iQSTEL (NASDAQ: IQST) Executives Discuss Path to $1 Billion Revenue, Ultranet Acquisition, and High-Margin Digital Services Expansion in Exclusive Interview

Ultranet's gross margins exceed 6%, compared with approximately 2.5% in iQSTEL's current telecom operations.

Rhea-AI Summary

iQSTEL (NASDAQ: IQST) outlined its revenue growth and profitability targets in an executive interview covering the proposed Ultranet acquisition.

Management expects Ultranet and organic growth to position the company at an approximately $700 million to $750 million revenue run rate. Current telecom gross margins are approximately 2.5%, versus more than 6% at Ultranet. A non-convertible acquisition financing facility has been secured; the acquisition remains pending.

For the next 12 months, management targets positive consolidated net income and cash flow, an approximately $15 million EBITDA run rate, and progress toward a $1 billion annual revenue run rate. EBITDA measures earnings before interest, taxes, depreciation and amortization. The newly launched Microdrama mobile video initiative has been introduced to seven Latin American operators, with a goal of approximately 400,000 monthly subscribers next year.

9 points · 2 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Management targets an approximately $700 million to $750 million revenue run rate with Ultranet and organic growth.
• Major point. Forward-looking: it has not happened yet and may not happen.Management targets an approximately $15 million EBITDA run rate over the next 12 months.
• Moderate pointUltranet's gross margins exceed 6%, versus approximately 2.5% in iQSTEL's current telecom operations.
• Moderate pointNon-convertible acquisition financing has been secured for the Ultranet transaction.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Management targets positive consolidated net income over the next 12 months.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Management targets positive consolidated cash flow over the next 12 months.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Management aims to advance toward a $1 billion annual revenue run rate over the next 12 months.

2 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Management expects Ultranet to expand iQSTEL's footprint to approximately 30 countries, including a presence across Africa.
• Minor point. Forward-looking: it has not happened yet and may not happen.Microdrama targets approximately 400,000 monthly subscribers next year.

Negative

• Moderate pointThe proposed Ultranet acquisition remains pending; the transaction has not been completed.
• Moderate pointThe acquisition financing facility adds a financing obligation structured around Ultranet's projected cash flows.

Key Figures

Revenue run rate: Approximately $700 million to $750 million Telecom gross margin: Approximately 2.5% Ultranet gross margin: Exceeds 6% +3 more

Revenue run rate

Approximately $700 million to $750 million

Management estimate with the pending Ultranet acquisition and ongoing organic growth

Telecom gross margin

Approximately 2.5%

Current telecom operations, per the CFO

Ultranet gross margin

Exceeds 6%

Ultranet, per the CFO; acquisition remains pending

EBITDA run rate objective

Approximately $15 million

Management objective for the next 12 months

Annual revenue objective

$1 billion

Management objective; advance toward this annual revenue run rate

Monthly Microdrama subscribers

Approximately 400,000

Management goal for next year

Previous Acquisition Reports

1 past event · Latest: Jun 04

Same Type 1 event

1. Jun 04

   Ultranet acquisition MOU

   24h Move

   -11.3%

   Binding MOU proposed a 51% Ultranet acquisition, with expected revenue and net-profit contributions.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda, gross margins

2 terms

ebitda financial

"Reach an EBITDA run rate of approximately $15 million"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

gross margins financial

"Today our telecom operations generate gross margins of approximately 2.5%"

Gross margins measure the portion of sales a company keeps after paying the direct costs to make its products or deliver services, expressed as a percentage of revenue. Think of it as the money left from each sale after paying the ingredients — it signals how efficiently a business produces and prices goods, and matters to investors because higher margins generally mean more room to cover other expenses, invest, and generate profit.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Oct. 27, 2026 (GLOBE NEWSWIRE) -- IQSTEL Inc. (NASDAQ: IQST) ("IQSTEL" or the "Company"), a global telecommunications and technology company, today announced the release of an exclusive executive interview featuring President and CEO Leandro Iglesias and CFO Álvaro Cardona, where the leadership team outlined the company's growth strategy, profitability roadmap, transformative Ultranet acquisition, and expanding digital services initiatives.

During the discussion, Iglesias and Cardona provided investors with insight into iQSTEL's ambitious roadmap toward becoming a $1 billion revenue company while enhancing margins, profitability, and shareholder value.

Watch the Full Interview: https://youtu.be/v1KQ9u8to1k

"With the pending acquisition of Ultranet and our ongoing organic growth, we are positioning iQSTEL to operate at a revenue run rate of approximately $700 million to $750 million," said Leandro Iglesias, President and CEO of iQSTEL. "That puts us within striking distance of our $1 billion revenue objective. We believe the company is at a pivotal turning point, and over the next 12 months investors will see a fundamentally larger and stronger organization."

A major focus of the interview centered on the expected impact of the proposed acquisition of Ultranet, which management believes will significantly enhance iQSTEL's financial profile while expanding its international reach.

"Ultranet is much more than a revenue contributor," Iglesias added. "It gives us a strong presence across Africa, expands our footprint to approximately 30 countries, and brings exceptional management expertise and strategic relationships that can help accelerate our growth across Africa, the Middle East, and Asia."

Cardona emphasized the acquisition's expected impact on profitability.

"Today our telecom operations generate gross margins of approximately 2.5%, while Ultranet's gross margins exceed 6%," said Álvaro Cardona, CFO of iQSTEL. "When combined with the higher-margin digital services we are introducing, including fintech, cybersecurity, AI, and digital content, we see a clear path toward significantly improving profitability and achieving positive consolidated net income."

Management also highlighted iQSTEL's disciplined financial approach, noting that the company recently secured a non-convertible acquisition financing facility for the Ultranet transaction.

"We made a commitment to shareholders that we would pursue non-dilutive financing whenever possible, and we delivered on that commitment," Cardona said. "The financing structure is designed around Ultranet's projected cash flows, allowing the acquisition to effectively support itself while protecting shareholder value."

The interview also explored iQSTEL's expansion into digital services through its newly launched Microdrama initiative, a short-form video entertainment platform designed for mobile users.

"Through relationships with telecom operators serving approximately 93 million subscribers, we have already introduced our Micro Drama solution to seven operators in Latin America," Iglesias stated. "Our goal is to reach approximately 400,000 monthly subscribers next year. We believe this recurring-revenue model has the potential to become a meaningful profit contributor and an important value driver for the company."

Leveraging relationships with approximately 600 telecom operators worldwide and access to over 2 billion end users through carrier networks, management believes iQSTEL is uniquely positioned to rapidly deploy high-margin digital services across its existing customer base.

"We're already integrated into the world's leading telecom operators," Iglesias explained. "The infrastructure, relationships, and trust we've built over the years allow us to launch new products in weeks and months rather than years. That creates a powerful competitive advantage and supports our transition from a telecom services provider into a broader technology and digital services platform."

Looking ahead, management identified three key objectives for the next 12 months:

• Achieve positive consolidated net income and positive consolidated cash flow;
• Reach an EBITDA run rate of approximately $15 million;
• Advance toward a $1 billion annual revenue run rate.
  
  

"We are excited about where the company is headed," Cardona concluded. "Over the years we have consistently delivered on our growth objectives, completed strategic acquisitions, strengthened our balance sheet, and built the scale necessary to reach profitability. We believe the next phase of iQSTEL's evolution will demonstrate the full value of that effort."

About IQSTEL Inc.

IQSTEL Inc. (NASDAQ: IQST) is a global telecommunications and technology company operating through two core business divisions: Telecom and Digital Services. The Telecom Division is the foundation of IQSTEL's global platform, operating across 24 countries with more than 600 telecommunications carrier interconnections and delivering international voice, SMS, messaging, and connectivity solutions to some of the world's largest telecom operators and enterprise customers. Through these customer relationships, IQSTEL's platform has the potential to reach approximately 2.3 billion end users worldwide. Building on this global infrastructure and commercial reach, the Digital Services Division is focused on higher-margin technology solutions across Content Services, Artificial Intelligence, Intelligent Communications, Cybersecurity, Fintech, and Enterprise Automation. Built through nearly two decades of organic growth and strategic acquisitions, IQSTEL is leveraging the scale and reach of its Telecom business to accelerate the growth of Digital Services and drive its next phase of revenue and adjusted EBITDA expansion.

For more information, visit:
Corporate website: www.iqstel.com
Investor Relations Portal: www.ir.iqstel.com
IQSTEL Telecom website: www.iqsteltelecom.com
IQSTEL Digital Services website: www.iqsteldigital.com
Official Investor Landing Page: www.landingpage.iqstel.com

Safe Harbor Statement: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding the expected timing of execution of the Ultranet purchase agreement; the expected closing of the acquisition; the expected financial contribution of Ultranet (including revenue, EBITDA, net income, and cash flow from operations); the Company's expected consolidated cash-flow position following the acquisition; the Company's ability to service the notes from operations; the expected timing of closing and accounting consolidation; the Company's ability to offer Digital Services to Ultranet's customers; the Company's microdrama distribution objectives, operator outreach, subscription objectives, pricing and illustrative unit economics; and market and industry growth. These statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from those projected. Important factors that could cause actual results to differ include, among others: failure to execute the purchase agreement or to satisfy or waive closing conditions; delays or adverse outcomes in regulatory, compliance, or due diligence matters; the accuracy and completeness of Ultranet's historical financial information; integration risks and costs; political, economic, currency and regulatory conditions in the African markets in which Ultranet operates; changes in the telecommunications market or customer relationships; failure to execute operator distribution agreements or to achieve subscriber, pricing, retention or revenue-sharing assumptions for microdrama or other digital services; the accuracy of third-party market data; the Company's ability to generate sufficient cash flow to service the notes and other obligations; dilution or other effects from the pre-funded warrants; the impact of the secured nature of the notes and related covenants; and the other risks and uncertainties described in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Investor Relations Contact:
ssmith@smallcapvoice.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a7571af2-0b03-4979-a0c6-1b66a2fe460d

A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/636a9bc4-0571-43c6-8ace-ee18d80d2ce0

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What profitability targets did iQSTEL outline for the next 12 months?

Management targets positive consolidated net income and positive consolidated cash flow, alongside an approximately $15 million EBITDA run rate, over the next 12 months. These are objectives, not completed results.

What revenue run rate does iQSTEL expect with the Ultranet acquisition?

Management expects the pending Ultranet acquisition and organic growth to position iQSTEL at a revenue run rate of approximately $700 million to $750 million. Its next-12-month objectives include advancing toward a $1 billion annual revenue run rate.

How is iQSTEL financing the proposed Ultranet acquisition?

iQSTEL has secured a non-convertible acquisition financing facility for Ultranet. Management describes the structure as designed around Ultranet's projected cash flows so that the acquisition can support its own financing.