Financial Data and Key Metrics Changes - In Q4 2025, revenues increased by 72.6% sequentially, primarily driven by growth in product revenue [16] - Gross margin for the quarter was 37.7%, impacted by provisions for slow-moving inventory; excluding these provisions, gross margin would have been approximately 43% compared to 42.4% in the prior quarter [16] - The company reported an IFRS net loss of $87.1 million in Q4, compared to a net profit of $900,000 in the prior quarter; on a non-IFRS basis, the net loss was $18.5 million, or $1.19 per ADS [18] Business Line Data and Key Metrics Changes - The IoT semiconductor business generated $7 million in revenue in Q4, with over 94% from product sales and roughly 6% from services [8] - For the full year 2025, total revenue was approximately $27.2 million, with an adjusted underlying business closer to $20 million [8] - The company expects to target approximately $40 million-$45 million of total global revenue in 2026, supported by a significant order backlog [8] Market Data and Key Metrics Changes - The revenue funnel exceeded $550 million in potential three-year product revenue, including over $300 million from design win projects, with 44% already in production [9] - The company is seeing strong demand in verticals such as smart metering, telematics, and asset tracking, with CAT-M and CAT-1 bus technologies driving growth [10] Company Strategy and Development Direction - The company remains focused on executing its IoT strategy and advancing its 5G product roadmap, aiming to unlock the full strategic value of the IoT business [5] - A disciplined approach to capital management includes right-sizing operating expenses and investing in key R&D programs [7] - The company is evaluating strategic alternatives to add profitability and unlock additional value across both the IoT business and its treasury strategy [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the design win pipeline, with expectations for continued momentum and a path toward cash flow breakeven by the end of 2026 [21] - The company is addressing supply chain challenges, including substrate constraints and memory pricing pressures, while maintaining strong customer relationships [12] - Management anticipates little to no impact on business in the first half of 2026, with a focus on reducing cash burn and achieving breakeven [12] Other Important Information - The company repurchased approximately 9.7% of its outstanding ADSs in Q4 and has board authorization for an additional 10% buyback [6] - At year-end 2025, the company held 2,139 Bitcoin with a market value of $187.1 million, with 1,617 Bitcoin pledged as collateral for convertible debt [19] Q&A Session Summary Question: Guidance on licensing and design wins - Management indicated a conservative approach to licensing revenue, expecting around $5 million secured for the year, with 80%-85% of revenue from products and 15%-20% from services [26][28] Question: Break-even cash goal and operating expenses - Management targets a combined R&D and SG&A expense of around $10.5 million in the second half of the year, with expectations for cash flow breakeven [50] Question: Progress on 5G eRedCap chip - Revenue from the 5G eRedCap chip is expected around mid-2028, contingent on infrastructure readiness and customer engagement [52][55] Question: Customer receptiveness to price increases - Customers have been generally receptive to price increases, understanding the supply chain challenges and cost pressures [73] Question: Bitcoin treasury strategy and debt redemption - Management is evaluating options for debt redemption based on Bitcoin prices, with a preference for redeeming debt sooner rather than later if Bitcoin does not rally [78]

Sequans Communications (NYSE:SQNS) Q4 2025 Earnings call February 10, 2026 08:00 AM ET Company ParticipantsDavid Hanover - EVPDeborah Choate - CFOGeorges Karam - CEO and ChairmanConference Call ParticipantsFedor Shabalin - Research AnalystJacob Stephan - Senior Research AnalystMike Grondahl - Head of Equities & Director of Research and Senior Research AnalystScott Searle - Managing Director and Senior Research AnalystOperatorWelcome to the Fourth Quarter and Full-Year Sequans Earnings Conference Call for 20 ...

Financial Data and Key Metrics Changes - In Q4 2025, revenues increased by 72.6% sequentially, primarily driven by growth in product revenue [17] - Gross margin for the quarter was 37.7%, impacted by provisions for slow-moving inventory; excluding these provisions, gross margin would have been approximately 43% compared to 42.4% in the prior quarter [17] - The company reported an IFRS net loss of $87.1 million in Q4, compared to a net profit of $900,000 in the prior quarter; on a non-IFRS basis, the net loss was $18.5 million, or $1.19 per ADS [19] Business Line Data and Key Metrics Changes - The IoT semiconductor business generated $7 million in revenue in Q4, with over 94% from product sales and roughly 6% from services [9] - For the full year 2025, total revenue was approximately $27.2 million, with a significant amount from non-recurring Qualcomm-related revenue [9] - The company expects total global revenue to target approximately $40 million-$45 million in 2026, supported by a strong order backlog [9] Market Data and Key Metrics Changes - The design win pipeline exceeded $550 million in potential three-year product revenue, with over $300 million from design win projects; 44% of these projects have reached production [10] - The company anticipates meaningful revenue from its 5G licensee partner in China, with demand for 5G eRedCap strengthening [12] Company Strategy and Development Direction - The company remains focused on executing its IoT strategy and advancing its 5G product roadmap, aiming to unlock the full strategic value of the IoT business [5] - A disciplined approach to capital management includes right-sizing operating expenses and investing in key R&D programs [7] - The board is actively reviewing strategic alternatives to add profitability and unlock additional value across both the IoT business and the treasury strategy [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the IoT business's momentum, with expectations of reaching cash flow breakeven by Q4 2026 [15] - The company is addressing supply chain challenges, including substrate constraints and memory pricing pressures, while maintaining strong customer relationships [13] - Management highlighted the importance of transitioning from 4G to 5G for IoT applications, viewing the 5G eRedCap solution as critical for future growth [12] Other Important Information - The company repurchased approximately 9.7% of its outstanding ADSs in Q4 and has board authorization for an additional 10% buyback [6] - A non-cash impairment charge of $56.9 million related to Bitcoin holdings was recorded in Q4, alongside an $8.4 million net realized loss on the sale of Bitcoin [18] Q&A Session Summary Question: Guidance on licensing and design wins - Management indicated a conservative approach to licensing revenue, expecting around $5 million secured for the year, with 80%-85% of revenue from products and 15%-20% from services [24][26] Question: Break-even cash goal and operating expenses - Management targets a combined R&D and SG&A expense of around $10.5 million in the second half of the year, aiming for cash flow breakeven [43] Question: Competitive landscape for Cat-1bis and eRedCap - Management noted strong positioning in the Cat-1bis market, with limited competition, and emphasized the importance of eRedCap for future growth [36][38] Question: Impact of memory pricing and supply chain - Management acknowledged challenges in memory pricing and supply chain dynamics, indicating ongoing efforts to manage costs and secure supply [33][34] Question: Bitcoin treasury strategy and debt management - Management is evaluating options regarding convertible debt redemption based on Bitcoin price movements, indicating a preference for early redemption if Bitcoin does not rally [61]

Sequans Communications Unaudited Fourth Quarter and Full Year 2025 Financial Results PARIS - 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 dat ...

Core Insights - Sequans Communications S.A. reported its unaudited financial results for Q4 and the full year of 2025, highlighting a significant increase in revenue from its IoT semiconductor business, although overall financial performance showed losses due to various factors including digital asset impairments [1][3]. Financial Performance Summary - **Revenue**: Q4 2025 revenue was $7.0 million, a 72.6% increase from Q3 2025 but a 37.0% decrease from Q4 2024. Full year 2025 revenue totaled $27.2 million, down from $36.8 million in 2024 [2][4]. - **Gross Profit**: Gross profit for Q4 2025 was $2.6 million, with a gross margin of 37.7%, down from 42.4% in Q3 2025 and 67.4% in Q4 2024. The decrease in gross margin was attributed to a higher proportion of product sales and provisions for slow-moving inventory [5]. - **Operating Loss**: The operating loss for Q4 2025 was $74.5 million, compared to a loss of $20.5 million in Q3 2025 and $5.6 million in Q4 2024. This included a $56.9 million unrealized loss on Bitcoin investments [6]. - **Net Loss**: The net loss for Q4 2025 was $87.1 million, or ($5.62) per diluted ADS, compared to a profit of $0.9 million in Q3 2025 and a loss of $2.4 million in Q4 2024 [7]. - **Non-IFRS Loss**: The non-IFRS net loss for Q4 2025 was $18.5 million, or ($1.19) per diluted ADS, compared to a loss of $11.2 million in Q3 2025 and a profit of $2.2 million in Q4 2024 [8]. Digital Asset Strategy - The company has adopted a disciplined approach to capital allocation, focusing on its Bitcoin treasury strategy. In Q4 2025, Sequans repurchased approximately 9.7% of its outstanding ADSs and received authorization to repurchase an additional 10% [3][9]. - As of December 31, 2025, Sequans held 2,139 Bitcoin valued at $187.1 million, with 1,617 Bitcoin pledged as collateral for convertible debt [9]. Business Outlook - The company reported a strong order backlog and a design-win pipeline exceeding $300 million in potential revenue over the next three years, with over 44% of design-wins already in mass production [3]. - Sequans aims to achieve cash-flow break-even by the end of 2026, driven by increasing production and demand across various IoT segments [3].

Core Viewpoint - Sequans Communications S.A. is set to release its fourth quarter and full year 2025 financial results on February 10, 2026, followed by a management conference call [1]. Group 1: Financial Results Announcement - The financial results will be announced during pre-market hours on February 10, 2026 [1]. - A conference call will be hosted by Sequans' management at 8:00 a.m. ET [1]. Group 2: Conference Call Details - Participants can join the conference call by registering to receive a confirmation email with dial-in details [2]. - The company recommends that participants join the call or sign on to the webcast at least 15 minutes in advance [2]. Group 3: Replay Information - A replay of the conference call will be available on the company's website after 9:00 a.m. ET for those unable to attend live [3]. Group 4: Company Overview - Sequans Communications S.A. specializes in 4G/5G cellular technology for IoT and is a pioneer in Bitcoin treasury [4]. - The company offers a comprehensive portfolio of 4G/5G solutions designed for IoT, focusing on wireless connectivity, power efficiency, security, and performance [4]. - Founded in 2003, Sequans is headquartered in France and has a global presence with offices in multiple countries including the United States, United Kingdom, and China [5].

Company Overview - Sequans Communications S.A. is a leading fabless semiconductor company specializing in wireless 4G/5G cellular technology for the Internet of Things (IoT) and is a pioneer in Bitcoin Treasury [3][4] - The company designs and develops innovative, secure, and scalable technologies for AI-connected applications, including secured payment, smart mobility, logistics, smart cities, industrial, e-health, and smart homes [3] - Sequans offers a comprehensive portfolio of 4G/5G solutions, including LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap/eRedCap platforms, focusing on breakthroughs in wireless connectivity, power efficiency, security, and performance [3] Recent Developments - Dr. Georges Karam, President and CEO of Sequans, will participate in a fireside chat at the 28th Annual Needham Growth Conference on January 13, 2026, in New York City [1] - The company will also conduct one-on-one meetings with investors throughout the day of the conference [1] Global Presence - 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 [4]

Core Viewpoint - Sequans Communications has successfully completed its ADS repurchase program and has initiated a new buyback program to enhance shareholder value through disciplined capital allocation and strategic execution [1][3]. Group 1: ADS Repurchase Program - As of December 17, 2025, Sequans repurchased a total of 1,516,973 American Depositary Shares (ADSs), which is approximately 9.7% of the outstanding ADSs, at an average price of $6.17 per ADS [2]. - The current number of outstanding ADSs is approximately 14.5 million, or 15.5 million if including potential exercise of pre-funded warrants, resulting in a 6.1% yield in Bitcoin per outstanding ADS [2]. - The repurchase was funded through proceeds from recent Bitcoin dispositions, reflecting the company's disciplined capital allocation strategy [2]. Group 2: New Buyback Program - The Board of Directors has approved a new ADS repurchase program, allowing for the buyback of up to an additional 10% of the outstanding ADSs [4]. - The timing and amount of repurchases under the new program will depend on market conditions, ADS price, and other factors, and will be executed in accordance with applicable regulations [4]. Group 3: Company Overview - Sequans Communications S.A. is a leading fabless semiconductor company specializing in wireless 4G/5G cellular technology for the Internet of Things (IoT) and is a pioneer in Bitcoin Treasury [7]. - The company designs and develops innovative technologies that support AI-connected applications, including secured payment, smart mobility, and smart cities [7]. - Founded in 2003 and headquartered in France, Sequans operates globally with offices in multiple countries, including the United States, United Kingdom, and China [8].

Core Viewpoint - Sequans Communications has successfully repurchased 755,349 American Depositary Shares (ADSs), representing approximately 5% of outstanding ADSs, as part of its ongoing strategy to enhance shareholder value through disciplined capital allocation [1][2][4] Group 1: ADS Repurchase Program - The repurchases were executed at an average price of $6.40 per ADS, resulting in a current outstanding ADS count of approximately 15.2 million, or 16.3 million including potential pre-funded warrants [2] - The reduction in outstanding ADSs has generated a 4.4% yield in Bitcoin per outstanding ADS since the company's earnings call on November 4, 2025, showcasing the effectiveness of its capital allocation strategy [2][3] Group 2: Funding and Strategy - The ADS repurchases were funded through proceeds from the sale of Bitcoin and operational funds, indicating a strategic approach to enhance Bitcoin per share [3] - The company aims to continue executing share repurchases at prices below net asset value (NAV) per ADS to create additional value for shareholders [3][4] Group 3: Management's Perspective - The CEO of Sequans, Dr. Georges Karam, emphasized that the current digital asset market conditions present an opportunity to strengthen the balance sheet and advance the Bitcoin Treasury strategy [4] - The company remains committed to reducing debt and executing share repurchases to reinforce its growth strategy and deliver value to shareholders [4] Group 4: Company Overview - Sequans Communications is a leading fabless semiconductor company specializing in 4G/5G cellular technology for IoT and is recognized as a pioneer in Bitcoin Treasury [8] - The company views Bitcoin as a long-term investment and plans to accumulate it as its primary treasury reserve asset, utilizing proceeds from equity and debt issuances as well as operational cash flow [8][9]

New York Stock Exchange-listed chipmaker @Sequans has sold 970 Bitcoin to pay off debt just four months after pivoting to a digital asset treasury strategy, the company announced on Tuesday. https://t.co/6VluPzlTIy ...