IQST - IQSTEL Strengthens Equity Position with $6.9 Million Debt Cut -- Almost $2 Per Share
IQSTEL (NASDAQ: IQST) has announced a significant $6.9 million debt reduction from its balance sheet, equivalent to approximately $2 per share. The debt reduction was achieved through conversions into common shares and Series D Preferred Shares, improving the company's net stockholders' equity which stood at $11.34 million in Q1 2025.
The transaction will generate $0.92 million in interest savings, enhancing cash flow and operational flexibility. This strategic move aligns with IQSTEL's goal to reach $1 billion in annual revenue by 2027 and coincides with the completed Globetopper acquisition. The financial impact will be reflected in the Q3 2025 Form 10-Q filing.
IQSTEL (NASDAQ: IQST) ha annunciato una significativa riduzione del debito di 6,9 milioni di dollari dal proprio bilancio, equivalente a circa 2 dollari per azione. La riduzione del debito è stata ottenuta tramite conversioni in azioni ordinarie e azioni privilegiate di Serie D, migliorando il patrimonio netto degli azionisti che si attestava a 11,34 milioni di dollari nel primo trimestre del 2025.
La transazione genererà risparmi sugli interessi per 0,92 milioni di dollari, aumentando il flusso di cassa e la flessibilità operativa. Questa mossa strategica è in linea con l'obiettivo di IQSTEL di raggiungere 1 miliardo di dollari di ricavi annui entro il 2027 e coincide con il completamento dell'acquisizione di Globetopper. L'impatto finanziario sarà riflesso nel modulo 10-Q del terzo trimestre 2025.
IQSTEL (NASDAQ: IQST) ha anunciado una significativa reducción de deuda de 6,9 millones de dólares en su balance, equivalente a aproximadamente 2 dólares por acción. La reducción de deuda se logró mediante conversiones a acciones comunes y acciones preferentes Serie D, mejorando el patrimonio neto de los accionistas que se situó en 11,34 millones de dólares en el primer trimestre de 2025.
La transacción generará ahorros en intereses de 0,92 millones de dólares, mejorando el flujo de caja y la flexibilidad operativa. Esta estrategia está alineada con el objetivo de IQSTEL de alcanzar 1.000 millones de dólares en ingresos anuales para 2027 y coincide con la adquisición completada de Globetopper. El impacto financiero se reflejará en el formulario 10-Q del tercer trimestre de 2025.
IQSTEL (NASDAQ: IQST)은 대차대조표에서 약 690만 달러의 부채 감축을 발표했으며, 이는 주당 약 2달러에 해당합니다. 부채 감축은 보통주 및 시리즈 D 우선주로의 전환을 통해 이루어졌으며, 2025년 1분기 기준 회사의 순주주지분은 1,134만 달러로 개선되었습니다.
이번 거래로 92만 달러의 이자 절감이 발생하여 현금 흐름과 운영 유연성이 향상됩니다. 이 전략적 조치는 IQSTEL이 2027년까지 연간 매출 10억 달러 달성 목표와 일치하며, Globetopper 인수 완료와도 동시에 이루어졌습니다. 재무 영향은 2025년 3분기 10-Q 보고서에 반영될 예정입니다.
IQSTEL (NASDAQ : IQST) a annoncé une réduction significative de sa dette de 6,9 millions de dollars dans son bilan, ce qui équivaut à environ 2 dollars par action. Cette réduction de dette a été réalisée par conversion en actions ordinaires et en actions privilégiées de série D, améliorant les capitaux propres nets de la société qui s’élevaient à 11,34 millions de dollars au premier trimestre 2025.
Cette opération générera 0,92 million de dollars d’économies d’intérêts, améliorant ainsi la trésorerie et la flexibilité opérationnelle. Cette initiative stratégique s’inscrit dans l’objectif d’IQSTEL d’atteindre 1 milliard de dollars de chiffre d’affaires annuel d’ici 2027 et coïncide avec l’acquisition finalisée de Globetopper. L’impact financier sera reflété dans le formulaire 10-Q du troisième trimestre 2025.
IQSTEL (NASDAQ: IQST) hat eine bedeutende Schuldenreduzierung von 6,9 Millionen US-Dollar in seiner Bilanz bekanntgegeben, was etwa 2 US-Dollar pro Aktie entspricht. Die Schuldenreduzierung wurde durch Umwandlungen in Stammaktien und Vorzugsaktien der Serie D erreicht, wodurch das Eigenkapital der Aktionäre im ersten Quartal 2025 auf 11,34 Millionen US-Dollar verbessert wurde.
Die Transaktion wird 0,92 Millionen US-Dollar an Zinseinsparungen generieren, was den Cashflow und die operative Flexibilität verbessert. Dieser strategische Schritt steht im Einklang mit IQSTELs Ziel, bis 2027 eine Milliarde US-Dollar Jahresumsatz zu erreichen, und fällt mit dem Abschluss der Übernahme von Globetopper zusammen. Die finanziellen Auswirkungen werden im Formular 10-Q für das dritte Quartal 2025 ausgewiesen.
- Significant debt reduction of $6.9 million, equivalent to $2 per share
- Annual interest savings of $0.92 million improving cash flow
- Net stockholders' equity of $11.34 million as of Q1 2025
- Successfully completed Globetopper acquisition
- Investor confidence demonstrated through Series D Preferred Share conversions
- Debt conversion into shares may lead to potential dilution for existing shareholders
This debt reduction will have a direct and positive impact on the company's net stockholders' equity, which stood at
In addition to improving the company's capital structure, this transaction provides
"Our company is
At the same time, IQSTEL is actively working on improving its adjusted EBITDA while reinforcing its balance sheet — a dual approach that the company believes is the most effective path to maximize shareholder value.
This strategic move comes in conjunction with the fully executed acquisition of Globetopper, and the release of a favorable independent analyst report by Litchfield Hills Research, available here: https://hillsresearch.com/wp-content/uploads/2025/07/LHR-IQST-intitiation-report.pdf.
The execution date of the debt reduction was July 3, 2025, and the financial impact will be reflected in the company's Q3 2025 Form 10-Q filing. Further details have been disclosed in the company's corresponding Form 8-K filed with the SEC.
With these developments, IQSTEL begins the second half of 2025 on a remarkable path — stronger, leaner, and more prepared than ever to deliver on its ambitious vision.
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
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.
Investor Relations Contact:
IQSTEL Inc.
300 Aragon Avenue, Suite 375,
Email: investors@IQSTEL.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/iqst--iqstel-strengthens-equity-position-with-6-9-million-debt-cut--almost-2-per-share-302500710.html
SOURCE iQSTEL
FAQ
How much debt did IQST reduce from its balance sheet in July 2025?
What is IQST's revenue target for 2027?
How much will IQST save in interest payments from the debt reduction?
What was IQST's net stockholders' equity in Q1 2025?
When will the financial impact of IQST's debt reduction be reflected in their reports?
