IQST

• Company Strategic Inflection: After years of building revenue scale, IQSTEL has entered a new phase focused on EBITDA expansion, converting existing revenue scale into improved gross profit, adjusted EBITDA, cash generation, and shareholder value. The company's long-term vision remains to reach $1 billion in annual revenue, paired with a new focus on growing profitability alongside scale.
• Telecom Platform Integration: The company is consolidating all existing telecom subsidiaries into a single operating corporation under IQSTEL holding, unifying technological and switching platforms to unlock operational synergies, reduce costs, and improve margins. H1 2026 organic revenue growth was already supported by commercial reorganization and sales team expansion at key telecom subsidiaries QSTEL and Q-Global.
• Digital Services Growth Strategy: The company leverages its existing global telecom distribution network to accelerate growth of higher-margin digital services, which currently contribute 12.5% of revenue and are expected to grow this share over time. The company expects to announce new digital content service offerings for mobile operator partners in the near future.
• Strategic Acquisition: The pending Ultranet acquisition will expand IQSTEL's international telecom footprint, particularly in high-growth Africa, and add planned expansion into the Middle East and Asian markets. The acquisition is on track to close in Q3 2026, and Ultranet's H1 2026 performance has exceeded prior growth expectations.
• Balance Sheet Strength: As of June 30, 2026, IQSTEL holds $48.2 million in total assets, $31 million in total liabilities, and $17.2 million in stockholders' equity ($1.71 per share). There are no outstanding convertible notes or warrants, creating a clean, non-dilutive capital structure that provides strategic flexibility for growth.
• Valuation Gap: Management notes that IQSTEL's current public market capitalization is more than 50% lower than its reported stockholders' equity, not including additional value from its $400+ million annualized revenue, global infrastructure, customer relationships, digital business, and future earnings potential. The company is increasing investor outreach efforts (including investor events, webinars, media appearances, and new websites) to close this valuation gap through transparent communication.

• Full year 2026 revenue guidance is maintained at the previously announced target of $430 million. With $207 million generated in H1 2026, the company needs approximately $223 million in H2 2026 to hit the target, and remains on track helped by the historical trend of stronger H2 performance.
• After full consolidation of all telecom operations, management expects EBITDA expansion of approximately 20% from cost reductions and efficiency gains, on top of the current $2.7 million adjusted EBITDA run rate.
• Following the close of the Ultranet acquisition, IQSTEL expects its adjusted EBITDA run rate to increase to $8 million to $9 million, combining organic operational improvements and Ultranet's contribution.
• The Ultranet acquisition is expected to close in Q3 2026, with contributions reflected in Q4 2026 results.

IQSTEL has two core operating segments: 1) Telecom: This is the company's foundation segment, representing approximately 87.5% of total revenue as of the first half of 2026. It is the primary driver of the company's 59% year-over-year H1 2026 revenue growth to $207 million, and holds a global platform with 600+ telecom operator relationships reaching 2.3 billion potential end users. 2) Digital Services: This higher-margin segment currently represents approximately 12.5% of total revenue, led by subsidiary Locktopper. It focuses on fintech, AI-powered communications, and cybersecurity solutions distributed through the company's existing global telecom network, with targeted future growth in revenue contribution.

• All forward-looking statements, including revenue and EBITDA forecasts, are subject to material uncertainty, and actual results may differ materially from expectations due to a variety of disclosed risk factors outlined in the company's SEC filings.
• The company's current undervaluation in public markets creates a risk of hostile takeover due to its low market cap relative to underlying asset value and operating scale.
• The company has historically lacked retail investor support from investment banks following its 2025 direct listing, which has contributed to the current valuation disconnect, and there is no guarantee that expanded investor outreach will close this gap.

Q: Analyst Barry Sine confirmed that the 50%+ revenue growth in the quarter was fully organic (with no acquisitions closed in the year-ago period, and Ultranet still pending) and asked what drove this growth, and whether this organic growth can continue into H2 2026. / A: Management notes recent internal reorganization that consolidated separate telecom subsidiaries into a single unified structure, and unifying technological platforms, which has already unlocked organic growth. Commercial and sales team reorganization at key subsidiaries also supported recent growth. This consolidation process will continue, and management expects organic growth to accelerate in coming months as synergies are fully realized. The pending Ultranet acquisition will also expand the company's footprint in high-growth Africa, supporting long-term growth.

Q: Sine asked for Q2 2026 EBITDA results, how much additional margin lift can be expected from full telecom division integration, and how Ultranet contributes to the guided $8-$9 million adjusted EBITDA run rate. / A: Q2 2026 operating EBITDA reached over $700,000, up more than 285% from Q1 2026's ~$190,000, driven by an 18% gross margin improvement from early integration work. Full consolidation of operations is expected to deliver an additional ~20% EBITDA expansion on top of the current $2.7 million adjusted EBITDA run rate from cost savings and efficiencies. The $8-$9 million run rate combines this organic 20% expansion with Ultranet's EBITDA contribution.

Q: Analyst Ralph Shepherd asked if management is concerned about a hostile takeover given the company's very low market capitalization relative to its asset value and annual revenue. / A: Management acknowledges the significant valuation disconnect caused in part by the lack of retail investment bank support from IQSTEL's 2025 direct listing. The company is addressing this through expanded investor outreach, including investor events and family office webinars, to communicate its full underlying value, particularly the long-term potential of its digital services strategy built on its 2.3 billion end user reach. Management confirms it is focused on executing on strategy to improve fundamentals and close the valuation gap.