IQSTEL enters cybersecurity market through Cycurion stock swap

NEW YORK - IQSTEL Inc. (NASDAQ:IQST), currently valued at $23.45 million and showing strong revenue growth of over 30% in the last twelve months according to InvestingPro data, announced Wednesday its entry into the cybersecurity sector through a strategic stock swap partnership with Cycurion, Inc., another Nasdaq-listed company.

Under the agreement, IQSTEL will issue 151,058 shares of its common stock to Cycurion, while receiving 3,866,976 shares of Cycurion’s common stock. Each exchange represents an equal value of $1 million at the time of execution. InvestingPro analysis suggests IQSTEL is currently trading below its Fair Value, making this stock swap particularly noteworthy for value investors.

Both companies have committed to deliver a $500,000 dividend in shares to their shareholders by December 31, 2025, which may be satisfied either in their own stock or in shares received from the exchange.

The partnership adds cybersecurity services to IQSTEL’s existing portfolio of telecommunications, fintech, and AI digital offerings. The company plans to launch these new cybersecurity solutions at a global telecom event in 2026.

"This partnership with Cycurion, whose specialized solutions are trusted by the U.S. government, not only broadens our capabilities but also enhances the trust we bring to our global telecom and enterprise customers," said Leandro Iglesias, CEO of IQSTEL.

The companies intend to develop AI-driven cybersecurity solutions by combining IQSTEL’s AI technologies with Cycurion’s cybersecurity expertise, while also cross-selling services to their respective client bases.

In July 2025, IQSTEL reported $35 million in revenue, surpassing a $400 million annual run rate. While the company maintains its goals of achieving a $15 million EBITDA run rate by 2026 and a $1 billion revenue run rate by 2027, InvestingPro data reveals current challenges with a 3.02% gross profit margin and significant stock price volatility (Beta: 1.72). Subscribers to InvestingPro can access 8 additional key insights about IQST’s financial health and growth prospects.

The partnership establishes Cycurion as a "sibling company" to IQSTEL, according to the press release statement, allowing the two firms to pursue synergies in cybersecurity and AI services.

In other recent news, IQSTEL Inc. reported preliminary revenue of $128.8 million for the first half of 2025, with $27.3 million generated in June alone. The company aims to achieve a $400 million annualized revenue run rate in the third quarter and targets $1 billion in revenue by 2027. Additionally, IQSTEL has reaffirmed its financial targets of achieving $15 million in EBITDA by 2026. As part of this strategy, the company plans to pursue two to three strategic acquisitions, each expected to contribute approximately $5 million in EBITDA.

In a move to support its growth plans, IQSTEL has increased its authorized common stock from 3,750,000 shares to 26,000,000 shares. The company also announced a new commercial agreement with ONAR to deploy AI agents for marketing teams, enhancing real-time insights and campaign intelligence. These developments reflect IQSTEL’s ongoing efforts to expand its market presence and financial performance.

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