iQSTEL AI Stock Analysis
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iQSTEL (IQST) AI Stock Analysis
iQSTEL
(NASDAQ:IQST)
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.
iQSTEL (IQST) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $7.61M
- Dividend Yield
- ―
- Average Volume (3M)
- 370.63K
- Price to Earnings (P/E)
- -0.4
- Beta (1Y)
- 1.24
- Revenue Growth
- 39.28%
- EPS Growth
- 10.85%
- Country
- US
- Employees
- 100
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Telecommunications Services
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 voi...
iQSTEL Earnings Call Summary
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.
Q1-2026 Updates
Positive Updates
Negative 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
Revenue growth is strong and accelerating (TTM revenue ~394.1M vs 64.7M in 2021), and leverage has improved versus 2024 (lower debt-to-equity, higher equity). However, profitability and cash generation remain weak: thin gross margin (~2.6% TTM), ongoing operating/net losses, and consistently negative operating and free cash flow (TTM OCF/FCF ~-3.9M), keeping financial risk elevated.
Income Statement
34NegativeBalance Sheet
42NeutralCash Flow
28Negative| 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 | 4,209 | -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
Price Trends
Market Momentum
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 0.79 is below the 20-day moving average (MA) of 0.85, below the 50-day MA of 0.93, and below the 200-day MA of 1.34, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 38.80 is Neutral, neither overbought nor oversold. The STOCH value of 36.35 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.
Latest Risks Added
3 New RisksiQSTEL Peers Comparison
Overall Rating
ATNI77Outperform
CXDO70Outperform
UCL50Neutral- IQST47Neutral
FNGR42Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ATNI | 77Outperform | $460.95M | 2.65 | 34.46% | 3.71% | 1.36% | ― |
| CXDO | 70Outperform | $167.88M | 40.79 | 5.38% | ― | 33.54% | -17.64% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| UCL | 50Neutral | $7.19M | -0.38 | -0.93% | ― | -12.14% | -111.36% |
| IQST | 47Neutral | $8.63M | -0.35 | -81.23% | ― | 39.28% | 10.85% |
| FNGR | 42Neutral | $9.56M | -0.68 | -73.97% | ― | -77.82% | -78.19% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IQST | Iqstel, Inc. | 0.79 | -3.70 | -82.41% | |
| ATNI | Atn International, Inc. | 30.47 | 11.45 | 60.21% | |
| CXDO | Crexendo Inc. | 5.05 | -1.73 | -25.52% | |
| FNGR | FingerMotion | 0.11 | -1.15 | -91.11% | |
| UCL | uCloudlink Group, Inc. | 0.23 | -1.91 | -89.25% |
iQSTEL Corporate Events
iQSTEL Secures Financing to Support Ultranet Acquisition
PositiveOn 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 common...
iQSTEL Restructures GlobeTopper Deal, Highlights Digital Expansion
PositiveOn 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 pledged GlobeToppe...
iQSTEL forms strategic partnership to expand digital reach
PositiveOn 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 use...
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.
Date of analysis: Oct 26, 2026