iQSTEL (IQST) AI Stock Analysis

• Market Cap: $21.97M
• Dividend Yield: N/A
• Average Volume (3M): 81.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: 30.35%
• EPS Growth: -45.94%
• Country: US
• Employees: 100
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.82
• Shares Outstanding: 3,607,267
• 10 Day Avg. Volume: 89,516
• 30 Day Avg. Volume: 81,045
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: -13.56
• 1Y Price Target: $12.25
• Price Target Upside: 101.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 41 Neutral
• Price Target: $6.50 ▲(6.73% 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 Business Overview & Revenue Model

Company Description

iQSTEL 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 Money

iQSTEL 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	282.94M	283.22M	144.50M	93.20M	64.70M	44.91M
Gross Profit	8.49M	8.27M	4.67M	1.79M	1.53M	962.35K
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 Assets	51.41M	79.01M	22.16M	12.55M	9.06M	5.95M
Cash, Cash Equivalents and Short-Term Investments	2.04M	2.51M	1.36M	1.33M	3.33M	753.32K
Total Debt	6.89M	8.05M	980.18K	438.44K	674.05K	3.91M
Total Liabilities	37.12M	67.11M	14.11M	6.71M	2.64M	8.35M
Stockholders Equity	9.53M	7.22M	8.42M	6.76M	7.42M	-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 Flow	3.29M	7.24M	1.83M	1.77M	6.25M	2.66M

iQSTEL Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 6.09 is below the 20-day moving average (MA) of 6.21, below the 50-day MA of 7.36, and below the 200-day MA of 11.92, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 46.92 is Neutral, 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	77 Outperform	$202.14M	66.80	3.26%	―	13.10%	1.03%
UCL	57 Neutral	$90.34M	46.05	21.08%	―	3.83%	-55.18%
KORE	49 Neutral	$44.26M	-0.61	146.66%	―	0.24%	68.22%
FNGR	47 Neutral	$95.65M	-16.08	-37.45%	―	11.55%	-26.87%
IQST	41 Neutral	$21.97M	―	-80.54%	―	30.35%	-45.94%
YDKG	25 Underperform	$104.19M	-1.38	―	―	2482.80%	-169.59%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

iQSTEL Corporate Events

iQSTEL Enters Stock Exchange Agreement with Cycurion

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.

iQSTEL and Cycurion Announce Strategic Partnership

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.

iQSTEL Extends MOU for itsBChain Sale Negotiations

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.

iQSTEL Executes Debt Exchange Agreements to Reduce Debt

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.

iQSTEL Executives Convert Salaries into Preferred Stock

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.

iQSTEL Converts Notes to Stock, Reduces Debt

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.