IQSTEL INC (IQST)
NASDAQCommunication ServicesTelecommunications ServicesSnapshot 2026-09-09
$0.90-0.52%
Close 2026-09-09 · 1-day change
NASDAQCommunication ServicesTelecommunications ServicesSnapshot 2026-09-09
Intact: The reason to own it still holds.
IQSTEL is growing revenue fast, with Q1 2026 up nearly 70%. The Ultranet acquisition should add $130 million yearly revenue, pushing total revenue above $500 million. The company aims for $1 billion revenue in two years and improving operating income. A new share buyback program may boost investor confidence.
IQSTEL is still loss-making with negative EPS expected through 2027. The recent sharp stock selloff shows market doubts. Revenue growth may slow and operating losses could persist. The company’s volatile management and capital raises add risk.
The market expects about 17% revenue growth next year and values IQSTEL cheaply versus peers. Our fair value is near $3.29, close to consensus estimates. The market prices in moderate growth but not a full turnaround yet.
Breaks if: Adjusted EBITDA falls below $5 million in Q3 2026
Breaks if: Operating loss worsens beyond -$2.4 million in Q1 2026
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a speculative growth opportunity. The company is in a volatile phase, aiming for significant revenue growth through acquisitions and expansion of digital services, but faces challenges in execution and market conditions.
The current valuation suggests that the market views IQST as relatively cheap compared to its peers. However, there is a notable expectations gap, indicating that investors may be cautious about the company's ability to deliver on its ambitious growth targets.
Fundamentals are expected to remain under pressure in the near term, especially given the elevated risk of an earnings miss. Recent financial performance has been weak, and while management is focused on growth, execution remains mixed.
The long-term thesis hinges on management's ability to successfully integrate the Ultranet acquisition and expand the digital services platform. Additionally, the performance of sector bellwethers like VZ, TMUS, and T will significantly influence IQST's trajectory.
The most important moves since the prior daily snapshot.
Our read on the company is unchanged since the prior snapshot.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Focus on improving operating income through operational efficiencies and margin expansion across telecom and digital services.
Stated as a priority in 3 of last 3 quarters. Gross margin improved from 2.74% in 2024-Q4 to 3.46% in 2025-Q4, a 26.28% increase, and operating income improved from -$2.43M in 2025-Q4 to -$1.12M in 2026-Q2. Despite remaining negative, operating income shows improvement, indicating progress on operational efficiency and margin expansion consistent with management’s stated priority.
“Gross margin improved significantly, increasing 26.28%, reflecting enhanced operational efficiency and a more favorable service mix.”
“Intercompany routing and platform consolidation initiatives have further improved efficiency and margin expansion.”
“Focus on operational improvements to strengthen profitability and margin profile.”
Breaks if: Revenue falls below $430 million in FY26
Pursue aggressive revenue growth to reach $1 billion annual revenue run rate within two years through organic growth and acquisitions.
Stated as a priority in 3 of last 3 quarters. IQSTEL’s revenue grew from $316.9M in 2025 full year to $109.1M in 2026-Q2 quarter, with guidance targeting $1 billion revenue run rate within 24 months. The trajectory shows consistent revenue growth and management’s commitment to aggressive expansion, though profitability remains negative, indicating ongoing investment.
“the proposed transaction is expected to increase IQSTEL’s annual revenue run rate to approximately $560 million”
“Our strategy remains clear: achieve $1 billion in revenue within the next 24 months”
“From $400 Million to $1 Billion Revenue run rate in 2027”
Breaks if: No buyback activity within 12 months after announcement
Implement a share repurchase program authorized for up to 1,000,000 shares to return capital to shareholders and optimize capital structure.
Newly stated in 2026-Q2. The Board authorized a share repurchase program for up to 1,000,000 shares with no expiration date. No share repurchases have been reported yet, so delivery is pending. This program represents a capital allocation priority but has limited substantive delivery so far.
“Board authorized and approved a share repurchase program for up to 1,000,000 shares of common stock”
In the next 1 to 3 years, IQST's performance will depend on its execution of strategic priorities and broader sector trends. Not investment advice.