iQSTEL Inc. (IQST) AI Stock Analysis
IQST AI stock analysis summary
AI ResearchiQSTEL Inc. (IQST) is a wholesale telecom and technology services provider whose revenue reached $316.9M in FY2025 with a 5-year CAGR of 47.8%. Despite trailing twelve month revenue expanding to $394.1M, the company generated an annual net loss of -$9.2M in FY2025. Following an 84.2% share price drop over the past year, its market capitalization stands at $9.9M.
- Market cap
- $9.9M
- Revenue (TTM)
- $394.1M
- P/E
- —
- 1Y return
- -84.2% S&P 500 16.8%
- Avg. target
- $18.00 1893.4% vs last close
Bull case
- Revenue increased at a 5-year CAGR of 47.8% from FY2020 to reach $316.9M in FY2025.
- Quarterly revenue growth accelerated to 51.1% year-over-year in the latest quarter ended June 30, 2026.
- The sole covering analyst maintains a Strong Buy rating with a mean price target of $18.00.
Bear case
- The company recorded an annual net loss of -$9.2M and negative free cash flow of -$4.0M in FY2025.
- Gross profitability remains thin, with gross margins of 3.0% in FY2025 and 2.9% in FY2024.
- The stock fell 84.2% over the past year and trades 41.0% below its 200-day average.
What iQSTEL does
iQSTEL Inc. provides telecommunication services as a wholesale carrier of voice, short message service (SMS), and data for other telecom companies. Its offerings include VoIP, SMS, proprietary Internet of Things, international fiber-optic communication services, and submarine fiber optic network capacity for 4G and 5G internet. The company also provides international voice termination, global DIDs, private branch exchange systems, and SIP trunking. Additional operations include ItsBchain blockchain solutions for telecom, financial and fintech services such as debit cards and remittance apps, mobile number portability applications, and electric motorcycles and mid-speed cars. It serves carriers, enterprises, and governments across North America, Switzerland, Latin America, and Europe.
Growth and profitability
iQSTEL increased its revenue from $64.7M in FY2021 to $93.2M in FY2022, $144.5M in FY2023, $283.2M in FY2024, and $316.9M in FY2025. Annual revenue growth was 11.9% in FY2025, moderating from 96.0% growth in FY2024. Gross margin reached 3.0% in FY2025, compared to 2.9% in FY2024 and 2.4% in FY2021. However, net losses widened from -$763,258 in FY2023 to -$6.0M in FY2024 and -$9.2M in FY2025. For the trailing twelve months ended June 30, 2026, revenue totaled $394.1M with quarterly revenue growth of 51.1% year-over-year, while operating margin was -0.9% and net margin was -2.4%.
Balance sheet and cash flow
As of June 30, 2026, iQSTEL held $2.1M in cash and short-term investments against total debt of $2.6M, resulting in net debt of $523,575. Shareholders' equity was $12.8M alongside total assets of $48.2M. The company reported a current ratio of 1.09 and a debt-to-equity ratio of 0.21. In FY2025, operating cash flow was -$3.8M and free cash flow was -$4.0M, while capital expenditures totaled $113,018 and dividends paid were $284,127.
Valuation and performance
At a last close of $0.90 on October 16, 2026, iQSTEL has a market capitalization of $9.9M and an enterprise value of $11.7M. The stock trades at a price-to-sales multiple of 0.0x and an enterprise value-to-revenue multiple of 0.0x, compared to the median of its US-listed Communication Services peers at 0.8x price-to-sales. Its price-to-book ratio is 0.9x. The stock has dropped 84.2% over the trailing 1-year period and 97.5% over 5 years, trailing the S&P 500 (SPY) returns of 16.8% and 83.0% over the same respective periods.
What analysts expect
Wall Street coverage consists of 1 Strong Buy rating, with 0 Buy, 0 Hold, 0 Sell, and 0 Strong Sell ratings. The mean price target is $18.00, compared to the last close of $0.90, representing a target spread of 1893.4%. For the fiscal year ending December 31, 2026, the consensus EPS estimate is -$0.19 on revenue of $461.5M. For the next fiscal year, 1 analyst estimates EPS of $0.58 on revenue of $552.6M. Over the last 4 quarters, iQSTEL beat EPS estimates 1 time, with the next earnings release scheduled for November 13, 2026.
Key risks and what to watch
- Cash and short-term investments of $2.1M as of June 30, 2026, remain low relative to -$3.8M in FY2025 operating cash flow.
- A current ratio of 1.09 indicates minimal liquidity buffer above short-term obligations.
- Trailing twelve month return on equity of -56.0% and EPS of -$2.27 reflect substantial ongoing unprofitability.
- The stock has a beta of 1.54, signaling elevated price volatility compared to the broader market.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this IQST AI stock analysis
This page is an AI-written research summary of iQSTEL Inc. (IQST). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: IQST income statement, IQST balance sheet, IQST key metrics, IQST analyst forecast, IQST chart. See the IQST stock overview for the latest quote and news.
IQST AI stock analysis FAQ
What was iQSTEL's revenue growth in FY2025?
iQSTEL generated revenue of $316.9M in FY2025, which represented an 11.9% increase from $283.2M in FY2024. Over the 5-year period from FY2020 through FY2025, revenue grew at a compound annual growth rate of 47.8%.
Is iQSTEL profitable?
No, iQSTEL is not profitable. The company recorded an annual net loss of -$9.2M in FY2025 and had a trailing twelve month net profit margin of -2.4%.
How much debt and cash does iQSTEL have?
As of June 30, 2026, iQSTEL held $2.1M in cash and short-term investments and $2.6M in total debt, resulting in net debt of $523,575.
What are analysts forecasting for iQSTEL's performance?
For the fiscal year ending December 31, 2026, analysts forecast revenue of $461.5M and an EPS of -$0.19. One analyst projects revenue to reach $552.6M with EPS of $0.58 in the subsequent fiscal year.