IQSTEL Inc. (NASDAQ: IQST) is rapidly approaching its $1 billion revenue objective, with company leadership indicating they are two years ahead of their original 2027 target. The multinational telecommunications and technology company, which serves 600 of the world's largest telecom companies, reported organic revenue of $90 million last year across its telecommunication, fintech, and cybersecurity business segments.
CEO Leandro Iglesias and CFO Alvaro Quintana Cardona recently discussed the company's progress during an appearance on Benzinga's All-Access program. The executives emphasized that IQSTEL's acquisitive strategy has been central to its growth trajectory, having completed twelve strategic purchases since the company's inception in 2018.
"We look for companies that add value to our shareholders. We look for companies that have strong revenue streams that could grow that revenue stream," Cardona told Benzinga. "Through all of our acquisitions, we have been increasing the value of the company. We have a stronger balance sheet with every acquisition."
Beyond acquisition-driven growth, IQSTEL has been actively streamlining its operations and strengthening its financial position. The company recently reduced its debt by $6.9 million, equivalent to approximately $2 per share. More than half of this debt reduction came through conversion into preferred shares, which Cardona described as evidence of the company's long-term strategic vision.
Iglesias noted that despite the rapid revenue growth, IQSTEL has managed to avoid increasing operational expenses proportionally. This disciplined approach to spending means the company expects to achieve EBITDA between $20 million and $30 million when it reaches the $1 billion revenue milestone. The CEO also highlighted a significant valuation gap in the market, pointing out that some companies in their sector trade between 10X to 20X EBITDA multiples.
"That's a valuation gap we are planning to close," Iglesias stated, acknowledging that the company's progress hasn't yet been fully reflected in its stock price. The combination of strategic acquisitions, debt reduction, and controlled operational expenses positions IQSTEL for potentially substantial valuation appreciation as it continues toward its billion-dollar revenue target ahead of schedule.
