access, thereby bolstering IQSTEL's competitive edge in the market. As the company scales up its operations, the implications for existing and potential shareholders are profound, capitalizing on the promising future foreseen in the Q1 results.

With a clean share structure and disciplined capital management, IQSTEL is ready to embark on a transformative journey that is poised to redefine its corporate landscape. Investors can expect increased liquidity, enhanced visibility, and fortified acquisition capabilities that will spearhead additional revenue streams.

In conclusion, IQSTEL's financial performance and strategic direction position it as a formidable player within the tech-driven telecommunications space, setting its gaze firmly on achieving remarkable growth and shareholder value in the years to come.