$IQST News: IQSTEL (NASDAQ: IQST) Issues Follow-Up

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$IQST News: IQSTEL (NASDAQ: IQST) Issues Follow-Up Shareholder Letter Highlighting NASDAQ Benefits, $57.6M Q1 Revenue, and $14.58 Assets Per Share on Path to $1 Billion

NEW YORK, May 20, 2025 /PRNewswire/ -- IQSTEL Inc. (NASDAQ: IQST), a U.S.-based multinational technology company, today issued a follow-up shareholder letter to reinforce the strategic value of its recent NASDAQ uplisting and to highlight the company's most important operational and financial metrics.

This communication outlines IQSTEL's transformation into a high-tech global enterprise, backed by strong fundamentals and a clear path to $1 billion in annual revenue by 2027.

Key metrics and updates underscore why we believe our stock remains significantly undervalued:

Current Assets Per Share (Q1 2025): $14.58
Current Revenue Per Share: Over $100
Current Stockholders' Equity Per Share (Q1 2025): $4.38
Current Outstanding Shares: 2.9 million
Current Market Cap: 0.10x our Revenue in 2024
2025 Revenue Forecast: $340 million
Year-End Run Rate Goal: $400 million
Year-End Revenue Mix Goal: 80% Telecom / 20% Tech Services
Trading212.com now supports IQST again for European-based investors
IQSTEL's NASDAQ listing enhances visibility, unlocks institutional investment, increases customer confidence, and positions the company to execute larger, EBITDA-positive acquisitions without dilution.

Shareholder Letter – May 20, 2025

Dear Shareholders,

Just days ago, we celebrated our official listing on the NASDAQ Capital Market under the ticker IQST—a transformational milestone that opens the door to unprecedented commercial, financial, and strategic opportunities.

Following this milestone, we received several thoughtful questions from our shareholders regarding the impact of this listing and our forward strategy. In response, we've prepared this Shareholder Letter to provide greater clarity and reaffirm the benefits of this moment, while summarizing the most critical indicators of IQSTEL's financial strength and long-term growth potential.

Key Shareholder Takeaways

Current Assets Per Share (Q1 2025): $14.58
Current Revenue Per Share: Over $100
Current Stockholders' Equity Per Share (Q1 2025): $4.38
Current Outstanding Shares: 2.9 million
Current Market Cap: 0.10x our Revenue in 2024
Q1 2025 Revenue: $57.6M
2025 Revenue Forecast: $340 million
Year-End Run Rate Goal: $400 million
Year-End Revenue Mix Goal: 80% Telecom / 20% Tech Services
Countries of Commercial Footprint : 21
Employees: 100+
Business Relationships: 600+ global interconnections
Telecom Division (99% revenue stream): Positive Adjusted EBITDA and Positive Net Income
Trading212.com now supports IQST again for European-based investors
What Shareholders Can Expect as a NASDAQ Company

1. Institutional Access & Global Liquidity

IQSTEL is now available to institutional funds and platforms like Trading212.com in the UK and Europe.
Global retail and institutional investors can participate more easily in our story.
2. Commercial Trust and Growth Acceleration

We already handle hundreds of millions in B2B telecom transactions annually.
Our NASDAQ status boosts credibility with customers and partners—catalyzing growth.
3. Shareholder-Friendly Capital Structure

Fewer than 2.9 million shares outstanding.
No capital raise or dilution for the NASDAQ uplisting.
All convertibles mature in Q1 2026—no short-term pressure.
4. Revaluation Opportunity

IQSTEL trades at ~0.10x 2024 revenue.
NASDAQ peers in telecom/tech often trade at 1.0x or more—even without profitability.
5. Strong M&A Capability

Our stock is now a more attractive currency for acquiring EBITDA-positive businesses.
We are actively targeting strategic acquisitions in telecom, fintech, AI, and cybersecurity.
Delivering on Our Promises—Built on Execution, Not Hype

At IQSTEL, we don't just set goals—we deliver on them. Over the past seven years, we've earned a reputation for consistent execution, operational discipline, and transparency. Everything we've told our nearly 20,000 shareholders we would accomplish—we have. That track record speaks louder than any forecast and forms the foundation for the next phase of our growth.

Here's a summary of how we've kept our word:

Sustained Revenue Growth: From $13.8 million in 2018 to $283 million in 2024—consistently meeting or exceeding our revenue forecasts year after year.
Robust Corporate Governance: Audit, Compensation, and Ethics Committees are fully established, supported by an independent Board of Directors and annual shareholder meetings that ensure transparency and accountability.
NASDAQ Uplisting Achieved: From Pink Sheets to QB, then OTCQX, and now NASDAQ in 2025—without a capital raise or any shareholder dilution.
Enhanced Shareholder Value: Revenue Per Share now exceeds $100, a strong reflection of our disciplined approach to growth and value creation.
Balance Sheet Strength: We met NASDAQ's equity requirements without raising capital—an uncommon achievement that shows the strength of our business.
Equity Growth: From a negative equity position of ($1.6 million) or -$0.11 per share in 2018, to $11.6 million or $4.38 per share as of March 31, 2025.
These are not projections. These are results. They represent our commitment to building a company that delivers real shareholder value—not just vision, but verifiable performance.

Because We Deliver on Our Promises, These Are the Goals We Are Now Pursuing in 2025

Our consistent execution over the past seven years gives us the confidence—and credibility—to set ambitious but achievable objectives for 2025. These goals are not aspirational statements; they are measurable targets rooted in our proven ability to grow revenue, manage costs, and build shareholder value. With a scalable model, a trusted global platform, and momentum from our NASDAQ listing, we believe the following objectives are well within reach:

Revenue: $340 million
Adjusted EBITDA (Operating Subsidiaries): $3 million+
Net Income (Operating Subsidiaries): 7-digit
Year-End Revenue Run Rate: $400 million
Year-End Revenue Mix Goal: 80% Telecom / 20% Tech
Strategic Acquisitions: Targeting companies with positive EBITDA and synergy potential
Built for the Future

IQSTEL's future is tech-driven and margin-focused. We're now leveraging our trusted telecom platform to deliver:

High Tech Telecom Services: eSIM, roaming, numbering
Fintech Services: remittance, mobile banking
AI-Driven Customer Platforms: automation, support, lead generation
Cybersecurity Solutions: tailored for telecom operators and infrastructure clients
Final Thoughts

IQSTEL is now a global public company with robust fundamentals, scalable operations, and powerful visibility. With strong momentum and aligned shareholder interests, we are executing our plan to reach $1 billion in revenue by 2027—profitably and sustainably.

Thank you to our nearly 20,000 shareholders. The best is just beginning.

If you have any questions about our NASDAQ uplisting or our 2025 goals, please don't hesitate to contact us at questions@iqstel.com.

Sincerely,

Leandro Iglesias
President & CEO
IQSTEL Inc. (NASDAQ: IQST)

About IQSTEL Inc.

IQSTEL Inc. (NASDAQ: IQST) is a multinational technology company providing advanced solutions across Telecom, High-Tech Telecom Services, Fintech, AI-Powered Telecom Platforms, and Cybersecurity. With operations in 21 countries and a team of 100 employees, IQSTEL serves a broad global customer base with high-value, high-margin services. Backed by a strong and scalable business platform, the company is forecasting $340 million in revenue for FY-2025, reinforcing its trajectory toward becoming a $1 billion tech-driven enterprise by 2027.

Use of Non-GAAP Financial Measures: The Company uses certain financial calculations such as Adjusted EBITDA, Return on Assets and Return on Equity as factors in the measurement and evaluation of the Company's operating performance and period-over-period growth. The Company derives these financial calculations on the basis of methodologies other than generally accepted accounting principles ("GAAP" , primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. These financial calculations are "non-GAAP financial measures" as defined under the SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items, other infrequent charges and currency fluctuations. The Company presents these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company's core operating performance and provide greater transparency into the Company's results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company's financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company's GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP, and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly-titled measures of other companies.

Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Adjusted EBITDA excludes, in addition to non-operational expenses like interest expenses, taxes, depreciation and amortization; items that we believe are not indicative of our operating performance, such as:

Change in Fair Value of Derivative Liabilities: These adjustments reflect unrealized gains or losses that are non-operational and subject to market volatility.
Loss on Settlement of Debt: This represents non-recurring expenses associated with specific financing activities and does not impact ongoing business operations.
Stock-Based Compensation: As a non-cash expense, this adjustment eliminates variability caused by equity-based incentives.
The Company believes Adjusted EBITDA offers a clearer view of the cash-generating potential of its business, excluding non-recurring, non-cash, and non-operational impacts. Management believes that Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of financing, income taxes, non-cash and certain other items that may vary for different companies for reasons unrelated to overall operating performance and also believes this information is useful to investors.

Safe Harbor Statement: Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other information relating to our future activities or other future events or conditions. Words such as "anticipate," "believe," "estimate," "expect," "intend", "could" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates, and projections about our business based partly on assumptions made by management. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to successfully market our products and services; our continued ability to pay operating costs and ability to meet demand for our products and services; the amount and nature of competition from other telecom products and services; the effects of changes in the cybersecurity and telecom markets; our ability to successfully develop new products and services; our ability to complete complementary acquisitions and dispositions that benefit our company; our success establishing and maintaining collaborative, strategic alliance agreements with our industry partners; our ability to comply with applicable regulations; our ability to secure capital when needed; and the other risks and uncertainties described in our prior filings with the Securities and Exchange Commission.

These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may and are likely to differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release, and IQSTEL Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.

For more information, please visit www.IQSTEL.com.

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SOURCE iQSTEL
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