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Sequans Communications Unaudited Third Quarter 2026 Preliminary Financial Results
Paris, France--(Newsfile Corp. - November 3, 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 third quarter ended September 30, 2026.
Third Quarter 2026 Summary Preliminary Unaudited Results Table:
| (in US$ millions, except share and per share data) | Q3 2026 | Q2 2026 | Q3 2025 (1) |
| Revenue | $9.1 | $7.5 | $3.2 |
| Gross profit | $3.0 | $2.5 | $0.8 |
| Gross margin (%) | 33.0 % | 32.9 % | 25.3 % |
| Operating income (loss) | ($1.0) | ($7.2) | ($24.4) |
| Net profit (loss) | ($1.5) | ($9.8) | ($16.6) |
| Diluted income (loss) per ADS | ($0.10) | ($0.65) | ($1.19) |
| Non-IFRS diluted income (loss) per ADS (2) | ($0.04) | ($0.27) | ($0.88) |
| Weighted average number of diluted ADS (IFRS) | 15,003,281 | 14,983,376 | 13,933,963 |
| Weighted average number of diluted ADS (Non-IFRS) | 15,003,281 | 14,983,376 | 13,933,963 |
| (1) The financial results for 2025 differ from the preliminary unaudited results disclosed in the Company's November 4, 2025 earnings press release. The changes primarily relate to the finalization of purchase accounting 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 third quarter results demonstrate the continued acceleration of our core IoT semiconductor business and the progress we are making toward building a more profitable company," said Dr. Georges Karam, CEO of Sequans. "Revenue increased 21.9% sequentially and 182.8% year-over-year to $9.1 million, driven by product sales that more than quadrupled compared to the prior year. Importantly, this growth reflects the successful conversion of our design-win pipeline into production revenue, supported by expanding customer demand and a growing backlog that now extends into the second half of 2027. Together with a significant reduction in operating expenses, reflecting our continued financial discipline, we believe these results reinforce the strength of our business model and our ability to scale toward profitability."
Dr. Karam continued, "The completion of our Bitcoin treasury exit represents another important milestone, allowing us to enter the final quarter of 2026 with a significantly strengthened financial foundation, a simplified capital structure, and approximately $40 million in cash and short-term deposits and a nearly debt-free balance sheet. With our attention now fully directed toward our semiconductor business, we are focused on capitalizing on the momentum across our 4G IoT product portfolio, expanding our presence in the defense, drone, and space markets through our RF transceiver platform, and advancing our next-generation 5G eRedCap technology. Combined with a growing pipeline of high-margin licensing opportunities, we believe these initiatives position Sequans for sustained growth as we enter 2027 and continue working toward long-term profitability."
Third Quarter 2026 Financial Summary:
Revenue: Total revenue was $9.1 million, an increase of 21.9% compared to the second quarter of 2026. Compared to the third quarter of 2025, this represents an increase of 182.8%.
Product sales accounted for the vast majority of revenue in the third quarter 2026, increasing 20.5% compared to the second quarter of 2026 and increasing more than 4 times as compared to the third quarter of 2025.
Gross margin: Gross margin was 33.0% compared to 32.9% in the second quarter of 2026 and 25.3% in the third quarter of 2025.
Operating loss: Operating loss was $1.0 million compared to operating loss of $7.2 million in the second quarter of 2026 and $24.4 million in the third quarter of 2025. The operating loss in the second quarter of 2026 and the third quarter of 2025 included unrealized losses on impairment of the value of our Bitcoin investment of $3.0 million and $11.2 million, respectively. The reduction of operating expenses in the third quarter as compared to the second quarter contributed to the reduced operating loss in the third quarter and reflects the continued efforts on cost reductions. Further, the operating loss in the third quarter included a realized net gain of $6.2 million, compared to $5.3 million in the second quarter of 2026, on the sales of Bitcoin as a part of our exit of the Bitcoin strategy and to strengthen our cash position.
Net loss: Net loss was $1.5 million, or ($0.10) per diluted ADS, in the third quarter of 2026 compared to net loss of $9.8 million, or ($0.65) per diluted ADS, in the second quarter of 2026 and net loss of $16.6 million, or ($1.19) per diluted ADS, in the third quarter of 2025. Net loss in the third 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 $14.2 million. Net loss in the second quarter included net interest expense of $2.4 million and $6.4 million in the third quarter of 2025, that was primarily non-cash and related to the IFRS accounting for the convertible debt issued in July 2025. Interest expense amounted to $0.4 million in the third quarter of 2026.
Non-IFRS loss: Excluding non-cash impairment of digital assets, non-cash stock-based compensation, the non-cash impact of the fair-value, and effective interest adjustments related to the convertible debt and associated embedded derivatives and other financings, non-IFRS net loss was $0.6 million, or ($0.04) per diluted ADS in the third quarter of 2026 compared to non-IFRS net loss of $4.0 million or ($0.27) per diluted ADS in the second quarter of 2026, and non-IFRS net loss of $12.3 million or ($0.88) per diluted ADS, in the third quarter of 2025.
Cash: Cash and cash equivalents, and short term deposits at September 30, 2026 totaled $39.7 million compared with $21.0 million at June 30, 2026.
Digital assets: At September 30, 2026, the Company no longer held any Bitcoin. This compares to Bitcoin holdings on June 30, 2026 of 314 Bitcoin with a market value of then $18.4 million all of which were unrestricted and were sold during the third quarter.
Conference Call Details
Date: Tuesday, November 3, 2026
Time: 8:00 a.m. ET / 14:00 CET
The 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/BI718d58c2c95b432686adac1ce8ec1dab. 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/ttvnxt2o/
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 Statements
This 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, product revenue pipeline, 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 convert our design-win pipeline into production revenue. 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 our ability to convert our product pipeline and design wins into revenue. 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, 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. All financial results described in this earnings release should be considered preliminary and are subject to change due to normal year-end closing procedures, audit adjustments, and the completion of management's review.
Use of Non-IFRS/non-GAAP Financial Measures
To 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 Communications
Sequans Communications S.A. (NYSE: SQNS) is a leading fabless semiconductor company specializing in wireless 4G/5G cellular technology for the Internet of Things (IoT) and RF transceiver solutions for software-defined applications. 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, as well as mission-critical deployments in space and defense.
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. Sequans RF transceiver solutions enable highly flexible, programmable wireless systems optimized for performance and resilience in demanding environments. 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.com
Sequans media relations: Linda Bouvet (France), +33 170721600 media@sequans.com
Condensed financial tables follow
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three months ended | ||||||||||||
| (in thousands of US$, except share and per share amounts) | Sept 30,  2026 | June 30, 2026 | Sept 30,  2025 (1) | |||||||||
| Revenue | 9,090 | 7,459 | 3,214 | |||||||||
| Cost of revenue | (6,088) | (5,005) | (2,401) | |||||||||
| Gross profit | 3,002 | 2,454 | 813 | |||||||||
| Other operating Income (expenses) | - | - | (418) | |||||||||
| Research and development expense | (6,656) | (7,541) | (7,750) | |||||||||
| Sales and marketing expense | (1,576) | (2,059) | (2,143) | |||||||||
| General and administrative expense | (2,055) | (2,333) | (3,850) | |||||||||
| Digital asset Impairment losses | - | (3,007) | (11,092) | |||||||||
| Digital asset gain (loss) on sales, net | 6,242 | 5,275 | - | |||||||||
| Total operating income (expenses) | (4,045) | (9,665) | (25,253) | |||||||||
| Operating profit (loss) | (1,043) | (7,211) | (24,440) | |||||||||
| Financial income (expense): | ||||||||||||
| Interest income (expense), net | (411) | (2,384) | (6,435) | |||||||||
| Change in fair value of derivative financial instruments | - | 170 | 14,196 | |||||||||
| Foreign exchange gain (loss) | 179 | (135) | 230 | |||||||||
| Profit (Loss) before income taxes | (1,275) | (9,560) | (16,449) | |||||||||
| Income tax expense | (203) | (212) | (178) | |||||||||
| Profit (Loss) | $ | (1,478 | ) | $ | (9,772 | ) | $ | (16,627 | ) | |||
| Attributable to: |   |   |   | |||||||||
| Shareholders of the parent | (1,478 | ) | (9,772 | ) | (16,627 | ) | ||||||
| Minority interests | - | - | - | |||||||||
| Basic income (loss) per ADS | ($0.10 | ) | ($0.65 | ) | ($1.19 | ) | ||||||
| Diluted income (loss) per ADS | ($0.10 | ) | ($0.65 | ) | ($1.19 | ) | ||||||
| Weighted average number of ADS used for computing: |   |   |   | |||||||||
| - Basic | 15,003,281 | 14,983,376 | 13,933,963 | |||||||||
| - Diluted | 15,003,281 | 14,983,376 | 13,933,963 | |||||||||
| (1) The financial results for the three months ended September 30, 2025 differ from the preliminary unaudited results disclosed in the Company's November 4, 2025 earnings press release. The changes primarily relate to the 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 OPERATIONS
| Nine months ended Sept 30, | ||||||||
| (in thousands of US$, except share and per share amounts) | 2026 | 2025 (1) | ||||||
| Revenue | 22,603 | 19,410 | ||||||
| Cost of revenue | (14,864) | (8,164) | ||||||
| Gross profit | 7,739 | 11,246 | ||||||
| Other operating Income (expenses) | - | (418) | ||||||
| Research and development expense | (21,565) | (23,462) | ||||||
| Sales and marketing expense | (5,658) | (6,696) | ||||||
| General and administrative expense | (6,763) | (9,320) | ||||||
| Digital asset Impairment losses | (32,341) | (11,092) | ||||||
| Digital asset losses on sales, net | (166) | - | ||||||
| Total operating income (expenses) | (66,493) | (50,988) | ||||||
| Operating profit (loss) | (58,754) | (39,742) | ||||||
| Financial income (expense): | ||||||||
| Interest income (expense), net | (7,650) | (5,929) | ||||||
| Change in fair value of derivative financial instruments | 10,800 | 14,196 | ||||||
| Gain (loss) on debt extinguishment | (31,498) | - | ||||||
| Foreign exchange gain (loss) | 197 | (763) | ||||||
| Profit (Loss) before income taxes | (86,905) | (32,238) | ||||||
| Income tax expense | (561) | (613) | ||||||
| Profit (Loss) | $ | (87,466 | ) | $ | (32,851 | ) | ||
| Attributable to: |   |   | ||||||
| Shareholders of the parent | (87,466 | ) | (32,851 | ) | ||||
| Minority interests | - | - | ||||||
| Basic income (loss) per ADS | ($5.89 | ) | ($5.16 | ) | ||||
| Diluted income (loss) per ADS | ($5.89 | ) | ($5.16 | ) | ||||
| Weighted average number of ADS used for computing: |   |   | ||||||
| - Basic | 14,854,203 | 6,364,302 | ||||||
| - Diluted | 14,854,203 | 6,364,302 | ||||||
| (1) The financial results for the nine months ended September 30, 2025 differ from the preliminary unaudited results disclosed in the Company's November 4, 2025 earnings press release. The changes primarily relate to the 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 Sept 30, | At Dec 31, | ||||||
| (in thousands of US$) | 2026 | 2025 | |||||
| ASSETS | |||||||
| Non-current assets | |||||||
| Property, plant and equipment | $ | 3,477 | $ | 4,299 | |||
| Intangible assets |
|
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