iQSTEL Inc. Common Stock (IQST)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable advantages, honest earnings, and a margin of safety. iQSTEL is a wholesale telecom carrier, selling voice, SMS and data capacity to other carriers. That is a commodity-like business with little pricing power, so I see no clear moat. The growth is real: revenue was $109.1M in fiscal Q2 2026, the quarter ended 2026-06-30, versus $72.2M in fiscal Q2 2025, the quarter ended 2025-06-30—about 51% growth. Yet the company still reported a net loss of $2.4M in that quarter. For fiscal 2025, the year ended 2025-12-31, revenue was $316.9M and net loss was $8.5M; fiscal 2024, the year ended 2024-12-31, revenue was $283.2M with a $5.2M net loss. The Lynch category is none because it lost money in each of the last four years. FairStock's calculations show trailing free cash flow of -$3.9M, a -35.6% FCF yield, return on equity of -55.98%, and return on capital employed of -3.19%. Debt to equity is modest at 0.16, but the Altman Z-Score of 1.11 signals financial distress risk. At the 2026-10-13 close of $1.00, the stock trades at 0.79 times book and has a negative P/E of -0.44. Market cap is only $10.9M against $316.9M of fiscal 2025 revenue, which looks statistically cheap. But cheapness without profits can be a trap. I would need evidence that revenue growth is converting into sustainable positive earnings and cash flow before calling this a sound value investment.

In plain English: iQSTEL sells wholesale telecom services—voice, text and data—to other telecom companies. The business is growing revenue quickly but has lost money for years and is burning cash. At the recent $1.00 close, the stock looks inexpensive compared with its sales, but the lack of profits makes it hard to call it a safe bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer