IQST - IQSTEL Advances Microdrama Commercialization with Outreach to Seven Mobile Operators Serving Approximately 93 Million Subscribers

Initial outreach marks the beginning of a broader commercial effort through IQSTEL's customer relationships, which provide potential reach to approximately 2.3 billion end users worldwide.

Company establishes a 2027 operating objective of 300,000 active paid monthly subscriptions—a subscriber level previously modeled to generate $1.8 million to $3.6 million in potential annualized profit contribution for IQSTEL Digital.

NEW YORK, Oct. 8, 2026 /PRNewswire/ -- iQSTEL Inc. (NASDAQ: IQST), a global telecommunications and technology company, today announced that IQSTEL Digital has initiated commercial outreach for its microdrama offering to seven mobile operators whose combined subscriber bases total approximately 93 million.

These seven operators represent the initial phase of a broader commercial effort. Through its established relationships with telecommunications customers whose networks collectively serve approximately 2.3 billion end users worldwide, IQSTEL has a substantial potential audience for its digital services. The Company's strategy is to progressively convert these relationships into distribution agreements for recurring digital services, beginning with microdramas.

Commercial efforts are focused on securing operator distribution agreements that can support service launches and paid monthly subscriptions. The seven operators represent opportunities under development. Both the 93 million combined subscriber base and the broader 2.3 billion potential reach describe the scale of operator networks; they do not represent contracted microdrama distribution, current subscribers to the service or guaranteed access to those users.

"IQSTEL has an extraordinary commercial track record. We have grown from more than $13 million in annual revenue in 2018 to a $450 million annualized revenue run rate based on our July 2026 results," said Leandro Iglesias, President and CEO of IQSTEL. "Behind that growth is an experienced team, established customer relationships and a disciplined commercial process—a commercial powerhouse built over years of execution. We are now bringing those capabilities to microdramas, with the goal of converting operator relationships into recurring digital revenue and stronger profitability. These first seven operators mark the beginning of that effort."

Two Complementary Drivers of EBITDA Growth

IQSTEL's strategy to expand EBITDA combines its planned acquisition of Ultranet with the development of IQSTEL Digital.

The planned Ultranet acquisition would add profitable telecommunications operations and broaden the Company's geographic presence. Its contribution remains subject to completion of the acquisition and subsequent operating performance.

IQSTEL Digital is developing services designed to generate recurring revenue with potentially higher margins through the Company's existing operator relationships. Microdramas represent an initial commercial application of this strategy, combining mobile entertainment with operator distribution and carrier billing.

These initiatives are central elements of the financial outlook described in Edison Investment Research's September 29, 2026 report, "Innovating on a global platform." Edison forecasts adjusted EBITDA of approximately $12.5 million for 2027, supported by the anticipated inclusion of Ultranet, digital services growth and operational efficiencies. Adjusted EBITDA is a non-GAAP financial measure.

The report was commissioned by IQSTEL and prepared by Edison Investment Research for a cash fee. Edison's forecasts are its own estimates, do not constitute new Company financial guidance, and are subject to the assumptions, risks and limitations described in the report, including the timing of Ultranet's consolidation. Investors should review the complete report, available at www.ir.iqstel.com, together with the Company's prior disclosures.

"Our focus is on translating the scale of our telecommunications platform into stronger profitability and cash generation," Iglesias added. "The planned Ultranet acquisition and the development of IQSTEL Digital are complementary parts of that strategy. Our next priorities are to convert these initial commercial opportunities into distribution agreements, complete the necessary integrations and launch services that attract and retain paying subscribers."

Building Distribution for Recurring Digital Services

IQSTEL previously announced an objective to establish mobile-operator distribution channels capable of reaching a potential audience of approximately 40 million users by the end of the second quarter of 2027.

The initial outreach to operators with a combined subscriber base of approximately 93 million is intended to develop the commercial opportunities needed to pursue that distribution objective. Achieving it will depend on operator interest, definitive agreements, the scope of each deployment, technical integration and launch schedules.

The Company is now establishing 300,000 active paid monthly microdrama subscriptions in 2027 as an operating objective. This subscription level was previously used as an illustrative assumption in the Company's economic model. Establishing it as an operating objective does not convert the associated financial illustration into Company financial guidance.

The previously disclosed model estimated that 300,000 active paid monthly subscriptions could generate annualized profit contribution to IQSTEL Digital of approximately $1.8 million to $3.6 million, assuming that the subscriber level and estimated unit economics are maintained for twelve consecutive months. Reaching that subscription level during 2027 would not, by itself, imply that the full annualized contribution would be earned in 2027.

The financial model remains an illustrative scenario rather than financial guidance or an existing subscriber base. Actual performance will depend on commercial launches, customer acquisition, retention, revenue-sharing arrangements and operating costs. The illustrative microdrama profit-contribution figures are not consolidated net income or Edison forecasts and should not be added to Edison's adjusted EBITDA estimates.

About IQSTEL Inc.

IQSTEL Inc. (NASDAQ: IQST) is a global telecommunications and technology company operating through two core business divisions: Telecom and Digital Services. The Telecom Division is the foundation of IQSTEL's global platform, operating across 24 countries with more than 600 telecommunications carrier interconnections and delivering international voice, SMS, messaging, and connectivity solutions to some of the world's largest telecom operators and enterprise customers. Through these customer relationships, IQSTEL's platform has the potential to reach approximately 2.3 billion end users worldwide. Building on this global infrastructure and commercial reach, the Digital Services Division is focused on higher-margin technology solutions across Artificial Intelligence, Intelligent Communications, Cybersecurity, Fintech, Digital Health, Enterprise Automation, and Content Services. Built through nearly two decades of organic growth and strategic acquisitions, IQSTEL is leveraging the scale and reach of its Telecom business to accelerate the growth of Digital Services and drive its next phase of revenue and Adjusted EBITDA expansion.

For more information, visit:

Corporate website: www.iqstel.com 
Investor Relations Portal: www.ir.iqstel.com 
IQSTEL Telecom website: www.iqsteltelecom.com
IQSTEL Digital Services website: www.iqsteldigital.com
Official Investor Landing Page: www.landingpage.iqstel.com

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; the timing and completion of the Ultranet acquisition and our ability to integrate it; the accuracy of third-party estimates, including those contained in the Edison Investment Research report; and the other risks and uncertainties described in our prior filings with the Securities and Exchange Commission.

SOURCE iQSTEL