Sequans Communications SA【SQNS】株式ニュース

Sequans Communications Preliminary Unaudited First Quarter 2026 Financial ResultsMay 5, 2026 6:22 AM
NewsfileParis, France--(Newsfile Corp. - May 5, 2026) - Sequans Communications S.A. (NYSE: SQNS) ("Sequans" or the "Company"), a leading provider of 5G/4G cellular IoT semiconductor solutions, today announced preliminary unaudited financial results for the first quarter ended March 31, 2026.First Quarter 2026 Summary Preliminary Unaudited Results Table:(in US$ millions, except share and per share data)Q1 2026Q4 2025 (1)Q1 2025Revenue $6.1 $6.9 $8.1 Gross profit $2.3 $2.9 $5.2 Gross margin (%) 37.7 % 41.4 % 64.5 %Operating income (loss) ($50.5) ($72.1) ($6.8) Net profit (loss) ($54.3) ($76.4) ($7.3) Diluted income (loss) per ADS ($3.73) ($4.93) ($0.29) Non-IFRS diluted income (loss) per ADS (2) ($1.42) ($1.04) ($0.24) Weighted average number of diluted ADS (IFRS) 14,576,046 15,504,809 25,156,570 Weighted average number of diluted ADS (Non-IFRS) 14,576,046 15,504,809 25,156,570 (1) The financial results for 2025 differ from the preliminary unaudited results disclosed in the Company's February 10, 2026 earnings press release. The changes primarily relate to the timing and amount of revenue recognized, adjustments related to the accounting for the compound financial instruments issued in July 2025 and related embedded derivative, the classification of digital asset losses between impairment and losses on sale, the accounting for acquired licenses, property plant and equipment, and new leases, and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management's review. (2) See Use of Non-IFRS/non-GAAP Financial Measures disclosure on page 3. "Our IoT semiconductor business continues to demonstrate solid momentum, supported by a growing backlog, a maturing design-win pipeline, increased product revenue and an increasing number of projects transitioning into production," said Dr. Georges Karam, CEO of Sequans. "We are seeing continued strength across Cat-M, Cat-1bis, along with early engagement in 5G eRedCap, which we believe will play a central role in the next phase of IoT connectivity. We are also seeing encouraging interest in our newly introduced RF Transceivers for drones and defense applications. With improving visibility and a strong foundation across our core product portfolio, we believe Sequans is well positioned to drive sequential growth and move toward cash-flow break-even."Dr. Karam added, "At the same time, we have taken decisive steps to simplify and strengthen our balance sheet, enabling us to sharpen our focus on executing our IoT strategy and advancing our 5G roadmap. As the IoT market transitions from 4G to 5G, we believe Sequans is uniquely positioned to leverage its existing customer base and technology leadership to capture this opportunity. We believe Sequans is entering an important phase of execution, with the foundation in place to scale the business and capture the next wave of growth in IoT connectivity."First Quarter 2026 Financial Summary:Revenue: Total revenue was $6.1 million, a decrease of 12.5% compared to the fourth quarter of 2025 and a decrease of 24.8% compared to the first quarter of 2025. Revenue in the first quarter of 2026 was 84% from product sales; product sales increased 45% compared to the first quarter of 2025, while reflecting a seasonal decrease of 15% compared to the fourth quarter of 2025. In the first quarter of 2025, revenue included significant license and services revenue from Qualcomm related to the 2024 sale and license of intellectual property. Gross margin: Gross margin was 37.7% compared to 41.4% in the fourth quarter of 2025 and 64.5% in the first quarter of 2025, reflecting higher product sales in the revenue mix in the first quarter of 2026 compared with the prior periods, both of which included a significant amount of license and services revenue. Operating loss: Operating loss was $50.5 million compared to operating loss of $72.1 million in the fourth quarter of 2025 and $6.8 million in the first quarter of 2025. The operating loss in the first quarter of 2026 and in fourth quarter of 2025 included unrealized losses on impairment of the value of our Bitcoin investment of $29.3 million and $56.3 million, respectively, and realized net losses of $11.7 million and $6.1 million, respectively, on the sales of Bitcoin primarily to finance the redemption of convertible debt and the Company's ADS buyback program. Net loss: Net loss was $54.3 million, or ($3.73) per diluted ADS, compared to net loss of $76.4 million, or ($4.93) per diluted ADS, in the fourth quarter of 2025 and net loss of $7.3 million, or ($0.29) per diluted ADS, in the first quarter of 2025. Net loss in the first quarter of 2026 and in the fourth quarter of 2025 included non-cash gains on the change in value of the embedded derivative related to compound financial instruments issued in July 2025 for $9.9 million and $30.8 million, respectively, nearly off-set by non-cash losses of $9.9 million and $29.3 million, respectively, on the early extinguishment of debt, and included net interest expense of $3.9 million and $5.3 million, respectively, that was primarily non-cash and related to the IFRS accounting for the convertible debt issued in July 2025. Non-IFRS loss: Excluding non-cash impairment of digital assets, non-cash stock-based compensation, the non-cash impact of the fair-value, non-cash loss on early extinguishment of debt, and effective interest adjustments related to the convertible debt and associated embedded derivatives and other financings, non-IFRS net loss was $20.7 million, or ($1.42) per diluted ADS, in the first quarter of 2026 compared to non-IFRS net loss of $16.2 million, or ($1.04) per diluted ADS in the fourth quarter of 2025, and non-IFRS net loss of $6.1 million, or ($0.24) per diluted ADS, in the first quarter of 2025. Cash: Cash and cash equivalents at March 31, 2026 totaled $10.6 million compared with $13.4 million at December 30, 2025. Digital assets: At March 31, 2026, the Company held 1,514 Bitcoin with a market value of $103.2 million, of which 1,217 Bitcoin ($82.9 million) was pledged as security for the remaining $66.2 million of convertible debt issued in July 2025. As of April 30, 2026, the Company held 1,114 Bitcoin with a market value of $84.9 million, of which 817 Bitcoin ($62.3 million) was pledged as security for the remaining $35.9 million of convertible debt. The remaining debt is scheduled to be redeemed by June 1, 2026, at which time all remaining Bitcoin will be unrestricted and available for sale.Conference Call DetailsDate: Tuesday, May 5, 2026
Time: 8:00 a.m. ET / 14:00 CETThe live webcast will be available on the Sequans Investor Relations website at https://sequans.com/investor-relations/investor-materials/.To participate via telephone, please register in advance using this link: https://register-conf.media-server.com/register/BIc0264ac506fc4ae09bd78844e6d8f586. Upon registration, participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique registrant ID.Those who wish to join the live webcast can access it here: Those who wish to join the live webcast can access it here: https://edge.media-server.com/mmc/p/tf9babvo/The company suggests participants for both the conference call and those listening via the web dial in or sign on at least 15 minutes in advance of the call.For those unable to participate in the live event, a replay will be available on the company's website after 9:00 a.m. ET.Forward-Looking StatementsThis press release contains certain statements that are, or may be deemed to be, forward-looking statements with respect to financial condition, results of operations and business of Sequans, bitcoin treasury and business strategy for 2026 and beyond, financing requirements, and business strategy for 2026 and beyond. These forward-looking statements include, but are not limited to, statements that are not historical fact. These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements also often use words such as "anticipate," "committed to", "target," "continue," "estimate," "expect," "forecast," "intend," "may," "plan," "goal," "believe," "hope," "aims," "continue," "could," "project," "should," "will" or other words of similar meaning. These statements are based on assumptions and assessments made by Sequans in light of its experience and perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct, and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this announcement.Forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Such risks and uncertainties include, but are not limited to, our planned exit fom our Bitcoin treasury strategy and potential adverse reactions or changes to business relationships resulting from the implementation of the Bitcoin treasury initiative and fluctuations on the value of Bitcoin and the implications of a decline in the value of Bitcoin on our collateral requirements. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business and competitive environments, market and regulatory forces, including tariffs and trade wars, our ability to convert our product pipeline and design wins into revenue, and a decline in the value of Bitcoin. If any one or more of these risks or uncertainties materialize or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward-looking statements should therefore be construed in the light of such factors. A more complete description of these and other material risks can be found in Sequans' filings with the SEC, including its annual report on Form 20-F for the year ended December 31, 2024, "Risk Related to Our Bitcoin Strategy and Holdings" filed on Form 6-K on July 17, 2025 and other documents that may be filed from time to time with the SEC, including the annual report for the year ended December 31, 2025 expected to be filed by May 15, 2026. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. Sequans undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by applicable law. We have not filed our Form 20-F for the year ended December 31, 2025. As a result, all 2025 financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates that are identified prior to the time we file our Form 20-F. Use of Non-IFRS/non-GAAP Financial MeasuresTo supplement our unaudited consolidated financial statements prepared in accordance with IFRS, we disclose certain non-IFRS, or non-GAAP, financial measures. These measures exclude the non-cash impairment of digital assets, non-cash stock-based compensation and the non-cash impacts of convertible debt extensions, and effective interest adjustments related to the convertible debt with embedded derivatives and other financings. We believe that these measures can be useful to facilitate comparisons among different companies. These non-GAAP measures have limitations in that the non-GAAP measures we use may not be directly comparable to those reported by other companies. We seek to compensate for this limitation by providing a reconciliation of the non-GAAP financial measures to the most directly comparable IFRS measures in the table attached to this press release.About Sequans CommunicationsSequans Communications S.A. (NYSE: SQNS) is a leading fabless semiconductor company specializing in wireless 4G/5G cellular technology for the Internet of Things (IoT). Sequans' engineers design and develop innovative, secure, and scalable technologies that power the next generation of AI-connected applications - including secured payment, smart mobility and logistics, smart cities, industrial, e-health, and smart homes. Sequans offers a comprehensive portfolio of 4G/5G solutions, including LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap and eRedCap platforms, all purpose-built for IoT and delivering breakthroughs in wireless connectivity, power efficiency, security, and performance. The company also provides advanced design services and technology licensing.Founded in 2003, Sequans is headquartered in France and operates globally, with offices in the United States, United Kingdom, Switzerland, Israel, Finland, Taiwan, and China.Visit Sequans at sequans.com and follow us on LinkedIn and X. Sequans investor relations: David Hanover/Rob Kelly, KCSA Strategic Communications (USA), +1 212.682.6300, ir@sequans.comSequans media relations: Linda Bouvet (France), +33 170721600 media@sequans.comCondensed financial tables followSEQUANS COMMUNICATIONS S.A. PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended

(in thousands of US$, except share and per share amounts)
March 31, 2026.

Dec 31, 2025 (1)

March 31, 2025 (1)

Revenue
6,054

6,915

8,054

Cost of revenue
(3,771)

(4,049)

(2,863)

Gross profit
2,283

2,866

5,191

Other operating Income (expenses)
-

(320)

-

Research and development expense
(7,368)

(7,720)

(7,223)

Sales and marketing expense
(2,023)

(1,902)

(2,355)

General and administrative expense
(2,375)

(2,688)

(2,451)

Digital asset Impairment losses
(29,334)

(56,283)

-

Digital asset losses on sales, net
(11,683)

(6,102)

-

Total operating income (expenses)
(52,783)

(75,015)

(12,029)

Operating profit (loss)
(50,500)

(72,149)

(6,838)

Financial income (expense):

Interest income (expense), net
(3,895)

(5,168)

368

Change in fair value of derivative financial instruments
9,942

30,804

-

Gain (loss) on debt extinguishment
(9,866)

(29,348)

-

Foreign exchange gain (loss)
153

(347)

(517)

Profit (Loss) before income taxes
(54,166)

(76,208)

(6,987)

Income tax expense
(146)

(219)

(281)

Profit (Loss)$(54,312)$(76,427)$(7,268)
Attributable to:

Shareholders of the parent
(54,312)
(76,427)
(7,268)

Minority interests
-

-

-

Basic income (loss) per ADS
($3.73)
($4.93)
($0.29)
Diluted income (loss) per ADS
($3.73)
($4.93)
($0.29)
Weighted average number of ADS used for computing:

- Basic
14,576,046

15,504,809

25,156,570

- Diluted
14,576,046

15,504,809

25,156,570

(1) The financial results for 2025 differ from the preliminary unaudited results disclosed in the Company's February 10, 2026 and May 6, 2025 earnings press releases. The changes primarily relate to the timing and amount of revenue recognized, adjustments related to the accounting for the compound financial instruments issued in July 2025 and related embedded derivative, the classification of digital asset losses between impairment and losses on sale, the accounting for acquired licenses, property plant and equipment, and new leases, finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management's review.
SEQUANS COMMUNICATIONS S.A. PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

At March 31,

At Dec 31,
(in thousands of US$)
2026

2025 (1)
ASSETS

Non-current assets

Property, plant and equipment$4,322
$4,299

Intangible assets
7,862

8,522

Goodwill
3,676

3,676

Digital assets pledge as collateral for convertible debt
82,917

141,505

Digital assets, unrestricted
20,238

45,686

Deposits and other receivables
750

2,161

Prepaid expenses
2,110

2,213

Other non-current financial assets
400

409

Total non-current assets
122,275

208,471

Current assets

Inventories
4,025

3,933

Trade receivables
3,778

3,278

Contract assets
107

98

Prepaid expenses
2,773

2,564

Other receivables
9,261

5,953

Research tax credit receivable
5,246

5,898

Cash and cash equivalents
10,628

13,386

Total current assets
35,818

35,110
Total assets$158,093
$243,581
EQUITY AND LIABILITIES

Equity

Issued capital, euro 0.01 nominal value, 1,522,766,502 shares authorized, issued and outstanding at March 31, 2026 (1,599,589,702 shares at December 31, 2025)$17,831
$18,718

Share premium
177,196

185,598

Other capital reserves
77,991

77,515

Treasury shares
(933)
(9,363)
Accumulated deficit
(199,386)
(145,074)
Other components of equity
83

284

Total equity
72,782

127,678

Non-current liabilities

Government research financing
1,886

3,297

Lease liabilities
1,238

1,225

Trade payables and other non-current liabilities
1,272

1,360

Provisions
2,194

2,112

Deferred tax liabilities
127

129

Contract liabilities
3,153

3,157

Total non-current liabilities
9,870

11,280

Current liabilities

Trade payables
7,467

10,081

Convertible debt
42,265

56,422

Convertible debt embedded derivative
170

10,800

Lease liabilities
241

601

Government loan
482

979

Government research financing
4,301

4,308

Contract liabilities
7,636

7,224

Income tax liabilities - Parent
3,057

3,124

Other current liabilities and provisions
9,822

11,084

Total current liabilities
75,441

104,623
Total equity and liabilities$158,093
$243,581

(1) The financial position at December 31, 2025 differs from the preliminary unaudited results disclosed in the Company's February 10, 2026 earnings press release. The changes primarily relate to the timing and amount of revenue recognized, adjustments related to the accounting for the compound financial instruments issued in July 2025 and related embedded derivative, the classification of digital asset losses between impairment and losses on sale, the accounting for acquired licenses, property plant and equipment, and new leases, and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management's review.
SEQUANS COMMUNICATIONS S.A.PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

Three months ended March 31,
(in thousands of US$)
2026

2025 (1)
Operating activities

Loss before income taxes$(54,166)
(6,987)
Adjustments to reconcile profit before tax to net cash flows

Depreciation and impairment of property, plant and equipment
597

900

Amortization and impairment of intangible assets
782

765

Impairment of digital assets
29,334

-

Share-based payment expense
476

1,014

Decrease in provision
(77)
(32)

Interest expense, net
3,895

(368)

Change in the fair value of convertible debt embedded derivative
(9,942)
-

Loss (gain) on debt extinguishment, net of non-cash transaction costs
9,866

-

Foreign exchange loss (gain)
(39)
(195)

Loss (gain) on disposal of intangible and tangible assets
-

12

Loss on digital assets
11,683

-

Working capital adjustments

Decrease in trade receivables and other receivables
(2,858)
1,240

Decrease (increase) in inventories
(36)
(103)

Increase in research tax credit receivable
660

(355)

Increase (decrease) in trade payables and other liabilities
(3,291)
(281)

Increase (Decrease) in contract liabilities
175

(3,868)

Increase in government grant advances
(1,248)
(881)
Income tax paid
(474)
(245)Net cash flow used in operating activities
(14,663)
(9,384)Investing activities

Purchase of intangible assets and property, plant and equipment
(1,199)
(461)
Proceeds from sale of intangible assets
43,017

-

Investment in ACP Advanced Circuit Pursuit, net of cash acquired
-

(1,080)
Sale (Purchase) of financial assets
99

(40)
Decrease (increase) of short-term deposit
-

19,000

Interest received
38

552
Net cash flow from (used in) investing activities
41,955

17,971
Financing activities

Proceeds from exercise of pre-funded and common warrants
73

-

Proceeds (repayment of) from interest-bearing receivables financing
-

(3,742)
Purchase of treasury shares
(933)
-

Payment of lease liabilities
(342)
(348)
Repayment of convertible debt
(28,254)
-

Repayment of government loans
(369)
(326)
Repayment of loans
-

(420)
Repayment of interest-bearing research project financing
(40)
(370)
Interest paid
(185)
(528)Net cash flows from (used in) financing activities
(30,050)
(5,734)
Net increase in cash and cash equivalents
(2,758)
2,853

Net foreign exchange difference
-

2

Cash and cash equivalents at January 1
13,386

9,093
Cash and cash equivalents at end of the period
10,628

11,948

(1) The financial results for 2025 differ from the preliminary unaudited results disclosed in the Company's February 10, 2026 and May 6, 2025 earnings press releases. The changes primarily relate to the timing and amount of revenue recognized, adjustments related to the accounting for the compound financial instruments issued in July 2025 and related embedded derivative, the classification of digital asset losses between impairment and losses on sale, the accounting for acquired licenses, property plant and equipment, and new leases, and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management's review.
SEQUANS COMMUNICATIONS S.A. PRELIMINARY UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS(in thousands of US$, except share and per share amounts)
Three months ended

March 31,
2026

Dec 31, 2025 (3)

March 31,
2025
IFRS profit (loss) as reported$(54,312)$(76,427)$(7,268)Add back

Non-cash stock-based compensation expense according to IFRS 2 (1)
476

356

1,014

Non-cash impairment of digital assets
29,334

56,283

-

Non-cash change in the fair value of embedded derivatives
(9,942)
(30,804)
-

Non-cash interest on convertible debt and other financing (2)
3,872

5,075

111

Non-cash impact on gain (loss) on debt extinguishment
9,866

29,348

-
Non-IFRS profit (loss) adjusted$(20,706)$(16,169)$(6,143)IFRS basic profit (loss) per ADS as reported
($3.73)
($4.93)
($0.29)Add back

Non-cash stock-based compensation expense according to IFRS 2 (1)$0.03
$0.02
$0.04

Non-cash impairment of digital assets$2.01
$3.63
$0.00

Non-cash change in the fair value of embedded derivatives
($0.68)
($1.99)$0.00

Non-cash interest on convertible debt and other financing (2)$0.27
$0.33
$0.01

Non-cash impact on gain (loss) on debt extinguishment$0.68
$1.90
$0.00
Non-IFRS basic profit (loss) per ADS
($1.42)
($1.04)
($0.24)IFRS diluted profit (loss) per ADS
($3.73)
($4.93)
($0.29)Add back

Non-cash stock-based compensation expense according to IFRS 2 (1)$0.03
$0.02
$0.04

Non-cash impairment of digital assets$2.01
$3.63
$0.00

Non-cash change in the fair value of embedded derivatives
($0.68)
($1.99)$0.00

Non-cash interest on convertible debt and other financing (2)$0.27
$0.33
$0.01

Non-cash impact on gain (loss) on debt extinguishment$0.68
$1.90
$0.00
Non-IFRS diluted profit (loss) per ADS
($1.42)
($1.04)
($0.24)

(1) Included in the IFRS profit (loss) as follows:

Cost of product revenue$2
$(21)$16

Research and development
156

209

205

Sales and marketing
70

(93)
223

General and administrative
248

261

570

(2) Related to the difference between contractual and effective interest rates

(3) The financial results for 2025 differ from the preliminary unaudited results disclosed in the Company's February 10, 2026 and May 6, 2025 earnings press releases. The changes primarily relate to the timing and amount of revenue recognized, adjustments related to the accounting for the compound financial instruments issued in July 2025 and related embedded derivative, the classification of digital asset losses between impairment and losses on sale, the accounting for acquired licenses, property plant and equipment, and new leases, finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management's review.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/295950 Original: Sequans Communications Preliminary Unaudited First Quarter 2026 Financial Results

Sequans Communications Unaudited Fourth Quarter and Full Year 2025 Financial ResultsFebruary 10, 2026 6:00 AM
NewsfileParis, France--(Newsfile Corp. - February 10, 2026) - Sequans Communications S.A. (NYSE: SQNS) ("Sequans" or the "Company"), a leading provider of 5G/4G cellular IoT semiconductor solutions and a pioneer in Bitcoin treasury, today announced unaudited financial results for the fourth quarter and full year ended December 31, 2025.Fourth Quarter and Full Year 2025 Summary Unaudited Results Table (*):(in US$ millions, except share and
per share data)Q4 2025Q3 2025 (1)Q4 2024Full year 2025Full year 2024Revenue $7.0 $4.0 $11.0 $27.2 $36.8 Gross profit $2.6 $1.7 $7.4 $14.8 $27.7 Gross margin (%) 37.7 % 42.4 % 67.4 % 54.3 % 75.3 %Operating income (loss) ($74.5) ($20.5) ($5.6) ($110.3) $69.5 Net profit (loss) ($87.1) $0.9 ($2.4) ($102.4) $57.6 Diluted income (loss) per ADS ($5.62) $0.06 ($0.95) ($11.81) $20.27 Non-IFRS diluted income (loss) per ADS (2) ($1.19) ($0.73) ($0.87) ($5.04) $22.57 Weighted average number of diluted ADS (IFRS) 15,504,809 15,356,080 2,500,854 8,673,667 2,840,210 Weighted average number of diluted ADS (Non-IFRS) 15,504,809 13,933,963 2,500,854 8,673,667 2,840,210 (1) Restated to reflect finalization of the allocation of the ACP acquisition purchase price and accounting for compound financial instruments issued in July 2025, and change of $255,000 in recognition of certain service revenue from straight-line to per unit basis to align with associated product revenue sales.(2) See Use of Non-IFRS/non-GAAP Financial Measures disclosure on page 3. (*) Bitcoin KPIs are presented on the website and are updated with public information on an ongoing basis: https://sequans.com/bitcoin-treasury"Our IoT semiconductor business continues to gain momentum and our fourth-quarter revenue of $7 million was predominantly product-driven," said Dr. Georges Karam, CEO of Sequans. "We exited 2025 with a strengthened revenue profile, backed by a strong order backlog and a design-win pipeline of more than $300 million in potential three-year product revenue. Over 44% of those design-wins are already in mass production and additional projects are expected to be added to production throughout 2026. With increasing numbers of projects now in production, strong demand across LTE-M, Cat 1bis, RF transceivers, and early 5G eRedCap engagements, and a clear path toward projected cash-flow break-even by the end of 2026, we believe Sequans is positioned to drive sustainable growth and long-term shareholder value."Dr. Karam added, "At the same time, we have continued to take a disciplined and value-driven approach to capital allocation, balancing execution of our IoT business with thoughtful management of our Bitcoin digital asset treasury. In an environment where many of our digital asset treasury peers are trading below intrinsic value, we believe the most accretive action has been repurchasing our ADS at a meaningful discount to our net cash and Bitcoin NAV. In the fourth quarter, we repurchased approximately 9.7% of our outstanding ADSs and have received Board authorization to repurchase an additional 10%. We remain focused on unlocking the full value underlying our balance sheet while maintaining flexibility to evaluate other capital allocation tools as market conditions evolve."Fourth Quarter 2025 Financial Summary:Revenue: Revenue was $7.0 million, an increase of 72.6% compared to the third quarter of 2025 and a decrease of 37.0% compared to the fourth quarter of 2024. In the fourth quarter of 2024, revenue included significant license and services revenue from Qualcomm related to the 2024 sale and license of intellectual property. Gross margin: Gross margin was 37.7% compared to 42.4% in the third quarter of 2025 and 67.4% in the fourth quarter of 2024, reflecting higher product sales in the revenue mix in the third and fourth quarters of 2025 compared with the fourth quarter of 2024, which included a significant amount of license and services revenue. In the fourth quarter of 2025, provisions for slow-moving inventory were recorded. Gross margin excluding this impact would have been approximately 43%.Operating loss: Operating loss was $74.5 million compared to operating loss of $20.5 million in the third quarter of 2025 and $5.6 million in the fourth quarter of 2024. The operating loss in the fourth quarter of 2025 included a $56.9 million unrealized loss on impairment of the value of our Bitcoin investment compared to an $8.2 million unrealized loss in the third quarter of 2025, and a realized net loss of $8.4 million on the sale of Bitcoin done to finance the redemption of convertible debt and the Company's ADS buyback program. Net profit (loss): Net loss was $87.1 million, or ($5.62) per diluted ADS, compared to net profit of $0.9 million, or $0.06 per diluted ADS, in the third quarter of 2025 and net loss of $2.4 million, or ($0.95) per diluted ADS, in the fourth quarter of 2024. Net loss in the third quarter of 2025 included a non-cash $23.1 million gain on the change in value of the embedded derivative related to compound financial instruments issued in July 2025 and a non-cash loss of $29.1 million on the early extinguishment of debt, and included net interest expense of $5.8 million that was primarily non-cash and related to the IFRS accounting for the convertible debt issued in July. Non-IFRS loss: Excluding non-cash impairment of digital assets, non-cash stock-based compensation, the non-cash impact of the fair-value, non-cash loss on early extinguishment of debt, and effective interest adjustments related to the convertible debt and associated embedded derivatives and other financings, non-IFRS net loss was $18.5 million, or ($1.19) per diluted ADS, in the fourth quarter of 2025 compared to non-IFRS net loss of $11.2 million, or ($0.73) per diluted ADS in the third quarter of 2025, and non-IFRS net profit of $2.2 million, or ($0.87) per diluted ADS, in the fourth quarter of 2024. Cash: Cash and cash equivalents at December 31, 2025 totaled $13.4 million, the same amount as at September 30, 2025. Digital assets: At December 31, 2025, the Company held 2,139 Bitcoin with a market value of $187.1 million, of which 1,617 Bitcoin ($141.4 million) was pledged as security for $94.5 million of convertible debt issued in July 2025. Conference Call DetailsDate: Tuesday, February 10, 2026
Time: 8:00 a.m. ET / 14:00 CETThe live webcast will be available on the Sequans Investor Relations website at https://sequans.com/investor-relations/investor-materials/.To participate via telephone, please register in advance using this link: https://register-conf.media-server.com/register/BIc0264ac506fc4ae09bd78844e6d8f586. Upon registration, participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique registrant ID.Those who wish to join the live webcast can access it here: https://edge.media-server.com/mmc/p/rfdt2cm6/The company suggests participants for both the conference call and those listening via the web dial in or sign on at least 15 minutes in advance of the call.For those unable to participate in the live event, a replay will be available on the company's website after 9:00 a.m. ET.Forward-Looking StatementsThis press release contains certain statements that are, or may be deemed to be, forward-looking statements with respect to financial condition, results of operations and business of Sequans, bitcoin treasury and business strategy for 2026 and beyond, ADS repurchase plans, financing requirements, and business strategy for 2026 and beyond. These forward-looking statements include, but are not limited to, statements that are not historical fact. These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements also often use words such as "anticipate," "committed to", "target," "continue," "estimate," "expect," "forecast," "intend," "may," "plan," "goal," "believe," "hope," "aims," "continue," "could," "project," "should," "will" or other words of similar meaning. These statements are based on assumptions and assessments made by Sequans in light of its experience and perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct, and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this announcement.Forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Such risks and uncertainties include, but are not limited to, our ability to successfully implement our Bitcoin treasury strategy and potential adverse reactions or changes to business relationships resulting from the implementation of the Bitcoin treasury initiative and fluctuations on the value of Bitcoin and the implications of a decline in the value of Bitcoin on our collateral requirements. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business and competitive environments, market and regulatory forces, including tariffs and trade wars, and a decline in the value of Bitcoin. If any one or more of these risks or uncertainties materialize or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward-looking statements should therefore be construed in the light of such factors. A more complete description of these and other material risks can be found in Sequans' filings with the SEC, including its annual report on Form 20-F for the year ended December 31, 2024, "Risk Related to Our Bitcoin Strategy and Holdings" filed on Form 6-K on July 17, 2025 and other documents that may be filed from time to time with the SEC. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. Sequans undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by applicable law.Use of Non-IFRS/non-GAAP Financial MeasuresTo supplement our unaudited consolidated financial statements prepared in accordance with IFRS, we disclose certain non-IFRS, or non-GAAP, financial measures. These measures exclude the non-cash impairment of digital assets, non-cash stock-based compensation and the non-cash impacts of convertible debt extensions, and effective interest adjustments related to the convertible debt with embedded derivatives and other financings. We believe that these measures can be useful to facilitate comparisons among different companies. These non-GAAP measures have limitations in that the non-GAAP measures we use may not be directly comparable to those reported by other companies. We seek to compensate for this limitation by providing a reconciliation of the non-GAAP financial measures to the most directly comparable IFRS measures in the table attached to this press release.About Sequans CommunicationsSequans Communications S.A. (NYSE: SQNS) is a leading fabless semiconductor company specializing in wireless 4G/5G cellular technology for the Internet of Things (IoT) as well as a pioneer in Bitcoin Treasury. Sequans views Bitcoin as a long-term investment and intends to strategically accumulate it as its primary treasury reserve asset. The company's approach involves acquiring and holding Bitcoin using net proceeds from equity and debt issuances — executed from time to time based on market conditions — as well as cash generated from operations and intellectual property monetization.Sequans' engineers design and develop innovative, secure, and scalable technologies that power the next generation of AI-connected applications - including secured payment, smart mobility and logistics, smart cities, industrial, e-health, and smart homes. Sequans offers a comprehensive portfolio of 4G/5G solutions, including LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap/eRedCap platforms, all purpose-built for IoT and delivering breakthroughs in wireless connectivity, power efficiency, security, and performance. The company also provides advanced design services and technology licensing. Sequans management believes the combination of a strategic Bitcoin reserve and deep focus on semiconductor innovation positions the company for long-term value creation.Founded in 2003, Sequans is headquartered in France and operates globally, with offices in the United States, United Kingdom, Switzerland, Israel, Finland, Taiwan, and China.Visit Sequans at sequans.com and follow us on LinkedIn and X. Sequans investor relations: David Hanover/Rob Kelly, KCSA Strategic Communications (USA), +1 212.682.6300, ir@sequans.com
Sequans media relations: Linda Bouvet (France), +33 170721600 media@sequans.comCondensed financial tables followSEQUANS COMMUNICATIONS S.A. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS    Three months ended     (in thousands of US$, except share and per share amounts)            Dec 31,
2025   Sept 30,
2025 (1)   Dec 31,
2024
Revenue
6,961

4,034

11,049

Cost of revenue
(4,339)

(2,324)

(3,605)

Gross profit
2,622

1,710

7,444

Other operating Income (expenses)
(320)

(418)

-

Research and development expense
(6,614)

(7,510)

(7,522)

Sales and marketing expense
(1,825)

(2,143)

(2,411)

General and administrative expense
(3,084)

(3,935)

(3,072)

Digital asset Impairment losses
(56,899)

(8,230)

-

Digital asset losses on sales, net
(8,390)

-

-

Total operating income (expenses)
(77,132)

(22,236)

(13,005)

Operating profit (loss)
(74,510)

(20,526)

(5,561)

Financial income (expense):

Interest income (expense), net
(5,737)

(6,957)

540

Change in fair value of derivative financial instruments
23,079

28,325

-

Gain (loss) on debt extinguishment
(29,067)

-

332

Foreign exchange gain (loss)
(251)

230

854

Profit (Loss) before income taxes
(86,486)

1,072

(3,835)

Income tax expense
(641)

(178)

1,458

Profit (Loss)$(87,127)$894
$(2,377)
Attributable to:

Shareholders of the parent
(87,127)
894

(2,377)

Minority interests
-

-

-

Basic income (loss) per ADS
($5.62)$0.06

($0.95)
Diluted income (loss) per ADS
($5.62)$0.06

($0.95)
Weighted average number of ADS used for computing:

- Basic
15,504,809

13,933,963

2,500,854

- Diluted
15,504,809

15,356,080

2,500,854

(1) Restated to reflect finalization of the allocation of the ACP acquisition purchase price and accounting for compound financial instruments issued in July 2025, and change of $255,000 in recognition of certain service revenue from straight-line to per unit basis to align with associated product revenue sales.
SEQUANS COMMUNICATIONS S.A. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Twelve months ended Dec 31,
(in thousands of US$, except share and per share amounts)
2025

2024

Revenue
27,191

36,831
Cost of revenue
(12,426)

(9,092)
Gross profit
14,765

27,739
Other operating Income (expenses)
(738)

-
Gain on sale of 4G intangible and tangible assets, net
-

153,129
Research and development expense
(29,844)

(28,527)
Sales and marketing expense
(8,521)

(11,773)
General and administrative expense
(12,489)

(14,402)
Digital asset Impairment losses
(65,129)

-
Digital asset losses on sales, net
(8,390)

-
Impairment of 5G broadband platform intangible and tangible assets
-

(56,633)
Total operating income (expenses)
(125,111)

41,794
Operating profit (loss)
(110,346)

69,533
Financial income (expense):

Interest income (expense), net
(12,165)

(22,878)

Change in fair value of derivative financial instruments
51,404

3

Gain (loss) on debt extinguishment
(29,067)

13,952

Foreign exchange gain (loss)
(1,014)

494
Profit (Loss) before income taxes
(101,188)

61,104
Income tax expense
(1,254)

(3,537)
Profit (Loss)$(102,442)$57,567
Attributable to:

Shareholders of the parent
(102,442)
57,567

Minority interests
-

-
Basic income (loss) per ADS
($11.81)$23.19
Diluted income (loss) per ADS
($11.81)$20.27
Weighted average number of ADS used for computing:

- Basic
8,673,667

2,482,902
- Diluted
8,673,667

2,840,410
SEQUANS COMMUNICATIONS S.A. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

At Dec 31,

At Dec 31,
(in thousands of US$)
2025

2024
ASSETS

Non-current assets

Property, plant and equipment
$ 6,207

$ 4,308
Intangible assets
9,413

5,641
Goodwill
3,099

-
Digital assets
187,149

-
Deposits and other receivables
2,262

3,246
Prepaid expenses
5,461

-
Other non-current financial assets
409

353
Total non-current assets
214,000

13,548
Current assets

Inventories
3,933

2,874
Trade receivables
3,512

4,809
Contract assets
98

122
Prepaid expenses
1,721

1,410
Other receivables
6,059

17,492
Research tax credit receivable
6,228

4,184
Short-term deposits
-

53,000
Cash and cash equivalents
13,398

9,093
Total current assets
34,949

92,984
Total assets$248,949
$106,532
EQUITY AND LIABILITIES

Equity

Issued capital, euro 0.01 nominal value, 1,599,589,702 shares authorized, issued and outstanding at December 31, 2025 (251,408,922 shares at December 31, 2024)$18,718
$2,934
Share premium
179,083

14,512
Other capital reserves
77,521

74,504
Treasury shares
(9.363)
-
Accumulated deficit
(138,237)
(35,795)Other components of equity
(5)
(796) Total equity
127,717

55,359
Non-current liabilities

Government loan
-

616
Government research financing
3,091

5,669
Convertible debt
57,024

-
Embedded derivatives
10,800

-
Lease liabilities
2,015

333
Trade payables and other non-current liabilities
1,439

-
Provisions
2,096

1,400
Deferred tax liabilities
186

173
Contract liabilities
5,186

809
Total non-current liabilities
81,837

9,000
Current liabilities

Trade payables
11,199

6,106
Interest-bearing receivables financing
-

3,742
Lease liabilities
679

1,439
Government loan
979

1,802
Government research financing
4,269

4,062
Contract liabilities
5,682

11,021
Income tax liabilities - Parent
3,124

2,827
Other current liabilities and provisions
13,463

11,174
Total current liabilities
39,395

42,173
Total equity and liabilities$248,949
$106,532
SEQUANS COMMUNICATIONS S.A. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

Twelve months ended Dec 31,
(in thousands of US$)
2025

2024
Operating activities

Loss before income taxes$(101,188)$61,104

Adjustments to reconcile profit before tax to net cash flows

Depreciation and impairment of property, plant and equipment
2,959

3,353

Amortization and impairment of intangible assets
4,991

60,690

Impairment of digital assets
65,129

-

Share-based payment expense
3,017

4,090

Decrease in provision
541

191

Interest expense, net
12,165

22,878

Change in the fair value of convertible debt embedded derivative
(51,404)
(3)

Loss (gain) on debt extinguishment, net of non-cash transaction costs
28,018

(13,952)

Foreign exchange loss (gain)
(439)
(29)

Loss (gain) on disposal of intangible and tangible assets
12

(157,095)

Loss on digital assets
8,360

-

Working capital adjustments

Decrease in trade receivables and other receivables
5,294

3,637

Decrease (increase) in inventories
(1,275)
3,141

Increase in research tax credit receivable
(2,439)
(2,081)

Increase (decrease) in trade payables and other liabilities
4,936

(13,076)

Increase (Decrease) in contract liabilities
(2,432)
5,978

Increase in government grant advances
1,863

2,416

Income tax paid
(888)
(753)Net cash flow used in operating activities
(22,780)
(19,511)Investing activities

Purchase of intangible assets and property, plant and equipment
(5,913)
(3,316)
Purchase of digital assets
(377,200)
-

Capitalized development expenditures
-

(16,428)
Proceeds from sale of intangible assets
-

165,611

Proceeds from sale of digital assets
116,532

-

Investment in ACP Advanced Circuit Pursuit, net of cash acquired
(2,398)
-

Sale (Purchase) of financial assets
382

(30)
Decrease (increase) of short-term deposit
53,000

(53,000)
Interest received
1,413

850
Net cash flow from (used in) investing activities
(214,184)
93,687
Financing activities

Private equity offering proceeds, net of transaction costs paid
184,660

-

Proceeds from convertible debt, net of transaction costs paid
174,395

-

Proceeds (repayment of) from interest-bearing receivables financing
(3,742)
3,329

Proceeds from related party loans
-

14,000

Proceeds from interest-bearing research project financing
1,129

934

Purchase on own shares
(9,363)
-

Payment of lease liabilities
(1,518)
(1,508)
Repayment of convertible debt
(100,643)
(54,935)
Repayment of government loans
(1,402)
(1,705)
Repayment of loans
(420)
(23,000)
Repayment of interest-bearing research project financing
(461)
(1,316)
Interest paid
(1,504)
(6,587)Net cash flows from (used in) financing activities
241,131

(70,788)
Net increase in cash and cash equivalents
4,167

3,388

Net foreign exchange difference
138

-

Cash and cash equivalents at January 1
9,093

5,705
Cash and cash equivalents at end of the period
13,398

9,093
SEQUANS COMMUNICATIONS S.A. UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS(in thousands of US$, except share and per share amounts)
Three months ended

Dec 31,
2025

Sept 30,
2025 (3)

December 31, 2024
IFRS profit (loss) as reported$(87,127)$894
$(2,377)Add back

Non-cash stock-based compensation expense according to IFRS 2 (1)
362

762

480

Non-cash impairment of digital assets
56,899

8,230

-

Non-cash change in the fair value of embedded derivatives
(23,079)
(28,325)
-

Non-cash interest on convertible debt and other financing (2)
5,352

7,216

62

Non-cash impact on gain (loss) on debt extinguishment
29,067

-

(332)Non-IFRS profit (loss) adjusted$(18,526)$(11,223)$(2,167)IFRS basic profit (loss) per ADS as reported
($5.62)$0.06

($0.95)Add back

Non-cash stock-based compensation expense according to IFRS 2 (1)$0.02
$0.05
$0.19

Non-cash impairment of digital assets$3.67
$0.59
$0.00

Non-cash change in the fair value of embedded derivatives
($1.49)
($2.03)$0.00

Non-cash interest on convertible debt and other financing (2)$0.35
$0.52
$0.02

Non-cash impact on gain (loss) on debt extinguishment$1.88
$0.00

($0.13)Non-IFRS basic profit (loss) per ADS
($1.19)
($0.81)
($0.87)IFRS diluted profit (loss) per ADS
($5.62)$0.06

($0.95)Add back

Non-cash stock-based compensation expense according to IFRS 2 (1)$0.02
$0.05
$0.19

Non-cash impairment of digital assets$3.67
$0.54
$0.00

Non-cash change in the fair value of embedded derivatives
($1.49)
($2.03)$0.00

Non-cash interest on convertible debt and other financing (2)$0.35
$0.52
$0.02

Non-cash impact on gain (loss) on debt extinguishment$1.88
$0.00

($0.13)Non-IFRS diluted profit (loss) per ADS
($1.19)
($0.73)
($0.87)

(1) Included in the IFRS profit (loss) as follows:

Cost of product revenue$(21)$12
$18

Research and development
215

166

228

Sales and marketing
(93)
172

(41)
General and administrative
261

412

275

(2) Related to the difference between contractual and effective interest rates

(3) Restated to reflect finalization of the allocation of the ACP acquisition purchase price and accounting for compound financial instruments issued in July 2025, and change of $255,000 in recognition of certain service revenue from straight-line to per unit basis to align with associated product revenue sales.
SEQUANS COMMUNICATIONS S.A. UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS(in thousands of US$, except share and per share amounts)
Twelve months ended Dec 31,

2025

2024
IFRS profit (loss) as reported$(102,442)$57,567
Add back

Non-cash stock-based compensation expense according to IFRS 2 (1)
3,017

4,126

Non-cash impairment of digital assets
65,129

-

Non-cash change in the fair value of embedded derivatives
(51,404)
(3)
Non-cash interest on convertible debt and other financing (2)
12,882

16,377

Non-cash impact on gain (loss) on debt extinguishment
29,067

(13,952)Non-IFRS profit (loss) adjusted$(43,751)$64,115
IFRS basic profit (loss) per ADS as reported
($11.81)$23.19
Add back

Non-cash stock-based compensation expense according to IFRS 2 (1)$0.35
$1.66

Non-cash impairment of digital assets$7.51
$0.00

Non-cash change in the fair value of embedded derivatives
($5.93)$0.00

Non-cash interest on convertible debt and other financing (2)$1.49
$6.59

Non-cash impact on gain (loss) on debt extinguishment$3.35

($5.62)Non-IFRS basic profit (loss) per ADS
($5.04)$25.82
IFRS diluted profit (loss) per ADS
($11.81)$20.27
Add back

Non-cash stock-based compensation expense according to IFRS 2 (1)$0.35
$1.45

Non-cash impairment of digital assets$7.51
$0.00

Non-cash change in the fair value of embedded derivatives
($5.93)$0.00

Non-cash interest on convertible debt and other financing (2)$1.49
$5.77

Non-cash impact on gain (loss) on debt extinguishment$3.35

($4.91)Non-IFRS diluted profit (loss) per ADS
($5.04)$22.57

(1) Included in the IFRS profit (loss) as follows:

Cost of product revenue$20
$84

Research and development
766

722

Sales and marketing
494

992

General and administrative
1,737

2,328

(2) Related to the difference between contractual and effective interest rates

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/283397
Original: Sequans Communications Unaudited Fourth Quarter and Full Year 2025 Financial Results