IQST - IQSTEL Blew Past Its Goals With $35 Million in July Revenue -- Surpasses $400 Million Annual Run Rate Five Months Ahead of Schedule on Path to $1 Billion by 2027

Rhea-AI Summary

IQSTEL (NASDAQ: IQST) reported exceptional growth with preliminary July 2025 revenue of $35 million, achieving a $400 million annual run rate five months ahead of schedule. The company is on track to reach its $340 million revenue target for 2025, with revenue mix comprising 80% telecom and 20% fintech.

Key achievements include reducing debt by $7 million post-NASDAQ uplisting and increasing net shareholder equity from -$1.5M in 2018 to $11.9M in 2024. IQSTEL signed an MOU with Cycurion (NASDAQ: CYCU) to integrate AI-driven cybersecurity solutions and is pursuing acquisitions targeting $10M in additional EBITDA. The company maintains its strategic goal of reaching $1 billion in revenue by 2027.

Positive

• Achieved $35M monthly revenue in July 2025, reaching $400M annual run rate ahead of schedule
• Reduced debt by $7M post-NASDAQ uplisting, equivalent to $2 per share
• Increased net shareholder equity from -$1.5M in 2018 to $11.9M in 2024
• Strategic MOU with Cycurion to integrate high-margin AI cybersecurity solutions
• Recent institutional investors taking positions in the company
• On track for $340M full-year revenue goal in 2025

Negative

• Heavy concentration in telecom sector (80% of revenue)
• Significant growth expectations may create execution risks
• Pending acquisitions and integration could pose challenges

Insights

Financial Analyst

IQSTEL reports exceptional revenue growth, debt reduction, and strategic expansion - on accelerated path to $1B revenue target.

IQSTEL's preliminary July 2025 revenue of $35 million represents a significant operational milestone. This puts the company at a $420 million annualized run rate ($35M × 12), surpassing their $400 million target five months ahead of schedule. This accelerated growth trajectory supports their full-year target of $340 million for 2025 and keeps them firmly on track toward their $1 billion revenue goal by 2027.

The revenue composition—80% telecom and 20% fintech—shows a well-established core business with diversification into higher-margin financial technology services. This mix offers both stability and growth potential.

Looking at IQSTEL's financial evolution, the growth from $13 million (2018) to nearly $300 million (2024) represents a 2,200% revenue increase in just six years. More impressively, they've transformed a negative net shareholder equity position of $1.5 million in 2018 to positive equity of $11.9 million in 2024—a $13.4 million improvement.

The $7 million debt reduction since NASDAQ uplisting (approximately $2 per share) significantly strengthens their balance sheet. That $3.5 million of this debt was converted to preferred shares is particularly telling—it signals that creditors are confident enough in IQSTEL's future to trade guaranteed debt repayment for equity upside.

The planned implementation of monthly EBITDA reporting and introduction of EBITDA per share as a performance metric shows management's focus on transparency and profitability, not just revenue growth. Their target of a $15 million EBITDA run rate by 2026 through disciplined acquisitions indicates a structured approach to profitability enhancement.

The strategic partnership with Cycurion (NASDAQ: CYCU) introduces potential for higher-margin cybersecurity services to complement existing offerings, potentially improving overall profitability while leveraging their existing telecom infrastructure.

While the cited analyst price target of $18-$22 seems ambitious, IQSTEL's focus on industry-standard valuation metrics (10-20× EBITDA for billion-dollar revenue companies in their sector) suggests management has a clear understanding of what drives valuation in their industry.

NEW YORK, Aug. 12, 2025 /PRNewswire/ -- IQSTEL Inc. (NASDAQ: IQST) today announced preliminary July 2025 revenue of approximately $35 million, surpassing the Company's $400 million annualized revenue run rate — five months ahead of its internal schedule.

If IQSTEL maintains this revenue level through the second half of 2025, the Company projects $210 million in second-half revenue, keeping it firmly on track to achieve its $340 million full-year revenue goal. The current revenue mix is approximately 80% telecom and 20% fintech.

Executing on Growth, Profitability, and Shareholder Value

Over the years, every acquisition IQSTEL has executed has resulted in:

• Increased revenue per share
• Increased net shareholders' equity
• Increased net shareholders' equity per issued share

This disciplined value-creation approach remains central to the Company's strategy. This is how IQSTEL has grown from $13 million in revenue in 2018 to nearly $300 million in 2024, with a clear goal of becoming a $1 billion revenue company by 2027; and from a deficit in the Net Shareholder's equity of $1.5 million in 2018 to positive Net Shareholder's Equity of $11.9 million in 2024.

Since its NASDAQ uplisting, IQSTEL has strengthened its financial position by reducing nearly $7 million in debt — the equivalent of approximately $2 per share. This achievement enhances the Company's balance sheet and expands its capacity for reinvestment, directly supporting long-term shareholder value.

Of this $7 million debt reduction, $3.5 million was converted into preferred shares, reflecting debt holders' confidence in the Company's strategic direction and management team. Choosing equity over fixed interest payments demonstrates these stakeholders' belief in IQSTEL's long-term growth potential.

The Company is upgrading its accounting systems and workflows to enable monthly reporting of both revenue and EBITDA. Introducing EBITDA per share as a key performance metric — an important tool for measuring the Company's ability to create shareholder value.

In addition, several institutional investment holdings have recently taken positions in IQSTEL in the open market — a further sign of market confidence. This information is publicly available on Nasdaq's institutional holdings page:

https://www.nasdaq.com/market-activity/stocks/iqst/institutional-holdings

As previously disclosed, IQSTEL is actively pursuing acquisitions with the potential to add $10 million in EBITDA, aiming for a $15 million EBITDA run rate in operating businesses by 2026. These transactions are expected to take place over the next 18 months, with a disciplined, value-driven approach rather than a rushed timeline.

A Strategic Leap with Cycurion

IQSTEL recently signed a Memorandum of Understanding (MOU) with Cycurion Inc. (NASDAQ: CYCU) — a highly strategic move that will integrate high-tech, high-margin services into IQSTEL's business platform.

Through this collaboration, IQSTEL and Cycurion will combine expertise to deliver next-generation, AI-driven cybersecurity solutions to telecom operators, governments, and enterprises worldwide. This initiative supports IQSTEL's goal of becoming not only a large player, but a leader in the industry — with a direct, positive impact on shareholder value.

Building for the Next Decade

IQSTEL continues to prepare for sustained growth well beyond its current planning horizon.

"We think long-term," said Leandro Iglesias, CEO of IQSTEL. "Our strategies are designed not only to deliver strong results in the coming years but also to ensure IQSTEL is ready to lead our industry into the next decade."

Why $1 Billion in Revenue Matters

IQSTEL's strategic target is to reach $1 billion in revenue by 2027. In its sector, public peers with $1 billion in revenue often trade at 10x to 20x EBITDA multiples. Achieving this milestone would help IQSTEL close what it views as a significant valuation gap compared to sector leaders, unlocking substantial shareholder value.

We invite investors to review the Litchfield Hills Research report on IQSTEL, which issued a Buy rating with a price target range of $18–$22.

About IQSTEL Inc.

IQSTEL Inc. (NASDAQ: IQST) is a multinational technology company providing advanced solutions across Telecom, High-Tech Telecom Services, Fintech, AI-Powered Telecom Platforms, and Cybersecurity. With operations in 21 countries and a team of 100 employees, IQSTEL serves a broad global customer base with high-value, high-margin services. Backed by a strong and scalable business platform, the company is forecasting $340 million in revenue for FY-2025, reinforcing its trajectory toward becoming a $1 billion tech-driven enterprise by 2027.

Use of Non-GAAP Financial Measures: The Company uses certain financial calculations such as Adjusted EBITDA, Return on Assets and Return on Equity as factors in the measurement and evaluation of the Company's operating performance and period-over-period growth. The Company derives these financial calculations on the basis of methodologies other than generally accepted accounting principles ("GAAP"), primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. These financial calculations are "non-GAAP financial measures" as defined under the SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items, other infrequent charges and currency fluctuations. The Company presents these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company's core operating performance and provide greater transparency into the Company's results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company's financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company's GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP, and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly-titled measures of other companies.

Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Adjusted EBITDA excludes, in addition to non-operational expenses like interest expenses, taxes, depreciation and amortization; items that we believe are not indicative of our operating performance, such as:

• Change in Fair Value of Derivative Liabilities: These adjustments reflect unrealized gains or losses that are non-operational and subject to market volatility.
• Loss on Settlement of Debt: This represents non-recurring expenses associated with specific financing activities and does not impact ongoing business operations.
• Stock-Based Compensation: As a non-cash expense, this adjustment eliminates variability caused by equity-based incentives.

The Company believes Adjusted EBITDA offers a clearer view of the cash-generating potential of its business, excluding non-recurring, non-cash, and non-operational impacts. Management believes that Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of financing, income taxes, non-cash and certain other items that may vary for different companies for reasons unrelated to overall operating performance and also believes this information is useful to investors.

Safe Harbor Statement: Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other information relating to our future activities or other future events or conditions. Words such as "anticipate," "believe," "estimate," "expect," "intend", "could" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates, and projections about our business based partly on assumptions made by management. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to successfully market our products and services; our continued ability to pay operating costs and ability to meet demand for our products and services; the amount and nature of competition from other telecom products and services; the effects of changes in the cybersecurity and telecom markets; our ability to successfully develop new products and services; our ability to complete complementary acquisitions and dispositions that benefit our company; our success establishing and maintaining collaborative, strategic alliance agreements with our industry partners; our ability to comply with applicable regulations; our ability to secure capital when needed; and the other risks and uncertainties described in our prior filings with the Securities and Exchange Commission.

These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may and are likely to differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release, and IQSTEL Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.

For more information, please visit www.IQSTEL.com.

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SOURCE iQSTEL

FAQ

What was IQSTEL's (IQST) revenue for July 2025?

IQSTEL reported preliminary revenue of $35 million for July 2025, surpassing its $400 million annualized revenue run rate target five months ahead of schedule.

What is IQSTEL's (IQST) revenue target for 2025?

IQSTEL is targeting $340 million in full-year revenue for 2025, with projected second-half revenue of $210 million if current levels are maintained.

How much debt has IQSTEL (IQST) reduced since its NASDAQ uplisting?

IQSTEL has reduced nearly $7 million in debt since its NASDAQ uplisting, equivalent to approximately $2 per share, with $3.5 million converted to preferred shares.

What is IQSTEL's (IQST) revenue goal for 2027?

IQSTEL aims to reach $1 billion in revenue by 2027, which could help the company achieve valuations similar to sector peers trading at 10x to 20x EBITDA multiples.

What is IQSTEL's (IQST) current revenue mix?

IQSTEL's current revenue mix is approximately 80% from telecom operations and 20% from fintech services.

What is IQSTEL's (IQST) EBITDA target from acquisitions?

IQSTEL is pursuing acquisitions with potential to add $10 million in EBITDA, targeting a $15 million EBITDA run rate in operating businesses by 2026.