iQSTEL Inc. (NASDAQ:IQST) on Monday disclosed that its fiscal year 2025 preliminary revenue is around $317 million, compared to its guidance of $340 million.
Financials
The company currently operates at an annual revenue run rate of around $400 million and an adjusted EBITDA run rate of about $2.7 million.
This marks the early stage of what management views as a ‘profit inflection point’, where increasing scale is expected to drive faster EBITDA growth.
iQSTEL expects EBITDA run rate to reach $9 million-$15 million as the company’s revenue scales towards $500 million-$600 million.
The company says that based on industry benchmarks, this EBITDA expansion could significantly increase the company’s implied valuation.
Acquisitions & AI Capabilities
With plans to pursue two targeted acquisitions, iQSTEL aims to boost its revenue beyond $500 million while broadening its geographic footprint and technology capabilities.
The company is also planning to expand into AI-enabled telecom solutions and cybersecurity services.
The company is now focusing on a growth strategy aimed at profitability expansion through the consolidation of minority ownership in key subsidiaries and the expansion of higher-margin AI and cybersecurity services to drive the transition.
iQSTEL said these initiatives are expected to generate seven-digit annual revenue by 2027, improving the company's margin profile and earnings quality.
IQST Price Action: iQSTEL shares were down 0.53% at $1.87 during premarket trading on Monday. The stock is trading near its 52-week low of $1.80, according to Benzinga Pro data.
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