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iQSTEL
(NASDAQ:IQST)
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Rating:47Neutral
Price Target:
$0.90
▼(-4.79% Downside)
Action:Reiterated
Date:10/27/26
The score is held down primarily by weak profitability and ongoing cash burn despite strong revenue growth, plus bearish technical signals with the stock below major moving averages. Corporate developments are a modest positive due to potential scale and profitability from the Ultranet acquisition and digital expansion, but the high-cost secured financing and execution/payment obligations add risk. Valuation is neutral-to-limited in usefulness due to negative earnings and no stated dividend yield.
Positive Factors
Strong Revenue Growth
Revenue growth from $64.7 million in 2021 to approximately $394.1 million in TTM shows substantial expansion in the company’s operating scale. If sustained, this broader revenue base can improve customer reach, support investment in higher-value services, and create a foundation for future operating leverage.
Negative Factors
Thin Margins and Losses
A gross margin of approximately 2.6% leaves little room to absorb operating costs or pricing pressure, while negative operating profit and net margin show that scale has not yet produced durable profitability. Continued losses could constrain reinvestment and weaken long-term financial resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Revenue growth from $64.7 million in 2021 to approximately $394.1 million in TTM shows substantial expansion in the company’s operating scale. If sustained, this broader revenue base can improve customer reach, support investment in higher-value services, and create a foundation for future operating leverage.
Read all positive factors
iQSTEL (IQST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.92M
Dividend YieldN/A
Average Volume (3M)250.41K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth39.28%
EPS Growth10.85%
CountryUS
Employees100
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-2.23
Shares Outstanding10,915,859
10 Day Avg. Volume137,994
30 Day Avg. Volume250,414
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)0.90
Price to Sales (P/S)0.03
P/FCF Ratio-2.54
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue0.03
Enterprise Value/Gross Profit1.26
Enterprise Value/Ebitda-2.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.8
Revenue Forecast (FY)$424.09M
iQSTEL Business Overview & Revenue Model
Company Description
iQSTEL Inc., operating via its subsidiary Etelix.com USA, LLC, specializes in providing a wide array of telecommunications and cutting-edge technology services. The company's core offerings include delivering wholesale international long-distance ...
iQSTEL Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 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
42
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 394.07M | 316.90M | 283.22M | 144.50M | 93.20M | 64.70M |
| Gross Profit | 10.32M | 9.46M | 8.27M | 4.67M | 1.79M | 1.53M |
| EBITDA | -6.50M | -6.15M | -2.13M | 4.21K | -5.72M | -3.10M |
| Net Income | -9.58M | -9.16M | -5.99M | -763.26K | -5.97M | -3.84M |
Balance Sheet | ||||||
| Total Assets | 48.19M | 51.09M | 79.01M | 22.16M | 12.55M | 9.06M |
| Cash, Cash Equivalents and Short-Term Investments | 2.09M | 2.16M | 2.51M | 1.36M | 1.33M | 3.33M |
| Total Debt | 2.62M | 4.18M | 8.05M | 953.57K | 438.44K | 674.05K |
| Total Liabilities | 31.01M | 34.81M | 67.11M | 14.11M | 6.71M | 2.64M |
| Stockholders Equity | 12.75M | 11.16M | 7.22M | 8.42M | 6.76M | 7.42M |
Cash Flow | ||||||
| Free Cash Flow | -3.88M | -3.96M | -3.08M | -1.70M | -1.88M | -3.38M |
| Operating Cash Flow | -3.86M | -3.84M | -2.93M | -1.48M | -1.77M | -3.15M |
| Investing Cash Flow | -88.42K | -239.65K | -3.16M | -332.55K | -2.00M | -511.35K |
| Financing Cash Flow | 4.00M | 3.73M | 7.24M | 1.83M | 1.77M | 6.25M |
iQSTEL Technical Analysis
Negative
0.94
Price Trends
0.98
Negative
1.05
Negative
1.48
Negative
Market Momentum
-0.03
Positive
41.01
Neutral
20.03
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 0.94 is below the 20-day moving average (MA) of 0.97, below the 50-day MA of 0.98, and below the 200-day MA of 1.48, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.01 is Neutral, neither overbought nor oversold. The STOCH value of 20.03 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $191.87M | 41.70 | 6.23% | 1.28% | 25.49% | 27.81% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $399.10M | 2.48 | 34.33% | 4.36% | 2.02% | ― | |
47 Neutral | $9.92M | -0.41 | -81.23% | ― | 39.28% | 10.85% | |
47 Neutral | $8.80M | -0.38 | -0.93% | ― | -12.14% | -111.36% | |
42 Neutral | $14.35M | -0.94 | -73.97% | ― | -77.82% | -78.19% |
* Communication Services Sector Average
IQST
iQSTEL
0.91
-4.97
-84.54%
ATNI
ATN International
25.91
11.18
75.89%
CXDO
Crexendo
5.75
-0.59
-9.31%
FNGR
FingerMotion
0.16
-1.36
-89.74%
UCL
uCloudlink Group
0.23
-1.97
-89.50%
iQSTEL Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
iQSTEL Secures Financing to Support Ultranet Acquisition
Positive
Oct 26, 2026
On October 20, 2026, IQSTEL Inc. entered into a financing arrangement with M2B Funding Corp. and ADI Funding LLC involving up to $3 million in two-year senior secured, non-convertible promissory notes and pre-funded warrants for up to 420,000 comm...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
iQSTEL Restructures GlobeTopper Deal, Highlights Digital Expansion
Positive
Sep 28, 2026
On September 16, 2026, IQSTEL amended the terms of its July 2025 acquisition of a 51% stake in GlobeTopper, replacing a previously agreed $500,000 stock component with a $500,000 cash “Replacement Payment” obligation secured by the ple...
Business Operations and Strategy
iQSTEL forms strategic partnership to expand digital reach
Positive
Sep 8, 2026
On September 3, 2026, IQSTEL announced a strategic partnership with microdrama platform IDILIO TV and set corporate targets for 2027, aiming to secure mobile-operator distribution channels that could reach a potential audience of about 40 million ...
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.