Operational cash flow remains inconsistent, evidenced by a 2026Q1 cash burn of $175.4K and a history of erratic working capital swings, such as the $1.1M outflow observed in 2025Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Jun'18 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 |
|---|
| Cash from Operations | -2.11M | -3.84M | -2.93M | -1.48M | -1.77M | -3.15M | -2.12M | -1.24M | -356.55K | -69.94K | -152.47K | -35.23K | -34.47K | -10.93K | -13.35K | -13.35K |
| Operating CF Margin % | - | -1.21% | -1.03% | -1.03% | -1.89% | -4.87% | -4.71% | -6.9% | -2.59% | -0.73% | -2.08% | -3.02% | -447.31% | -622.51% | -760.51% | - |
| Operating CF Growth % | -259.65% | -31.21% | -97.49% | 15.93% | 44.01% | -48.96% | -70.11% | -248.91% | -409.77% | 54.13% | -332.76% | -2.2% | -215.55% | 18.15% | 0% | - |
| Net Income | -9.36M | -9.16M | -5.18M | -219.44K | -5.87M | -3.86M | -6.7M | -5.44M | -2.1M | -263.69K | -242.4K | -32.87K | -25.16K | 20.56K | -21.5K | -10K |
| Depreciation & Amortization | 673.32K | 627.67K | 499.54K | 128.74K | 120.12K | 91.47K | 68.6K | 41.74K | 20.35K | 112.91K | 22.73K | 90.18K | 0 | 1.25K | 1.25K | 1.25K |
| Stock-Based Compensation | 53.92K | 0 | 223.22K | 42.89K | 126.5K | 1.28M | 697.86K | 0 | 187.5K | 150K | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | -216.36K | 183.65K | 53.57K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 5.14M | 6.03M | 2.97M | -327.07K | 2.69M | 794.65K | 2.66M | 4.05M | 1.96M | 31.22K | 43.11K | -5K | -7.64K | -55.64K | 0 | 10K |
| Working Capital Changes | 909.68K | -1.13M | -1.63M | -1.16M | 1.16M | -1.46M | 1.16M | 105.5K | -423.08K | 49.62K | 24.08K | 2.64K | -9.32K | 22.9K | 6.9K | 0 |
| Change in Receivables | -1.52M | 38.09M | -56.11M | -7.92M | -702.67K | -39.86K | 167.08K | 522.36K | -1.04M | -36.59K | -38.27K | -499.22K | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | -3.54K | -997 | -26.12K | 0 | 0 | 0 | 0 | 9.2K | -10.36K | 93 | 119 | 318 | -530 | -530 |
| Change in Payables | 181.23K | 2.02M | 4.45M | 1.22M | -265.51K | -1.23M | 432.87K | -571.97K | 585.42K | 36.59K | 38.27K | 38.27K | 2.54K | 0 | 0 | 0 |
| Cash from Investing | -189.41K | -239.65K | -3.16M | -332.55K | -2M | -511.35K | -91.21K | 152.07K | -426 | 0 | -6.11K | -46.19K | 0 | 0 | 0 | 0 |
| Capital Expenditures | -189.41K | -239.65K | -3.16M | -332.55K | -2M | -511.35K | -90.19K | 152.07K | -426 | 0 | -6.11K | -46.19K | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 0.05% | 0.08% | 1.12% | 0.23% | 2.15% | 0.79% | 0.2% | 0.84% | 0% | - | 0.08% | 3.96% | - | - | - | - |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -74.17K | -56.16K | -56.23K | -112.5K | -300 | -298.17K | -16.8K | -55.44K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 3.82M | 3.73M | 7.24M | 1.83M | 1.77M | 6.25M | 2.66M | 1.36M | 338.28K | 61.85K | 176.26K | 35.23K | 34.47K | 11.24K | 13.66K | 13.66K |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 0 | 0 | 200K | 0 | 1.1M | 6.34M | 1.92M | 0 | 134.8K | 180K | 0 | 55K | 0 | 0 | 25K | 0 |
| Dividends Paid | -164.96K | -284.13K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -141.98K | 0 | 1.1M | 1.4M | 900K | 0 | 0 | 10K | 35.35K | 0 | 224.76K | -134.03K | 0 | -22.61K | 0 | 1.24K |
| Net Change in Cash | 1.51M | -355K | 1.15M | 33.28K | -2.01M | 2.58M | 482.81K | 265.93K | -18.7K | -8.09K | 0 | -46.19K | 0 | 317 | 0 | 317 |
| Free Cash Flow | -2.3M | -4.08M | -6.09M | -1.82M | -3.77M | -3.66M | -2.21M | -1.09M | -356.98K | -69.94K | -158.59K | -81.42K | -34.47K | -10.93K | -13.35K | -13.35K |
| FCF Margin % | -0.64% | -1.29% | -2.15% | -1.26% | -4.04% | -5.66% | -4.91% | -6.06% | -2.59% | -0.73% | -2.17% | -6.98% | -447.31% | -622.51% | -760.51% | - |
| FCF Growth % | 60.9% | 32.97% | -235.47% | 51.78% | -2.81% | -66.04% | -102.06% | -205.89% | -410.38% | 55.9% | -94.77% | -136.19% | -215.55% | 18.15% | 0% | - |
| FCF per Share | -0.47 | -1.18 | -0.03 | -0.01 | -0.02 | -0.03 | -0.03 | -0.07 | -0.03 | -0.01 | -20.23 | -3.91 | -1.66 | -0.54 | -0.86 | -0.86 |
| FCF Conversion (FCF/Net Income) | 0.25x | 0.42x | 0.49x | 1.94x | 0.30x | 0.82x | 0.32x | 0.15x | 0.10x | 0.27x | 0.63x | 1.07x | 1.37x | -0.53x | 0.62x | 1.33x |
| Interest Paid | 106.12K | 0 | 879.78K | 45.28K | 3.33K | 126.82K | 976.23K | 0 | 0 | 0 | 77.86K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15.88K | 0 | -800 | 800 | 800 | 0 |
Liquidity and Cash Burn
As reported in financial statements, IQSTEL's operating cash flow frequently diverges from net losses, with the OCF/NI ratio fluctuating wildly, including a notable 8.45x reading in 2023Q4, which suggests that reported net income is a poor proxy for the company's actual underlying cash generation capabilities.
The extreme volatility in the OCF/NI ratio indicates that cash flow is heavily influenced by non-operational factors rather than core profitability. Investors should monitor this gap, as it suggests that the company's accounting earnings are not currently supported by a stable or predictable cash-generating engine.
Based on IQSTEL's reported figures, the company has struggled to maintain positive free cash flow, with FCF margins frequently dipping into negative territory, such as the -4.7% margin observed in 2024Q2, reflecting the ongoing difficulty in funding operations through internal cash generation alone.
The inability to generate sustained positive free cash flow highlights the structural challenges of the wholesale telecom model. This trajectory suggests that the company remains reliant on external financing or capital recycling to sustain its current operational scale and diversification efforts.
According to recent SEC filings, IQSTEL's working capital changes are highly erratic, swinging from a $1.2M inflow in 2025Q2 to a $1.1M outflow in 2025Q1, which indicates that the timing of carrier settlements and receivables collection is a primary driver of short-term liquidity pressure.
These swings suggest that the company's cash position is highly sensitive to the payment cycles of its wholesale partners. Such instability in working capital management may force the company to maintain higher cash buffers than its current $2.1M balance allows, increasing the risk of liquidity shortfalls.
As indicated by the company's financial data, IQSTEL has utilized cash for acquisitions, such as the $2.5M outflow in 2024Q2, despite the core business failing to generate consistent positive operating cash flow, which raises questions regarding the prioritization of growth over fundamental financial stability.
The deployment of capital into acquisitions while the core business remains cash-flow negative suggests a strategy focused on inorganic expansion. This approach warrants further investigation, as it may be diverting limited resources away from stabilizing the core telecommunications operations.
Quick answers to the most common questions about buying IQST stock.
iQSTEL Inc. (IQST) generated $-3.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
iQSTEL Inc. (IQST) reported negative free cash flow of $4.1M in 2025, indicating capital requirements exceeded cash from operations.
iQSTEL Inc. (IQST) spent $0.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, iQSTEL Inc. (IQST) returned $0.3M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.