• Reported $207 million in revenue during the first half of 2026, representing an annualized revenue run rate exceeding $400 million prior to the expected closing of the Ultranet acquisition

• Ultranet expected to contribute approximately $130 million in annual revenue and approximately $4.5 million in annual net income, expanding IQSTEL's operations to approximately 30 countries

• Combined platform expected to exceed a $500 million annualized revenue run rate while accelerating the Company's path toward an Adjusted EBITDA run rate of $13-$15 million

NEW YORK, Aug. 6, 2026 /PRNewswire/ -- IQSTEL Inc. (NASDAQ: IQST), a rapidly growing multinational technology company, today outlined how nearly two decades of disciplined execution have positioned the Company to enter its next phase of accelerated growth by leveraging its global telecommunications platform to commercialize proprietary Digital Services designed to increase revenue, expand Adjusted EBITDA, and enhance long-term profitability.

For nearly twenty years, IQSTEL has focused on building a scalable telecommunications platform through proprietary technology development, strategic acquisitions, disciplined execution, and trusted commercial relationships with telecommunications operators around the world. Management believes that platform has now reached the scale where it can be leveraged to distribute high-margin Digital Services across its existing global customer base.

As of the Company's most recent reported results, IQSTEL generated $207 million in revenue during the first half of 2026, placing the Company on an annualized revenue run rate exceeding $400 million, even before the expected closing of the Ultranet Telecom acquisition.

The expected acquisition of Ultranet, anticipated to close this quarter, represents another transformational milestone in IQSTEL's evolution. Upon completion, Ultranet is expected to contribute approximately $130 million in annual revenue and approximately $4.5 million in annual net income, increasing IQSTEL's annualized revenue run rate to more than $500 million while expanding the Company's operational footprint from approximately 24 countries to approximately 30 countries.

Management believes the combination of IQSTEL's global commercial platform and Ultranet's strategic assets creates a unique opportunity to accelerate revenue growth, improve profitability, and significantly expand Adjusted EBITDA over the coming years.

A Platform Built to Be Leveraged

Over the last several years, IQSTEL has consistently executed a disciplined strategy of growing revenue while improving operational efficiency and financial performance.

Today, the Company operates across approximately 24 countries, employs more than 100 professionals, manages more than $48 million in assets, and maintains commercial relationships with more than 600 telecommunications operators worldwide, representing a potential reach of approximately 2.3 billion end users.

Management believes these relationships represent one of IQSTEL's greatest strategic assets.

Unlike many technology companies that must first build distribution after developing their products, IQSTEL has already established a mature global commercial platform capable of introducing new technologies directly into existing carrier relationships.

Management believes replicating this platform would require many years of technical integrations, regulatory compliance, operational execution, and customer trust developed over nearly two decades, creating meaningful barriers to entry.

The Ultranet Acquisition Expands Scale and Creates New Growth Opportunities

Expected to close this quarter, the acquisition of Ultranet Telecom significantly strengthens IQSTEL's global platform.

Ultranet is expected to contribute:

• Approximately $130 million in annual revenue
• Approximately $4.5 million in annual net income
• Operations across Ghana, Nigeria, Ivory Coast, Senegal, Burkina Faso, and Mali
• Long-standing commercial relationships with leading telecommunications operators throughout Africa
• Exclusive strategic messaging infrastructure with major African mobile operators

Africa represents one of the world's fastest-growing telecommunications markets.

Management believes Ultranet provides IQSTEL with an established operating platform and strategic customer relationships that will accelerate the commercialization of the Company's Digital Services portfolio throughout the region while further strengthening its global presence.

Following the acquisition, IQSTEL expects to operate at an annualized revenue run rate exceeding $500 million, creating an even larger commercial platform from which to distribute its proprietary technologies.

Digital Services: The Next Phase of IQSTEL's Growth

While IQSTEL's telecommunications business has successfully created scale and established global customer relationships, management believes the Company's Digital Services portfolio represents its next major growth opportunity and the principal driver of its next phase of EBITDA expansion.

Unlike traditional wholesale telecommunications services, many Digital Services are expected to generate substantially higher gross margins while creating scalable, recurring revenue streams.

IQSTEL's Digital Services portfolio includes:

• Proprietary Artificial Intelligence platforms
• AI Voice Agents and Intelligent Communications
• Enterprise AI Automation
• AI-powered telecommunications applications
• Cybersecurity solutions developed with Cycurion
• Fintech solutions through GlobeTopper
• Digital Health technologies
• Content Services

Each solution has been designed specifically for telecommunications operators and enterprise customers, enabling rapid deployment while minimizing implementation complexity.

Rather than adapting third-party software, IQSTEL has developed many of these technologies internally based on nearly two decades of telecommunications expertise and direct industry experience. Management believes this purpose-built approach provides the Company with a significant competitive advantage.

Management expects the Digital Services division to become the Company's primary engine of profitability beginning in 2027. Following the anticipated achievement of an Adjusted EBITDA run rate of approximately $13 million to $15 million, management expects the commercialization of its higher-margin Digital Services portfolio to drive the Company's next stage of financial growth, with the objective of increasing its Adjusted EBITDA run rate toward $25 million.

By leveraging IQSTEL's existing global commercial platform—including relationships with more than 600 telecommunications operators and a potential reach of approximately 2.3 billion end users—the Company believes it is uniquely positioned to scale these higher-margin solutions without the need to build a new global distribution network, creating significant operating leverage and accelerating long-term profitability.

The Roadmap to the Next Phase of Growth

Management believes IQSTEL has established a clear roadmap for its next phase of earnings and shareholder value creation.

The expected closing of the Ultranet acquisition this quarter is anticipated to increase the Company's Adjusted EBITDA run rate to more than $8 million, marking an important milestone in IQSTEL's evolution and demonstrating the earnings potential of the Company's expanded telecommunications platform.

Building on that foundation, management's next objective is to optimize the combined business through the successful integration of Ultranet, continued organic growth, operating efficiencies, and a strategic acquisition, with the goal of increasing the Company's Adjusted EBITDA run rate to approximately $13 million to $15 million.

Management believes achieving this objective will establish a stronger financial platform entering 2027.

From that point forward, IQSTEL expects its Digital Services division to become the Company's primary engine of EBITDA expansion. By leveraging its existing global commercial platform to commercialize higher-margin solutions—including Artificial Intelligence, Intelligent Communications, Cybersecurity, Fintech, Digital Health, Enterprise Automation, and Content Services—management expects to begin the next phase of its EBITDA growth strategy in 2027, with the long-term objective of progressively increasing the Company's Adjusted EBITDA run rate toward $25 million.

Management believes this roadmap reflects a natural evolution from building infrastructure to monetizing that infrastructure through proprietary technology and scalable digital solutions.

A Competitive Advantage Built on Technology and Distribution

Management believes IQSTEL possesses a competitive advantage that few companies in the telecommunications or technology sectors can replicate.

Over nearly two decades, the Company has built a global commercial distribution platform through trusted relationships with more than 600 telecommunications operators, expected to span approximately 30 countries following the anticipated closing of the Ultranet acquisition. Through these relationships, management believes IQSTEL has the potential to reach approximately 2.3 billion end users worldwide.

At the same time, IQSTEL has invested in developing its own portfolio of proprietary Digital Services through its internal research and development organization, led by Jose Enrique Puente, Head of AI & R&D. As highlighted during the Company's recent Force Family Office Webinar, these technologies include Artificial Intelligence platforms, AI Voice Agents, Enterprise Automation, Cybersecurity, Fintech, Digital Health, and other digital solutions specifically designed for telecommunications operators and enterprise customers.

Management believes the combination of proprietary technology and an established global distribution platform creates a differentiated business model capable of accelerating commercialization, reducing customer acquisition costs, expanding margins, and driving long-term profitability.

Rather than spending years building a global sales organization after developing new products, IQSTEL believes it can immediately commercialize new Digital Services through the commercial relationships it has already established over nearly twenty years.

Investors and interested parties are encouraged to watch the complete webinar:

https://youtu.be/6oFdjT3JLs4

CEO Commentary

"Surpassing an Adjusted EBITDA run rate of $8 million following the expected closing of the Ultranet acquisition will represent an important milestone for IQSTEL," said Leandro Iglesias, Chairman and CEO of IQSTEL.

"More importantly, it marks the beginning of our next phase of growth—not the end of it.

For nearly twenty years, we have invested in building a global telecommunications platform, establishing trusted relationships with hundreds of operators around the world, and developing proprietary technologies designed specifically for our industry. Today, we believe those investments have created a commercial platform that is difficult to replicate.

Our roadmap is clear. First, we expect the integration of Ultranet to take us beyond an $8 million Adjusted EBITDA run rate. Next, our objective is to optimize the combined business through continued operational efficiencies, organic growth, and a strategic acquisition, with the goal of increasing our Adjusted EBITDA run rate to approximately $13 million to $15 million. From there, we expect our high-margin Digital Services portfolio to become the primary driver of our next stage of earnings growth, with the long-term objective of increasing our Adjusted EBITDA run rate toward $25 million.

What makes IQSTEL different is that we already have both the technology and the distribution. We believe very few companies can combine proprietary AI and Digital Services with commercial relationships spanning more than 600 telecommunications operators and the potential to reach approximately 2.3 billion end users worldwide.

We believe we are entering one of the most exciting chapters in IQSTEL's history, and we remain focused on transforming the platform we have spent nearly two decades building into a powerful engine for sustainable growth, expanding profitability, and long-term shareholder value."

About IQSTEL Inc.

IQSTEL Inc. (NASDAQ: IQST) is a global telecom and technology company operating in 21 countries with over 600 Telecommunication Carrier Interconnections. The company delivers international voice, SMS, messaging, connectivity, and mobile financial services to telecom operators and enterprise customers worldwide. Built through a decade of organic growth and strategic acquisitions, IQSTEL is now expanding into AI-powered communications and cybersecurity through its RealityBorder.com AI Division and Cycurion partnership.

For more information, please visit www.IQSTEL.com.

Official Investors Landing Page: www.landingpage.iqstel.com

Safe Harbor Statement: Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other information relating to our future activities or other future events or conditions. Words such as "anticipate," "believe," "estimate," "expect," "intend", "could" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates, and projections about our business based partly on assumptions made by management. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to successfully market our products and services; our continued ability to pay operating costs and ability to meet demand for our products and services; the amount and nature of competition from other telecom products and services; the effects of changes in the cybersecurity and telecom markets; our ability to successfully develop new products and services; our ability to complete complementary acquisitions and dispositions that benefit our company; our success establishing and maintaining collaborative, strategic alliance agreements with our industry partners; our ability to comply with applicable regulations; our ability to secure capital when needed; and the other risks and uncertainties described in our prior filings with the Securities and Exchange Commission.

These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may and are likely to differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release, and IQSTEL Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.

Media and Investor Relations:
Ethan Walfish
Head of Investor Relations
IQSTEL Inc.
300 Aragon Avenue, Suite 375
Coral Gates, FL 33134
Email: ir@iqstel.com

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