IQSTEL’s Nasdaq Uplist: A Bold Move with High Stakes and Strategic Potential

The telecom and tech sector is no stranger to high-stakes corporate maneuvers, but IQSTEL Inc.’s decision to pursue a Nasdaq listing via a dramatic reverse stock split marks a pivotal moment for the company. By executing a 1-for-80 reverse split in May 2025, IQSTEL aims to position itself as a major player in high-growth sectors like telecom, fintech, and cybersecurity—a move that could unlock institutional investment and mitigate short-selling pressures. Yet, the path to Nasdaq approval remains fraught with risks. Let’s unpack the strategy, its potential rewards, and the hurdles ahead.

The Reverse Split: Mechanics and Market Implications

IQSTEL’s reverse stock split, reducing shares from 210 million to ~2.6 million, was a calculated step to meet Nasdaq’s $4 minimum bid price requirement. Before the split, its stock traded at $0.13—a fraction of its $283 million FY 2024 revenue. The adjustment lifted the stock to a split-adjusted $10.40, , aligning its valuation with Nasdaq’s standards. This move, while neutral on shareholder equity, signals confidence in the company’s future growth trajectory.

Financial Momentum and Strategic Realignment

IQSTEL’s bold uplist bid is underpinned by robust financial performance. Its FY 2024 revenue surged 96% year-over-year to $283 million, with projections of $340 million in 2025 and a $1 billion target by 2027. These numbers are bolstered by strategic asset shifts:

1. Divesting Non-Core Assets: Selling its 75% stake in pre-revenue blockchain subsidiary BChain LLC for $1 million redirected capital toward high-margin sectors. Proceeds included $500,000 in preferred shares of Accredited Solutions, Inc. (OTC: ASII) and $500,000 in common shares distributed as dividends.
2. Acquiring GlobeTopper: A 51% stake in the B2B Top-Up solutions provider—contributing $39.4 million in 2024 revenue—strengthens IQSTEL’s fintech division and expands its revenue streams.

The company’s adjusted EBITDA turned positive in its telecom division, with management projecting a $3 million EBITDA profit in 2025 to meet Nasdaq’s profitability criteria. However, its FY 2024 EBITDA loss of $0.12 million underscores the tightrope walk between ambition and execution.

Risks and Regulatory Uncertainty

While IQSTEL’s strategy is ambitious, its success hinges on multiple factors:

1. Nasdaq Approval: The company has yet to secure final regulatory approval, and delays could destabilize its plans. Nasdaq requires sustained profitability and robust governance—a hurdle given its recent EBITDA loss.
2. Share Price Volatility: The reverse split eliminated fractional shares, but the stock’s post-split price remains vulnerable to market sentiment. A drop below $4 would necessitate another split, , risking investor confidence.
3. Competitive Landscape: The telecom and fintech sectors are crowded. IQSTEL’s $79 million asset base and $26.8 million market cap (just 10% of its 2024 revenue) suggest undervaluation, but execution in scaling operations will determine its longevity.

A High-Risk, High-Reward Gamble

IQSTEL’s Nasdaq bid is a classic “go big or go home” play. The potential rewards are significant: Nasdaq listing could attract institutional investors, reduce short-selling pressures, and validate its growth story. The company’s leadership, holding a 40.5 million-share stake, has aligned its incentives with long-term value creation—a positive signal.

However, the risks are equally stark. If Nasdaq approval is delayed or denied, IQSTEL could face a liquidity crunch, especially if its stock price falters. Moreover, its aggressive revenue targets—jumping from $340 million to $1 billion in three years—require flawless execution of its M&A strategy and operational efficiency.

Conclusion: A Transformative Opportunity, but with Strings Attached

IQSTEL’s Nasdaq uplist represents a transformative opportunity to elevate its corporate profile and unlock capital for growth. With FY 2024 revenue at $283 million and a projected $340 million in 2025, the company has demonstrated momentum in high-margin sectors. Its strategic divestitures and acquisitions, such as GlobeTopper, position it well for scaling.

Yet, the path is littered with obstacles. Nasdaq’s approval is far from certain, and the stock’s post-split performance must hold steady above $4. The projected $3 million EBITDA in 2025 is achievable but hinges on cost management and revenue realization.

Investors should monitor two key metrics: , and . If IQSTEL can meet its EBITDA target and stabilize its share price, the Nasdaq listing could be a catalyst for a valuation realignment. Failure, however, could leave the company in a precarious position.

In sum, IQSTEL’s move is a calculated bet on its ability to execute a multi-year growth plan. While the rewards are substantial, the risks—particularly regulatory and financial—are material. For now, the market’s verdict remains pending.