Thank you very much. Thank you. Thank you very much. Thank you very much for coming. Well, today we're going to talk about our company. It's a company that has been creating a long-standing value for our shareholders and the customers over the years. Our company name: iQSTEL. iQSTEL is a company traded on Nasdaq. We already have one -year anniversary on Nasdaq, and we've started this journey around eight years ago in OTC. With me is my partner, Alvaro Quintana. Alvaro Quintana is the CFO of the company; has 25 or 30 years experience. He has 25 years or 30 years experience in finance. I'm more like, I'm the CEO. I'm more like, leading the growth of the business in sales and business development and acquisitions.
Over those years since we start in OTC markets, we started with $30 million revenue in 2018, right now we are in a $400 million run rate. Selling 80% of our revenue comes from telecommunications , and 20% comes from fintech services. It's a huge expansion, basically 30x over the last years. On this process, our company has been acquiring companies. It's a roll-up company. Every single year, we have been acquiring companies. At the same time, we have growth, thanks to the organic growth because every single acquisition that we carefully selected has a Looking for, you know, the management, increasing our footprint, increasing the products and services. Over all these years, of course, we have seen how the revenue growth, the most important part is how the net shareholders' equity increase.
We start this journey with $1.6 million. Right now we are in $60 million net equity. Our equity per share, Alvaro, you are the CFO, tell me.
Over $3.
Over $3 equity per share nowadays, We have, like, 5 million outstanding shares? Correct. We have global operations in 21 countries, This is the reason why our existence: we create this company offering telecommunication services, voice and SMS, to help all those companies to manage the international services. Basically, companies, our customers, companies like Verizon, T-Mobile, T-Systems, Vodafone, Orange, VSNL, China Mobile, Telefónica, you know, Cable & Wireless, British Telecom, all those companies giving us the international connectivity for managing their voice and SMS service. This is the service that generates nowadays $400 million revenue on a yearly basis. Everything that we have done so far, you know, is, you know, creating a business platform to sell in to those customers, to sell services, because We already are interconnected with them in technologies.
We already have the platform. We already have the commercial relation, we are selling them millions of dollars. They trust us. All this process, this is the real value of the company, not the revenue. It's the business platform. The revenue is the consequence of the relations that we already have with them. Why is this company so special? Our customers have 2.3 billion end -users. Whatever we offer them has a reach to sell to 2.3 billion end -users. That means all those 2.3 billion end-users, every time that they send a voice call or an SMS message, most probably goes through our platform. We solve their problem to offer them a full worldwide coverage and a very competitive services.
With this in mind, our company that start like a telecom company is in the process of evolving to a digital global corporation because we realize that all our customers have a need, and the need is that they need to increase the average revenue per user. In that sense, all the mobile operators, they need to offer services to the end users, all kind of services, the devices, all kind of services. We have been adding products and services to our portfolio to sell more of them. What we are selling right now, AI services, cybersecurity, we are entering in digital health too, and fintech services. If this were an elevator pitch, the easiest way to explain it is that our company is not just a telecom company.
It's a digital circle, a one-stop shop for digital services that has, you know, all the reach of 2.3 billion end -users. This is the future of our company. What is going to happen right now? You know, we are in the process to scaling the EBITDA. We are right now around $2.7 million EBITDA from operations, and we are going to scale this year from something between $9 million-$15 million EBITDA. You know, we're in the process to expand the coverage from 20 countries to 30 countries. We are going to penetrate Africa region very hard, adding eight, nine countries there. What are you going to expect about this company?
Well, our company is going to be from $2.7 million EBITDA, we are going to scale to $9 million-$15 million, and then to $25 million, and then to $50 million. Why? Listen, whatever product that we can sell with a base of 2.3 billion end -users is going to be huge. That's the real potential of this company. In that sense, we just create a subsidiary. The name is iQSTEL Digital Services. We appointed a CEO that has a very long experience, you know, selling digital services to the mobile operators. He has sold over 100 million end -users in Latin America digital services. We are really excited about the future that we are building right now in the company. In this process of EBITDA expansion, just to mentions, you know, we are around $400 million revenue run rate.
Our vision is that our company is going to reach $1 billion revenue run rate. In this process, our EBITDA is going to move, increase from $2.7 million- $50 million EBITDA over the next three years. How can we do that? Very simple. Very simple. Of course, we are going to acquire a couple of companies because we are an M&A company. We have a lot of experience acquiring companies. At the same time, we are adding new products and services, high tech, high margin, all those services having around 40%, you know, cybersecurity, digital health, fintech services, and AI having a very high margin, and they are going to increase our bottom line, and this is how the company is going to expand the EBITDA over the years.
What we have built is, you know, a business platform that we are going to take advantage of this platform to reach those 2.3 billion end -users. What is iQSTEL? It's simple. It's a proven platform, a technology proven platform. You know, we have a scalable distribution, so every time that we add a new product, we already have the business relation. We already sell to those customers millions of dollars. We have the credit history with them. They trust in us and you know, we have a disciplined execution because we built this company from scratch 18 years ago, and right now we're running a company for $400 million revenue. After all this Let me go back. You may ask, why those guys are here? Because they are running fantastic business, huge potential to reach 2.3 billion end -users.
We truly believe that the company is in a moment where we are an M&A team, we are looking right now for a company in this M&A process and looking for you to supporting us in find a target to M&A and raising funds to complete this and make it even huge. You are here looking for opportunities to business instead to offering us, you know, just money, bringing us a company, a company that could match and could take advantage of this platform because what we have here is a huge platform. Every single product that we put in there, we can increase and, you know, grow in exponential sales. Take any number, you know, just 1% of the penetration of 2.3 billion, 23 million. 23 million, if you sell $50 of each, imagine how much money are in this process.
What we are looking here in this event is to, you know, presenting the company, saying, "Listen, we are here, and we are looking for opportunities to expand the business and a company that could match with us and explode." You know, making something really bigger something really interesting. Any questions to us? You know, I tried to summarize everything because, you know, I don't want to talk about details. I'm giving you the opportunity for question and everything. With me is going to be Alvaro Quintana answering questions. Alvaro, please come here. You know, any question that you have, please, I'm free to answer. Yes. Sure.
Getting into digital healthcare services.
Correct.
That fits very well with the platform that you already have. I think, you said you're gonna reveal some of the details.
Yeah.
on those services over time.
Correct.
What can you share with us today on the digital healthcare opportunity and how it fits in with IoT Network?
Sure. Sure thing. Listen, we have an agreement with a national company that already gave us the products and services. We are going to launch tomorrow in the International Telecoms Week in Washington. We are real excited about this. We have, like, six meeting with the largest telecom companies, one of them with large telecommunication coverage in Latin America, because we truly believe that the digital services is a huge opportunity to sell this product because the idea is to sell the devices, but at the same time, the service to, you know, monitoring the elder people. This is going to be huge. This is a very good opportunity.
We truly believe that, you know, the service is going to be very valuable for the customers, and this is, you know, the process that we have been living all these years, you know? We identify opportunities in order to help the customers to grow the business, and we are with them, you know, developing things and adding value in this process. Yeah.
How directly can you go to that 2.3 billion people? Do you have to get approvals from the operators, or can you just test them directly? How does that work?
No, 100%. Very good question. The question is, how can we get the 2.3 billion end -users? Very simple. We offer them services in a wide level, they can resell to the end user, even individuals or enterprises. They are going to become like our face to the end users, but they are going to sell They have sell for individuals and enterprise, they are going to sell the products to them. We only need to reach an agreement with them about the terms, discounts, the volumes and services for each of the products.
If you offer a service, how do they promote your service to the end user?
Well, it's very simple. It there are many, many things in the market. When you are a service for a company in Spain, for instance, suppose Telefónica, and you're asking for a alarm for your home, it's a company that Telefónica is not having a alarm. You know, they are set reselling alarm for another and selling other services for another. This is the way that, how it works. The mobile operators always needing something to differentiate to the other mobile operators in country because they only can compete, you know, by minutes and giga- megabytes or whatever. You know, they want to offer more. This is the way, offering more streaming, more collateral services, more security, more AI services. That's the way how it works. Thank you.
Now, can you go through your capital, structure on the cap table?
Yeah, sure. Alvaro, please. He's asking about the cap table.
Yes.
Of the company.
Sure. Well, we have 26 million authorized common shares. There are only 5.7 million outstanding shares, common shares. We also have a Preferred Series A shares that give us control of the company. Leandro and I, myself control 51% of the voting rights of the company through those preferred shares, and we also have two kind of preferred shares outstanding right now. We don't have any convertible notes. We don't have warrants outstanding. The debt table is also very clean on that regard.
Okay, what is the fully diluted number of shares outstanding in the company now?
Right now we have 5.7 million outstanding common shares. If you convert all the preferred shares, it give you a number around 7 millions.
7 million?
7 million shares. seven.
Seven, seven.
Earlier in the slides, you mentioned that you want to do about $11 million of EBITDA M&A by Q1 2027. How will you finance that, and what's the approximate cap valuation range you're looking at? 'Cause you were talking about 10x-20x EBITDA. Obviously, hoping that that'll be that high price, but give me a little bit of a range.
That's a very good question. Listen, over the years, we have been acquiring companies and raising funds for that, and of course, we have diluting the company. That's the reason why we are a public traded company, to raise funds to acquiring other companies and grow. If you analyze the company over the years, we have been growing every single year the revenue per share of, and the equity per share and the stockholders' equity. Any dilution or acquisition is going to be to create value for the shareholders. Something important, we have 15,000 shareholders, okay? Answering your question, we have been working on acquisition over the last 18 months for an African company that is running a business about $100 million revenue, $6 million EBITDA, and almost $4 million net income.
We agree on the terms, and we are in the process to buy this company over the buying, paying in installments over the next three years based on contingency to the results of the company. In this acquisition, we are going to add, just in one go, $5 million-$6 million EBITDA. This acquisition is going to impact the dilution of the company over the next three years. Just with this acquisition, we are going to jump, you know, from $2.7 million- $5 million. In addition, we are in the process to acquire the minority interest of some of the subsidiaries that we already have. Alvaro is the architect of this plan.
Alvaro, tell a little bit how it's going to impact the EBITDA?
Giving you some figures about your questions. During all this process where we have been acquiring new companies, we have been creating value for our shareholders. Of course, we have been using equity to finance those acquisitions. We have invested $11.5 million in all those acquisitions. From 2018- 2025, our net shareholders' equity has increased from $1.6 million- $16 million. We have created value for our shareholders. Our total asset has gone from $2.5 million- $51 million last year. We really care about creating value for our shareholders. We have been growing the company.
Organic growth.
Organic growth plus the acquisitions, always having our shareholders in mind. If you do the math, the dilution is relative in this case because our net shareholders' equity per issued shares has been increasing year after year as well. We took care about our shareholders and creating value for them. We are in the process of acquiring the minority portion of some of our subsidiaries in order to consolidate 100% of the business into our operations. That is gonna have a huge impact because we are gonna be able to do some reorganizations and save money by sharing the same platforms, switching platforms, reducing some headcounts and some fixed costs.
That is also impact in a positive way the EBITDA and the net income.
Listen, I think it's important to giving you, like, a takeaway of this presentation, and it's this. Listen, this company, this ticker symbol, IQST. Let me go back. If you look at right now, we are trading, like, $1.30, something like this, okay? Over the last months, we have had days that trade almost one the complete float of the company. The most important of this company is this. Listen, the equity per share of the stock, just to imagine how undervalued this company is, the equity per share is $3, and we are trading $1.30. We don't have convertible notes outstanding. We don't have warrants outstanding. We are in the process every single quarter to creating value for the shareholders and expanding the EBITDA.
We are going to announce our results over the next two days for this first quarter. Listen, we are very good shape and track for reaching our goal. Our goal this year is to reach $430 million revenue, we are really in shape for that. This is a huge opportunity. I know that you are looking companies to lend money to them and invest into companies. More than this, we are a huge opportunity here with a very undervalued company, very lean structure, with very management committed with the execution and the discipline of the company to bring us an opportunity for an M&A and of course, with the funds, we can build something really interesting and huge for all of us.
If you have to take away something from this call, listen, we have a huge potential of distribution channel for 2.3 billion end -users. If you have something that you truly believe that match with us, let us know. We are really interested to explore this. Alvaro, anything?
Alvaro, we have one minute.
One follow-up question. You guys mentioned that your preferred shares give you 51% voting rights.
Correct.
If you do the next transaction and you issue shares, do you lose your majority rights, or is it something where you have the voting you want or you keep?
What?
Keep it you want.
Yeah. For any transaction, listen, in the case on M&A, we have to discuss depending on the company that we are going to M&A. Listen, we have been working over this project over 18 years, we always thinking long run for the company and the best interest of the shareholders. Thank you very much for coming. Thank you.