IQSTEL Takes Major Leap Forward with $6.9 Million Debt Reduction Strategy

Strengthening Financial Foundations: IQSTEL's Bold Debt Reduction Move



IQSTEL Inc. (NASDAQ: IQST), a prominent player in the telecommunications and technology landscape, recently unveiled a pivotal financial decision aimed at bolstering its equity position. The company achieved a remarkable debt reduction of $6.9 million, a move that is expected to play a crucial role in its ongoing financial fortification and long-term expansion strategy.

As of Q1 2025, IQSTEL reported a net stockholders' equity of $11.34 million. With the current debt reduction process, the company's equity position is expected to improve significantly. This financial maneuver was accomplished through a combination of converting debt into common shares and Series D Preferred Shares. Such conversions are not merely transactional; they reflect a growing confidence among investors in IQSTEL's strategic vision, which aims to achieve $1 billion in annual revenue by 2027.

This initiative is not just about slashing debt; it directly enhances IQSTEL's operational cash flow. By eliminating a significant portion of its liabilities, the company stands to save approximately $0.92 million in interest expenses, leading to enhanced flexibility in its operations.

Leandro Iglesias, the CEO of IQSTEL, remarked, "We are now $6.9 million stronger than we were just a week ago. This is a crucial step forward for our company. We remain fully committed to our goal of reaching $1 billion in revenues by 2027, and steps like these only reinforce our foundation for creating long-term value for our shareholders."

The impact of this debt reduction is essentially tangible; it translates to an approximate reduction of $2 per share, demonstrating a direct value creation for shareholders. Alongside this financial strategy, IQSTEL is also concentrating on improving its adjusted EBITDA and reinforcing its balance sheet, believing that this dual focus will yield the best results for maximizing shareholder returns.

This strategic decision comes as IQSTEL recently completed the acquisition of Globetopper, positioning itself more robustly within the telecommunications sector. The company also received a positive independent report from Litchfield Hills Research, which bolsters investor confidence in its financial strategy.

The effective date of the debt reduction was July 3, 2025, and the ramifications of this move will be reflected in detail in its upcoming Q3 2025 Form 10-Q filing. Further information can also be found in the Form 8-K document recently submitted to the SEC.

As IQSTEL now embarks on the second half of 2025, the company finds itself on a trajectory that promises strength and resilience. It is more equipped than ever to pursue its ambitious goals in the fast-evolving tech industry.

About IQSTEL Inc.


IQSTEL Inc. is an international technology firm engaged in providing advanced solutions in the realms of telecommunications, Fintech, AI-powered platforms, and cybersecurity. With operations spanning across 21 countries and a dedicated workforce of around 100 employees, IQSTEL caters to a diverse global customer base with high-margin services. The company is targeting $340 million in revenue for the fiscal year 2025, further reinforcing its path towards becoming a $1 billion tech entity by the year 2027.

Conclusion


The recent initiatives taken by IQSTEL highlight a commitment not only to financial prudence but also to strategic growth in the competitive tech landscape. As the company continues its journey toward achieving its significant revenue goals, its recent debt reduction serves as a cornerstone for future success.

Topics Telecommunications)

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