8-K: iQSTEL Goes Debt-Free, Enters Cybersecurity, Plans Dividend

iQSTEL Inc. announced it has eliminated all convertible notes, fully paid for recent acquisitions, entered the cybersecurity market via a stock swap with Cycurion, and plans a $500,000 share dividend by year-end 2025.

Summary

• iQSTEL has entered the cybersecurity arena and AI-enhanced cybersecurity services through a strategic stock swap partnership with Cycurion, Inc., a Nasdaq-listed corporation.
• As part of the agreement, iQSTEL issued 151,058 shares of its common stock to Cycurion, and Cycurion issued 3,866,976 shares of its common stock to iQSTEL, with each exchange representing an equal value of $1,000,000 at the execution of the agreement.
• iQSTEL plans to distribute a $500,000 dividend in shares to its shareholders by December 31, 2025.
• The company has eliminated all convertible notes from its balance sheet and fully paid for its recent acquisitions, QXTEL and Globetopper, becoming a debt-free company with no convertible notes or warrants outstanding.
• iQSTEL reported $35 million in revenue in July 2025, surpassing a $400 million annual run rate five months ahead of schedule.
• The company has $17.41 in assets per share and a clean capital structure.
• iQSTEL's growth strategy remains on track with a $15 million EBITDA run rate goal by 2026 and a $1 billion revenue run rate target by 2027, with a forecasted $340 million in revenue for FY-2025.

Sentiment

Score: 9

Explanation: The filing presents overwhelmingly positive news, including significant financial de-risking (debt elimination, acquisitions paid), strategic expansion into a high-growth sector (cybersecurity with a reputable partner), strong current financial performance (exceeding revenue run rate), and a clear commitment to shareholder returns (planned dividend). These factors collectively indicate a very strong positive sentiment.

Positives

• Strategic entry into the high-growth cybersecurity and AI-enhanced cybersecurity services market through a partnership with Cycurion, a U.S. government-trusted technology provider.
• Elimination of all convertible notes and warrants, establishing iQSTEL as a debt-free company with a strong financial foundation.
• Full payment for the QXTEL and Globetopper acquisitions, strengthening the balance sheet.
• Commitment to shareholder value demonstrated by a planned $500,000 share dividend by December 31, 2025.
• Achieved $35 million in revenue in July 2025, surpassing a $400 million annual run rate five months ahead of schedule.
• Robust balance sheet with $17.41 in assets per share.
• The partnership enables cross-selling opportunities, allowing iQSTEL to bring Cycurion's cybersecurity products to its global telecom clients and Cycurion to access iQSTEL's fintech and AI-driven offerings.
• Accelerated product innovation through integrated R&D efforts is expected to bring next-gen cybersecurity and AI solutions to market faster.

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 in establishing and maintaining collaborative, strategic alliance agreements with industry partners.
• Ability to comply with applicable regulations.
• Ability to secure capital when needed.

Future Outlook

iQSTEL plans to officially launch its new cybersecurity solutions at the largest global telecom event in 2026. The company aims to achieve a $15 million EBITDA run rate by 2026 and a $1 billion revenue run rate by 2027, reinforcing its evolution into a Global Connectivity, AI & Digital Corporation. A $500,000 share dividend is planned for distribution by December 31, 2025.

Management Comments

• "We are very excited to add cybersecurity to our portfolio of products... This partnership with Cycurion, whose specialized solutions are trusted by the U.S. government, not only broadens our capabilities but also enhances the trust we bring to our global telecom and enterprise customers." Leandro Iglesias, CEO of iQSTEL.
• "This is a defining moment for IQSTEL... We have completely eliminated convertible debt and finalized full payment for our latest acquisitions. IQSTEL is stronger, cleaner, and better positioned than ever to execute our growth strategy and deliver consistent value to shareholders." Leandro Iglesias, CEO of iQSTEL Inc.
• "Eliminating debt, paying off acquisitions, delivering dividends, and expanding into high-tech verticals like AI and cybersecurity this is how IQSTEL continues to build long-term shareholder value." Leandro Iglesias, CEO of iQSTEL Inc.

Industry Context

iQSTEL's entry into AI-enhanced cybersecurity services positions it in a rapidly growing, high-margin sector. By leveraging its existing global telecommunications platform and partnerships with over 600 telecom operators, the company can effectively cross-sell these new services. The strategic partnership with Cycurion, a Nasdaq-listed company with U.S. government-trusted solutions, provides a strong competitive advantage and enhances credibility in the cybersecurity market, aligning with broader industry trends towards integrated digital and security solutions.

Comparison to Industry Standards

• The filing does not provide specific comparable company data, projects, or results for a direct assessment against global benchmarks.

Stakeholder Impact

• Shareholders: Expected to benefit from the planned $500,000 share dividend, increased asset value per share, reduced financial risk due to debt elimination, and potential for long-term value creation from strategic expansion into high-growth markets.
• Customers: Will gain access to new AI-enhanced cybersecurity services, enhancing trust and security, particularly for global telecom and enterprise clients.
• Employees: Potential for growth and expansion into new high-tech areas, possibly leading to new opportunities and roles.
• Creditors: Improved credit profile and reduced risk due to the elimination of all convertible debt and full payment of acquisitions.

Next Steps

• Launch new AI-enhanced cybersecurity solutions at the largest global telecom event in 2026.
• Distribute a $500,000 dividend in shares to shareholders by December 31, 2025.
• Accelerate collaboration with Cycurion to develop and deploy AI-enhanced cybersecurity services.
• Continue executing the growth strategy towards a $15 million EBITDA run rate in 2026 and a $1 billion revenue run rate by 2027.

Key Dates

Recommendation

The company has made significant strides in de-risking its balance sheet by eliminating all convertible notes and fully paying off recent acquisitions, establishing a debt-free status. This financial strength is complemented by a strategic entry into the high-growth AI-enhanced cybersecurity market through a partnership with a U.S. government-trusted entity, Cycurion. The company has also demonstrated strong operational performance, exceeding its revenue run rate targets, and committed to returning value to shareholders with a planned $500,000 share dividend. These factors collectively indicate a robust financial position, clear growth strategy, and strong potential for future value creation, making it a compelling investment opportunity.

Keywords

Cybersecurity, AI-Enhanced Cybersecurity, Debt-Free, Convertible Notes, Share Dividend, Acquisitions, Financial Performance, Strategic Partnership, Telecommunications, Fintech, AI, Digital Services, Cycurion