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Hi everyone, $IQST came up on my screener and having a look at it I noticed something strange.
**iQSTEL ($IQST) is doing a \~$400M annualized revenue run rate and the entire company is valued at $7M.**
That's a price to sales of roughly **0.01–0.03x**. For context: cheap value stocks trade at 1x sales. Distressed garbage trades at 0.2x. IQST is trading like it's about to be delisted tomorrow, but it just uplisted **and is growing revenue 70% a year**.
From my experience (not always, but most of the times), when something doesn't add up in a pennystock, it's normally where the asymmetry is found, so I dug a bit more in it to see if I could find something.
The growth already printed:
* **Q1 2026 revenue: $97.9M, up 69.9% YoY**, with 87% of it organic.
* FY2025 landed at **$316.9M**, with management guiding **$430M for 2026** and a stated $1B by 2027 ambition.
* They run a global platform across **600+ telecom operators in 21 countries**. That distribution footprint is the moat the entire story is built on, that's really hard to replicate and it's already in place.
Their legacy business is wholesale telecom: international voice, SMS, the unglamorous plumbing of global telecom.
https://preview.redd.it/k1yk5xb6vf7h1.png?width=635&format=png&auto=webp&s=5e9f421dc589d7ad053633104dab1c9cc60549fd
Low margin commodity work, yes, but it's also the rails the whole transformation rides on: they're layering higher margin fintech, AI, and cybersecurity services on top of distribution they already own into hundreds of carriers.
[](https://preview.redd.it/iqst-iqstel-7m-market-cap-on-a-400m-revenue-run-rate-v0-l26a7g7dtf7h1.png?width=635&format=png&auto=webp&s=77b14991840b098cb774e29adafc4bfb5d173d30)
**The biggest catalyst I found: Ultranet**
In June they signed a **binding MOU to acquire 51% of Ultranet Telecom Group,** expected to add **\~$130M in revenue and \~$4.5M in net profit**, with management saying it lifts net income from operations roughly **4x**.
The detail most people skim past: Ultranet's gross margin (\~5%) is much higher than the margin on the bulk of IQSTEL's existing revenue. If consolidated, Ultranet would be around **30% of total revenue,** at even a better margin.
This is the first acquisition that actually improves the company's blended profitability and the exact inflection my whole thesis hinges on.
**Management is buying**
On **June 8,** the Board authorized a buyback of 1,000,000 shares. This shows that they believe the market cap doesn't reflect the business they've built.
This is literally a "we think our own stock is too cheap" message of management.
Also, float is really small. After last year's restructuring, the float sits around \~6.7M shares. We know the meaning of that: on June 4 the stock ran from **$0.91 to $1.69 intraday** on \~9.8M volume against a \~1.5M average. On a float this thin, it doesn't take much genuine buying to move it hard.
And the best part, it's **almost entirely owned by retail**. Management has openly said they're courting family offices and institutions. But, if even one real institutional buyer steps in on a float this small... If you know you know.
**Things to keep an eye on:**
* **Ultranet closing and the 8-K.** The margin accretive deal actually consolidating
* **Buyback execution**
* **Q2 earnings (\~July),** I'll be watching the gross margin line
**But, why is it still this cheap?**
Gross margins are still thin and the cash cushion is small. My bet is simply that Ultranet, the buyback and a margin tick is the suff that will finally close the gap. If you don't believe margins improve, you don't take the trade. I think they do. I personally think the setup pays you well for being right, and not that bad for being wrong.
If you want to find more information, take a look at their IR page. [https://landingpage.iqstel.com/](https://landingpage.iqstel.com/)