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iQSTEL
(NASDAQ:IQST)
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Rating:51Neutral
Price Target:
$1.00
▼(-1.96% Downside)
Action:Reiterated
Date:07/18/26
IQST’s score is held back primarily by weak financial performance—thin margins, persistent losses, and negative operating/free cash flow—despite strong revenue scale and a cleaner balance sheet (debt at $0 in TTM). The earnings call adds support via strong YoY growth and reiterated revenue targets with a stated path to higher margins, but technicals remain mixed with the stock still below key longer-term moving averages and MACD negative. Valuation is hard to justify on earnings due to the negative P/E and lack of a dividend yield.
Positive Factors
Strong revenue scale and growth
Sustained top-line expansion and material scale provide structural advantages: greater negotiating leverage with carriers, improved fixed-cost absorption, and a larger base to commercialize digital services. Over 2–6 months this scale underpins margin expansion opportunities if higher‑margin offerings scale.
Negative Factors
Very low consolidated gross margin
Persistently thin gross margins limit retained earnings available for reinvestment and heighten sensitivity to pricing or wholesale cost swings. As telecom remains a large revenue base, improving consolidated profitability requires meaningful and sustained migration to higher‑margin digital products, not short‑term cost cuts.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue scale and growth
Sustained top-line expansion and material scale provide structural advantages: greater negotiating leverage with carriers, improved fixed-cost absorption, and a larger base to commercialize digital services. Over 2–6 months this scale underpins margin expansion opportunities if higher‑margin offerings scale.
Read all positive factors
iQSTEL (IQST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.02M
Dividend YieldN/A
Average Volume (3M)9.20M
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth23.43%
EPS Growth-2.44%
CountryUS
Employees100
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-2.68
Shares Outstanding9,631,709
10 Day Avg. Volume15,688,514
30 Day Avg. Volume9,199,716
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.90
Price to Sales (P/S)0.03
P/FCF Ratio-2.54
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.38
Revenue Forecast (FY)$428.20M
iQSTEL Business Overview & Revenue Model
Company Description
iQSTEL Inc., operating via its subsidiary Etelix.com USA, LLC, specializes in providing a wide array of telecommunications and cutting-edge technology services. The company's core offerings include delivering wholesale international long-distance ...
How the Company Makes Money
The company primarily makes money by selling telecommunications services through its operating subsidiaries. Key revenue streams include: (1) Wholesale telecom/voice and messaging: buying and selling international voice traffic and/or SMS services...
iQSTEL Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call presented a strong top-line quarter with transformative strategic progress: substantial revenue growth (+70% YoY), a large global distribution platform (600+ carriers, ~2.3B reach), and early profitable contributions from fintech (GlobeTopper). Management is actively commercializing high‑margin digital services and expects material margin upside (digital >25%, AI ~40%). However, consolidated profitability remains limited today (gross profit just over $2M, ~2% gross margin), consolidated adjusted EBITDA is only near breakeven, and elevated technology investments and a heavy telecom revenue mix (87%) create near‑term margin pressure and execution/timing risk for digital monetization. Overall the fundamentals and strategic positioning are strong, but the company must convert commercial interest into scaled high‑margin revenue to drive meaningful improvement in consolidated profitability and market valuation.Positive Updates
Strong Revenue Growth
Consolidated revenue of $97.9M in Q1 2026, up ~70% year-over-year from $57.6M; gross revenue before eliminations $98.6M; organic growth represented 87% of total revenue.
Negative Updates
Very Low Consolidated Gross Margin
Gross profit was just over $2M on $97.9M revenue (roughly a ~2% gross margin), up only 7.8% YoY — indicating low overall profitability despite large revenue growth.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Consolidated revenue of $97.9M in Q1 2026, up ~70% year-over-year from $57.6M; gross revenue before eliminations $98.6M; organic growth represented 87% of total revenue.
Read all positive updates
Company Guidance
Management reiterated its previously announced $430 million revenue target for 2026 and long‑term $1 billion annual revenue goal, emphasizing confidence despite Q1 seasonality after reporting Q1 revenue of $97.9 million (up ~70% YoY from $57.6M), gross revenue before eliminations of $98.6M, gross profit of just over $2M (up 7.8% YoY), and an implied nearly $400M annual revenue run‑rate; organic growth represented 87% of revenue, telecom accounted for 87% of sales while fintech (GlobeTopper) contributed 13% (almost $13M) and added $829k of gross profit (42% of consolidated gross profit); adjusted EBITDA for operating subsidiaries remained strongly positive with consolidated adjusted EBITDA nearly breakeven, book equity per share is nearly $3 versus a share price around $1.30, the balance sheet has no convertible debt or earnouts outstanding, and management highlighted digital services margins >25% (AI gross margin ~40%)—noting near‑term tech investments raised operating expenses but are expected to drive margin expansion and improved EBITDA as new platforms commercialize.iQSTEL Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
52
Neutral
Cash Flow
27
Negative
| Breakdown | Mar 2026 | Mar 2025 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 316.90M | 283.22M | 144.50M | 93.20M | 64.70M |
| Gross Profit | 9.46M | 8.27M | 4.67M | 1.79M | 1.53M |
| EBITDA | -6.15M | -2.13M | 4.21K | -5.72M | -3.10M |
| Net Income | -9.16M | -5.99M | -763.26K | -5.97M | -3.84M |
Balance Sheet | |||||
| Total Assets | 51.09M | 79.01M | 22.16M | 12.55M | 9.06M |
| Cash, Cash Equivalents and Short-Term Investments | 2.16M | 2.51M | 1.36M | 1.33M | 3.33M |
| Total Debt | 4.18M | 8.05M | 953.57K | 438.44K | 674.05K |
| Total Liabilities | 34.81M | 67.11M | 14.11M | 6.71M | 2.64M |
| Stockholders Equity | 11.16M | 7.22M | 8.42M | 6.76M | 7.42M |
Cash Flow | |||||
| Free Cash Flow | -3.96M | -3.08M | -1.70M | -1.88M | -3.38M |
| Operating Cash Flow | -3.84M | -2.93M | -1.48M | -1.77M | -3.15M |
| Investing Cash Flow | -239.65K | -3.16M | -332.55K | -2.00M | -511.35K |
| Financing Cash Flow | 3.73M | 7.24M | 1.83M | 1.77M | 6.25M |
iQSTEL Technical Analysis
Negative
1.02
Price Trends
1.12
Negative
1.33
Negative
2.36
Negative
Market Momentum
-0.02
Negative
47.81
Neutral
61.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IQST, the sentiment is Negative. The current price of 1.02 is below the 20-day moving average (MA) of 1.06, below the 50-day MA of 1.12, and below the 200-day MA of 2.36, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.81 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IQST.
iQSTEL Risk Analysis
iQSTEL disclosed 29 risk factors in its most recent earnings report. iQSTEL reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
iQSTEL Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $223.02M | 45.93 | 6.23% | ― | 16.31% | 67.84% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $366.22M | -27.06 | 34.33% | 4.71% | 1.29% | 57.21% | |
51 Neutral | $10.02M | -0.39 | -85.21% | ― | 23.43% | -2.44% | |
51 Neutral | $32.74M | 2.33 | 12.54% | ― | -13.61% | -4.24% | |
44 Neutral | $16.55M | -2.40 | -46.64% | ― | -54.27% | -15.08% |
* Communication Services Sector Average
IQST
iQSTEL
1.06
-6.70
-86.34%
ATNI
ATN International
31.97
17.68
123.74%
CXDO
Crexendo
6.67
0.84
14.41%
FNGR
FingerMotion
0.30
-1.09
-78.62%
UCL
uCloudlink Group
0.72
-2.99
-80.70%
iQSTEL Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
iQSTEL Reports Strong H1 Revenue Growth Momentum
Positive
Jul 17, 2026
On July 2, 2026, IQSTEL completed the creation of IQSTEL Operating Holdings Inc., an internal holding company designed to provide a more flexible financial and corporate platform for its fast-growing telecommunications and technology businesses. T...
Business Operations and StrategyRegulatory Filings and Compliance
iQSTEL streamlines structure with strategic internal realignment
Positive
Jul 10, 2026
On July 8, 2026, iQSTEL Inc. entered into a Contribution Agreement with certain subsidiaries as part of an internal corporate realignment that consolidated specified assets, equity interests and operations into newly formed or existing units. The ...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
iQSTEL to Acquire Majority Stake in ULTRANET Telecom
Positive
Jun 25, 2026
On June 25, 2026, IQSTEL Inc. announced it had entered into a binding memorandum of understanding to acquire a 51% controlling stake in ULTRANET Telecom Group, a profitable, audited operator active in six African markets, in what management called...
Business Operations and StrategyRegulatory Filings and Compliance
iQSTEL Updates Preferred Stock Conversion Terms and Rights
Positive
Jun 17, 2026
On June 17, 2026, iQSTEL Inc.’s board unanimously approved an Amended and Restated Certificate of Designation for its Series B Preferred Stock, modifying the conversion terms to allow holders to convert into common shares at any time with fi...
Business Operations and StrategyStock BuybackM&A Transactions
iQSTEL Launches Share Buyback and Strategic Acquisition Plan
Positive
Jun 8, 2026
On June 5, 2026, IQSTEL’s board authorized a share repurchase program of up to 1,000,000 common shares, to be funded in whole or in part by cash dividends from subsidiary QXTEL and executed via open-market and negotiated transactions in comp...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
iQSTEL Acquires Control of African Telecom Operator Ultranet
Positive
Jun 5, 2026
On June 3, 2026, IQSTEL Inc. entered into a binding memorandum of understanding to acquire a 51% controlling stake in Ultranet Telecom Group, a fast-growing African telecom and technology operator structured via a UAE holding and operating company...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.