Sequans munications S.A.(US:SQNS)2025-11-04 11:16Financial Performance - Revenue for Q3 2025 was $4.3 million, a decrease of 47.3% from Q2 2025 and a decrease of 57.5% from Q3 2024[4] - Gross margin in Q3 2025 was 40.9%, down from 64.4% in Q2 2025 and 82.5% in Q3 2024, reflecting lower high-margin license revenue[5] - Operating loss for Q3 2025 was $20.4 million, compared to a loss of $8.7 million in Q2 2025 and a profit of $87.3 million in Q3 2024[6] - Net loss for Q3 2025 was $6.7 million, or ($0.48) per diluted ADS, compared to a net loss of $9.1 million in Q2 2025 and a profit of $72.6 million in Q3 2024[7] - Non-IFRS net loss for Q3 2025 was $11.0 million, or ($0.79) per diluted ADS, compared to a non-IFRS net loss of $8.1 million in Q2 2025 and a profit of $80.8 million in Q3 2024[8] - Basic loss per ADS for Q3 2025 was ($3.62), compared to earnings of $24.34 per ADS in Q3 2024[28] - For the three months ended September 30, 2025, the IFRS profit (loss) reported was $(6,650) thousand, compared to $(9,112) thousand for the previous quarter and $72,645 thousand for the same period in 2024[35] - The non-IFRS profit (loss) adjusted for the same period was $(11,042) thousand, a decrease from $(8,125) thousand in the previous quarter and a significant drop from $80,837 thousand in the same period last year[35] - The IFRS basic profit (loss) per ADS for the three months ended September 30, 2025, was $(0.48), compared to $(3.59) in the previous quarter and $29.18 in the same period last year[35] - For the nine months ended September 30, 2025, the IFRS profit (loss) reported was $(23,016) thousand, a decline from $60,276 thousand in the same period last year[37] - The non-IFRS profit (loss) adjusted for the nine months ended September 30, 2025, was $(25,163) thousand, compared to $66,282 thousand in the same period last year[37] - The IFRS basic profit (loss) per ADS for the nine months ended September 30, 2025, was $(3.62), down from $24.34 in the same period last year[37] Cash and Assets - Cash and cash equivalents at September 30, 2025, totaled $13.4 million, down from $41.6 million at June 30, 2025[9] - Cash and cash equivalents at the end of Q3 2025 were $13,430,000, up from $9,093,000 at the beginning of the year[33] - Total assets increased to $431,771,000 as of September 30, 2025, from $106,532,000 at the end of 2024[31] - The total equity increased to $225,724,000 as of September 30, 2025, from $55,359,000 at the end of 2024[31] Debt and Financial Strategy - The company held 3,234 Bitcoin valued at $365.6 million as of September 30, 2025, with 1,617 Bitcoin being released from pledge to repay half of the convertible debt[10] - Sequans has reduced half of its debt by leveraging a portion of its Bitcoin holdings, enhancing financial flexibility and supporting a buyback program[3] - The company remains committed to its Bitcoin treasury strategy, which is expected to deliver long-term value for shareholders[3] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $24,000,000, an increase from $21,005,000 in the same period of 2024[28] Impairment and Non-Cash Expenses - The company incurred an impairment of digital assets amounting to $8,230,000 in Q3 2025[28] - Non-cash stock-based compensation expense for the three months ended September 30, 2025, was $762 thousand, compared to $879 thousand in the previous quarter and $682 thousand in the same period last year[35] - Non-cash impairment of digital assets for the three months ended September 30, 2025, was $8,230 thousand, with no impairment recorded in the previous quarter[35] - Non-cash interest on convertible debt and other financing for the three months ended September 30, 2025, was $7,216 thousand, compared to $108 thousand in the previous quarter[35] Revenue Pipeline - The three-year revenue design win pipeline for the IoT product business increased to $300 million in Q3 2025, with over 45% of related projects expected to enter mass production by 2026[3]