8/19/2026

speaker
Operator
Conference Operator

Thank you for standing by. At this time, I would like to welcome everyone to the IQSTEL second quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. I would now like to turn the conference over to Ethan Walfish. Head of Investor Relations. The floor is yours.

speaker
Ethan Walfish
Head of Investor Relations

Good morning, and thank you for joining IQSTEL's second quarter 2026 earnings call. Joining me today, I am pleased to have Leandro Iglesias, President and Chief Executive Officer, and Alvaro Quintana, Chief Financial Officer. During the call, we will make forward-looking statements such as dialogue regarding our revenue expectations or forecast for remaining quarters in the full fiscal year of 2026 and 2027. Our current expectations and information available as of today and are subject to a variety of risks, uncertainties, and assumptions. Actual results may differ materially as a result of various risk factors that have been described in our periodic filings with the SEC. As a result, we caution you against placing undue reliance on these forward-looking statements. We assume no obligation to update any forward-looking statements as a result of new information or future events except as required by law. In addition, other risks are more fully described in the IQSTEL's public filing with the U.S. Securities and Exchange Commission, which can be reviewed at www.sec.gov. Yesterday, August 18, 2026, the company filed with the SEC its Form 10-Q for Q2 2026, and this morning issued a press release announcing those financial results. So, participants of this call who may not have already done so may wish to look at those documents as we provide a summary of the results on this call. With that, I will now turn the call over to our CEO, Leandro Iglesias.

speaker
Leandro Iglesias
President and Chief Executive Officer

Thanks, Ethan. Good morning, everyone, and thank you for joining us. I'm Leandro Iglesias, CEO of iQSTEL, and joining me today is our CFO, Alvaro Quintana. I want to begin by thanking our shareholders and previous customers and partners for their continued support. Today, I want to focus on one central message. iQSTEL has spent years building a scale. We believe we are now entering the next major phase of our evolution, the EBITDA expansion. During the first six months of 2026, IQSTEL generated approximately $207 million in revenue, compared with approximately $130 million during the same period last year, representing growth of approximately 59%. That puts IQSTEL at an analyzed revenue level of approximately This is a significant milestone, but our story is no longer only about growing revenue. Our focus is increasingly on converting this scale into a stronger gross profit, adjusted EBITDA, cash generation, and ultimately, shareholders' values. Today, we increasingly see IQSTEL having two complementary business pillars, our telecom business and our digital services business. Our telecom division is the foundation of the company. Over nearly two decades, we have built a global telecommunications platform with more than 600 telecom operator relationships and a potential commercial reach through our customers to approximately 2.3 billion end users. This platform gives us scale, infrastructure, international relationships and importantly, a global distribution network. Our strategy is now to leverage that platform to accelerate our higher margin digital service business. Digital service already represents approximately 12.5% of IQSTEL's revenue, currently driving by our subsidiary, Locktopper. We believe this percentage can continue to grow as we commercialize additional fintech, AI-powered communications, cybersecurity, and other digital solutions through our existing global network. And this is important because digital services have the potential to contribute exponentially to gross profit and adjust data. The upcoming ultranet acquisition is another important step in this strategy. Ultranet will expand our international telecom footprint and, more importantly, is expected to significantly strengthen profitability. Following the acquisition, we expect IQSTEL's adjusted EBITDA run rate to increase to approximately $8 million to $9 million. This is exactly the direction that we want to take the company. Going forward, our focus is not simply on acquisition that adds revenue. We are increasingly focusing on opportunities that can add gross profit Evita, Cash Generation, and Strategic Value. For the remainder of 2026, we continue pursuing our previously announced $430 million revenue objective. With $207 million generated during the first half We need approximately $223 million during the second half to achieve that objective. We believe we remain on track, particularly because historically the second half of the year has been stronger for IQSTEL than the first half. But again, revenue is only part of the story. We are increasingly focused on adjusted EBITDA, operating leverage, cash generation, and the growth of higher margin digital services. Our long-term vision remains to build IQSTEL into a company capable of reaching $1 billion in annual revenue, but our objective is not simple to become larger. Our objective is to become larger and significantly more profitable. We are also increasing our efforts to communicate the IQSTEL story to a broader investment audience. Our recent CNBC interview with Seth Fartman and the launch of our new corporate telecom digital services and investor websites are part of this effort. We believe there continues to be significant disconnect between IQSTEL's operating scale and the valuation currently being assigned to the company by the public market. The truth is that we cannot control the stock price, but we can control the execution. We can continue growing business, expanding EBITDA, strengthening our balance sheet, growing digital services, completing strategic acquisitions, and communicating our progress more efficiently. And we believe consistent execution is ultimately the best way to close that valuation gap. So, if there is one message I would like shareholders to take from today's call. It is this. We have built the scale. We are operating at more than 400 million in annualized revenue. We have built a global platform with more than 600 telecom operator relationships. Digital service already represents We believe this is an important inflection point for IQSTEL. And we are very excited about What comes next? Thank you again to our shareholders and to our entire team around the world. With that, I turn the call over to our CFO, Alvaro Quintana, to discuss our first half financial results in greater detail. Alvaro, please go ahead.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

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