Sequans Communications Unaudited Fourth Quarter and Full Year 2025 Financial Results

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].