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IQST Stock Analysis 2026 - iQSTEL Inc AI Rating

IQST Nasdaq Telephone Communications (No Radiotelephone) NV CIK: 0001527702
Recently Updated • Analysis: Mar 29, 2026 • SEC Data: 2025-09-30
STRONG SELL
85% Conf
Pending
Analysis scheduled

📊 IQST Key Takeaways

Revenue: $232.7M
Net Margin: -2.5%
Free Cash Flow: $-2.7M
Current Ratio: 1.04x
Debt/Equity: 0.15x
EPS: $-1.97
AI Rating: STRONG SELL with 85% confidence

Is IQST a Good Investment? Thesis Analysis

Claude

iQSTEL exhibits severe operational distress despite impressive revenue growth of 96% YoY, with negative profitability across all levels (gross margin 2.8%, operating margin -0.8%, net margin -2.5%). The company is burning cash with negative operating cash flow of -2.6M and negative free cash flow, indicating the growth is unprofitable and unsustainable without significant operational restructuring.

Why Buy IQST? Key Strengths

Claude
  • + Strong revenue growth of 96% YoY demonstrates market demand or successful business expansion
  • + Conservative balance sheet with low debt-to-equity ratio of 0.15x providing financial flexibility
  • + Adequate liquidity with current ratio of 1.04x meeting minimum operational needs

IQST Investment Risks to Consider

Claude
  • ! Severe profitability crisis: negative gross margin of 2.8% indicates fundamental pricing or cost structure problems
  • ! Negative cash generation: operating cash flow of -2.6M with negative free cash flow of -2.7M unsustainable long-term
  • ! Deteriorating shareholder value: ROE of -32.6% and ROA of -12.4% with worsening diluted EPS trend (-300% YoY)
  • ! Ultra-thin gross margins suggest the business model or competitive positioning is fundamentally challenged

Key Metrics to Watch

Claude
  • * Gross margin trend and cost of goods sold reduction initiatives
  • * Operating cash flow return to positive territory and path to profitability
  • * Operating expenses as percentage of revenue and management's ability to achieve operational leverage

IQST Financial Metrics

Revenue
$232.7M
Net Income
$-5.8M
EPS (Diluted)
$-1.97
Free Cash Flow
$-2.7M
Total Assets
$46.9M
Cash Position
$2.3M

💡 AI Analyst Insight

iQSTEL Inc presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

IQST Profitability Ratios

Gross Margin 2.8%
Operating Margin -0.8%
Net Margin -2.5%
ROE -32.6%
ROA -12.4%
FCF Margin -1.2%

IQST vs Default Sector

How iQSTEL Inc compares to Default sector averages

Net Margin
IQST -2.5%
vs
Sector Avg 12.0%
IQST Sector
ROE
IQST -32.6%
vs
Sector Avg 15.0%
IQST Sector
Current Ratio
IQST 1.0x
vs
Sector Avg 1.8x
IQST Sector
Debt/Equity
IQST 0.2x
vs
Sector Avg 0.7x
IQST Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is IQST Overvalued or Undervalued?

Based on fundamental analysis, iQSTEL Inc has mixed fundamental signals relative to the Default sector in 2026.

Return on Equity
-32.6%
Sector avg: 15%
Net Profit Margin
-2.5%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.15x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

IQST Balance Sheet & Liquidity

Current Ratio
1.04x
Quick Ratio
1.04x
Debt/Equity
0.15x
Debt/Assets
61.9%
Interest Coverage
-0.52x
Long-term Debt
$2.7M

IQST 5-Year Financial Trend & Growth Analysis

IQST 5-year financial data: Year 2020: Revenue $44.9M, Net Income -$5.5M, EPS N/A. Year 2021: Revenue $64.7M, Net Income -$6.6M, EPS N/A. Year 2022: Revenue $93.2M, Net Income -$3.8M, EPS $-0.03. Year 2023: Revenue $144.5M, Net Income -$6.0M, EPS $-0.04. Year 2024: Revenue $283.2M, Net Income -$763.3K, EPS $-0.01.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: iQSTEL Inc's revenue has grown significantly by 531% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.01 indicates the company is currently unprofitable.

IQST Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-1.2%
Free cash flow / Revenue

IQST Quarterly Performance

Quarterly financial performance data for iQSTEL Inc including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $54.2M -$580.2K $-0.40
Q2 2025 $72.2M -$580.2K $-0.82
Q1 2025 $51.4M -$580.2K $-0.37
Q3 2024 $39.8M $45.9K $-0.01
Q2 2024 $32.8M -$158.8K $0.00
Q1 2024 $24.7M -$158.8K $0.00
Q3 2023 $21.9M -$62.0K $0.00
Q2 2023 $23.7M -$213.9K $0.00

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

IQST Capital Allocation

Operating Cash Flow
-$2.6M
Cash generated from operations
Capital Expenditures
$111.4K
Investment in assets
Dividends
None
No dividend program

IQST SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for iQSTEL Inc (CIK: 0001527702)

📋 Recent SEC Filings

Date Form Document Action
Mar 6, 2026 8-K iqst8k030626.htm View →
Feb 4, 2026 8-K iqst8k013026.htm View →
Feb 3, 2026 8-K iqst8k020326.htm View →
Dec 23, 2025 DEF 14A iqst_def14a.htm View →
Dec 17, 2025 8-K iqst8k121725.htm View →

Frequently Asked Questions about IQST

What is the AI rating for IQST?

iQSTEL Inc (IQST) has an AI rating of STRONG SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.

What are IQST's key strengths?

Claude: Strong revenue growth of 96% YoY demonstrates market demand or successful business expansion. Conservative balance sheet with low debt-to-equity ratio of 0.15x providing financial flexibility.

What are the risks of investing in IQST?

Claude: Severe profitability crisis: negative gross margin of 2.8% indicates fundamental pricing or cost structure problems. Negative cash generation: operating cash flow of -2.6M with negative free cash flow of -2.7M unsustainable long-term.

What is IQST's revenue and growth?

iQSTEL Inc reported revenue of $232.7M.

Does IQST pay dividends?

iQSTEL Inc does not currently pay dividends.

Where can I find IQST SEC filings?

Official SEC filings for iQSTEL Inc (CIK: 0001527702) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is IQST's EPS?

iQSTEL Inc has a diluted EPS of $-1.97.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is IQST a good stock to buy right now?

Based on our AI fundamental analysis in March 2026, iQSTEL Inc has a STRONG SELL rating with 85% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is IQST stock overvalued or undervalued?

Valuation metrics for IQST: ROE of -32.6% (sector avg: 15%), net margin of -2.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

Should I buy IQST stock in 2026?

Our dual AI analysis gives iQSTEL Inc a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is IQST's free cash flow?

iQSTEL Inc's operating cash flow is $-2.6M, with capital expenditures of $111.4K. FCF margin is -1.2%.

How does IQST compare to other Default stocks?

Vs Default sector averages: Net margin -2.5% (avg: 12%), ROE -32.6% (avg: 15%), current ratio 1.04 (avg: 1.8).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 29, 2026 | Data as of: 2025-09-30 | Powered by Claude AI