iQSTEL (IQST) AI Stock Analysis

• Market Cap: $12.48M
• Dividend Yield: N/A
• Average Volume (3M): 89.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 43.19%
• EPS Growth: -63.65%
• Country: US
• Employees: 100
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.68
• Shares Outstanding: 4,588,785
• 10 Day Avg. Volume: 77,091
• 30 Day Avg. Volume: 89,279
• 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: 0.74
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 1.01
• Enterprise Value/Ebitda: -2.47
• 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: 45 Neutral
• Price Target: $2.50 ▼(-38.88% Downside)

The score is held down primarily by weak profitability, negative operating cash flow, and very poor ROE despite revenue growth. Technicals also point to a sustained downtrend (below major moving averages and negative MACD). Valuation is difficult to support with a negative P/E, and corporate events add dilution risk that offsets other positive strategic announcements.

Positive Factors

Revenue Growth

Sustained TTM revenue growth indicates expanding volume in the core telecom wholesale business, a durable driver for a volume‑based routing model. Continued top‑line expansion supports scale benefits and underpins medium‑term prospects if cost structure is addressed.

Improved Leverage

Lower leverage versus prior periods reduces financial stress and interest burden, improving ability to fund operations or invest organically. A D/E near 0.72 and 28% equity ratio give moderate balance sheet flexibility for 2–6 month strategic moves or opportunistic investments.

Free Cash Flow Growth

Nearly doubled free cash flow growth demonstrates improving cash conversion ability despite net losses. Strong FCF growth can finance working capital, deleveraging or strategic initiatives over the medium term, increasing operational optionality if sustained.

Negative Factors

Weak Profitability

Very low gross margins and negative operating profitability point to structural issues in pricing, cost of capacity or customer mix in the telecom wholesale model. Persistent margin weakness undermines sustainable earnings power and limits reinvestment without margin improvement.

Negative Operating Cash Flow

Core operations are not yet cash‑generative, forcing reliance on non‑operational cash items, financing or asset management. Negative operating cash flow is a durable risk to liquidity and constrains the firm's ability to scale or absorb shocks over the medium term.

Dilution Risk from Series D Terms

Retroactive expansion of the conversion True‑Up ratio materially increases potential outstanding shares and dilutes existing holders. This structural capital change can depress per‑share metrics, complicate shareholder returns and weaken ROE and EPS durability.

iQSTEL Business Overview & Revenue Model

Company Description

iQSTEL Inc., through its subsidiary, Etelix.com USA, LLC, provides telecom and technology solutions. It provides international long-distance voice services (ILD wholesale) for telecommunications operator; and submarine fiber optic network capacity for internet, such as 4G and 5G. The company offers voice over IP connectivity, short messages service (SMS), and international and domestic SMS termination services. It also provides infrastructure connectivity, Cloud-PBX, OmniChannel marketing, Internet of Things services, and blockchain and payment solutions. iQSTEL Inc. serves wholesale carrier, government, corporate, enterprise, and small and medium companies in North America, Latin America, and Europe. The company was formerly known as PureSnax International, Inc. and changed its name to iQSTEL Inc. in August 2018. iQSTEL Inc. was incorporated in 2011 and is based in Coral Gables, Florida.

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

Revenue growth is positive (17.18% TTM), but profitability is weak with low gross margin (3.00%), negative net margin (-2.38%), and negative EBIT/EBITDA margins. Leverage improved (D/E 0.72), yet ROE is deeply negative (-86.45%) and operating cash flow remains negative despite strong free cash flow growth (99.52%).

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: Negative
• RSI: Neutral
• 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 2.87, above the 50-day MA of 3.33, and below the 200-day MA of 6.86, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 32.55 is Neutral, neither overbought nor oversold. The STOCH value of 15.97 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	67 Neutral	$224.64M	47.41	7.87%	―	12.91%	222.63%
ATNI	63 Neutral	$376.09M	-28.02	-1.70%	4.63%	-3.10%	66.00%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
UCL	56 Neutral	$61.61M	7.62	29.12%	―	-2.61%	85.42%
KORE	55 Neutral	$86.47M	-1.33	―	―	0.06%	55.55%
IQST	45 Neutral	$12.48M	-0.90	-79.86%	―	43.19%	-63.65%
FNGR	45 Neutral	$87.02M	-14.31	-42.52%	―	15.09%	13.28%

iQSTEL Corporate Events

iQSTEL Updates Series D Preferred Stock Conversion Terms

On February 3, 2026, iQSTEL Inc. filed a Third Amended and Restated Certificate of Designation for its Series D Preferred Stock with the Secretary of State of Nevada, maintaining the authorized share count at 100,000 but revising the terms to increase the cap on the True-Up Ratio in the conversion True-Up Adjustment mechanism from 2.5 to 5, with no other changes to the preferred stock. With the consent of the Series D holders, this higher True-Up Ratio cap applies retroactively to prior conversions, allowing the company to recalculate past conversions and issue any additional common shares owed as “Additional Shares,” a move that could increase the number of outstanding common shares and affect existing shareholders’ ownership percentages.

The most recent analyst rating on (IQST) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on iQSTEL stock, see the IQST Stock Forecast page.

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.

The most recent analyst rating on (IQST) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on iQSTEL stock, see the IQST Stock Forecast page.

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.

The most recent analyst rating on (IQST) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on iQSTEL stock, see the IQST Stock Forecast page.

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.

The most recent analyst rating on (IQST) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on iQSTEL stock, see the IQST Stock Forecast page.

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.

The most recent analyst rating on (IQST) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on iQSTEL stock, see the IQST Stock Forecast page.