Edison Values iQSTEL at $6/Share, Forecasting EBITDA Turnaround…

Event summary

Edison initiates coverage of iQSTEL with $6/share valuation, citing Ultranet acquisition and digital services growth
2027 revenue forecast at $653M with $12.5M adjusted EBITDA, up from near-breakeven in 2026
Positive free cash flow expected in 2027-2028, reducing reliance on equity financing
Ultranet's African market presence and carrier agreements seen as key EBITDA drivers
Digital services (AI, cybersecurity, fintech) to contribute higher margins despite small revenue share

The big picture

iQSTEL's strategic pivot toward digital services and the Ultranet acquisition represent a broader industry trend of telecom operators seeking higher-margin technology adjacencies. The Edison valuation suggests investors may reassess the company's growth potential if it can execute on profitability targets. Success hinges on operational efficiencies and maintaining carrier relationships while integrating new assets.

What we're watching

Acquisition Integration: Whether iQSTEL can successfully integrate Ultranet and realize its projected EBITDA contributions
Digital Services Scaling: The pace at which higher-margin digital services can expand within the existing telecom platform
Financing Strategy: How reduced equity reliance will impact capital structure and investor perception