iQSTEL Inc.

What they do

iQSTEL operates telecom, fintech, and AI businesses through subsidiaries across 20 countries with over 100 employees. Its Telecom Division provides VoIP, SMS, IoT, and international fiber-optic connectivity through units including Etelix, SwissLink Carrier, Smartbiz Telecom, Whisl Telecom, IoT Labs, QGlobal SMS, and QXTEL. A developing fintech line under Global Money One offers a debit card, US bank account, and remittance wallet, while GlobeTopper runs a B2B digital gift card platform; Reality Border is the AI division.

Revenue drivers

• Telecom Division — Carrier-grade VoIP, SMS, IoT, and fiber connectivity sold through more than 603 network interconnections; accounted for 87% of revenue for the six months ended June 30, 2026.
• GlobeTopper LLC — B2B digital gift card and incentives platform; represented 13% of revenue for the six months ended June 30, 2026.
• Fintech Business Line — Global Money One debit card, US bank account, and mobile wallet for remittances and mobile top-up; described as developing and not quantified in the excerpts.
• AI and Blockchain Business Lines — Reality Border offers AI agents and products such as Airweb.ai, IQ2Call.ai, and IQCortex.ai; itsBchain offers a Mobile Number Portability Application; both described as developing, with no revenue figures given.

Recent performance

Revenue grew from $64.7 million in 2021 to $316.9 million in 2025, including quarterly revenue of $109.1 million in the quarter ended June 30, 2026. Despite that growth, net losses persisted every year, reaching $8.5 million in 2025, and operating cash flow was negative $3.8 million in 2025. At June 30, 2026, total assets were $48.2 million against total liabilities of $31.0 million, leaving shareholder equity of $17.2 million and cash of $2.1 million.

Strategy

Management states its strategy is to leverage synergies among subsidiaries and grow through organic development and strategic acquisitions. Effective July 2, 2026, the company formed IQSTEL Operating Holdings Inc., a wholly owned Nevada subsidiary, to hold substantially all operating subsidiaries and business assets, which the company says is intended to improve financial transparency, capital allocation, and access to traditional financing. The company also points to the anticipated closing of the proposed ULTRANET acquisition and to Digital Services spanning AI, cybersecurity, fintech, digital health, and digital content.

Risks

• Persistent losses and cash burn — iQSTEL has reported net losses every year from 2021 through 2025 and negative operating cash flow in each of those years.
• Thin liquidity — Cash and equivalents were $2.1 million at June 30, 2026, against a business with roughly $100 million in quarterly revenue.
• Low-margin carrier business — The Telecom Division produced 87% of revenue for the six months ended June 30, 2026, and consists largely of wholesale voice, SMS, and connectivity services.
• Reliance on acquisitions — Stated strategy depends on completing deals such as the proposed ULTRANET acquisition, and management's pro forma projections for that deal may not be realized.

Outlook

Management projects that upon the anticipated closing of the ULTRANET acquisition, expected in the quarter following the July 2026 release, iQSTEL would have a pro forma annual revenue run rate of approximately $560 million and an adjusted EBITDA run rate approaching $9 million. The company also states the new IQSTEL Operating Holdings structure is intended to support future M&A and Digital Services expansion and to improve financing terms, which management expects to lower operational costs.