IQSTEL Inc. (NASDAQ:IQST) has articulated a comprehensive strategic plan focused on driving profitability and scaling its international presence through 2026, according to the company's recent shareholder letter. The outlined objectives include a significant increase in adjusted EBITDA, expansion of telecom licensing footprint, and growth of high-margin service offerings in Fintech, cybersecurity, and artificial intelligence (AI) sectors.
Central to IQSTEL's upcoming efforts is the consolidation of its telecom subsidiaries. The company plans to acquire full ownership, specifically 100%, of several of its most pivotal subsidiaries. This move is aimed at streamlining operations and achieving greater efficiency. Following consolidation, IQSTEL intends to merge the technological infrastructure of its telecom subsidiaries into a singular, unified platform. Initial efforts target the majority of subsidiaries, progressing ultimately to encompass all those under full ownership.
This strategic integration is projected to significantly decrease operating expenses and boost scalability for the company's telecom division. Currently, IQSTEL holds telecom licenses in the United States and Switzerland. The company envisions broadening this licensing reach into at least three additional countries within 2026. Complementing licensing expansion, IQSTEL plans to complete further acquisitions to enhance its commercial footprint, targeting growing operations in no fewer than six new countries. This initiative aims to establish a presence in roughly 30 countries globally.
On the financial front, IQSTEL is targeting a $15 million adjusted EBITDA run rate by 2026. This milestone is a foundational step accompanying its broader ambition of evolving into a $1 billion revenue run-rate entity by 2027. Increasing company valuation is also a core focus. IQSTEL aims to elevate its market value by closing the current valuation gap toward earning a 10x EBITDA multiple initially, with aspirations to reach a 20x multiple within a year.
Strategic acquisitions are contributing to this financial trajectory. Following its acquisition of Globetopper, IQSTEL's Fintech services now account for about 20% of the company's revenue and EBITDA streams. The company is planning to augment its service portfolio through the official launch of cybersecurity services targeting the telecom sector in 2026. This initiative will leverage support from its affiliated company, Cycurion, with expectations that cybersecurity will represent close to 5% of IQSTEL's bottom-line results in the upcoming year.
In parallel, IQSTEL is advancing development and deployment of AI-powered solutions, especially tailored to the telecom industry. Collaborations with Cycurion will continue in this domain, and commercial expansion of AI-driven services directed at the contact center market will also be a priority.
Beyond operational objectives, IQSTEL is placing emphasis on enhancing shareholder engagement. Plans include intensifying roadshow activities with family offices to increase institutional and long-term investor holdings from approximately 5% to 10%. Additionally, the company intends to initiate quarterly live earnings calls aimed at fostering more direct communication and transparency with shareholders.
Market response to these announcements has been positive, as evidenced by IQSTEL shares rising 5.50% to $3.07 in premarket trading on the release day, reflecting investor interest in the company’s strategic roadmap.
Key Points
- IQSTEL aims to reach a $15 million adjusted EBITDA run rate in 2026 as a gateway toward $1 billion in revenue by 2027.
- The company plans full acquisition and consolidation of strategic telecom subsidiaries into a unified technological platform to reduce costs and enhance scalability.
- Expansion of telecom licenses from current holdings in the U.S. and Switzerland to at least three more countries, alongside acquisitions to boost operations in six additional markets, targeting a global footprint in about 30 countries.
- Growth of Fintech services, now comprising 20% of revenue and EBITDA post-Globetopper acquisition, alongside a planned cybersecurity service launch supported by Cycurion to contribute around 5% of profits in 2026.
- Development and commercialization of AI-driven telecom and contact center solutions in collaboration with Cycurion.
- Initiatives to bolster shareholder engagement through increased institutional investment and quarterly live earnings calls.
Risks and Uncertainties
- Successful acquisition of 100% ownership of telecom subsidiaries is a prerequisite for consolidation and cost savings but may face regulatory or operational challenges.
- Expansion into new international markets involves licensing and commercial acquisition risks, including regulatory approval and integration processes in diverse jurisdictions.
- Achievement of financial targets such as adjusted EBITDA run rate depends on the effective scaling of current and new service lines, including Fintech and cybersecurity offerings.
- Market reception of planned AI-driven and cybersecurity services could impact their contribution to overall profitability.