Sequans Communications Preliminary Second Quarter 2025 Financial Results

Core Insights - Sequans Communications reported preliminary financial results for Q2 2025, highlighting a revenue of $8.1 million, unchanged from Q1 2025 but down 15.8% from Q2 2024 [1][3] - The company has initiated a Bitcoin Treasury strategy, acquiring 3,072 Bitcoin with proceeds from a $384 million financing [1][2] Financial Performance - Revenue: Total revenue for Q2 2025 was $8.1 million, with product revenue at $3.9 million (up 10.3% from Q1 2025 and up 59.0% from Q2 2024) and license and services revenue at $4.3 million (down from $4.5 million in Q1 2025 and $7.2 million in Q2 2024) [2][3] - Gross Profit: Gross profit was $5.2 million, resulting in a gross margin of 64.4%, slightly down from 64.5% in Q1 2025 and significantly lower than 84.0% in Q2 2024 [4][6] - Operating Income: The operating loss was $8.7 million, compared to a loss of $6.8 million in Q1 2025 and $3.7 million in Q2 2024, influenced by non-recurring costs [4][5] - Net Loss: The net loss for Q2 2025 was $9.1 million, or ($0.36) per diluted ADS, worsening from a loss of $7.3 million in Q1 2025 and $0.6 million in Q2 2024 [6][7] - Non-IFRS Results: The non-IFRS net loss was $8.1 million, or ($0.32) per diluted ADS, compared to a loss of $6.1 million in Q1 2025 and $5.8 million in Q2 2024 [7] Cash Position - Cash and Cash Equivalents: As of June 30, 2025, cash and cash equivalents totaled $41.6 million, down from $45.9 million at the end of Q1 2025, excluding the $358.5 million from recent financing [8] Strategic Initiatives - The company is committed to its Bitcoin Treasury strategy, which is expected to provide long-term value for shareholders, with further details to be shared in the upcoming quarter [1][2]