Cycurion Inc. and IQSTEL Inc. announced that they will keep their $1 million cross‑ownership stake while each company issues a one‑time, pro‑rata dividend of approximately $500 k of its own shares to its shareholders. The move replaces the earlier plan to swap the cross‑held shares and streamlines the capital structure for both firms.
The dividend is structured to avoid the regulatory and administrative costs that would accompany a share swap. By issuing their own shares as dividends, Cycurion and IQSTEL preserve the strategic alignment that underpins their partnership while keeping the cross‑ownership intact. The original cross‑shareholding swap is expected to proceed in 2026 once the shares meet seasoning requirements, which typically require a 12‑month holding period before a swap can be executed.
Cycurion’s decision comes amid a challenging financial backdrop. The company reported a 13.9% year‑over‑year decline in Q3 2025 revenue and a net loss of $3.24 million, and its Altman Z‑Score of –2.02 signals a high risk of bankruptcy within two years. Maintaining the cross‑ownership stake and receiving a dividend therefore represents a critical source of liquidity and a signal of continued partnership with a stronger peer.
In contrast, IQSTEL’s Q3 2025 results were robust, with net revenue of $102.8 million—a 90% year‑over‑year increase and a 42% sequential jump. The company is debt‑free, has a strong equity position, and reaffirmed its FY2025 revenue forecast of $340 million. The dividend and retained cross‑ownership reinforce IQSTEL’s confidence in its growth trajectory and its commitment to joint product development in AI‑driven cybersecurity and telecom solutions.
Investors reacted differently to the announcement. Cycurion’s financial weakness and the need for liquidity led to a negative market response, while IQSTEL’s strong earnings and forward‑looking guidance generated a positive reaction. The event underscores the strategic importance of the partnership for Cycurion’s survival and for IQSTEL’s expansion plans.
The cross‑ownership and dividend arrangement is a material capital‑structure change that signals a long‑term partnership and provides immediate shareholder value for both companies. The announcement reflects a strategic pivot for Cycurion toward leveraging a stronger partner and a confidence boost for IQSTEL’s growth strategy.
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