IQST - IQSTEL Reports Preliminary $317 Million Revenue for FY-2025 and Highlights Strategic Path Toward EBITDA Expansion

Rhea-AI Summary

IQSTEL (NASDAQ: IQST) reported preliminary fiscal 2025 revenue of approximately $317 million and an estimated annual revenue run rate of about $400 million (80% telecom, 20% fintech). The company cites an Adjusted EBITDA run rate of ~$2.7 million and expects EBITDA to rise to $9–$15 million as revenue scales toward $500M–$600M in 2026.

IQSTEL plans two targeted acquisitions in 2026, consolidation of minority interests (expected Q2 2026), and expansion into AI and cybersecurity services to improve margins. Capital structure highlights: no convertible debt, no warrants, ~4.9 million shares outstanding, $12.23 assets/share, $4.66 stockholders' equity/share.

Positive

• Preliminary fiscal 2025 revenue of approximately $317 million
• Estimated annual revenue run rate of approximately $400 million
• Adjusted EBITDA run rate of approximately $2.7 million with projected growth to $9–$15 million
• Planned two targeted acquisitions in 2026 to accelerate revenue and capabilities
• No convertible debt and no warrants outstanding; ~4.9 million shares outstanding

Negative

• Current Adjusted EBITDA run rate (~$2.7M) implies a very low margin (~0.7% of $400M run rate)
• Material improvement depends on successful consolidation and two acquisitions across 2026
• Valuation ranges given are contingent on achieving projected EBITDA milestones and market multiple re-rating

News Market Reaction – IQST

+7.98% 3.1x vol

10 alerts

+7.98% News Effect

+7.0% Peak in 2 hr 52 min

+$729K Valuation Impact

$10M Market Cap

3.1x Rel. Volume

On the day this news was published, IQST gained 7.98%, reflecting a notable positive market reaction. Argus tracked a peak move of +7.0% during that session. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $729K to the company's valuation, bringing the market cap to $10M at that time. Trading volume was very high at 3.1x the daily average, suggesting strong buying interest.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

2025 revenue: $317 million Revenue run rate: $400 million Adjusted EBITDA run rate: $2.7 million +5 more

8 metrics

2025 revenue $317 million Preliminary fiscal year 2025 revenue

Revenue run rate $400 million Current annual revenue run rate (80% Telecom, 20% Fintech)

Adjusted EBITDA run rate $2.7 million Current adjusted EBITDA run rate

Projected EBITDA run rate $9–$15 million Management projection as revenue scales to $500M–$600M in 2026

End customers reached 2.7 billion Indirectly served through telecom operator partners

Telecom operators 600+ operators Connected across more than 20 countries

Shares outstanding 4.9 million Approximate common shares outstanding

Assets per share $12.23 Reported assets per share

Market Reality Check

Price: $1.88 Vol: Volume 72,279 is 1.16x th...

normal vol

$1.88 Last Close

Volume Volume 72,279 is 1.16x the 20-day average of 62,421 ahead of the release. normal

Technical Shares at $1.88 are trading below the $6 200-day moving average and far under the $18.69 52-week high.

Peers on Argus

IQST fell 6.93% while key telecom peers were mixed: PCLA -5.48%, SURG -2.35%, KO...

IQST fell 6.93% while key telecom peers were mixed: PCLA -5.48%, SURG -2.35%, KORE +0.22%, KVHI -0.17%, FNGR 0%. The decline appears more company-specific than a broad sector move.

Historical Context

5 past events · Latest: Feb 26 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 26	AI platform launch	Positive	+3.1%	Launch of IQCortex AI orchestration platform and revenue ambitions for AI division.
Feb 04	Annual meeting update	Positive	-3.2%	Annual meeting recap with $400M run rate, EBITDA progress, and acquisition plans.
Jan 28	Global AI rollout	Positive	-1.0%	Global launch of AI services suite targeting telecom and enterprise customers worldwide.
Jan 14	AI strategy letter	Positive	+9.4%	Shareholder letter detailing AI platform, early commercial traction, and 2027 sales goals.
Jan 06	Strategic plan letter	Positive	+1.4%	2026 plan to consolidate operations, reach $15M EBITDA run rate, and expand globally.

Pattern Detected

Positive strategic and AI updates have produced mixed reactions, with both rallies and selloffs following upbeat news.

Recent Company History

Over recent months, IQSTEL has repeatedly highlighted AI expansion and profitability goals. A Jan 6 shareholder letter set a $15M adjusted EBITDA run-rate target and broader geographic expansion. Subsequent AI-focused updates on Jan 14, Jan 28, and Feb 26 detailed new platforms and global launches, sometimes generating strong gains (e.g., +9.4%) and sometimes modest losses. The Feb 4 annual meeting recap reiterated a $400M revenue run rate and $2.7M EBITDA run rate, similar to the current release’s emphasis on scaling EBITDA from a sizable telecom/fintech base.

Market Pulse Summary

The stock moved +8.0% in the session following this news. A strong positive reaction aligns with man...

Analysis

The stock moved +8.0% in the session following this news. A strong positive reaction aligns with management’s emphasis on inflecting from scale to earnings, with preliminary $317M 2025 revenue and a $400M run rate underpinning the story. Historically, upbeat AI and strategy news has sometimes triggered solid gains but not uniformly. Investors may weigh execution risk around reaching the projected $9–$15M EBITDA run rate and completing planned acquisitions and consolidation, as past filings also reference capital-raising needs to support this roadmap.

Key Terms

ebitda, adjusted ebitda, operating leverage, convertible debt, +2 more

6 terms

ebitda financial

"where operational scale begins to translate into accelerated EBITDA growth."

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.

adjusted ebitda financial

"The company currently reports an Adjusted EBITDA run rate of approximately $2.7 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.

operating leverage financial

"where operating leverage, acquisitions, and higher-margin technology services begin"

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.

convertible debt financial

"IQSTEL maintains a clean capital structure, including:No convertible debt"

A convertible debt is a loan a company takes that gives the lender the option to swap the owed money for a set number of the company’s shares instead of getting cash back. It matters to investors because it can change who owns the company and how much their shares are worth: if lenders convert, existing shareholders can be diluted, but conversion can also signal confidence and reduce a company’s cash pressure — like getting a coupon that can be redeemed for store ownership rather than a refund.

warrants financial

"IQSTEL maintains a clean capital structure, including:No convertible debtNo warrants outstanding"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

run rate financial

"The company currently operates at approximately a $400 million annual revenue run rate"

Run rate is an estimate of a company's future sales or earnings based on its current performance over a short period, projected out over a longer timeframe. Investors use it like extrapolating a monthly paycheck into a yearly salary to quickly gauge growth or scale, but it can be misleading if recent results are unusually high or low, seasonal, or affected by one-time events.

AI-generated analysis. Not financial advice.

NEW YORK, March 9, 2026 /PRNewswire/ -- IQSTEL Inc. (NASDAQ: IQST), a global telecommunications and technology company, today announced preliminary revenue of approximately $317 million for fiscal year 2025, continuing the company's strong multi-year growth trajectory.

The company currently operates at approximately a $400 million annual revenue run rate (80% Telecom, 20% Fintech), positioning IQSTEL at the beginning of what management describes as its profit inflection phase, where operational scale begins to translate into accelerated EBITDA growth.

"Our focus now is transitioning from building revenue scale to expanding profitability," said Leandro Iglesias, Chairman and CEO of IQSTEL. "After years of building our global telecom business platform, we are entering the phase where operating leverage, acquisitions, and higher-margin technology services begin to significantly impact EBITDA."

Global Business Platform Built Over 17 Years

Over more than 17 years of operations, IQSTEL has built a global telecommunications and technology distribution platform connecting more than 600 telecom operators across more than 20 countries.

This infrastructure includes routing systems, billing integrations, telecom credit relationships, settlement history, regulatory compliance, and multi-country operational capabilities that allow IQSTEL to operate across multiple jurisdictions.

Because IQSTEL is embedded within telecom operator infrastructure and billing systems, the platform indirectly serves approximately 2.7 billion end customers worldwide through its operator partners.

Major telecom operators around the world have conducted business with IQSTEL. We invite readers to visit www.iqstel.com to see a selection of companies that have worked with the Company.

Beyond connectivity, this business platform enables IQSTEL to cross-sell higher-margin technology solutions into an already monetized global network, leveraging long-standing relationships with telecom operators that already trust the company with millions of dollars in annual business.

Transitioning From Revenue Scale to EBITDA Acceleration

Having already achieved significant revenue scale, IQSTEL is now entering the next phase of its growth strategy focused on profitability expansion in 2026.

This transition is expected to be driven by:

• Operating leverage as revenue scales toward $500M–$600M
• Consolidation of minority ownership in key subsidiaries
• EBITDA-accretive acquisitions
• Expansion of higher-margin AI and cybersecurity services

The company currently reports an Adjusted EBITDA run rate of approximately $2.7 million and expects EBITDA to increase through both organic growth and consolidation initiatives.

Management projects EBITDA run rate could reach $9–$15 million as revenue scales toward $500M–$600M in 2026, representing the company's expected financial inflection point.

Potential Valuation Expansion Driven by EBITDA Growth

Companies operating in IQSTEL's sector typically trade between 10x and 20x EBITDA. Based on these market benchmarks, the company believes its planned EBITDA expansion could significantly increase the implied valuation of the business.

Under this framework:

• At approximately $4 million operating EBITDA run rate, expected after completing the consolidation of minority interests in key subsidiaries (anticipated in Q2 2026), the implied valuation range could be $40 million to $80 million.
• At approximately $9 million operating EBITDA run rate, expected after completing the Company's first strategic acquisition (anticipated in Q3 2026), the implied valuation range could increase to $90 million to $180 million.
• At approximately $15 million operating EBITDA run rate, expected after completing the second strategic acquisition currently under evaluation (anticipated in Q4 2026), the implied valuation range could potentially reach $150 million to $300 million.

Management believes that as IQSTEL executes its operational plan and the market recognizes the company's earnings expansion, the company could experience a valuation re-rating consistent with industry multiples.

Strategic Growth Through Acquisitions and Technology Expansion

IQSTEL plans to pursue two targeted acquisitions in 2026, designed to accelerate the company's growth beyond $500 million in revenue while expanding its geographic footprint and technology capabilities.

In parallel, IQSTEL is expanding into AI-enabled telecom solutions and cybersecurity services (IQSTEL AI & Digital Business Division), leveraging its existing telecom customer relationships to introduce higher-margin technology products into an already established global distribution network.

These initiatives (IQSTEL AI & Digital) are expected to generate seven-digit annual revenue by 2027, improving the company's margin profile and earnings quality.

Strong Financial Structure

IQSTEL maintains a clean capital structure, including:

• No convertible debt
• No warrants outstanding
• Approximately 4.9 million shares outstanding
• $12.23 in assets per share
• $4.66 in stockholders' equity per share

The company is listed on the NASDAQ Capital Market and continues to focus on strengthening institutional ownership and liquidity.

Additional Information

For additional details regarding the company's strategy, financial framework, and growth roadmap, investors are encouraged to review the IQSTEL Expanded Investor Deck, which was filed with the U.S. Securities and Exchange Commission as an 8-K on March 6, 2026.

About IQSTEL Inc.

IQSTEL Inc. (NASDAQ: IQST) is a Global Connectivity, AI, and Digital Corporation 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 reporting preliminary $317 million in revenue for FY-2025, reinforcing its trajectory toward becoming a $1 billion tech-driven enterprise by 2027.

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.

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

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SOURCE iQSTEL

FAQ

What revenue did IQSTEL (IQST) report for fiscal 2025 and what is the current run rate?

IQSTEL reported preliminary FY-2025 revenue of approximately $317 million. According to the company, the business currently operates at an estimated $400 million annual revenue run rate, with 80% telecom and 20% fintech mix.

What is IQSTEL's current EBITDA position and what are the 2026 targets for IQST (IQST)?

IQSTEL's current Adjusted EBITDA run rate is about $2.7 million. According to the company, management projects EBITDA could rise to $9–$15 million as revenue approaches $500M–$600M in 2026.

How will IQSTEL's planned acquisitions affect its 2026 strategy and valuation (IQST)?

IQSTEL plans two targeted acquisitions in 2026 to accelerate revenue and expand tech capabilities. According to the company, these deals, plus consolidation, are expected to drive EBITDA expansion and a possible valuation re-rating using 10x–20x EBITDA benchmarks.

What new business initiatives is IQSTEL (IQST) pursuing to boost margins?

IQSTEL is expanding into AI-enabled telecom solutions and cybersecurity services under its IQSTEL AI & Digital division. According to the company, these initiatives are expected to produce seven-digit annual revenue by 2027 and improve overall margin profile.

What does IQSTEL's capital structure look like and how many shares are outstanding (IQST)?

IQSTEL reports no convertible debt and no warrants outstanding with approximately 4.9 million shares outstanding. According to the company, assets per share are $12.23 and stockholders' equity per share is $4.66.