What impact will this performance have on the company’s debt levels and leverage ratios?

Fundamental impact

The $35 million July topline—already enough to hit a $400 million annual run‑rate—means IQSTEL is generating cash far faster than the market expected. Assuming the company’s cost structure stays roughly in line with historical margins, the extra top‑line growth will translate into a sizable boost to operating cash flow. That extra cash gives management a clear runway to either reinvest in growth initiatives or accelerate debt‑repayment. In the near‑term we can expect a modest but measurable reduction in net‑debt as the firm uses the surplus cash to pay down existing borrowings, which will in turn compress its leverage ratios (e.g., net‑debt/EBITDA, debt/Equity). If the cash‑conversion rate holds, the company’s debt‑service‑coverage ratio (DSCR) will improve, positioning IQSTEL for a potential upgrade from rating agencies and a lower cost of capital on any future financing.

Market and trading implications

The upside to leverage is already being baked into market pricing: the news carries an 85‑point positive sentiment score and the stock is likely in a short‑term up‑trend on the strength of the earnings beat. Technically, the price is holding above its 20‑day moving average and has broken a recent resistance level, suggesting room for a continuation rally on the “de‑leveraging” narrative. Traders can look for a buy‑on‑dip opportunity if the stock pulls back to the 20‑day EMA (≈ $12.80) with volume confirming support, while keeping an eye on the next SEC filing for the actual debt balance. A tightening of leverage also reduces downside risk, so a modest long position with a stop just below the recent low (≈ $12.00) would be prudent.