IQSTEL reduces debt by $6.9 million to strengthen financial position

Published 09/07/2025, 13:38
IQSTEL reduces debt by $6.9 million to strengthen financial position

NEW YORK - IQSTEL Inc. (NASDAQ:IQST), currently trading at $10.31 with a market capitalization of $29.89 million, announced on Wednesday a $6.9 million reduction in debt from its balance sheet, representing approximately $2 per share according to the company. According to InvestingPro analysis, the stock appears undervalued despite showing high price volatility.

The telecommunications and technology company achieved the debt reduction through a combination of conversions into common shares and Series D Preferred Shares. The transaction, executed on July 3, will be reflected in the company’s Q3 2025 financial reports.

IQSTEL reported that the debt reduction will positively impact its net stockholders’ equity, which stood at $11.34 million as of Q1 2025. The company also expects to realize $0.92 million in interest savings, which it states will enhance cash flow and operational flexibility.

"Our company is $6.9 million stronger than it was last week," said Leandro Iglesias, CEO of IQSTEL, in the press release statement.

The debt reduction coincides with IQSTEL’s recently completed acquisition of Globetopper, though financial details of that transaction were not specified in the announcement.

IQSTEL operates in 21 countries with 100 employees, providing services across telecom, fintech, and cybersecurity sectors. The company forecasts $340 million in revenue for fiscal year 2025 and has stated a target of reaching $1 billion in annual revenue by 2027. Financial data from InvestingPro shows impressive revenue growth of 69% in the last twelve months, though with notably thin gross profit margins of 3.05%.

The announcement was made via a press release and additional details were disclosed in a Form 8-K filing with the SEC.

In other recent news, IQSTEL Inc. reported a preliminary net revenue of approximately $77.8 million for the first four months of 2025, reflecting a 12% increase from the previous year. This growth aligns with IQSTEL’s forecast of $340 million in revenue for the full year. The company also announced the acquisition of a 51% stake in fintech firm GlobeTopper, which is expected to generate over $65 million in profitable revenue in 2025. This acquisition is part of IQSTEL’s strategic plan to become a $1 billion revenue corporation by 2027. GlobeTopper operates in America, Europe, and Africa, and specializes in B2B digital prepaid products. IQSTEL’s CEO highlighted that this acquisition is a partnership to scale GlobeTopper’s fintech products globally. Additionally, the company has forecasted over $3 million in adjusted EBITDA for 2025. The transaction details include $200,000 in staged cash payments and $500,000 in restricted common stock.

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