New York, October 1st / PRNewswire / -- iQSTEL Inc. (Nasdaq ticker: IQST) Today, Edison Investment Research announced that it has begun covering the company and provided a valuation of $6 per share, emphasizing the company's improved profitability, the achievement of positive free cash flow, and the potential to reduce reliance on equity financing.

In a report titled " Innovating on a global platform ", Edison indicates that as the company advances on its global telecommunications platform, it is expected to join Ultranet and develop digital services with higher margins. iQSTEL is now approaching a financial turning point. iQSTEL commissioned and paid for this research report.

The valuation of $6 given by Edison is higher than the stock price of $0.99 cited in the report; this valuation depends on the company meeting the financial expectations of research institutions, and it is also closer to the valuations of comparable companies.

From revenue scale to cash creation

According to the predictions of Edison, iQSTEL is expected to move from a near-break-even adjusted EBITDA in 2026 to achieving higher adjusted EBITDA and positive annual free cash flow in 2027 and 2028.

Edison also expects the company to achieve a net cash position by 2028. The above forecast assumes that the Ultranet acquisition is completed, and does not include any further major acquisitions.

The report emphasizes that the profitable operations of Ultranet, its market layout in Africa, and the operator agreements are important factors driving the improvement of EBITDA after the adjustments. The completion of the acquisition by Ultranet still depends on the usual delivery conditions, and the timing may differ from the assumptions made in the Edison report.

Digital services drive the expansion of EBITDA.

The report states that the relationship between iQSTEL and over 600 telecommunications service providers constitutes a platform with the potential to reach 2.3 billion end-users. This coverage provides an opportunity to launch more services through existing business relationships.

Edison believes that the collaboration between iQSTEL and IDILIO TV holds promise for distributing Spanish-language mobile entertainment content through operator channels. The report also mentions that iQSTEL's business in artificial intelligence, network security, and fintech could become a source of higher gross profit revenue.

Although digital services are expected to continue to account for a relatively small portion of total revenue during the forecast period, Edison believes that their higher profit margins could make a meaningful contribution to profitability. The report also predicts that migrating operations to a unified technology platform will improve efficiency and support the expansion of EBITDA.

In addition, a press release issued by iQSTEL on September 17, 2026, outlined examples of micro-series subscription scenarios for iQSTEL and Digital. These scenarios are merely mathematical examples and not predictions for Edison, nor are they company guidelines; moreover, they should not be superimposed on the estimates of Edison.

iQSTEL, President and CEO, Leandro Iglesias stated: "Our top priority is to transform iQSTEL's global coverage and revenue scale into sustainable profitability and cash generation. The report on Edison highlights the opportunities we are seizing through Ultranet, operational efficiency, and digital services. Our focus remains on disciplined execution, prudent capital allocation, and creating long-term shareholder value."

Expected to reduce reliance on equity financing

A core theme of the analysis by Edison is that a stronger cash creation capability may reduce iQSTEL's historical reliance on equity financing and broaden its financing options. Edison believes that achieving these improvements could support greater interest from investors and prompt the market to re-evaluate the company's valuation.

The report also identifies risks related to execution, financing and dilution, acquisition integration, partners, regulation, and cybersecurity. The forecasts and valuation judgments are all estimates of Edison and do not constitute any guarantee of future results or future transaction prices.

Obtain the complete report

The complete Edison Investment Research report can be viewed on the iQSTEL investor relations website at www.ir.iqstel.com.

Research Disclosure

This report was commissioned by iQSTEL and prepared after Edison Investment Research received the cash fees. The forecasts and valuation judgments of Edison should not be interpreted as new company guidelines. Investors should refer to the complete report and the company's previous disclosures, including the assumptions, risks, and limitations contained therein.

Regarding iQSTEL and Inc.

iQSTEL Inc (Nasdaq ticker: IQST) is a global telecommunications and technology company that operates through two core business segments: Telecommunications and Digital Services. The Telecommunications segment forms the foundation of iQSTEL's global platform, covering 24 countries and interconnecting with over 600 telecommunications operators, providing international voice, 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. Leveraging this global infrastructure and business coverage, the Digital Services segment focuses on higher-margin technical solutions in areas such as artificial intelligence, intelligent communications, network security, fintech, digital health, enterprise automation, and content services. iQSTEL has built this business through nearly two decades of organic growth and strategic acquisitions, and is now utilizing the scale and coverage of its telecommunications business to accelerate the growth of digital services, driving the next phase of revenue and adjusted EBITDA expansion.

For more information, please visit:

• Company 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 Page: www.landingpage.iqstel.com

Safe Harbor Statement:The statements in this press release may constitute “forward-looking statements.” Forward-looking statements include, but are not limited to, expressions of our intentions, beliefs, expectations, strategies, forecasts, or any information related to future activities or other future events and conditions. Words such as “expected,” “believes,” “estimates,” “expects,” “intends,” “may,” and similar expressions, whenever related to the company or its management, constitute forward-looking statements. These statements are based on certain assumptions by management regarding our current expectations, estimates, and projections for our business. Important factors that could cause actual results and financial conditions to differ significantly from those indicated in the forward-looking statements include, but are not limited to: our ability to successfully market our products and services; our ability to continuously cover operating costs and meet demand for our products and services; the level and nature of competition from other telecommunications products and services; the impact of changes in network security and the telecommunications market; our ability to successfully develop new products and services; our ability to complete complementary acquisitions and divestitures that are beneficial to the company; our ability to establish and maintain cooperative strategic alliances with industry partners; our ability to comply with applicable regulations; our ability to obtain capital when needed; the timing and completion of the Ultranet acquisition and our ability to integrate that business; the accuracy of third-party estimates, including those in the Edison Investment Research report; and other risks and uncertainties described in our previous filings with the U.S. Securities and Exchange Commission.