iQSTEL (NASDAQ:IQST) executives outlined a plan to expand beyond telecommunications into higher-margin digital services, while continuing to pursue acquisitions aimed at increasing EBITDA and revenue.
Chief Executive Officer Leandro Iglesias said the company has grown from $30 million in revenue in 2018 to a current annual run rate of about $400 million. He described iQSTEL as a roll-up company that has acquired businesses every year while also growing organically.
“The real value of the company” is not simply revenue, Iglesias said, but the business platform and customer relationships the company has built. He said iQSTEL’s customers collectively reach 2.3 billion end users, creating a potential distribution channel for new digital services.
Company Targets Digital Services Expansion
Iglesias said iQSTEL is working to evolve from a telecom company into what he called a “digital global corporation” by adding services such as artificial intelligence, cybersecurity, digital health and fintech.
He said telecom operators need to increase average revenue per user and differentiate themselves beyond voice minutes and data plans. iQSTEL’s strategy is to offer services that those operators can resell to consumers and enterprise customers.
“We only need to reach an agreement with them about the terms, discounts, the volumes and services for each of the products,” Iglesias said when asked how iQSTEL can access the 2.3 billion end users.
The company recently created a subsidiary called iQSTEL Digital Services and appointed a chief executive with experience selling digital services to mobile operators, Iglesias said. He added that the executive has previously sold digital services reaching more than 100 million end users in Latin America.
Digital Health Launch Planned
In response to a question about digital healthcare, Iglesias said iQSTEL has an agreement with a national company to provide related products and services. He said the company planned to launch the offering at International Telecoms Week in Washington.
Iglesias said iQSTEL had scheduled several meetings with large telecom companies, including one with broad coverage in Latin America. He described the digital health opportunity as involving devices and monitoring services for elderly people.
“We truly believe that the service is going to be very valuable for the customers,” Iglesias said.
EBITDA Growth and M&A Plans
Iglesias said iQSTEL is focused on scaling EBITDA from about $2.7 million from operations to a range of $9 million to $15 million this year. He also said the company aims to reach $25 million and eventually $50 million in EBITDA over the next three years.
The company’s broader vision is to grow from a $400 million revenue run rate to a $1 billion revenue run rate, he said. Iglesias said that growth would come from both acquisitions and higher-margin digital products, including cybersecurity, digital health, fintech and AI services, which he said could carry margins of about 40%.
Iglesias also said iQSTEL is working on an acquisition of an African company after 18 months of discussions. He said the target business generates about $100 million in revenue, $6 million in EBITDA and nearly $4 million in net income. According to Iglesias, the companies have agreed on terms, and iQSTEL expects to pay in installments over three years, contingent on the acquired company’s results.
He said that transaction alone could add $5 million to $6 million of EBITDA.
Capital Structure Discussed
Chief Financial Officer Alvaro Quintana said iQSTEL has 26 million authorized common shares and 5.7 million common shares outstanding. He said the company also has Series A preferred shares that give Iglesias and Quintana 51% of the voting rights.
Quintana said the company has no convertible notes and no outstanding warrants. If all preferred shares were converted, he said the fully diluted share count would be around 7 million shares.
Quintana said iQSTEL has used equity to finance acquisitions, but argued that the company has created shareholder value. He said the company invested $11.5 million in acquisitions from 2018 to 2025, while net shareholders’ equity increased from $1.6 million to $16 million and total assets rose from $2.5 million to $51 million last year.
He also said iQSTEL is working to acquire minority interests in some subsidiaries, which would allow the company to consolidate 100% of those businesses and pursue cost savings through reorganization, shared platforms and reduced fixed costs.
Management Emphasizes Undervaluation
Iglesias said iQSTEL’s equity per share is above $3, while its stock was trading around $1.30 at the time of the presentation. He said the company has about 15,000 shareholders and reiterated that management is focused on increasing revenue per share, shareholders’ equity and EBITDA.
The company expects to announce first-quarter results within two days, Iglesias said. He added that iQSTEL believes it is on track to meet its goal of $430 million in revenue for the year.
Iglesias closed by saying iQSTEL is seeking acquisition opportunities and partners that can make use of its telecom distribution platform.
About iQSTEL (NASDAQ:IQST)
iQSTEL, Inc (NASDAQ: IQST) is a U.S.-based telecommunications company that operates a global connectivity platform for voice, data and messaging services. The company leverages cloud-native infrastructure to deliver international roaming solutions, prepaid mobile top-up services and eSIM provisioning. Its technology enables seamless wireless communications for both individual subscribers and business clients across a broad network of partner carriers.
The company’s core offerings include instant airtime reloads, cross-border mobile voice and data plans, machine-to-machine (M2M) connectivity and Internet of Things (IoT) solutions.
