iQSTEL Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a substantial increase in revenue, with total revenues for the three months reaching $54.2 million, up from $39.8 million in the same period of 2023. For the nine months ended September 30, 2024, revenues surged to $184.3 million compared to $97.2 million in the prior year. This growth is attributed primarily to the company's telecommunications services, which remain its main revenue source.

Despite the revenue increase, iQSTEL reported a net loss of $773,004 for the third quarter of 2024, a decline from a net income of $45,909 in the same quarter of 2023. The nine-month net loss also widened to $3.3 million from $274,557 in the previous year. The operating loss for the third quarter was $(56,553), contrasting with an operating income of $70,753 in the same quarter of 2023. The increase in losses is attributed to rising operational costs and strategic investments, including acquisitions.

The company’s total assets increased significantly to $32.4 million as of September 30, 2024, up from $22.2 million at the end of 2023. This growth was driven by an increase in goodwill, which rose to $10.7 million, reflecting recent acquisitions. Total current liabilities also surged to $24.1 million from $13.8 million, indicating increased financial obligations.

iQSTEL's cash position improved, with cash and cash equivalents rising to $2.1 million from $1.4 million at the end of 2023. The company reported net cash used in operating activities of $(2.5 million) for the nine months ended September 30, 2024, compared to $(434,701) in the same period of 2023. The increase in cash from financing activities was notable, totaling $6.2 million compared to $1.5 million in the prior year.

The company has also made strategic moves, including the acquisition of a subsidiary for $2.7 million during the nine months ended September 30, 2024, which was not reported in the previous year. iQSTEL continues to focus on expanding its telecommunications services while developing new business lines, including blockchain and fintech solutions.

Overall, while iQSTEL Inc. has seen significant revenue growth, it faces challenges with profitability and increasing liabilities, raising concerns about its ability to sustain operations in the long term.