IQSTEL’s Nine-Month Organic Revenue Climbs 35% as Q3 Slips

IQSTEL announced on November 5, 2026, preliminary, unaudited revenue of approximately US$106.0 million for the quarter ended September 30, 2026, and approximately $314.0 million for the first nine months, a 35% year-over-year increase achieved entirely through organic growth.

Nine-month revenue increased by $81.3 million from $232.7 million in the corresponding 2025 period. Third-quarter revenue declined 2.8% from the record $109.1 million reported in the second quarter of 2026, but marked IQSTEL’s second consecutive quarter above $100 million. The reported figures therefore pair strong year-over-year expansion with a sequential quarterly slowdown.

Fourth-Quarter Target Requires Acceleration

Nine-month revenue equals approximately 73% of management’s previously announced $430 million fiscal-2026 revenue objective. Reaching it would require approximately $116.0 million in fourth-quarter revenue, 9.4% above the third quarter. That is the revenue required to meet the objective, not an actual result or a forecast.

Management said revenue has historically been stronger in the second half than in the first, while cautioning that this seasonal pattern may not recur and that the objective may not be achieved. Its operational focus is converting commercial opportunities into revenue across Telecom and Digital Services through year-end.

Chairman and CEO Leandro José Iglesias said: “Third-quarter revenue came in modestly below our second quarter, and our focus now is fourth-quarter execution.”

The revenue figures remain subject to quarter-end closing and review procedures and could differ materially from final results. Complete third-quarter results will be reported with IQSTEL’s Form 10-Q; this announcement is a revenue update rather than a release of complete quarterly financial results.

Ultranet Adds Conditional Scale and Financing Costs

IQSTEL has a binding memorandum of understanding to acquire a 51% controlling interest in Ultranet Telecom Group. Closing is targeted for the first quarter of 2027 and remains subject to definitive agreements, regulatory approvals and customary closing conditions. Ultranet’s audited fiscal-2025 revenue was $130.9 million, up 30% year over year, with net income of $4.6 million. IQSTEL expects the acquisition to make the consolidated company cash-flow positive, an anticipated benefit rather than a realized result.

The company illustrated a combined annualized revenue base exceeding $560 million, but only if IQSTEL meets its annual objective and the Ultranet transaction closes. The illustration consequently depends on two separate outcomes and does not describe the company’s current revenue base.

A June 2026 Form 8-K set total consideration for the stake at $17.6 million: $7.0 million in initial cash payments and up to $10.6 million in deferred and contingent payments tied to specified Ultranet net-income targets. The structure makes part of the purchase price dependent on Ultranet’s subsequent performance.

Acquisition financing comprises up to $3.0 million of two-year senior secured, non-convertible promissory notes together with pre-funded warrants covering up to 420,000 common shares. An October 2026 Form 8-K distinguishes the maximum financing from the initial funding: Tranche A supplied $1.5 million in aggregate advances, while a second advance of up to $1.5 million is to be funded on or before December 1, 2026, subject to closing conditions and the absence of default.

The notes carry 18% annual interest payable monthly in cash, with each tranche’s principal scheduled in four equal installments six, twelve, eighteen and twenty-four months after funding. The warrants have a $0.0001 exercise price per share and were fully earned and issued at the initial closing regardless of whether the second tranche is funded. Although lenders have no conversion right, the warrants still give the financing an equity-linked component.

The immediate question is whether fourth-quarter execution can convert nine-month organic growth into attainment of the annual objective. Ultranet offers additional revenue and reported profitability, but its contribution remains conditional on completing the transaction, while the initial financing already carries cash interest obligations and an equity-linked component.