iQSTEL (IQST) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue increased 70% year-over-year to $97.9 million, driven by organic growth and the integration of GlobeTopper.

• The company is transforming from a telecom operator to a global digital services distribution platform, leveraging established commercial relationships and infrastructure, now integrating with over 600 telecom operators and reaching 2.3 billion end users in 21 countries.

• Strategic focus is on monetizing high-margin digital services, including AI, fintech, cybersecurity, and digital health, with early commercial validation through partnerships.

• Telecom remains the core business (87% of revenue), with fintech (GlobeTopper) contributing 13%.

• Adjusted EBITDA was slightly negative, close to breakeven, reflecting ongoing investments and integration costs.

Financial highlights

• Consolidated revenue grew 70% year-over-year to $97.9 million in Q1 2026, compared to $57.6 million in Q1 2025.

• Gross profit rose 7.8% year-over-year to $2.08 million.

• Net loss widened to $1.39 million, mainly due to higher interest and operating expenses.

• GlobeTopper contributed $13 million in revenue and $829,000 in gross profit, representing 42% of consolidated gross profit.

• Cash at period end was $2.6 million, with negative working capital of $0.3 million.

Outlook and guidance

• The company reaffirms its $430 million revenue target for 2026 and maintains a long-term vision to build a $1 billion annual revenue business with a stronger mix of high-margin digital services.

• Management expects high-margin digital services to drive significant improvements in EBITDA and profitability.

• Management confident in achieving 2026 objectives despite Q1 being a seasonally softer period.

• Focus remains on operational efficiency, cost control, and leveraging synergies among subsidiaries.

• Company plans to seek additional funding through equity and debt to support liquidity.