IQSTEL Inc. (NASDAQ:IQST) shares jumped 30.86% to $2.46 in after-hours trading Thursday following a strategic update from the company outlining accelerating revenue growth and a platform transformation targeting significantly higher margins.

Revenue Growth Offsets Earnings Miss As Profitability Outlook Improves

For the fiscal year ended Dec. 31, 2025, IQSTEL reported revenue of $316.9 million, an 11% increase year over year. Gross profit rose 14.3% to $9.46 million.

EBITDA for the Florida-based technology company came in at $2.7 million, while net income was close to $2 million. Management said the company expects to reach consolidated net profitability within the next 12 months.

In early April, IQSTEL reported its fourth quarter 2025 results, posting earnings per share of -$0.89, well below the -$0.20 analyst estimate. Revenue came in at $84.22 million, missing the $104.75 million estimate by 19.60%.

CEO Leandro Iglesias said, “We are entering a clear inflection point,” adding that the company is layering “high-tech, high-margin services” on top of its telecom platform.

Global Reach Expands As High-Margin Messaging Volume Surges

IQST’s platform reaches over 600 telecom operators and roughly 2.3 billion end users across 21 countries, a distribution network management says requires minimal incremental cost to monetize. Short message service traffic rose 25.18% to 17.4 billion messages annually.

The company targets $1 billion in revenue within 24 months, backed by acquisitions and digital service expansion.

Trading Metrics, Technical Analysis

IQSTEL has a market capitalization of $9.53 million, with a 52-week high of $18.69 and a 52-week low of $1.48.

The stock has a Relative Strength Index (RSI) of 53.92.

Over the past 12 months, the small-cap stock has dropped 82.53%.

Currently, IQST is positioned close to its 52-week low.

Price Action: According to Benzinga Pro data, the stock closed regular trading up 18.99% at $1.88.

Benzinga’s Edge Stock Rankings indicate that IQST stock is experiencing a negative price trend across all time frames.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.