IQSTEL Inc. (NASDAQ: IQST) is demonstrating the effectiveness of its acquisition strategy as the multinational telecommunications and technology company approaches its $1 billion revenue goal two years ahead of schedule. The company, which operates across telecommunications, fintech, and cybersecurity sectors, has completed twelve strategic acquisitions since 2018 while maintaining disciplined operational expenses.
Chief Financial Officer Alvaro Quintana Cardona emphasized the company's acquisition philosophy during a recent interview, stating that IQSTEL targets companies with strong revenue streams that can enhance shareholder value. "We look for companies that add value to our shareholders. We look for companies that have strong revenue streams that could grow that revenue stream," Cardona explained. "Through all of our acquisitions, we have been increasing the value of the company. We have a stronger balance sheet with every acquisition."
The company's financial discipline extends beyond acquisitions, with recent debt reduction efforts totaling $6.9 million, equivalent to approximately $2 per share. More than half of this debt reduction came through conversion into preferred shares, which Cardona views as evidence of the company's long-term strategic vision and financial stability.
CEO Leandro Iglesias revealed that IQSTEL is progressing rapidly toward its $1 billion revenue target, originally set for 2027. The company reported $90 million in organic revenue last year and serves 600 of the world's largest telecommunications companies. Iglesias noted that despite this progress, the company's valuation hasn't yet reflected its achievements, creating what he describes as a significant valuation gap.
"Some companies in our sector are trading between 10X to 20X EBITDA. That's a valuation gap we are planning to close," Iglesias stated. When IQSTEL reaches its $1 billion revenue milestone, the company expects to achieve EBITDA between $20 million and $30 million, providing substantial potential for investor returns given the current valuation disparity in the sector.
The company's diversified business model across high-growth technology sectors, combined with its acquisitive growth strategy and financial discipline, positions IQSTEL for continued expansion. Investors can watch the full discussion about the company's strategy and progress at https://www.youtube.com/watch?v=7FPwEy2uobE&feature=youtu.be for additional insights into the company's trajectory and market position.
