iQSTEL (IQST) AI Stock Analysis

• Market Cap: $13.50M
• Dividend Yield: N/A
• Average Volume (3M): 76.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 43.19%
• EPS Growth: -63.65%
• Country: US
• Employees: 100
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.67
• Shares Outstanding: 4,588,785
• 10 Day Avg. Volume: 89,037
• 30 Day Avg. Volume: 76,942
• PEG Ratio: -1.19
• Price to Book (P/B): 605.88
• Price to Sales (P/S): 15.44
• P/FCF Ratio: -1.42K
• Enterprise Value/Market Cap: 2.23
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 3.33
• Enterprise Value/Ebitda: -8.12
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $3.00 ▼(-26.65% Downside)

The overall stock score is primarily influenced by financial performance challenges and bearish technical indicators. Despite positive corporate events signaling strategic growth, the negative valuation metrics and technical analysis weigh heavily on the score. The company's focus on innovation and strategic alliances offers potential upside, but financial and operational improvements are necessary for a more favorable outlook.

Positive Factors

Revenue Growth

The company demonstrates positive revenue growth, indicating expanding market presence and potential for increased market share.

Strategic Alliances

Strategic alliances with Cycurion enhance iQSTEL's market position in AI, cybersecurity, and telecom, supporting long-term growth.

Diverse Revenue Streams

Diverse revenue streams from VoIP, MVNO, and fintech services provide stability and reduce dependency on a single market segment.

Negative Factors

Profitability Challenges

Weak profitability metrics indicate challenges in cost management and achieving sustainable profits, impacting long-term viability.

Cash Flow Issues

Negative operating cash flow highlights inefficiencies in cash management, potentially affecting the company's ability to fund operations.

Negative Return on Equity

Negative return on equity suggests the company is not effectively generating returns on shareholders' investments, impacting investor confidence.

iQSTEL Business Overview & Revenue Model

Company Description

iQSTEL (IQST) is a telecommunications and technology company that provides a range of services primarily focused on the VoIP (Voice over Internet Protocol) sector, mobile virtual network operator (MVNO) services, and blockchain technologies. The company operates in multiple sectors, including telecommunications, fintech, and logistics, offering solutions such as international calling services, mobile applications, and cryptocurrency-related services. iQSTEL aims to leverage innovative technologies to enhance connectivity and financial services for both consumers and businesses worldwide.

How the Company Makes Money

iQSTEL generates revenue through multiple streams, primarily by offering VoIP services to consumers and businesses, which includes international calling solutions that are competitively priced. The company also earns money through its MVNO operations, providing mobile services by partnering with existing network providers to offer affordable mobile plans. Additionally, iQSTEL has ventured into the fintech space, generating revenue from its blockchain-based applications and services that facilitate cryptocurrency transactions. Strategic partnerships with other telecommunications companies and technology providers further enhance its service offerings and contribute to its revenue growth. The combination of these diverse revenue streams allows iQSTEL to maintain a steady income while expanding its market presence.

iQSTEL Financial Statement Overview

Summary

iQSTEL shows signs of revenue growth, but profitability and cash flow remain areas of concern. The company has improved its leverage position, but negative returns on equity and ongoing cash flow challenges indicate financial instability. Continued focus on cost management and operational efficiency is essential for sustainable growth and profitability.

Income Statement

The company shows a modest revenue growth rate of 17.18% in the TTM, indicating positive momentum. However, profitability metrics such as gross profit margin (3.00%) and net profit margin (-2.38%) are weak, reflecting challenges in cost management and achieving profitability. The negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The debt-to-equity ratio has improved to 0.72 in the TTM, indicating better leverage management compared to previous periods. However, the return on equity remains negative (-86.45%), suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio of 28.08% shows a moderate level of equity financing.

Cash Flow

The company exhibits a significant improvement in free cash flow growth (99.52%) in the TTM, but operating cash flow remains negative, indicating ongoing cash flow challenges. The free cash flow to net income ratio of 1.10 suggests that the company is generating cash flow relative to its net losses, but the negative operating cash flow to net income ratio highlights cash flow inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	331.56M	283.22M	144.50M	93.20M	64.70M	44.91M
Gross Profit	9.05M	8.27M	4.67M	1.79M	1.53M	962.35K
EBITDA	-3.71M	-2.13M	4.21K	-5.72M	-3.10M	-3.12M
Net Income	-8.28M	-5.99M	-763.26K	-5.97M	-3.84M	-6.57M
Balance Sheet
Total Assets	46.89M	79.01M	22.16M	12.55M	9.06M	5.95M
Cash, Cash Equivalents and Short-Term Investments	2.26M	2.51M	1.36M	1.33M	3.33M	753.32K
Total Debt	4.09M	8.05M	953.57K	438.44K	674.05K	4.01M
Total Liabilities	29.03M	67.11M	14.11M	6.71M	2.64M	8.35M
Stockholders Equity	13.17M	7.22M	8.42M	6.76M	7.42M	-1.39M
Cash Flow
Free Cash Flow	-3.13M	-3.08M	-1.70M	-1.88M	-3.38M	-2.21M
Operating Cash Flow	-3.01M	-2.93M	-1.48M	-1.77M	-3.15M	-2.12M
Investing Cash Flow	-431.94K	-3.16M	-332.55K	-2.00M	-511.35K	-91.21K
Financing Cash Flow	3.57M	7.24M	1.83M	1.77M	6.25M	2.66M

iQSTEL Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 4.09 is above the 20-day moving average (MA) of 3.77, below the 50-day MA of 4.65, and below the 200-day MA of 8.00, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 25.79 is Positive, neither overbought nor oversold. The STOCH value of 10.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IQST.

iQSTEL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXDO	75 Outperform	$204.98M	46.84	7.87%	―	12.91%	222.63%
UCL	69 Neutral	$80.13M	9.65	29.12%	―	-2.61%	85.42%
ATNI	63 Neutral	$342.07M	-24.04	-1.70%	4.63%	-3.10%	66.00%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
KORE	55 Neutral	$78.05M	-1.16	―	―	0.06%	55.55%
FNGR	51 Neutral	$88.76M	-15.21	-42.52%	―	15.09%	13.28%
IQST	48 Neutral	$13.50M	-1.11	-79.86%	―	43.19%	-63.65%

iQSTEL Corporate Events

iQSTEL Announces Stock Dividend Distribution Update

iQSTEL announced a one-time stock dividend of 75,529 free-trading shares, equivalent to $500,000 based on August 29, 2025’s closing price. The record date for determining eligible shareholders was December 15, 2025, and the dividend distribution is set to occur on December 30, 2025. Adjustments in outstanding shares led to a slight reduction in the dividend pool to 75,521 shares due to rounding practices, but this change was described as immaterial and aligns with standard procedures.

iQSTEL Announces Strategic Dividend with Cycurion

On November 25, 2025, IQSTEL Inc. and Cycurion Inc. announced a strategic update to their alliance, opting to distribute $500,000 worth of their own shares as a one-time dividend to shareholders, while retaining $1,000,000 in cross-holdings. This decision signals a long-term commitment to joint growth and development in AI, cybersecurity, and telecom services, reinforcing their status as ‘sibling companies’ and enhancing market confidence in their collaborative future.

iQSTEL Outlines Strategic Growth Plans in New Presentation

iQSTEL, Inc. has released a corporate presentation outlining its current operations, major projects, and strategic growth plans. The company has experienced significant growth since its inception, expanding its telecommunications portfolio and incorporating fintech, AI, and cybersecurity services. With a robust commercial platform and a vision for global connectivity, iQSTEL is on track to achieve its 2025 revenue forecast of $340 million, with plans to further increase its revenue run rate to $1 billion by 2027. This growth reflects the company’s commitment to innovation and its strategic positioning in the global market.

iQSTEL Declares Special Stock Dividend for Shareholders

On December 2, 2025, iQSTEL Inc.’s Board of Directors declared a one-time special stock dividend for its common stockholders, with a record date set for December 15, 2025, and payable on December 30, 2025. The dividend, valued at $500,000, will be distributed in the form of newly issued shares, enhancing liquidity and preserving strategic alliances, while being treated as taxable income for U.S. shareholders.

iQSTEL Updates Series D Preferred Stock Terms

On October 10, 2025, iQSTEL Inc. amended its Series D Preferred Stock terms, originally established in 2023, to include a True-Up Adjustment mechanism for conversion rates. The amendments maintain the number of authorized shares and introduce provisions such as cumulative dividend rights, conversion rights with a True-Up Adjustment, optional redemption, liquidation preference, and leak-out restrictions, impacting the company’s financial strategy and shareholder value.

iQSTEL Amends Stock Exchange Agreement with Cycurion

On September 26, 2025, iQSTEL Inc. amended its Stock-for-Stock Exchange Agreement with Cycurion, Inc., originally dated September 2, 2025, to introduce dividend payment flexibility and extend the timeline for share issuance. The amendment allows each party to satisfy a $500,000 dividend obligation either by distributing shares received from the other party or an equivalent value of its own shares, and sets a firm deadline of December 15, 2025, for regulatory filings to facilitate dividend distribution by December 31, 2025.

iQSTEL Increases Authorized Common Stock to 26 Million

On September 16, 2025, iQSTEL Inc. filed an amendment to increase its authorized common stock from 3,750,000 to 26,000,000 shares. This move, effective after September 15, 2025, following the mailing of a definitive Information Statement on August 25, 2025, aligns with the company’s strategic financial maneuvers under the Securities Exchange Act.