8-K: IQSTEL Declares First Dividend, Solidifies Cycurion Alliance

IQSTEL Inc. announced its first-ever share-based dividend, reinforced its strategic alliance with Cycurion Inc. by retaining cross-holdings, and reported strong financial performance with ambitious future growth targets.

Summary

• IQSTEL Inc. and Cycurion Inc. strengthened their strategic alliance by retaining their full $1,000,000 worth of cross-holdings in each other's shares.
• Each company will distribute approximately $500,000 worth of its own shares as a one-time, pro-rata dividend to its shareholders, rather than redistributing cross-held shares.
• IQSTEL confirmed its $500,000 dividend will be paid on December 30, 2025, in free-trading IQST common shares.
• The dividend calculation used the August 29, 2025 closing price of $6.62, resulting in the distribution of 75,529 free-trading IQST common shares.
• The Record Date for IQSTEL's dividend is December 15, 2025, with a Payment/Distribution Date on or about December 30, 2025.
• With approximately 4,374,822 shares outstanding, the resulting distribution ratio is 0.0173, with allocations rounded down and no cash in lieu for fractional shares.
• IQSTEL achieved a $400 million revenue run rate and a $2.7 million EBITDA run rate ahead of plan.
• The Fintech business now represents approximately 20% of IQSTEL's revenue stream.
• IQSTEL successfully uplisted to Nasdaq.
• Institutional investors currently hold approximately 5% of IQSTEL's outstanding shares.

Sentiment

Score: 8

Explanation: The filing conveys a strong positive sentiment, highlighting the company's first-ever dividend, successful uplisting to Nasdaq, achievement of revenue and EBITDA run rates ahead of schedule, and a strengthened strategic alliance with Cycurion. Management's commitment to annual dividends and ambitious future growth targets (e.g., $1 billion revenue by 2027) further contribute to a highly optimistic outlook.

Positives

• Strengthened strategic alliance with Cycurion Inc. by retaining $1,000,000 in cross-holdings, signaling a long-term partnership and joint development.
• Initiated the company's first-ever dividend distribution of $500,000 in common shares, demonstrating a commitment to shareholder value.
• Achieved a $400 million revenue run rate, which was ahead of plan.
• Reached a $2.7 million EBITDA run rate.
• Successfully uplisted to Nasdaq.
• Fintech business grew to represent approximately 20% of the revenue stream.
• Added Cybersecurity to its high-tech, high-margin value proposition.
• Management intends to issue dividends annually, tied to performance and growth.

Risks

• Ability to successfully market products and services.
• Continued ability to pay operating costs and meet demand for products and services.
• Amount and nature of competition from other telecom products and services.
• Effects of changes in the cybersecurity and telecom markets.
• Ability to successfully develop new products and services.
• Ability to complete complementary acquisitions and dispositions that benefit the company.
• Success establishing and maintaining collaborative, strategic alliance agreements with industry partners, including the equity exchange and the contemplated alliance.
• Ability to comply with applicable regulations.
• Ability to secure capital when needed.
• Other risks and uncertainties described in prior filings with the Securities and Exchange Commission.

Future Outlook

IQSTEL intends to issue dividends annually, directly tied to its performance and growth, starting this year. The company is targeting a $15 million EBITDA run rate next year (2026) and aims to become a $1 billion revenue corporation by 2027. The original cross-shareholding swap with Cycurion is expected to proceed next year (2026) once shares meet seasoning requirements, and both companies expect to deliver additional partnership updates in Q1 and Q2 2026 as new joint products enter the market.

Management Comments

• Leandro Iglesias (IQSTEL CEO): "By retaining the full $1,000,000 in shares of each other, IQSTEL and Cycurion demonstrate a deeper level of trust and alignment. This is a long-term partnership. We are building high-tech products together, entering new markets together, and showing shareholders that we are mutually invested in each others future."
• Kevin Kelly (Cycurion CEO): "Keeping the cross-holdings untouched sends the right message: our companies are growing side by side. The dividend distribution using each company's own shares eliminates unnecessary regulatory filings, streamlines the process for shareholders, and preserves the strength of our strategic alliance."
• Leandro Iglesias (IQSTEL CEO): "We are proud of who we are as a company and what we have achieved together. IQSTEL has fulfilled every promise we made to our shareholders—not only delivering strong operating results, but also tangible, measurable shareholder value. Now, as we enter a new stage with a clear path toward becoming a $1 billion revenue corporation, our commitment to our shareholders is stronger than ever. Beginning this year, IQSTEL intends to issue dividends annually, tied directly to our performance and growth. This $500,000 dividend is a testament to our vision, our execution, and our unwavering dedication to rewarding those who believe in our mission."
• Leandro Iglesias (IQSTEL CEO): "This year has been truly amazing for IQSTEL. We successfully uplisted to Nasdaq, achieved a $400 million revenue run rate ahead of plan, and reached a $2.7 million EBITDA run rate. Our Fintech business now represents approximately 20% of our revenue stream, we have added Cybersecurity to our high-tech, high-margin value proposition, and today we are proud to deliver the first dividend in company history to our loyal shareholders. This dividend marks an excellent starting point as we continue executing our strategy toward a $15 million EBITDA run rate next year and our long-term goal of achieving a $1 billion revenue run rate by 2027."

Industry Context

The strategic alliance between IQSTEL (telecom, AI, digital) and Cycurion (cybersecurity, AI) reflects a broader industry trend of convergence between connectivity, artificial intelligence, and robust security solutions. This collaboration aims to expand their technological footprint in AI, cybersecurity, telecom, and high-tech enterprise services, addressing the growing demand for integrated secure digital infrastructure across various sectors like telecom operators, financial institutions, and enterprises. The focus on joint product development in advanced cybersecurity technologies and AI-based threat intelligence applications positions them to capitalize on the increasing digitalization and associated security challenges in a global market.

Stakeholder Impact

• Shareholders: Directly benefit from the first-ever share-based dividend, potential for annual dividends, and the strengthened strategic alliance aimed at long-term value creation.
• Employees: Implied positive impact from company growth, joint development plans, and expansion into new markets.
• Customers: Benefit from co-developed advanced cybersecurity technologies, AI-based threat intelligence applications, and identity-driven security solutions.
• Partners (Cycurion): Strengthened alliance, mutual investment, joint product development, and shared strategic vision.

Next Steps

• Original cross-shareholding swap with Cycurion expected to proceed next year (2026) once shares meet seasoning requirements.
• IQSTEL and Cycurion expect to deliver additional partnership updates in Q1 and Q2 2026 as new joint products enter the market.
• IQSTEL intends to issue dividends annually, tied directly to performance and growth, starting this year.
• Management continues to conduct investor webinars and non-deal roadshows.
• Executing strategy toward a $15 million EBITDA run rate next year (2026).
• Long-term goal of achieving a $1 billion revenue run rate by 2027.

Key Dates

Recommendation

The filing presents a highly positive outlook for IQSTEL, marked by the company's first-ever dividend distribution, a solidified strategic alliance with Cycurion, and impressive financial performance including a $400 million revenue run rate and $2.7 million EBITDA run rate ahead of schedule. The commitment to annual dividends, successful Nasdaq uplisting, and ambitious targets of a $15 million EBITDA run rate next year and $1 billion revenue by 2027 signal strong growth potential and a clear strategy for shareholder value creation. These factors collectively suggest a compelling investment opportunity.

Keywords

IQSTEL, IQST, Cycurion, CYCU, dividend, stock dividend, strategic alliance, cross-holdings, cybersecurity, telecom, AI, Fintech, Nasdaq, revenue, EBITDA, shareholder value