IQST - IQSTEL Reports Preliminary Q3 2026 Revenue of $106.0 Million; Nine-Month Revenue Up 35% Organically to $314.0 Million

Nine-month revenue already 73% of the $430 million 2026 objective, all organic; proposed Ultranet acquisition would add approximately $131 million in annual revenue (audited 2025)

NEW YORK, Nov. 5, 2026 /PRNewswire/ -- IQSTEL Inc. (NASDAQ: IQST) ("IQSTEL" or the "Company"), a global telecommunications and technology company, today announced preliminary, unaudited revenue of approximately $106.0 million for the third quarter ended September 30, 2026, and approximately $314.0 million for the first nine months of 2026, an increase of 35% over the prior-year period, achieved entirely through organic growth.

Third-quarter revenue of $106.0 million represented a 2.8% decrease from the record $109.1 million reported in the second quarter of 2026. Nine-month revenue increased by $81.3 million, or 35%, to $314.0 million from $232.7 million in the first nine months of 2025, entirely organic.

Highlights

• Q3 revenue: approximately $106.0 million, down 2.8% from the record $109.1 million in Q2 2026 and the second consecutive quarter above $100 million.
  
  
• Nine-month revenue: approximately $314.0 million, up $81.3 million, or 35%, from $232.7 million, entirely organic.
  
  
• Full-year objective: nine-month revenue equals 73% of the $430 million fiscal 2026 objective; reaching it requires Q4 revenue of approximately $116.0 million, up 9.4% from Q3.
  
  
• Ultranet: binding memorandum of understanding to acquire a 51% controlling interest in Ultranet Telecom Group (audited 2025 revenue of $130.9 million); first tranche of non-convertible financing closed October 26, 2026.

Progress Toward the $430 Million Revenue Objective
With approximately $314.0 million in revenue through September 30, IQSTEL has achieved approximately 73% of its previously announced $430 million revenue objective for fiscal year 2026. Reaching that objective would require approximately $116.0 million in fourth-quarter revenue, an increase of 9.4% from the third quarter.

Historically, the Company's revenue in the second half of the year has been stronger than in the first half. Management remains focused on commercial execution across the Company's Telecom and Digital Services businesses and on converting commercial opportunities into revenue through year-end. There can be no assurance that historical seasonal patterns will recur or that the objective will be achieved.

A Global Telecom Platform
IQSTEL's Telecom Division delivers international voice, SMS and connectivity services through more than 600 carrier interconnections across 24 countries. It serves a market of 2.3 billion unique mobile subscribers worldwide at the end of 2025, according to the GSMA.

Proposed Ultranet Acquisition
IQSTEL has signed a binding memorandum of understanding to acquire a 51% controlling interest in Ultranet Telecom Group, which reported audited fiscal year 2025 revenue of $130.9 million, up 30% year-over-year, and net income of $4.6 million. Closing is targeted for the first quarter of 2027, subject to definitive agreements, regulatory approvals and customary closing conditions. IQSTEL expects the acquisition to make the Company cash-flow positive on a consolidated basis.

On October 26, 2026, IQSTEL announced the closing of the first tranche of the financing for the Ultranet transaction: up to $3 million in two-year senior secured, non-convertible promissory notes, together with pre-funded warrants to purchase up to 420,000 shares of common stock. The notes carry no conversion feature.

For illustration only, assuming the $430 million objective is met and the Ultranet transaction closes, the combined annualized revenue base would exceed $560 million.

Digital Services: Microdramas and IDILIO TV
Through its partnership with IDILIO TV, a Colombia-based microdrama platform backed by a16z speedrun, IQSTEL Digital plans to distribute microdrama content through its operator relationships using direct carrier billing. Omdia, a third-party research firm, estimates that global microdrama revenue reached $11 billion in 2025 and projects that it will exceed $14 billion in 2026 and reach $22 billion by 2030; Omdia also estimates that Brazil and Mexico accounted for 44 million monthly active microdrama users in 2025. These third-party projections have not been independently verified by the Company.

Management Commentary
Leandro José Iglesias, Chairman and CEO of IQSTEL, commented:

"In the first nine months of 2026, IQSTEL generated approximately $81 million more revenue than in the same period last year, or 35% organic growth. Third-quarter revenue came in modestly below our second quarter, and our focus now is fourth-quarter execution. Historically, our second half has been stronger than our first half, and our teams are focused on delivering the approximately $116 million needed to reach our $430 million objective.

"Ultranet is our next step. We funded the first tranche of that transaction with two-year, non-convertible notes, and if the acquisition closes, we expect it to make IQSTEL cash-flow positive on a consolidated basis as we work toward our longer-term $700 million revenue objective."

Preliminary Results
Revenue figures are preliminary, unaudited and subject to completion of the Company's quarter-end closing and review procedures; actual results may differ materially. Full third-quarter results will be reported with the Company's Form 10-Q. This announcement is a revenue update and not a release of complete third-quarter financial results.

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 Content Services, Artificial Intelligence, Intelligent Communications, Cybersecurity, Fintech, and Enterprise Automation. 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:

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: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding preliminary third-quarter and nine-month revenue; the Company's $430 million 2026 revenue objective and the fourth-quarter revenue required to achieve it; its longer-term objective of $700 million in annual revenue; the illustrative combined annualized revenue of IQSTEL and Ultranet; the timing, closing and financial contribution of the proposed Ultranet acquisition; the Company's expected consolidated cash-flow position; its ability to service the notes; its microdrama distribution plans with IDILIO TV; and third-party market estimates and projections, including those of Omdia and the GSMA. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially, including: final third-quarter revenue differing from preliminary figures; failure to achieve the fourth-quarter revenue required to reach the $430 million objective; changes in customer demand, transaction volumes, competition and market conditions; failure to execute definitive agreements for the Ultranet transaction or to satisfy closing conditions; regulatory, compliance or due diligence outcomes; the accuracy of Ultranet's historical financial information; integration risks; political, economic, currency and regulatory conditions in Ultranet's African markets; historical seasonal patterns not recurring; the Company's ability to generate cash flow to service the notes; the secured nature of the notes and related covenants; dilution from the pre-funded warrants; failure to execute operator distribution agreements or achieve subscriber targets for microdrama services; the accuracy of third-party market data and projections, which the Company has not independently verified; the illustrative combined revenue figure not being indicative of actual combined results, which depend on the Company achieving its 2026 objective and the Ultranet transaction closing; and the other risks described in the Company's SEC filings, including its most recent Form 10-K and subsequent Forms 10-Q. The Company undertakes no obligation to update any forward-looking statement, except as required by law.

SOURCE iQSTEL