Iqstel, Inc. (IQST)
NASDAQ:IQST
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iQSTEL
(NASDAQ:IQST)
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Rating:46Neutral
Price Target:
$1.00
▼(-75.55% Downside)
Action:Reiterated
Date:05/22/26
The score is primarily constrained by weak financial quality—thin consolidated margins, ongoing losses, and negative cash flow—alongside bearish technicals with the stock trading below major moving averages. Offsetting factors include improving balance sheet leverage (debt reduced to zero) and a more optimistic earnings-call narrative centered on rapid revenue growth and targeted margin expansion, though execution risk remains high. Valuation support is limited due to negative earnings and no dividend.
Positive Factors
Top-line Revenue Growth & Scale
Sustained, rapid revenue scaling provides durable operating leverage and a broader addressable base for cross-selling higher‑margin digital services. A larger revenue base improves negotiating power with carriers, supports platform investments, and materially raises the ceiling for future EBITDA as margins expand.
Negative Factors
Very Thin Consolidated Gross Margin
Persistently low gross margins severely limit the company's ability to translate revenue growth into durable profitability. Even with scale, a ~2–3% gross margin provides little buffer for SG&A or R&D, forcing reliance on a successful and timely shift to higher‑margin digital lines to achieve sustainable net income.
Read all positive and negative factors
Positive Factors
Negative Factors
Top-line Revenue Growth & Scale
Sustained, rapid revenue scaling provides durable operating leverage and a broader addressable base for cross-selling higher‑margin digital services. A larger revenue base improves negotiating power with carriers, supports platform investments, and materially raises the ceiling for future EBITDA as margins expand.
Read all positive factors
iQSTEL (IQST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.15M
Dividend YieldN/A
Average Volume (3M)507.89K
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue Growth23.43%
EPS Growth-2.44%
CountryUS
Employees100
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-2.68
Shares Outstanding6,735,946
10 Day Avg. Volume259,926
30 Day Avg. Volume507,888
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 Cap0.12
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.10
Enterprise Value/Ebitda-0.16
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.49
Revenue Forecast (FY)$428.20M
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...
How the Company Makes Money
iQSTEL reports revenue primarily from selling telecom and connectivity-related services through its operating subsidiaries. Key revenue streams generally include (1) wholesale telecom services sold to other carriers or telecom operators (e.g., voi...
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
4.09
Price Trends
1.58
Negative
2.01
Negative
3.75
Negative
Market Momentum
-0.11
Negative
36.66
Neutral
30.79
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 4.09 is above the 20-day moving average (MA) of 1.35, above the 50-day MA of 1.58, and above the 200-day MA of 3.75, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 36.66 is Neutral, neither overbought nor oversold. The STOCH value of 30.79 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $311.51M | 84.15 | 6.99% | ― | 16.31% | 67.84% | |
61 Neutral | $421.28M | -37.18 | -1.96% | 4.63% | 1.29% | 57.21% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | $161.46M | -1.56 | 45.15% | ― | -0.93% | 47.84% | |
52 Neutral | $37.80M | -0.38 | 12.54% | ― | -10.78% | 36.66% | |
46 Neutral | $8.15M | -1.43 | -66.72% | ― | 23.43% | -2.44% | |
44 Neutral | $48.03M | -12.04 | -34.75% | ― | -1.27% | 11.71% |
* Communication Services Sector Average
IQST
iQSTEL
1.21
-8.42
-87.44%
ATNI
ATN International
27.39
14.13
106.48%
CXDO
Crexendo
9.61
3.93
69.19%
FNGR
FingerMotion
0.78
-3.17
-80.18%
UCL
uCloudlink Group
1.00
-0.59
-37.11%
KORE
KORE Group Holdings
9.18
6.81
287.34%
iQSTEL Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
iQSTEL Establishes $50 Million Equity Financing Facility
Positive
May 1, 2026
On April 30, 2026, IQSTEL, Inc. entered into an Equity Purchase Agreement and a Registration Rights Agreement with M2B Funding Corp., allowing the company to require the investor to buy up to $50 million of its common stock at a discount to market...
Business Operations and StrategyFinancial Disclosures
iQSTEL Unveils Strategy Pivot to High-Margin Digital Services
Positive
May 1, 2026
On May 1, 2026, iQSTEL made public a new corporate presentation outlining its operational history, financial trajectory and strategic pivot toward high-margin digital services, including AI, fintech, cybersecurity and digital health. The materials...
Business Operations and StrategyFinancial Disclosures
iQSTEL Reports Strong 2025 Results, Targets Margin Expansion
Positive
Apr 10, 2026
IQSTEL Inc., a rapidly growing global telecom and technology provider of voice, SMS, connectivity and mobile financial services, reported full-year 2025 financial results on April 6, 2026, highlighting double-digit revenue growth and a strengthene...
Business Operations and StrategyFinancial Disclosures
iQSTEL Enters Monetization Phase with Revenue Acceleration Plan
Positive
Mar 6, 2026
iQSTEL, Inc., a Nasdaq Capital Market-listed company, operates a global telecommunications and technology platform that underpins international voice, SMS and connectivity services for over 600 network interconnections in more than 20 countries. O...
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.