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Iqstel, Inc. (IQST)
:IQST
US Market
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iQSTEL (IQST) AI Stock Analysis

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IQST

iQSTEL

(NASDAQ:IQST)

Rating:41Neutral
Price Target:
$6.50
▲(4.84% Upside)
The overall stock score is primarily influenced by weak financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further weigh down the valuation score. While recent corporate events are positive, they are not included in the score calculation.

iQSTEL (IQST) vs. SPDR S&P 500 ETF (SPY)

iQSTEL Business Overview & Revenue Model

Company DescriptioniQSTEL Inc. is a diversified technology company operating in the telecommunications, electric vehicle, and financial services sectors. The company offers a range of products and services, including voice over IP (VoIP) and short message service (SMS) solutions, blockchain technology applications, Internet of Things (IoT) solutions, and electric vehicle battery technologies. iQSTEL aims to integrate cutting-edge technologies to provide innovative and high-demand solutions across multiple industries.
How the Company Makes MoneyiQSTEL generates revenue through several key streams, primarily in the telecommunications sector where it offers VoIP and SMS services to other telecom operators and corporate clients. The company also makes money from its IoT solutions, which are used in various applications such as smart agriculture and asset tracking. Additionally, iQSTEL is expanding into the electric vehicle sector, focusing on the development and commercialization of advanced battery technologies. Partnerships with other technology firms and integration of blockchain applications into its service offerings further contribute to iQSTEL's revenue by enhancing service efficiency and security, thereby attracting more clients.

iQSTEL Financial Statement Overview

Summary
iQSTEL faces significant financial challenges with declining revenue growth, low profitability, and high leverage. Despite some positive aspects in cash flow management, the company's financial health is under pressure, requiring strategic improvements to enhance profitability and reduce financial risks.
Income Statement
45
Neutral
The income statement shows a declining revenue growth rate of -2.23% in the TTM, indicating a potential slowdown in sales. Gross profit margin is low at 3.03%, and the company is experiencing negative net profit and EBIT margins, reflecting ongoing profitability challenges. Despite a slight improvement in gross profit margin over the previous year, the overall profitability remains weak.
Balance Sheet
40
Negative
The balance sheet reveals a high debt-to-equity ratio of 1.32, indicating significant leverage which could pose financial risks. The return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' investments. The equity ratio is relatively low, highlighting a reliance on debt financing.
Cash Flow
50
Neutral
Cash flow analysis shows a significant decline in free cash flow growth at -64.53% in the TTM, which is concerning. However, the free cash flow to net income ratio is above 1, indicating that the company is generating more free cash flow relative to its net income, which is a positive sign. The operating cash flow to net income ratio is negative, reflecting challenges in converting income into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue282.94M283.22M144.50M93.20M64.70M44.91M
Gross Profit8.49M8.27M4.67M1.79M1.53M962.35K
EBITDA-2.82M-2.13M-5.68M-3.10M-3.12M
Net Income-6.74M-5.99M-763.26K-8.62M-4.52M-6.70M
Balance Sheet
Total Assets51.41M79.01M22.16M12.55M9.06M5.95M
Cash, Cash Equivalents and Short-Term Investments2.04M2.51M1.36M1.33M3.33M753.32K
Total Debt6.89M8.05M980.18K438.44K674.05K3.91M
Total Liabilities37.12M67.11M14.11M6.71M2.64M8.35M
Stockholders Equity9.53M7.22M8.42M6.76M7.42M-1.39M
Cash Flow
Free Cash Flow-1.57M-3.08M-1.70M-1.88M-3.38M-2.21M
Operating Cash Flow-1.43M-2.93M-1.48M-1.77M-3.15M-2.12M
Investing Cash Flow-616.59K-3.16M-332.55K-2.00M-511.35K-91.21K
Financing Cash Flow3.29M7.24M1.83M1.77M6.25M2.66M

iQSTEL Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.20
Price Trends
50DMA
8.46
Negative
100DMA
9.48
Negative
200DMA
12.61
Negative
Market Momentum
MACD
-0.65
Positive
RSI
31.42
Neutral
STOCH
8.13
Positive
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 6.2 is below the 20-day moving average (MA) of 7.02, below the 50-day MA of 8.46, and below the 200-day MA of 12.61, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 31.42 is Neutral, neither overbought nor oversold. The STOCH value of 8.13 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$195.80M65.705.74%13.10%1.03%
68
Neutral
$107.34M57.429.29%3.83%-55.18%
60
Neutral
$46.29B4.07-13.11%4.12%1.85%-42.71%
47
Neutral
$86.74M-40.25%11.55%-26.87%
46
Neutral
$40.23M174.77%0.24%68.22%
41
Neutral
$21.97M-80.54%30.35%-45.94%
25
Underperform
$157.21M17.28-93.09%-59.41%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IQST
iQSTEL
6.20
-7.64
-55.20%
ANTE
AirNet Technology
5.45
5.19
1996.15%
CXDO
Crexendo
6.59
2.13
47.76%
FNGR
FingerMotion
1.50
-0.52
-25.74%
UCL
uCloudlink Group
2.98
1.77
146.28%
KORE
KORE Group Holdings
2.26
0.07
3.20%

iQSTEL Corporate Events

M&A TransactionsBusiness Operations and Strategy
iQSTEL Enters Stock Exchange Agreement with Cycurion
Positive
Sep 3, 2025

On September 2, 2025, iQSTEL Inc. entered into a Stock-for-Stock Exchange Agreement with Cycurion Inc., finalizing a mutual equity partnership focused on AI-driven cybersecurity solutions for the global telecommunications industry. The agreement involves a $1 million stock exchange between the companies, with plans to distribute up to 50% of the received shares as a stock dividend to shareholders, effectively making them co-owners of both businesses. This strategic alliance aims to capitalize on the projected $500 billion cybersecurity market by 2030, leveraging iQSTEL’s AI capabilities and Cycurion’s cybersecurity expertise. The collaboration is expected to enhance shareholder value and foster innovation and growth in AI-driven cybersecurity solutions.

Private Placements and FinancingDividendsBusiness Operations and Strategy
iQSTEL and Cycurion Announce Strategic Partnership
Positive
Aug 7, 2025

On August 7, 2025, iQSTEL Inc. and Cycurion Inc. announced a Memorandum of Understanding to become mutual equity partners through a $1 million stock exchange, with half of the exchanged shares to be distributed as dividends to shareholders. This strategic partnership aims to create a powerhouse in AI-driven cybersecurity for the global telecommunications industry, enhancing shareholder value and leveraging complementary market strengths to deliver next-generation cybersecurity solutions. The transaction is expected to unlock shareholder value, facilitate cross-selling opportunities, and accelerate innovation cycles, positioning both companies to capture significant opportunities in the AI-driven cybersecurity landscape.

M&A TransactionsBusiness Operations and Strategy
iQSTEL Extends MOU for itsBChain Sale Negotiations
Neutral
Jul 31, 2025

iQSTEL Inc. signed a non-binding memorandum of understanding with Accredited Solutions, Inc. on March 10, 2025, regarding the potential sale of its 75% equity interest in itsBChain, LLC. The MOU expiration date was extended to September 30, 2025, indicating ongoing negotiations and potential strategic realignment for iQSTEL.

Private Placements and FinancingBusiness Operations and Strategy
iQSTEL Executes Debt Exchange Agreements to Reduce Debt
Positive
Jul 9, 2025

On July 3, 2025, iQSTEL Inc. executed Debt Exchange Agreements with M2B Funding Corp. and ADI Funding LLC, converting $3,546,136 in debt into 37,110 shares of newly amended Series D Preferred Stock to reduce debt obligations and strengthen its balance sheet. The company also announced a significant $6.9 million debt reduction, achieved through debt conversions into common and Series D Preferred Shares, enhancing its financial position and operational flexibility. This move is part of iQSTEL’s strategic plan to reach $1 billion in revenue by 2027, with the financial impact to be reflected in the Q3 2025 Form 10-Q filing.

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
iQSTEL Executives Convert Salaries into Preferred Stock
Positive
Jun 25, 2025

On June 24, 2025, iQSTEL announced that its executives, Messrs. Iglesias and Quintana, converted their accrued and unpaid salaries totaling $631,500 into 6,571 shares of Series B Preferred Stock. This move reflects a strategic financial decision by the company’s leadership, potentially impacting iQSTEL’s financial structure and signaling confidence in the company’s future performance.

Private Placements and FinancingStock SplitBusiness Operations and Strategy
iQSTEL Converts Notes to Stock, Reduces Debt
Neutral
Jun 11, 2025

iQSTEL Inc. has converted a portion of its secured convertible promissory notes into common stock, following a reverse stock split on May 2, 2025. On June 4 and June 6, 2025, the company issued 286,640 shares of common stock at a conversion rate of $4.20 per share, reducing the principal and interest on the notes by $1,201,388.90. The remaining principal and interest of $2,879,151.00 are subject to further conversion, limited by a beneficial ownership cap of 9.99%. This move reflects iQSTEL’s strategic financial management and impacts its capital structure, potentially affecting shareholder value and market perception.

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.Date of analysis: Sep 04, 2025