8-K: iQSTEL Reports Strong Preliminary Q1 2025 Results and Progress Toward NASDAQ Uplisting

iQSTEL Inc. announces strong preliminary Q1 2025 results with double-digit revenue growth and a 40% increase in gross profit, alongside strategic progress toward a NASDAQ uplisting.

Summary

• iQSTEL Inc. reported its preliminary financial results for Q1 2025, showing significant growth.
• Net revenue reached $57.6 million, a 12% increase compared to $51.4 million in Q1 2024.
• Gross profit increased by 40% to $1.93 million, up from $1.38 million in the same period last year.
• The gross margin improved to 3.36%, a 25% increase from 2.68% in Q1 2024.
• The company's adjusted EBITDA for the telecom division was $593,604.
• iQSTEL is pursuing a NASDAQ uplisting, having executed a reverse stock split to meet listing requirements.
• Management believes the uplisting will enhance the company's visibility and valuation.
• The company aims to reach $1 billion in annual revenue by 2027.
• IQSTEL projects $340 million in revenue for FY-2025.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with strong Q1 results and strategic initiatives like the NASDAQ uplisting. The management's comments are optimistic, and the company's growth targets are ambitious but achievable.

Positives

• iQSTEL experienced a 12% increase in net revenue in Q1 2025.
• The company's gross profit increased by 40% in Q1 2025.
• Gross margin improved to 3.36% in Q1 2025.
• The company is actively pursuing a NASDAQ uplisting.
• iQSTEL has a diversified portfolio spanning telecom, AI, fintech, and cybersecurity.
• The company operates in over 20 countries.
• iQSTEL has a team of 100 professionals.
• The company has a successful track record of improving year over year across key operational financial metricsincluding revenue, gross profit, EBITDA, assets, among otherswhile growing at a gigantic pace of 96% year-over-year.

Risks

• The company's ability to successfully market its products and services is a risk.
• Maintaining the ability to pay operating costs and meet demand is a risk.
• Competition from other telecom products and services poses a risk.
• Changes in the cybersecurity and telecom markets could impact results.
• The company's ability to successfully develop new products and services is a risk.
• Completing complementary acquisitions and dispositions that benefit the company is a risk.
• Establishing and maintaining collaborative, strategic alliance agreements with industry partners is a risk.
• Complying with applicable regulations is a risk.
• Securing capital when needed is a risk.

Future Outlook

iQSTEL aims to reach $1 billion in annual revenue by 2027 and projects $340 million in revenue for FY-2025, building on its strong business platform.

Management Comments

• 'We are very pleased with our Q1 performance,' said Leandro Iglesias, CEO of IQSTEL.
• 'Our business platform continues to demonstrate robust revenue generation, along with steady improvements toward profitability.'
• 'The consistent growth in gross profit and margin reflects our commitment to enhancing the quality of our operations and reinforcing a solid foundation for scalable, high-margin expansion.'

Industry Context

The company's pursuit of a NASDAQ uplisting is aimed at achieving valuations more in line with its peers in the telecommunications and technology sectors, which typically trade at higher revenue multiples.

Comparison to Industry Standards

• Comparable telecommunications and technology companies listed on NASDAQ and NYSE typically trade at revenue multiples starting at 1.0x.
• iQSTEL is currently trading at just 0.07x revenue, highlighting a significant disconnect from typical market benchmarks.
• Internal analysis shows that telecom and tech companies with annual revenues exceeding $1 billion generally achieve market capitalizations over $1 billion, except in cases involving financial distress, stagnant growth, or temporary market corrections.

Stakeholder Impact

• Shareholders can expect enhanced value through the NASDAQ uplisting and increased investor visibility.
• Employees can anticipate growth opportunities as the company expands its operations.
• Customers can benefit from the company's continued innovation in telecom, AI, fintech, and cybersecurity solutions.

Next Steps

• Continue executing the strategic roadmap to reach $1 billion in annual revenue by 2027.
• Pursue the NASDAQ uplisting initiative.
• Focus on scaling revenue and improving profitability.

Key Dates

Keywords

iQSTEL, telecommunications, technology, revenue, gross profit, NASDAQ uplisting, financial results, EBITDA, AI, Fintech, Cybersecurity