iQSTEL revenue climbs 70% as digital platform pivot gains pace

iQSTEL (NASDAQ:IQST) reported a 69.9% surge in consolidated revenue for the first quarter of 2026, driven by consistent volume expansion across its core telecommunications subsidiaries and an increasingly meaningful operational lift from its newly integrated fintech assets.

The New York-based technology and communications provider announced Thursday that revenue for the three months ended March 31, 2026, climbed to $97.9 million, up from $57.6 million during the first quarter of fiscal 2025.

The top-line performance represents a major milestone for the company during what has historically been one of its softer seasonal trading windows.

Organic business lines accounted for 87% of the absolute revenue expansion.

This performance was anchored by core telecommunications subsidiaries—including Etelix, QXTEL, SwissLink, and Smartbiz—which collectively managed heightened routing traffic across their global carrier infrastructure.

Gross profit for the quarter advanced 7.8% year-over-year to $2.08 million, compared to $1.93 million in the parallel prior-year period.

The legacy telecom segments accounted for 87% of overall group revenue.

However, the operational story of the quarter centered on the company's deliberate, multi-year shift toward higher-margin software and fintech ecosystems to escape lower-margin commodity voice and SMS wholesale dynamics.

The company's primary fintech subsidiary, GlobeTopper, generated approximately $13 million in its first full comparable quarter under corporate ownership, representing 13% of iQSTEL’s total revenue mix.

Crucially, the fintech asset contributed $829,000 in gross profit, which accounted for roughly 42% of the group's total consolidated gross profit.

On the balance sheet, iQSTEL reported a book equity value per share of approximately $3, contrasting with its recent equity market trading level of roughly $1.30 per share.

Management emphasized that closing this fundamental valuation gap remains an executive priority.

The company concluded the period with zero outstanding convertible debt obligations or earnout liabilities.

Looking forward, iQSTEL management formally reaffirmed its previously issued full-year fiscal 2026 consolidated revenue guidance of $430 million.

Over the longer horizon, the company maintained its strategic objective of scaling into a $1 billion annual enterprise, backed by a more diversified, high-margin software services portfolio.