Earnings release
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NEWS Sequans CommunicationsPreliminary Third Quarter 2025 Financial Results PARIS - November 4, 2025 - Sequans Communications S.A. (NYSE: SQNS) (“Sequans” or the “Company”), a pioneer in Bitcoin treasury and a leading provider of5G/4G cellular IoT semiconductor solutions, today announced preliminary financial results for the third quarter ended September 30, 2025. Third Quarter 2025 Summary Preliminary Results Table : (in US$ millions, except share and per share data) Q3 2025 Q2 2025 Q3 2024 Revenue $4.3 $8.1 $10.1 Gross profit $1.8 $5.2 $8.3 Gross margin (%) 40.9 % 64.4 % 82.5 % Operating income (loss) ($20.4) ($8.7) $87.3 Net profit (loss) ($6.7) ($9.1) $72.6 Diluted income (loss) per ADS ($0.48) ($3.59) $26.25 Non-IFRS diluted income (loss) per ADS ($0.79) ($3.20) $29.21 Weighted average number of diluted ADS (IFRS) 13,933,963 2,540,605 2,489,176 Weighted average number of diluted ADS (Non-IFRS) 13,933,963 2,540,605 2,767,574 (1) Final results are subject to finalization of the allocation of the ACP acquisition purchase price (2) See Use of Non-IFRS/non-GAAP Financial Measures disclosure on page 3. (*) Bitcoin KPIs are presented on the website and are updated with public information on an ongoing basis: https://sequans.com/bitcoin-treasury “Sequans has taken a proactive and disciplined approach to managing its balance sheet and reducing half of its debt by opportunistically leveraging a portion of itsBitcoin holdings,” said Dr. Georges Karam, CEO of Sequans. “This initiative has enhanced our financial flexibility, meaningfully reduced our debt-to-NAV ratio, andboosted our ability to execute our buyback program, while still preserving long-term Bitcoin treasury optionality. We remain fully committed to our Bitcoin treasurystrategy, which we continue to believe will deliver meaningful long-term value for our shareholders.” Mr. Karam continued, “At the same time, our IoT product business has continued to strengthen. We are pleased that our three-year revenue design win pipeline hasincreased to $300m in the third quarter, and we remain on track to enter 2026 with over 45% of the related projects in mass production. We also expect the businessto ramp in the fourth quarter as it is getting better visibility into 2026. With a solid balance sheet, expected growth in IoT business, and a commitment to Bitcointreasury, we believe Sequans is well positioned to deliver sustainable growth and enhance shareholder value over the long term.” Third Quarter 2025 Financial Summary: Revenue: Revenue was $4.3 million, a decrease of 47.3% compared to the second quarter of 2025 and a decrease of 57.5% compared to the third quarter of 2024.In both prior periods, revenue included significant license and services revenue from Qualcomm related to the 2024 sale and license of intellectual property. Gross margin: Gross margin was 40.9% compared to 64.4% in the second quarter of 2025 and 82.5% in the third quarter of 2024, reflecting the lower amount ofhigh margin license revenue in the third quarter of 2025 compared with both prior periods. Operating profit (loss): Operating loss was $20.4 million compared to operating loss of $8.7 million in the second quarter of 2025 and operating profit of $87.3million in the third quarter of 2024. The operating loss in the third quarter of 2025 included an $8.2 million unrealized loss on impairment of the value of our Bitcoininvestment, which was marked to market. The operating profit in the third quarter of 2024 reflects the gain on sale of intellectual property to Qualcomm of $153.1million partially offset by a $56.6 million impairment loss related to previously capitalized research and development costs. No research and development costs werecapitalized in 2025. Net loss: Net loss was $6.7 million, or ($0.48) per diluted ADS, compared to net loss of $9.1 million, or ($3.59) per diluted ADS, in the second quarter of 2025 andnet profit of $72.6 million, or $26.25 per diluted ADS, in the third quarter of 2024. Net loss in the third quarter of 2025 included a non-cash $20.6 million gain on thechange in value of the embedded derivative related to convertible debt issued in July 2025 and included net interest expense of $6.9 million that was also primarilynon-cash and related to the IFRS accounting for the convertible debt issued in July. (*) (1) (1) (2)
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Sequans reports preliminary third quarter 2025 financial resultsPage 2 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 interestadjustments related to the convertible debt and associated embedded derivatives and other financings, non-IFRS net loss was $11.0 million, or ($0.79) per diluted ADS, in the third quarter of 2025 compared to non-IFRS net loss of $8.1 million, or ($3.20) per diluted ADS in the second quarter of 2025, and non-IFRS net profit of$80.8 million, or $29.21 per diluted ADS, in the third quarter of 2024. Cash: Cash and cash equivalents at September 30, 2025 totaled $13.4 million compared to $41.6 million at June 30, 2025. This does not include the $10 millionfinal payment from the 2024 Qualcomm transaction that was released from escrow in October 2025. Digital assets: At September 30, 2025, the Company held 3,234 Bitcoin with a market value of $365.6 million, all of which was pledged as security for the $189million of convertible debt issued in July 2025. Following the recently announced amendment of the debt agreement, 1,617 Bitcoin are being released from thepledge in order to repay half of the debt and to reinforce the previously announced ADS repurchase program. The Company has sold 970 of the released Bitcoin asof today and holds a total of 2,264 Bitcoin. Conference Call Details Date: Tuesday, November 4, 2025Time: 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/BIc0264ac506fc4ae09bd78844e6d8f586.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/rfdt2cm6/ 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 the financial condition, results ofoperations and business of Sequans, bitcoin treasury and business strategy for the remainder of 2025 and beyond. These forward-looking statements include, butare 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 currentfacts. 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 assumptionsand assessments made by Sequans in light of its experience and perception of historical trends, current conditions, future developments and other factors theybelieve appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that willoccur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments todiffer 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 unduereliance 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 thatcould significantly affect expected results and are based on certain key assumptions. Such risks and uncertainties include, but are not limited to, our ability tosuccessfully implement our Bitcoin treasury strategy and potential adverse reactions or changes to business relationships resulting from the implementation of theBitcoin treasury initiative. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Among thefactors 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. If any one or more of these risks or uncertainties materializeor if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward-lookingstatements 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’ filingswith the SEC, including its annual report on Form 20-F for the year ended December 31, 2024, subsequent filings on Form 6-K and other documents that may befiled from time to time with the SEC. Due to such
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Sequans reports preliminary third quarter 2025 financial resultsPage 3 uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of thisannouncement. 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. 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 tofacilitate comparisons among different companies. These non-GAAP measures have limitations in that the non-GAAP measures we use may not be directlycomparable 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) as well as a pioneer in Bitcoin Treasury. Sequans views Bitcoin as a long-term investment and intends to strategically accumulate it as its primarytreasury reserve asset. The company’s approach involves acquiring and holding Bitcoin using net proceeds from equity and debt issuances — executed from time to time based on market conditions — as well as cash generated from operations and intellectual property monetization. Sequans’ engineers design and develop innovative, secure, and scalable technologies that power the next generation of AI-connected applications - includingsecured payment, smart mobility and logistics, smart cities, industrial, e-health, and smart homes. Sequans offers a comprehensive portfolio of 4G/5G solutions, including LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap/eRedCap platforms, all purpose-built for IoT and delivering breakthroughs in wireless connectivity,power efficiency, security, and performance. The company also provides advanced design services and technology licensing. Sequans management believes the combination of a strategic Bitcoin reserve and deep focus on semiconductor innovation positions the company for long-term value creation. 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
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Sequans reports preliminary third quarter 2025 financial resultsPage 4 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 30,2025 June 30, 2025 Sept 30, 2024 Revenue 4,289 8,142 10,080 Cost of revenue (2,534) (2,900) (1,767) Gross profit 1,755 5,242 8,313 Operating income (expenses) : Gain on sale of 4G intangible and tangible assets, net — — 153,129 Research and development expense (7,994) (8,779) (8,603) Sales and marketing expense (2,121) (2,176) (3,359) General and administrative expense (3,850) (3,019) (5,512) Impairment of digital assets (8,230) — — Impairment of 5G broadband platform intangible and tangible assets— — (56,633) Total operating income (expenses) (22,195) (13,974) 79,022 Operating profit (loss) (20,440) (8,732) 87,335 Financial income (expense): Interest income (expense), net (6,862) 250 (9,294) Change in fair value of convertible debt derivative 20,600 — — Foreign exchange gain (loss) 230 (476) (714) Profit (Loss) before income taxes (6,472) (8,958) 77,327 Income tax expense (178) (154) (4,682) Profit (Loss) $ (6,650)$ (9,112) $ 72,645 Attributable to: Shareholders of the parent (6,650) (9,112) 72,645 Minority interests — — — Basic income (loss) per ADS ($0.48) ($3.59) $29.18 Diluted income (loss) per ADS ($0.48) ($3.59) $26.25 Weighted average number of ADS used for computing: — Basic 13,933,963 2,540,605 2,489,176 — Diluted 13,933,963 2,540,605 2,767,574 (1) Final results are subject to finalization of the allocation of the ACP acquisition purchase price. (2) Reflects the change in ADS to ordinary share ratio effective September 17, 2025 (1) (1) (2) (2)
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Sequans reports preliminary third quarter 2025 financial resultsPage 5 SEQUANS COMMUNICATIONS S.A. PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Nine months ended Sept 30, (in thousands of US$, except share and per share amounts) 2025 2024 Revenue 20,485 25,782 Cost of revenue (8,297) (5,487) Gross profit 12,188 20,295 Operating income (expenses) : Gain on sale of 4G intangible and tangible assets, net — 153,129 Research and development expense (24,000) (21,005) Sales and marketing expense (6,634) (9,362) General and administrative expense (9,320) (11,330) Impairment of digital assets (8,230) — Impairment of 5G broadband platform intangible and tangible assets — (56,633) Total operating income (expenses) (48,184) 54,799 Operating profit (loss) (35,996) 75,094 Financial income (expense): Interest income (expense), net (6,244) (23,418) Change in fair value of convertible debt derivative 20,600 3 Debt amendment — 13,952 Foreign exchange gain (loss) (763) (360) Profit (Loss) before income taxes (22,403) 65,271 Income tax expense (613) (4,995) Profit (Loss) $ (23,016) $ 60,276 Attributable to: Shareholders of the parent (23,016) 60,276 Minority interests — — Basic income (loss) per ADS ($3.62) $24.34 Diluted income (loss) per ADS ($3.62) $21.80 Weighted average number of ADS used for computing: — Basic 6,364,302 2,476,844 — Diluted 6,364,302 2,764,837 (1) Final results are subject to finalization of the allocation of the ACP acquisition purchase price. (2) Reflects the change in ADS to ordinary share ratio effective September 17, 2025 (1) (2) (2)
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Sequans reports preliminary third quarter 2025 financial resultsPage 6 SEQUANS COMMUNICATIONS S.A. PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION At Sept 30, At Dec 31, (in thousands of US$) 2025 2024 ASSETS Non-current assets Property, plant and equipment $ 8,017 $ 4,308 Intangible assets 14,070 5,641 Digital assets 365,610 — Deposits and other receivables 3,696 3,246 Other non-current financial assets 398 353 Total non-current assets 391,791 13,548 Current assets Inventories 4,166 2,874 Trade receivables 1,437 4,809 Contract assets 186 122 Prepaid expenses 1,861 1,410 Other receivables 13,637 17,492 Research tax credit receivable 5,263 4,184 Short-term deposits — 53,000 Cash and cash equivalents 13,430 9,093 Total current assets 39,980 92,984 Total assets $ 431,771 $ 106,532 EQUITY AND LIABILITIES Equity Issued capital, euro 0.01 nominal value, 1,559,214,982 shares authorized, issued and outstanding at September 30,2025 (251,408,922 shares at December 31, 2024) $ 18,303 $ 2,934 Share premium 182,224 14,512 Other capital reserves 83,359 74,504 Accumulated deficit (58,811) (35,795) Other components of equity 649 (796) Total equity 225,724 55,359 Non-current liabilities Government loan — 616 Government research financing 3,919 5,669 Convertible debt 106,086 — Convertible debt - Embedded derivative 46,400 — Lease liabilities 2,013 333 Trade payables and other non-current liabilities 1,692 — Provisions 2,160 1,400 Deferred tax liabilities 186 173 Contract liabilities 2,390 809 Total non-current liabilities 164,846 9,000 Current liabilities Trade payables 13,826 6,106 Interest-bearing receivables financing — 3,742 Lease liabilities 795 1,439 Government loan 1,452 1,802 Government research financing 3,474 4,062 Contract liabilities 4,899 11,021 Income tax liabilities - Parent 3,121 2,827 Other current liabilities and provisions 13,634 11,174 Total current liabilities 41,201 42,173 Total equity and liabilities $ 431,771 $ 106,532 (1) Final results are subject to finalization of the allocation of the ACP acquisition purchase price. (1)
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Sequans reports preliminary third quarter 2025 financial resultsPage 7 SEQUANS COMMUNICATIONS S.A. PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW Nine months ended Sept 30, (in thousands of US$) 2025 2024 Operating activities Loss before income taxes $ (22,403) $ 65,271 Non-cash adjustment to reconcile income before tax to net cash from (used in) operating activities Depreciation and impairment of property, plant and equipment 2,474 2,736 Amortization and impairment of intangible assets 3,350 60,415 Impairment of digital assets 8,230 — Share-based payment expense 2,655 3,646 Decrease in provision (12) (578) Interest expense, net 6,244 23,418 Change in the fair value of convertible debt embedded derivative (20,600) (3) Convertible debt amendment — (13,952) Foreign exchange loss (gain) (786) 137 Loss (gain) on disposal of intangible and tangible assets 12 (157,601) Working capital adjustments Decrease in trade receivables and other receivables 3,738 4,715 Decrease (increase) in inventories (1,379) 2,188 Increase in research tax credit receivable (1,593) (1,932) Increase in trade payables and other liabilities 1,828 6,579 Increase (Decrease) in contract liabilities (4,541) 10,967 Increase in government grant advances 1,385 2,942 Income tax paid (569) (497) Net cash flow from (used in) operating activities (21,967) 8,451 Investing activities Purchase of intangible assets and property, plant and equipment (5,209) (1,438) Purchase of digital assets (373,840) — Capitalized development expenditures — (16,428) Proceeds from sale of intangible assets — 165,391 Investment in ACP Advanced Circuit Pursuit, net of cash acquired (2,816) — Sale (Purchase) of financial assets 367 (205) Decrease of short-term deposit 53,000 — Interest received 1,325 121 Net cash flow from (used in) investing activities (327,173) 147,441 Financing activities Private equity offering proceeds, net of transaction costs paid 185,246 — Proceeds from convertible debt, net of transaction costs paid 174,461 — Proceeds (repayment of) from interest-bearing receivables financing (3,742) (285) Proceeds from related party loans — 14,000 Proceeds from interest-bearing research project financing 1,129 934 Payment of lease liabilities (1,167) (1,134) Repayment of government loans (1,041) (680) Repayment of loans (420) — Repayment of interest-bearing research project financing (422) (266) Interest paid (705) (591) Net cash flows from (used in) financing activities 353,339 11,978 Net increase (decrease) in cash and cash equivalents 4,199 167,870 Net foreign exchange difference 138 8 Cash and cash equivalents at January 1 9,093 5,705 Cash and cash equivalents at end of the period 13,430 173,583 (1) Final results are subject to finalization of the allocation of the ACP acquisition purchase price. (1)
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Sequans reports preliminary third quarter 2025 financial resultsPage 8 SEQUANS COMMUNICATIONS S.A. PRELIMINARY UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS (in thousands of US$, except share and per share amounts) Three months ended Sept 30,2025 June 30, 2025 Sept 30, 2024 IFRS profit (loss) as reported $ (6,650) $ (9,112) $ 72,645 Add back Non-cash stock-based compensation expense according to IFRS 2 762 879 682 Non-cash impairment of digital assets 8,230 — — Non-cash change in the fair value of convertible debt embedded derivative(20,600) — — Non-cash interest on convertible debt and other financing 7,216 108 7,510 Non-IFRS profit (loss) adjusted $ (11,042) $ (8,125) $ 80,837 IFRS basic profit (loss) per ADS as reported ($0.48) ($3.59) $29.18 Add back Non-cash stock-based compensation expense according to IFRS 2 $0.05 $0.35 $0.27 Non-cash impairment of digital assets $0.59 $0.00 $0.00 Non-cash change in the fair value of convertible debt embedded derivative($1.48) $0.00 $0.00 Non-cash interest on convertible debt and other financing $0.52 $0.04 $3.03 Non-IFRS basic profit (loss) per ADS ($0.79) ($3.20) $32.48 IFRS diluted profit (loss) per ADS ($0.48) ($3.59) $26.25 Add back Non-cash stock-based compensation expense according to IFRS 2 $0.05 $0.35 $0.25 Non-cash impairment of digital assets $0.59 $0.00 $0.00 Non-cash change in the fair value of convertible debt embedded derivative($1.48) $0.00 $0.00 Non-cash interest on convertible debt and other financing $0.52 $0.04 $2.71 Non-IFRS diluted profit (loss) per ADS ($0.79) ($3.20) $29.21 (1) Included in the IFRS profit (loss) as follows: Cost of product revenue $ 12 $ 13 $ 22 Research and development 166 181 (333) Sales and marketing 172 191 355 General and administrative 412 494 638 (2) Related to the difference between contractual and effective interest rates (3) Final results are subject to finalization of the allocation of the ACP acquisition purchase price (3) (1) (2) (1) (2) (1) (2)
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Sequans reports preliminary third quarter 2025 financial resultsPage 9 SEQUANS COMMUNICATIONS S.A. PRELIMINARY UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS (in thousands of US$, except share and per share amounts) Nine months ended Sept 30, 2025 2024 IFRS profit (loss) as reported $ (23,016) $ 60,276 Add back Non-cash stock-based compensation expense according to IFRS 2 2,655 3,646 Non-cash impairment of digital assets 8,230 — Non-cash change in the fair value of convertible debt embedded derivative(20,600) (3) Non-cash interest on convertible debt and other financing 7,568 16,315 Non-cash impact of convertible debt amendment — (13,952) Non-IFRS profit (loss) adjusted $ (25,163) $ 66,282 IFRS basic profit (loss) per ADS as reported ($3.62) $24.34 Add back Non-cash stock-based compensation expense according to IFRS 2 $0.42 $1.47 Non-cash impairment of digital assets $1.29 $0.00 Non-cash change in the fair value of convertible debt embedded derivative($3.24) $0.00 Non-cash interest on convertible debt and other financing $1.19 $6.58 Non-cash impact of convertible debt amendment $0.00 ($5.63) Non-IFRS basic profit (loss) per ADS ($3.95) $26.76 IFRS diluted profit (loss) per ADS ($3.62) $21.80 Add back Non-cash stock-based compensation expense according to IFRS 2 $0.42 $1.32 Non-cash impairment of digital assets $1.29 $0.00 Non-cash change in the fair value of convertible debt embedded derivative($3.24) $0.00 Non-cash interest on convertible debt and other financing $1.19 $5.90 Non-cash impact of convertible debt amendment $0.00 ($5.05) Non-IFRS diluted profit (loss) per ADS ($3.95) $23.97 (1) Included in the IFRS profit (loss) as follows: Cost of product revenue $ 41 $ 66 Research and development 552 494 Sales and marketing 587 1,033 General and administrative 1,475 2,053 (2) Related to the difference between contractual and effective interest rates (3) Final results are subject to finalization of the allocation of the ACP acquisition purchase price (3) (1) (2) (1) (2) (1) (2)