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IQST - IQSTEL Expects to Surpass an $8 Million Adjusted EBITDA Run Rate This Quarter as It Leverages Its Global Platform to Accelerate Growth

(Moderate)
(Very Positive)
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IQSTEL (NASDAQ: IQST) reported $207 million revenue in the first half of 2026, implying an annualized run rate above $400 million before the expected Ultranet Telecom acquisition. Ultranet is anticipated to add about $130 million in annual revenue and roughly $4.5 million in annual net income, expanding operations from about 24 to approximately 30 countries.

According to IQSTEL, the combined platform is expected to exceed a $500 million annualized revenue run rate and lift its Adjusted EBITDA run rate to more than $8 million this quarter, with a roadmap targeting $13–$15 million and a longer-term objective of approximately $25 million, driven by higher-margin Digital Services such as AI, cybersecurity, fintech, and digital health.

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Positive

  • $207 million revenue in first half 2026, annualized run rate > $400 million
  • Ultranet expected to add $130 million annual revenue and $4.5 million net income
  • Combined platform expected to exceed $500 million annualized revenue run rate post‑acquisition
  • Adjusted EBITDA run rate expected to surpass $8 million this quarter
  • Management targets Adjusted EBITDA run rate of $13–$15 million in next phase
  • Long‑term objective to grow Adjusted EBITDA run rate toward $25 million

Negative

  • None.

Market Context

IQSTEL’s prior July 16 earnings-tagged update recorded a 38.45% 24-hour reaction, while current shor...
Analysis

IQSTEL’s prior July 16 earnings-tagged update recorded a 38.45% 24-hour reaction, while current short positioning was categorized as low. That comparison frames this announcement as execution-dependent; acquisition timing and integration remained key watch items.

Key Figures

First-half revenue: $207 million Annualized revenue run rate: exceeding $400 million Ultranet annual revenue: approximately $130 million +5 more
8 metrics
First-half revenue $207 million First half of 2026
Annualized revenue run rate exceeding $400 million Before expected Ultranet acquisition closing
Ultranet annual revenue approximately $130 million Expected annual contribution
Ultranet annual net income approximately $4.5 million Expected annual contribution
Combined annualized revenue run rate exceeding $500 million Following expected Ultranet acquisition completion
Adjusted EBITDA run rate more than $8 million Expected after Ultranet closing this quarter
Adjusted EBITDA run rate target $13 million to $15 million Following integration, organic growth, and operating efficiencies
Long-term Adjusted EBITDA objective $25 million Digital Services growth objective

Historical Context

5 past events · Latest: Jul 16 (Positive)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Jul 16 First-half revenue update Positive +38.5% Reported $207 million first-half revenue and projected an EBITDA run rate above $8 million.
Jul 13 Corporate structure update Positive +3.9% Created IQSTEL Operating Holdings to consolidate subsidiaries and support future financing and acquisitions.
Jun 25 Ultranet acquisition update Positive +47.2% Announced a binding MOU expected to add $130 million revenue and $4.5 million net income.
Jun 17 Investor outreach update Positive +8.3% Highlighted the Ultranet transaction, share repurchase authorization, and digital-services expansion strategy.
Jun 08 Share repurchase program Positive +4.5% Authorized repurchases of up to 1,000,000 common shares funded partly by subsidiary dividends.

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

Pattern Detected

The five prior events all recorded positive 24-hour reactions, including 3.92% and 47.22%, aligning with positive announcements.

Key Terms

adjusted ebitda, annualized revenue run rate, operating leverage
3 terms
adjusted ebitda financial
"Adjusted EBITDA run rate of approximately $13 million to $15 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
annualized revenue run rate financial
"placing the Company on an annualized revenue run rate exceeding $400 million"
Annualized revenue run rate is an estimate of how much revenue a company would generate over a full year if its current short-term sales pace (for a week, month or quarter) continued unchanged; it simply multiplies the recent period’s revenue to project a 12‑month total. Investors use it as a quick snapshot to judge growth and set expectations—like using a car’s current speed to estimate yearly mileage—but it can mislead if the recent period was unusually high or low.
operating leverage financial
"creating significant operating leverage and accelerating long-term profitability"
Operating leverage measures how much a company's profits are affected by changes in sales volume. When a business has high operating leverage, small increases in sales can lead to much larger increases in profit, much like a lever amplifies force. It matters to investors because it indicates how sensitive a company's earnings are to fluctuations in sales, affecting risk and potential returns.
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Built Over Nearly Two Decades, IQSTEL's Global Platform Is Now Positioned to Drive Its Next Phase of Growth Through High-Margin Digital Services

• Reported $207 million in revenue during the first half of 2026, representing an annualized revenue run rate exceeding $400 million prior to the expected closing of the Ultranet acquisition

• Ultranet expected to contribute approximately $130 million in annual revenue and approximately $4.5 million in annual net income, expanding IQSTEL's operations to approximately 30 countries

• Combined platform expected to exceed a $500 million annualized revenue run rate while accelerating the Company's path toward an Adjusted EBITDA run rate of $13-$15 million

NEW YORK, Aug. 6, 2026 /PRNewswire/ -- IQSTEL Inc. (NASDAQ: IQST), a rapidly growing multinational technology company, today outlined how nearly two decades of disciplined execution have positioned the Company to enter its next phase of accelerated growth by leveraging its global telecommunications platform to commercialize proprietary Digital Services designed to increase revenue, expand Adjusted EBITDA, and enhance long-term profitability.

iQSTEL logo

For nearly twenty years, IQSTEL has focused on building a scalable telecommunications platform through proprietary technology development, strategic acquisitions, disciplined execution, and trusted commercial relationships with telecommunications operators around the world. Management believes that platform has now reached the scale where it can be leveraged to distribute high-margin Digital Services across its existing global customer base.

As of the Company's most recent reported results, IQSTEL generated $207 million in revenue during the first half of 2026, placing the Company on an annualized revenue run rate exceeding $400 million, even before the expected closing of the Ultranet Telecom acquisition.

The expected acquisition of Ultranet, anticipated to close this quarter, represents another transformational milestone in IQSTEL's evolution. Upon completion, Ultranet is expected to contribute approximately $130 million in annual revenue and approximately $4.5 million in annual net income, increasing IQSTEL's annualized revenue run rate to more than $500 million while expanding the Company's operational footprint from approximately 24 countries to approximately 30 countries.

Management believes the combination of IQSTEL's global commercial platform and Ultranet's strategic assets creates a unique opportunity to accelerate revenue growth, improve profitability, and significantly expand Adjusted EBITDA over the coming years.

A Platform Built to Be Leveraged

Over the last several years, IQSTEL has consistently executed a disciplined strategy of growing revenue while improving operational efficiency and financial performance.

Today, the Company operates across approximately 24 countries, employs more than 100 professionals, manages more than $48 million in assets, and maintains commercial relationships with more than 600 telecommunications operators worldwide, representing a potential reach of approximately 2.3 billion end users.

Management believes these relationships represent one of IQSTEL's greatest strategic assets.

Unlike many technology companies that must first build distribution after developing their products, IQSTEL has already established a mature global commercial platform capable of introducing new technologies directly into existing carrier relationships.

Management believes replicating this platform would require many years of technical integrations, regulatory compliance, operational execution, and customer trust developed over nearly two decades, creating meaningful barriers to entry.

The Ultranet Acquisition Expands Scale and Creates New Growth Opportunities

Expected to close this quarter, the acquisition of Ultranet Telecom significantly strengthens IQSTEL's global platform.

Ultranet is expected to contribute:

  • Approximately $130 million in annual revenue
  • Approximately $4.5 million in annual net income
  • Operations across Ghana, Nigeria, Ivory Coast, Senegal, Burkina Faso, and Mali
  • Long-standing commercial relationships with leading telecommunications operators throughout Africa
  • Exclusive strategic messaging infrastructure with major African mobile operators

Africa represents one of the world's fastest-growing telecommunications markets.

Management believes Ultranet provides IQSTEL with an established operating platform and strategic customer relationships that will accelerate the commercialization of the Company's Digital Services portfolio throughout the region while further strengthening its global presence.

Following the acquisition, IQSTEL expects to operate at an annualized revenue run rate exceeding $500 million, creating an even larger commercial platform from which to distribute its proprietary technologies.

Digital Services: The Next Phase of IQSTEL's Growth

While IQSTEL's telecommunications business has successfully created scale and established global customer relationships, management believes the Company's Digital Services portfolio represents its next major growth opportunity and the principal driver of its next phase of EBITDA expansion.

Unlike traditional wholesale telecommunications services, many Digital Services are expected to generate substantially higher gross margins while creating scalable, recurring revenue streams.

IQSTEL's Digital Services portfolio includes:

  • Proprietary Artificial Intelligence platforms
  • AI Voice Agents and Intelligent Communications
  • Enterprise AI Automation
  • AI-powered telecommunications applications
  • Cybersecurity solutions developed with Cycurion
  • Fintech solutions through GlobeTopper
  • Digital Health technologies
  • Content Services

Each solution has been designed specifically for telecommunications operators and enterprise customers, enabling rapid deployment while minimizing implementation complexity.

Rather than adapting third-party software, IQSTEL has developed many of these technologies internally based on nearly two decades of telecommunications expertise and direct industry experience. Management believes this purpose-built approach provides the Company with a significant competitive advantage.

Management expects the Digital Services division to become the Company's primary engine of profitability beginning in 2027. Following the anticipated achievement of an Adjusted EBITDA run rate of approximately $13 million to $15 million, management expects the commercialization of its higher-margin Digital Services portfolio to drive the Company's next stage of financial growth, with the objective of increasing its Adjusted EBITDA run rate toward $25 million.

By leveraging IQSTEL's existing global commercial platform—including relationships with more than 600 telecommunications operators and a potential reach of approximately 2.3 billion end users—the Company believes it is uniquely positioned to scale these higher-margin solutions without the need to build a new global distribution network, creating significant operating leverage and accelerating long-term profitability.

The Roadmap to the Next Phase of Growth

Management believes IQSTEL has established a clear roadmap for its next phase of earnings and shareholder value creation.

The expected closing of the Ultranet acquisition this quarter is anticipated to increase the Company's Adjusted EBITDA run rate to more than $8 million, marking an important milestone in IQSTEL's evolution and demonstrating the earnings potential of the Company's expanded telecommunications platform.

Building on that foundation, management's next objective is to optimize the combined business through the successful integration of Ultranet, continued organic growth, operating efficiencies, and a strategic acquisition, with the goal of increasing the Company's Adjusted EBITDA run rate to approximately $13 million to $15 million.

Management believes achieving this objective will establish a stronger financial platform entering 2027.

From that point forward, IQSTEL expects its Digital Services division to become the Company's primary engine of EBITDA expansion. By leveraging its existing global commercial platform to commercialize higher-margin solutions—including Artificial Intelligence, Intelligent Communications, Cybersecurity, Fintech, Digital Health, Enterprise Automation, and Content Services—management expects to begin the next phase of its EBITDA growth strategy in 2027, with the long-term objective of progressively increasing the Company's Adjusted EBITDA run rate toward $25 million.

Management believes this roadmap reflects a natural evolution from building infrastructure to monetizing that infrastructure through proprietary technology and scalable digital solutions.

A Competitive Advantage Built on Technology and Distribution

Management believes IQSTEL possesses a competitive advantage that few companies in the telecommunications or technology sectors can replicate.

Over nearly two decades, the Company has built a global commercial distribution platform through trusted relationships with more than 600 telecommunications operators, expected to span approximately 30 countries following the anticipated closing of the Ultranet acquisition. Through these relationships, management believes IQSTEL has the potential to reach approximately 2.3 billion end users worldwide.

At the same time, IQSTEL has invested in developing its own portfolio of proprietary Digital Services through its internal research and development organization, led by Jose Enrique Puente, Head of AI & R&D. As highlighted during the Company's recent Force Family Office Webinar, these technologies include Artificial Intelligence platforms, AI Voice Agents, Enterprise Automation, Cybersecurity, Fintech, Digital Health, and other digital solutions specifically designed for telecommunications operators and enterprise customers.

Management believes the combination of proprietary technology and an established global distribution platform creates a differentiated business model capable of accelerating commercialization, reducing customer acquisition costs, expanding margins, and driving long-term profitability.

Rather than spending years building a global sales organization after developing new products, IQSTEL believes it can immediately commercialize new Digital Services through the commercial relationships it has already established over nearly twenty years.

Investors and interested parties are encouraged to watch the complete webinar:

https://youtu.be/6oFdjT3JLs4

CEO Commentary

"Surpassing an Adjusted EBITDA run rate of $8 million following the expected closing of the Ultranet acquisition will represent an important milestone for IQSTEL," said Leandro Iglesias, Chairman and CEO of IQSTEL.

"More importantly, it marks the beginning of our next phase of growth—not the end of it.

For nearly twenty years, we have invested in building a global telecommunications platform, establishing trusted relationships with hundreds of operators around the world, and developing proprietary technologies designed specifically for our industry. Today, we believe those investments have created a commercial platform that is difficult to replicate.

Our roadmap is clear. First, we expect the integration of Ultranet to take us beyond an $8 million Adjusted EBITDA run rate. Next, our objective is to optimize the combined business through continued operational efficiencies, organic growth, and a strategic acquisition, with the goal of increasing our Adjusted EBITDA run rate to approximately $13 million to $15 million. From there, we expect our high-margin Digital Services portfolio to become the primary driver of our next stage of earnings growth, with the long-term objective of increasing our Adjusted EBITDA run rate toward $25 million.

What makes IQSTEL different is that we already have both the technology and the distribution. We believe very few companies can combine proprietary AI and Digital Services with commercial relationships spanning more than 600 telecommunications operators and the potential to reach approximately 2.3 billion end users worldwide.

We believe we are entering one of the most exciting chapters in IQSTEL's history, and we remain focused on transforming the platform we have spent nearly two decades building into a powerful engine for sustainable growth, expanding profitability, and long-term shareholder value."

About IQSTEL Inc.

IQSTEL Inc. (NASDAQ: IQST) is a global telecom and technology company operating in 21 countries with over 600 Telecommunication Carrier Interconnections. The company delivers international voice, SMS, messaging, connectivity, and mobile financial services to telecom operators and enterprise customers worldwide. Built through a decade of organic growth and strategic acquisitions, IQSTEL is now expanding into AI-powered communications and cybersecurity through its RealityBorder.com AI Division and Cycurion partnership.

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

Official Investors Landing Page: www.landingpage.iqstel.com

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.

Media and Investor Relations:
Ethan Walfish
Head of Investor Relations
IQSTEL Inc.
300 Aragon Avenue, Suite 375
Coral Gates, FL 33134
Email: ir@iqstel.com

 

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SOURCE iQSTEL

FAQ

What Adjusted EBITDA run rate does IQSTEL (NASDAQ: IQST) expect after the Ultranet acquisition in 2026?

IQSTEL expects its Adjusted EBITDA run rate to exceed $8 million this quarter after the anticipated Ultranet acquisition closing. According to IQSTEL, this milestone reflects earnings potential from the expanded telecom platform and sets a base for targeting a $13–$15 million run rate.

How much revenue did IQSTEL (IQST) report for the first half of 2026?

IQSTEL reported $207 million in revenue for the first half of 2026. According to IQSTEL, this performance implies an annualized revenue run rate exceeding $400 million, even before including the expected contribution from the Ultranet Telecom acquisition later in the year.

What financial impact is Ultranet expected to have on IQSTEL (IQST) revenue and net income?

Ultranet is expected to contribute about $130 million in annual revenue and approximately $4.5 million in annual net income. According to IQSTEL, the combined business should exceed a $500 million annualized revenue run rate and expand operations to roughly 30 countries.

What is IQSTEL’s long-term Adjusted EBITDA run rate objective mentioned in August 2026?

IQSTEL’s long-term objective is to increase its Adjusted EBITDA run rate toward $25 million. According to IQSTEL, this target is tied to scaling higher-margin Digital Services, including AI, cybersecurity, fintech, digital health, and enterprise automation, across its global telecom operator network.

How does IQSTEL plan to grow beyond a $13–$15 million Adjusted EBITDA run rate target?

IQSTEL plans to first reach a $13–$15 million Adjusted EBITDA run rate through Ultranet integration, organic growth, efficiencies and a strategic acquisition. According to IQSTEL, subsequent growth toward $25 million is expected from commercializing proprietary Digital Services over its established carrier relationships.

What role will Digital Services play in IQSTEL’s (IQST) growth strategy for 2027 and beyond?

Digital Services are expected to become IQSTEL’s primary profitability engine starting in 2027. According to IQSTEL, higher-margin offerings like AI, cybersecurity, fintech, digital health and content services should drive the next phase of Adjusted EBITDA expansion via its global telecom distribution platform.

How many telecom operator relationships and countries will IQSTEL serve after the Ultranet deal?

After the anticipated Ultranet closing, IQSTEL expects to operate in roughly 30 countries with commercial relationships across more than 600 telecommunications operators. According to IQSTEL, this network provides potential reach to approximately 2.3 billion end users worldwide for distributing its Digital Services.