IQST - IQSTEL Inc. Announces Shareholder Letter Unveiling 4x Net Income Growth Catalyst: Binding MOU with ULTRANET Expected to Transform Company Profitability While Digital Services Strategy Opens Path to High-Margin Revenue at Scale

Rhea-AI Summary

IQSTEL (NASDAQ: IQST) issued a shareholder letter announcing a Binding MOU to acquire a 51% stake in ULTRANET Telecom Group, described as its largest transaction to date.

According to IQSTEL, ULTRANET is expected to add $4.5M annual net income, ~$130M revenue, ~$9M combined Adjusted EBITDA, $21M in assets, and $13M in shareholders' equity, implying about a 4x increase in net income from operations and a revenue run rate above $500M. The company also highlighted its shift toward high-margin digital services, citing access to 2.3B end users and a potential 23M-user addressable market if it captures 1% through its fintech, cybersecurity, AI, digital health, and digital content offerings.

Positive

• $4.5M annual net income added from ULTRANET, ~4x net income from operations
• $130M annual revenue added, lifting IQSTEL above $500M 2026 run-rate
• ~$9M combined Adjusted EBITDA, toward $15M mid-term EBITDA target
• $21M in total assets and $13M shareholders' equity added on consolidation
• Expansion into 6 African markets, reaching ~30 countries globally
• Revenue growth from $13.8M (2018) to $317M (2025), 40x increase
• 2026E revenue run-rate projected at $560M with ULTRANET contribution
• Litchfield Hills Research reaffirmed an $18.00 per share price target

Negative

• None.

News Market Reaction – IQST

+47.22% 18.8x vol

31 alerts

+47.22% Session close to close

+59.8% Peak in 42 min

$10.71M Market Cap

18.8x Rel. Volume

In the Jun 25 session, IQST gained 47.22%, reflecting a significant positive market reaction. Argus tracked a peak move of +59.8% during that session. Our momentum scanner triggered 31 alerts that day, indicating elevated trading interest and price volatility. Trading volume was exceptionally heavy at 18.8x the daily average, suggesting very strong buying interest.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock surged +47.2% in the session following this news. A strong positive reaction aligns with I...

Analysis

The stock surged +47.2% in the session following this news. A strong positive reaction aligns with IQSTEL’s emphasis on ULTRANET’s $4.5M net income boost and scalable digital services access to 23 million users. Elevated short positioning could amplify moves if sentiment improves or reverse sharply if momentum fades.

Key Figures

Added annual net income: $4.5M Combined Adjusted EBITDA: $9M Added annual revenue: $130M +5 more

8 metrics

Added annual net income $4.5M Expected annual net income contribution from ULTRANET acquisition

Combined Adjusted EBITDA $9M Combined Adjusted EBITDA after including ULTRANET contribution

Added annual revenue $130M Annual revenue expected from ULTRANET based on FY 2025

Total assets added $21M ULTRANET total assets to be consolidated onto IQSTEL balance sheet

Shareholders' equity added $13M Increase in shareholders’ equity from ULTRANET transaction

Addressable digital users 23 million 1% of 2.3 billion end users accessible via global operator network

Global end users reached 2.3 billion End users accessible through >600 telecom operator relationships

2026 year-end run rate $560M Projected 2026 revenue run rate including ULTRANET contribution

Historical Context

5 past events · Latest: Jun 17 ()

5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 17	Investor outreach		+8.3%	Showcased ULTRANET acquisition plans and buyback program to institutional investors.
Jun 08	Buyback launch		+2.5%	Announced share repurchase program and reiterated ULTRANET accretive contribution.
Jun 04	Acquisition MOU		-11.3%	Binding MOU to acquire 51% of ULTRANET, adding revenue and net profit.
May 26	Q1 2026 earnings		-5.8%	Reported strong Q1 revenue growth and acceleration of digital services expansion.
May 21	Strategic update		-2.3%	Outlined Q1 growth, revenue run rate and long-term $1 billion revenue goal.

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

Key Terms

adjusted ebitda, binding mou, net income, shareholders' equity, +1 more

5 terms

adjusted ebitda financial

"$4.5M in added net income, $9M combined Adjusted EBITDA, and a 23-million-user"

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.

binding mou regulatory

"disclosing a Binding MOU to acquire a 51% controlling interest in ULTRANET"

A binding memorandum of understanding (binding MOU) is a written agreement that sets out key terms and obligations between parties and is intended to be legally enforceable for those specified items. Think of it as more than a handshake but short of a full contract: it shows real commitment and can create legal duties or penalties if a party breaks its promises. Investors watch for binding MOUs because they change a company’s risks, timelines and potential costs, and signal how likely a proposed deal or partnership is to proceed.

net income financial

"$4.5M in added net income, $9M combined Adjusted EBITDA, and a 23-million-user"

Net income is the amount of money a company keeps after paying all its costs, interest, taxes and one-time charges — effectively the company’s profit “left over” at the end of a reporting period. Investors use it like a report card: it shows whether the business is generating real profit, influences earnings per share and dividend potential, and helps determine valuation and long-term financial health.

View in glossary

shareholders' equity financial

"$13M Shareholders' Equity Added | Directly increases per-share intrinsic value"

Shareholders' equity is the portion of a company's value that belongs to its owners after subtracting what the company owes to others — like a person’s net worth calculated as assets minus debts. For investors, it signals the company’s financial cushion and underlying book value per share, helping gauge solvency, how much owners would theoretically receive in liquidation, and whether reported profits are building real owner value.

View in glossary

nasdaq uplisting regulatory

"2025 | $317M | +20 % | NASDAQ uplisting; first-ever dividend"

A Nasdaq uplisting is when a company moves its stock from a smaller trading venue or a lower-tier listing to one of Nasdaq’s primary markets, after meeting stronger financial, governance and reporting standards. For investors it matters because uplisting can increase a stock’s visibility, trading volume and perceived credibility—similar to a small shop moving into a busy mall—potentially making shares easier to buy or sell and improving access to capital for the company.

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

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$4.5M in added net income, $9M combined Adjusted EBITDA, and a 23-million-user digital services addressable market — IQSTEL is no longer just a telecom company

NEW YORK, June 25, 2026 /PRNewswire/ -- IQSTEL Inc. (NASDAQ: IQST) today published a Letter to Shareholders disclosing a Binding MOU to acquire a 51% controlling interest in ULTRANET Telecom Group — the largest transaction in IQSTEL's history — and detailing a structural profitability inflection that is expected to multiply the Company's net income from operations by approximately four times. In parallel, IQSTEL outlined its accelerating transition from a pure-play telecom carrier into a high-margin digital services platform with access to an addressable market of up to 23 million digital services users through its existing global operator network.

~4x Net Income Multiplier

$4.5M Added Annual Net Income

$9M Combined Adj. EBITDA

$13M Added Shareholders' Equity

The Profitability Inflection: What ULTRANET Delivers

ULTRANET Telecom Group is a profitable, fully audited telecommunications operator with established operations across six African countries. Based on ULTRANET's FY 2025 audited financial statements, the planned Q3 acquisition is expected to deliver an immediate, verified profitability boost to IQSTEL on a consolidated basis:

ULTRANET Metric	Impact on IQSTEL (Consolidated)
$4.5M Annual Net Income Added	~4x increase in IQSTEL net income from operations — single largest profitability leap in Company history
$130M Annual Revenue Added	~30% revenue increase in one transaction; pushes IQSTEL above $500M annualized run rate
$21M Total Assets Added	Strengthens balance sheet; improves borrowing capacity and institutional credibility
$13M Shareholders' Equity Added	Directly increases per-share intrinsic value and supports long-term capital allocation strategy
~$9M Combined Adj. EBITDA	Positions IQSTEL approximately halfway toward its $15M EBITDA mid-term run rate target
6 African Markets	Expands IQSTEL's operational footprint to ~30 countries across Africa, Latin America, and Europe

Management noted that the $4.5 million net income contribution represents the single largest profitability leap in IQSTEL's history, and that the combined Adjusted EBITDA of approximately $9 million positions the Company at roughly the halfway point toward its mid-term target of $15 million in EBITDA — with further digital services upside not yet reflected in these projections.

From Telecom Carrier to High-Margin Digital Platform

While the revenue and profitability contribution of ULTRANET is significant, management believes the strategic value may be even greater. IQSTEL's existing commercial platform already reaches over 600 of the world's largest telecom operators, creating access to approximately 2.3 billion end users globally. ULTRANET's African presence and operator relationships provide IQSTEL with a ready-made regional channel through which it can immediately begin deploying its high-margin Digital Services portfolio.

IQSTEL's Digital Services portfolio currently includes:

• Fintech: Fintech & mobile money solutions
• Cybersecurity: Enterprise and operator cybersecurity services
• Artificial Intelligence: Proprietary Artificial Intelligence applications
• Digital Health: Digital Health platforms
• Digital Content: Digital Content distribution

The Digital Services Opportunity: If IQSTEL captures just 1% of the 2.3 billion end users accessible through its global operator network, that represents a potential addressable market of 23 million Digital Services users — at margins that significantly exceed traditional telecommunications connectivity. ULTRANET's African footprint adds a high-growth regional channel where digital financial and content services remain significantly underserved.

The Company intends to leverage the combined platform to extend ULTRANET's distribution reach beyond Africa into the Middle East and Asia — two of the highest-growth telecommunications and digital services regions in the world — creating a scalable international growth engine with meaningfully higher margin characteristics than the Company's current revenue mix.

"The Binding MOU with ULTRANET sets the stage for something no single transaction has done before in our history: upon closing in Q3, it is expected to multiply our net income from operations by approximately four times in one step. But the bigger story is what comes next. We have built a platform that touches 2.3 billion end users. We are now deploying fintech, cybersecurity, AI, and digital health through that platform — services that carry multiples of the margin of traditional telecom. IQSTEL is not becoming a digital services company. IQSTEL already is one."

— Leandro Jose Iglesias, President & CEO, IQSTEL Inc. (NASDAQ: IQST)

Revenue Context: A Platform Built for Scale

IQSTEL enters this profitability phase backed by a proven revenue track record. The Company has grown from $13.8 million in revenue in 2018 to a projected $560 million year-end run rate in 2026 — a 40x increase — with the planned ULTRANET acquisition expected to accelerate the path toward management's stated target of  $1 Billion in annual revenue.

Year	Net Revenue	YoY Growth	Milestone
2018	$13.8M	—	Company founding year
2020	$44.9M	+149 %	Multi-country telecom platform established
2022	$93.2M	+44 %	Consistent M&A-driven growth
2023	$144.5M	+55 %	55% organic growth — zero acquisitions
2024	$283M	+96 %	Nearly doubled revenue in a single year
2025	$317M	+20 %	NASDAQ uplisting; first-ever dividend
2026E	$430M → $560M*	~+40%	ULTRANET acquisition closes (Q3) — 4x net income leap; $560M year-end run rate
2027T	$1 Billion	—	Management revenue target

* 2026E organic forecast $430M; ULTRANET adds ~$130M → $560M year-end run rate. Forward-looking estimates are management projections, not guarantees of future performance.

Independent Analyst Validation

Following the ULTRANET announcement, Litchfield Hills Research reaffirmed its $18.00 per share price target for IQSTEL — a target management believes reflects the significant disconnect between IQSTEL's current market valuation and the intrinsic value of the business being built. Full report: https://landingpage.iqstel.com/wp-content/uploads/2026/06/LHR-IQST-06092026.pdf

(Analyst opinions are their own and do not represent a statement by the Company.)

READ THE FULL SHAREHOLDER LETTER AT: https://landingpage.iqstel.com/wp-content/uploads/2026/06/IQST_Shareholders_Letter_June-25_2026.pdf

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.

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SOURCE iQSTEL

FAQ

What did IQSTEL (NASDAQ: IQST) announce about the ULTRANET acquisition on June 25, 2026?

IQSTEL announced a Binding MOU to acquire a 51% controlling interest in ULTRANET Telecom Group. According to IQSTEL, this is the largest transaction in its history and is expected to significantly increase revenue, net income, assets, and shareholders’ equity upon planned Q3 closing.

How much net income and EBITDA could ULTRANET add to IQSTEL (IQST)?

ULTRANET is expected to add about $4.5M in annual net income and contribute to roughly $9M combined Adjusted EBITDA. According to IQSTEL, this implies around a fourfold increase in net income from operations and moves the company toward its $15M EBITDA mid-term target.

What revenue impact does the ULTRANET deal have on IQSTEL’s 2026 outlook?

IQSTEL projects 2026 organic revenue of $430M, with ULTRANET adding about $130M to reach a $560M year-end run rate. According to IQSTEL, this single transaction represents roughly a 30% revenue increase on a consolidated basis.

How is IQSTEL transitioning from a telecom carrier to a digital services platform?

IQSTEL reports it is shifting toward high-margin digital services delivered through its global operator network. According to IQSTEL, its portfolio spans fintech, cybersecurity, artificial intelligence, digital health, and digital content, targeting up to 2.3B reachable end users worldwide.

What is the digital services addressable market IQSTEL (IQST) is targeting after the ULTRANET MOU?

IQSTEL estimates access to about 2.3B end users via more than 600 operators, implying a potential 23M-user digital services addressable market at 1% penetration. According to IQSTEL, ULTRANET’s African footprint enhances reach in underserved digital finance and content markets.

How has IQSTEL’s revenue grown from 2018 to its 2026 projections?

IQSTEL reports revenue increased from $13.8M in 2018 to $317M in 2025, a 40x rise. For 2026, according to IQSTEL, revenue is projected at $430M organically or a $560M run rate including the planned ULTRANET acquisition.

What analyst price target was mentioned for IQSTEL (NASDAQ: IQST) in connection with the ULTRANET news?

Following the ULTRANET announcement, Litchfield Hills Research reaffirmed an $18.00 per share price target for IQSTEL. According to IQSTEL, this target reflects what management views as a disconnect between current market valuation and the company’s intrinsic business value.