Microdrama Commercialization With Outreach To Mobile Operators Serving 93 Million Subscribers For Telecommunications Leader Iqstel, Inc. (Nasdaq: IQST)

(MENAFN- GetNews) $IQST Given a $6 Per Share Valuation in New Analyst Report from Edison Investment Research

New York, NY - October 23, 2026 - iQSTEL Inc. (Nasdaq: IQST), a global telecommunications and technology company, has announced that its subsidiary IQSTEL Digital initiated commercial outreach for its microdrama offering to seven mobile operators whose combined subscriber bases total approximately 93 million end users.

These seven operators represent the initial phase of a broader IQST commercial effort. Through its established relationships with telecommunications customers whose networks collectively serve approximately 2.3 billion end users worldwide, IQST has a substantial potential audience for its digital services. The IQST strategy is to progressively convert these relationships into distribution agreements for recurring digital services, beginning with microdramas.

Commercial efforts are focused on securing operator distribution agreements that can support service launches and paid monthly subscriptions. The seven operators represent opportunities under development. Both the 93 million combined subscriber base and the broader 2.3 billion potential reach describe the scale of operator networks.

Two Complementary Drivers of EBITDA Growth

The IQST strategy to expand EBITDA combines its planned acquisition of Ultranet with the development of IQSTEL Digital. The planned Ultranet acquisition would add profitable telecommunications operations and broaden IQST geographic presence.

IQSTEL Digital is developing services designed to generate recurring revenue with potentially higher margins through the IQST existing operator relationships. Microdramas represent an initial commercial application of this strategy, combining mobile entertainment with operator distribution and carrier billing.

These initiatives are central elements of the financial outlook described in Edison Investment Research's September 29, 2026 report, "Innovating on a global platform." Edison forecasts adjusted EBITDA of approximately $12.5 million for 2027, supported by the anticipated inclusion of Ultranet, digital services growth and operational efficiencies. Adjusted EBITDA is a non-GAAP financial measure. Investors can review the complete report, available at .

Building Distribution for Recurring Digital Services

IQST previously announced an objective to establish mobile-operator distribution channels capable of reaching a potential audience of approximately 40 million users by the end of the second quarter of 2027.

The initial IQST outreach to operators with a combined subscriber base of approximately 93 million is intended to develop the commercial opportunities needed to pursue that distribution objective.

IQST is now establishing 300,000 active paid monthly microdrama subscriptions in 2027 as an operating objective. This subscription level was previously used as an illustrative assumption in the Company's economic model.

The previously disclosed model estimated that 300,000 active paid monthly subscriptions could generate annualized profit contribution to IQSTEL Digital of approximately $1.8 million to $3.6 million, assuming that the subscriber level and estimated unit economics are maintained for twelve consecutive months.

Edison Investment Research Initiation of Coverage with $6 Per Share Valuation, Forecasting Positive Adjusted EBITDA and Free Cash Flow

Edison Investment Research has initiated coverage of IQST with a valuation assessment of $6 per share, highlighting the potential for improving profitability, positive free cash flow, and reduced reliance on equity financing.

In its report, "Innovating on a global platform," dated September 29, 2026, Edison identifies an approaching financial turning point for IQST as the Company builds on its global telecommunications platform through the expected addition of Ultranet and the development of higher-margin digital services.

Path from Revenue Scale to Cash Generation

Edison's projections illustrate the potential for IQST to move from near-breakeven adjusted EBITDA in 2026 to higher adjusted EBITDA and positive annual free cash flow in 2027 and 2028.

Metric	2026 Forecast	2027 Forecast	2028 Forecast
Revenue	$461.5 million	$653.0 million	$721.0 million
Adjusted EBITDA	$0.3 million	$12.5 million	$15.9 million
Adjusted EBITDA margin	0.1 %	1.9 %	2.2 %
Free cash flow, approximately	–$5 million	$7 million	$10 million

Source: Edison Investment Research, September 29, 2026. Figures are Edison's estimates; adjusted EBITDA is a non-GAAP measure. Edison's 2026 revenue forecast assumes the consolidation of Ultranet from the fourth quarter of 2026. The Company's fiscal 2026 revenue objective of $430 million, which is organic and excludes Ultranet, is unchanged.

The IQST report highlights Ultranet's profitable operations, African market presence, and carrier agreements as important contributors to the anticipated improvement in adjusted EBITDA.

Digital Services as a Driver of EBITDA Expansion

The report describes IQSTEL's relationships with more than 600 telecommunications service providers as a platform with the potential to reach 2.3 billion end users. This reach creates an opportunity to introduce additional services through established commercial relationships.

Edison identifies IQSTEL's partnership with IDILIO TV as an opportunity to distribute Spanish-language mobile entertainment through carrier channels. It also discusses IQSTEL's activities in artificial intelligence, cybersecurity, and fintech as potential sources of higher-margin revenue.

Although digital services are expected to remain a relatively small portion of total revenue during the forecast period, Edison anticipates that their higher margins could make a meaningful contribution to profitability. The report also expects the migration of operations onto a common technology platform to improve efficiency and support EBITDA expansion.

The full Edison Investment Research report is available on the IQST investor relations website at.

Beginning Broader Commercial Effort Through IQST Customer Relationships, Which Provide Potential Reach to Approximately 2.3 Billion End Users Worldwide.

2027 Objective of 300,000 Active Monthly Subscriptions Modeled to Generate $1.8 Million to $3.6 Million in Potential Annualized Profit for IQSTEL Digital.

Edison Investment Research IQST Coverage with $6 Per Share Valuation.

Partnership with IDILIO TV to Distribute Spanish-Language Mobile Entertainment Through Carrier Channels.

Research Forecasts $653 Million in 2027 Revenue and $12.5 Million in Adjusted EBITDA, Supported by Ultranet and Higher-Margin Digital Services.

About iQSTEL Inc.

iQSTEL Inc. (NASDAQ: IQST ) is a global telecommunications and technology company operating through two core business divisions: Telecom and Digital Services. The Telecom Division is the foundation of IQSTEL's global platform, operating across 24 countries with more than 600 telecommunications carrier interconnections and delivering international voice, SMS, messaging, and connectivity solutions to some of the world's largest telecom operators and enterprise customers. Through these customer relationships, IQSTEL's platform has the potential to reach approximately 2.3 billion end users worldwide. Building on this global infrastructure and commercial reach, the Digital Services Division is focused on higher-margin technology solutions across Artificial Intelligence, Intelligent Communications, Cybersecurity, Fintech, Digital Health, Enterprise Automation, and Content Services. Built through nearly two decades of organic growth and strategic acquisitions, IQSTEL is leveraging the scale and reach of its Telecom business to accelerate the growth of Digital Services and drive its next phase of revenue and Adjusted EBITDA expansion.

Mission

The company mission of iQSTEL, Inc. is to build a unified and integrated ecosystem for digital services and technologies that empower human connection, and generate substantial, long-term growth. It focuses on creating robust technological infrastructure that delivers essential access and opportunity, generates returns for investors, and positively impacts global communities. The company describes itself under the theme of“Developing technology for a more connected world” and positions itself as having evolved“From Global Connectivity Leaders To Digital Innovators.”

iQSTEL Inc. was incorporated on June 24, 2011, under the name B-Maven Inc. It later became PureSnax International, Inc. (around 2015) and was renamed iQSTEL Inc. in August 2018 after a reverse merger with Etelix USA, LLC (the core telecom business, which was founded in 2008).

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