IQSTEL Pivots to Profit After Surpassing $300 Million Revenue Milestone

NEW YORK, NY – March 09, 2026 – After years of prioritizing aggressive top-line growth, global telecommunications and technology firm IQSTEL Inc. (NASDAQ: IQST) is signaling a major strategic shift. The company, which announced preliminary revenues of approximately $317 million for fiscal year 2025, is now pivoting its focus from building scale to accelerating profitability, a move management has dubbed its "profit inflection phase."

Currently operating at a formidable $400 million annual revenue run rate, IQSTEL is embarking on a new chapter aimed at translating its vast global network into significant earnings growth. This transition comes after a multi-year period of explosive revenue expansion that, while impressive, has yet to deliver consistent bottom-line results, a fact underscored by past financial filings. The company's leadership is now betting that its established operational scale is the key to unlocking substantial shareholder value.

From Revenue Scale to EBITDA Expansion

For years, iQSTEL's story has been one of relentless growth. The company successfully expanded its revenue from just $44.9 million in 2020 to its current run rate, a testament to its ability to scale its telecom and fintech operations. However, this growth came at a cost, with historical financial reports revealing challenges in achieving net profitability and a "going concern" warning noted in a Q3 2025 filing.

The new strategy represents a direct response to these challenges. "Our focus now is transitioning from building revenue scale to expanding profitability," stated Leandro Iglesias, Chairman and CEO of IQSTEL, in the company's recent announcement. "After years of building our global telecom business platform, we are entering the phase where operating leverage, acquisitions, and higher-margin technology services begin to significantly impact EBITDA."

The company's plan is ambitious. Management projects that its current Adjusted EBITDA run rate of approximately $2.7 million could surge to between $9 million and $15 million as revenues climb toward the $500 million to $600 million mark in 2026. This implies a significant improvement in operating margins, moving from a current gross margin below 3% to a more robust profitability profile.

A Four-Pronged Path to Profit

iQSTEL's blueprint for this transformation rests on four key pillars: operating leverage, consolidation, strategic acquisitions, and diversification into high-margin tech services.

First, the company expects to benefit from operating leverage, where its largely fixed costs become a smaller percentage of revenue as sales continue to grow. With the foundational infrastructure already in place, each new dollar of revenue has the potential to be more profitable.

Second, the company plans to consolidate minority ownership in its key subsidiaries. This move, anticipated in the second quarter of 2026, is a direct financial maneuver designed to increase the portion of subsidiary profits that flow directly to iQSTEL's bottom line, immediately boosting its operating EBITDA.

Third, iQSTEL is embarking on a targeted M&A strategy. The company has announced plans for two EBITDA-accretive acquisitions in 2026. The focus on "accretive" deals is crucial, signaling a disciplined approach that prioritizes immediate contributions to profitability over simply adding revenue. This follows the recent successful integration of GlobeTopper, an acquisition that helped push the company to its $400 million run rate ahead of schedule.

Finally, and perhaps most significantly for its long-term future, iQSTEL is expanding into AI-enabled telecom solutions and cybersecurity services. This strategic diversification aims to leverage its existing customer base to sell higher-margin products, fundamentally altering the company's margin profile.

Beyond Connectivity: The Push into AI and Cybersecurity

The most forward-looking aspect of iQSTEL's strategy is its move into advanced technology services through its IQSTEL AI & Digital Business Division. The company is not just a telecom provider; it's a platform. Built over 17 years, this platform connects more than 600 telecom operators across 21 countries and indirectly serves an astonishing 2.7 billion end customers.

This established network of trusted relationships is iQSTEL's Trojan horse for its new, higher-margin offerings. Instead of building a customer base from scratch, the company plans to cross-sell AI and cybersecurity solutions to partners who already conduct millions of dollars in business with them annually. The company has already established a strategic AI cybersecurity alliance with Cycurion to bolster these efforts.

Management projects this new division will generate seven-figure annual revenues by 2027. While a modest start, the goal is less about immediate revenue and more about improving the company's overall margin profile and earnings quality. However, the path is not without obstacles. The AI and cybersecurity markets are intensely competitive, populated by specialized firms and tech giants. iQSTEL will need to prove its offerings are not only effective but can also stand out in a crowded field.

The Valuation Equation

Ultimately, iQSTEL's strategic pivot is about closing the gap between its operational scale and its market valuation. The company maintains a clean capital structure with no convertible debt or outstanding warrants and a relatively small float of 4.9 million shares, which can appeal to investors.

Management has laid out a clear framework linking EBITDA growth to potential valuation. Based on industry benchmarks where similar companies trade between 10x and 20x EBITDA, iQSTEL believes its plan could unlock significant value. The company projects that after consolidating minority interests, an operating EBITDA run rate of around $4 million could imply a valuation of $40 million to $80 million. Following its first strategic acquisition, a projected $9 million EBITDA run rate could support a valuation between $90 million and $180 million. If the full plan, including a second acquisition, is executed successfully, a $15 million EBITDA run rate could potentially justify a valuation in the $150 million to $300 million range.

These figures are forward-looking and contingent on flawless execution. Yet, they provide a clear roadmap for investors and signal a profound shift in how iQSTEL intends to measure its own success—not just by the size of its network, but by the profits it generates.