Sequans Communications Preliminary Second Quarter 2025 Financial Results
Sequans Communications (NYSE: SQNS) reported preliminary Q2 2025 financial results, highlighting a significant strategic shift with its new Bitcoin Treasury initiative. The company deployed $384 million in financing to acquire 3,072 Bitcoin. Q2 2025 revenue was $8.1 million, down 15.8% year-over-year, with a gross margin of 64.4%.
The company reported an operating loss of $8.7 million and a net loss of $9.1 million ($0.36 per diluted ADS). Product revenue increased by 59% year-over-year to $3.9 million, while license and services revenue decreased to $4.3 million. Cash position stood at $41.6 million as of June 30, 2025, excluding the $358.5 million net proceeds from July's private placements.
Sequans Communications (NYSE: SQNS) ha riportato i risultati finanziari preliminari del secondo trimestre 2025, evidenziando un significativo cambiamento strategico con la nuova iniziativa Bitcoin Treasury. L'azienda ha investito 384 milioni di dollari per acquisire 3.072 Bitcoin. I ricavi del secondo trimestre 2025 sono stati di 8,1 milioni di dollari, in calo del 15,8% rispetto all'anno precedente, con un margine lordo del 64,4%.
La società ha registrato una perdita operativa di 8,7 milioni di dollari e una perdita netta di 9,1 milioni di dollari (0,36 dollari per ADS diluito). I ricavi da prodotti sono aumentati del 59% su base annua, raggiungendo 3,9 milioni di dollari, mentre i ricavi da licenze e servizi sono diminuiti a 4,3 milioni di dollari. La posizione di cassa al 30 giugno 2025 era di 41,6 milioni di dollari, esclusi i proventi netti di 358,5 milioni di dollari derivanti dalle collocazioni private di luglio.
Sequans Communications (NYSE: SQNS) informó resultados financieros preliminares del segundo trimestre de 2025, destacando un cambio estratégico significativo con su nueva iniciativa Bitcoin Treasury. La compañía destinó 384 millones de dólares en financiamiento para adquirir 3,072 Bitcoin. Los ingresos del segundo trimestre de 2025 fueron de 8,1 millones de dólares, una disminución del 15,8% interanual, con un margen bruto del 64,4%.
La empresa reportó una pérdida operativa de 8,7 millones de dólares y una pérdida neta de 9,1 millones de dólares (0,36 dólares por ADS diluido). Los ingresos por productos aumentaron un 59% interanual hasta 3,9 millones de dólares, mientras que los ingresos por licencias y servicios disminuyeron a 4,3 millones de dólares. La posición de efectivo al 30 de junio de 2025 fue de 41,6 millones de dólares, excluyendo los ingresos netos de 358,5 millones de dólares provenientes de colocaciones privadas en julio.
Sequans Communications (NYSE: SQNS)는 2025년 2분기 잠정 재무 실적을 발표하며 새로운 비트코인 재무 전략을 통한 중대한 전략적 전환을 강조했습니다. 회사는 3,072 비트코인을 인수하기 위해 3억 8,400만 달러의 자금을 투입했습니다. 2025년 2분기 매출은 전년 동기 대비 15.8% 감소한 810만 달러였으며, 총 이익률은 64.4%였습니다.
회사는 870만 달러의 영업 손실과 910만 달러의 순손실(희석 ADS당 0.36 달러)을 보고했습니다. 제품 매출은 전년 대비 59% 증가한 390만 달러였으며, 라이선스 및 서비스 매출은 430만 달러로 감소했습니다. 2025년 6월 30일 기준 현금 잔고는 7월 사모 발행에서 발생한 3억 5,850만 달러 순수익을 제외하고 4,160만 달러였습니다.
Sequans Communications (NYSE : SQNS) a publié ses résultats financiers préliminaires du deuxième trimestre 2025, mettant en avant un changement stratégique majeur avec sa nouvelle initiative Bitcoin Treasury. L'entreprise a déployé 384 millions de dollars de financement pour acquérir 3 072 Bitcoins. Le chiffre d'affaires du deuxième trimestre 2025 s'est élevé à 8,1 millions de dollars, en baisse de 15,8 % sur un an, avec une marge brute de 64,4 %.
L'entreprise a enregistré une perte opérationnelle de 8,7 millions de dollars et une perte nette de 9,1 millions de dollars (0,36 dollar par ADS dilué). Les revenus produits ont augmenté de 59 % en glissement annuel pour atteindre 3,9 millions de dollars, tandis que les revenus de licences et de services ont diminué à 4,3 millions de dollars. La trésorerie s'élevait à 41,6 millions de dollars au 30 juin 2025, hors produit net de 358,5 millions de dollars provenant des placements privés de juillet.
Sequans Communications (NYSE: SQNS) meldete vorläufige Finanzergebnisse für das zweite Quartal 2025 und hob dabei eine bedeutende strategische Neuausrichtung mit der neuen Bitcoin Treasury-Initiative hervor. Das Unternehmen setzte 384 Millionen US-Dollar an Finanzierung ein, um 3.072 Bitcoin zu erwerben. Der Umsatz im zweiten Quartal 2025 betrug 8,1 Millionen US-Dollar, ein Rückgang von 15,8 % im Jahresvergleich, mit einer Bruttomarge von 64,4 %.
Das Unternehmen verzeichnete einen operativen Verlust von 8,7 Millionen US-Dollar und einen Nettoverlust von 9,1 Millionen US-Dollar (0,36 US-Dollar je verwässerter ADS). Die Produktumsätze stiegen im Jahresvergleich um 59 % auf 3,9 Millionen US-Dollar, während die Lizenz- und Serviceerlöse auf 4,3 Millionen US-Dollar zurückgingen. Die Barposition belief sich zum 30. Juni 2025 auf 41,6 Millionen US-Dollar, ohne die Nettomittel von 358,5 Millionen US-Dollar aus den Privatplatzierungen im Juli.
- None.
- Overall revenue declined 15.8% year-over-year to $8.1 million
- Operating loss widened to $8.7 million from $3.7 million in Q2 2024
- Net loss increased to $9.1 million from $0.6 million year-over-year
- License and services revenue decreased significantly from $7.2 million to $4.3 million year-over-year
Insights
Sequans pivots to Bitcoin Treasury with $384M financing while core IoT business shows mixed results and continued losses.
Sequans Communications' Q2 2025 results reveal a company in transition, making a dramatic strategic pivot to Bitcoin Treasury while its core IoT semiconductor business continues to struggle with profitability. The company has deployed $358.5 million to purchase 3,072 Bitcoin following a July financing round—a radical departure from its historical focus.
The core business shows concerning fundamentals. Revenue remained flat quarter-over-quarter at
Gross margin has severely deteriorated to
Management's statement about "working toward breakeven operating income in 2026" signals a lengthy path to profitability for the core business. Meanwhile, the Bitcoin strategy represents a fundamental business model shift that introduces significant volatility and speculative elements to what was previously a pure-play semiconductor company. This transformation effectively turns Sequans into a hybrid company—part semiconductor firm, part Bitcoin investment vehicle—creating a complex investment proposition with dramatically different risk characteristics than its historical business.
Paris, France--(Newsfile Corp. - July 31, 2025) - Sequans Communications S.A. (NYSE: SQNS) ("Sequans" or the "Company"), a pioneer in Bitcoin Treasury and a leading provider of 5G/4G cellular IoT semiconductor solutions, today announced preliminary financial results for the second quarter ended June 30, 2025.
Second Quarter 2025 Summary Preliminary Results Table (*):
| (in US$ millions, except share and per share data) | Q2 2025 (1) | Q1 2025 (1) | Q2 2024 | |||
| Revenue | | | | |||
| Gross profit | | | | |||
| Gross margin (%) | 64.4 | % | 64.5 | % | 84.0 | % |
| Operating income (loss) | ( | ( | ( | |||
| Net profit (loss) | ( | ( | ( | |||
| Diluted income (loss) per ADS | ( | ( | ( | |||
| Non-IFRS diluted income (loss) per ADS (2) | ( | ( | ( | |||
| Weighted average number of diluted ADS (IFRS) | 25,406,045 | 25,156,570 | 24,765,063 | |||
| Weighted average number of diluted ADS (Non-IFRS) | 25,406,045 | 25,156,570 | 24,765,063 | |||
| (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. IFRS Net Loss in Q2 2024 includes significant non-cash interest expense, debt amendment and change in value of embedded derivative that are excluded from Non-IFRS measures | ||||||
| (*) Bitcoin KPIs will be presented beginning with the results of the third quarter of 2025 | ||||||
"Sequans has successfully deployed the net proceeds from the
Second Quarter 2025 Financial Summary:
Revenue: Revenue was
Gross margin: Gross margin was
Operating profit (loss): Operating loss was
Net loss: Net loss was
Non-IFRS loss: Excluding non-cash stock-based compensation, the non-cash impact of the fair-value and effective interest adjustments related to the convertible debt and associated embedded derivatives and other financings, non-IFRS net loss was
Cash: Cash and cash equivalents at June 30, 2025, totaled
Conference Call Details
Date: Thursday, July 31, 2025
Time: 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/BI4548043c012347a0897f1a34c5ac8b2c. Upon registration, telephone participants will receive a confirmation email detailing how to join the audio version of the webcast, including the dial-in number and a unique registrant ID.
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 after 8:00 a.m. ET on the same website.
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 of operations and business of Sequans, strategy for the second half of 2025. These forward-looking statements include, but are 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 current facts. 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 assumptions and assessments made by Sequans in light of its experience and perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ 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 undue reliance 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 that could significantly affect expected results and are based on certain key assumptions. Such risks and uncertainties include, but are not limited to, potential adverse reactions or changes to business relationships resulting from the implementation of the Bitcoin treasury initiative. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Among the factors 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 materialize or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward-looking statements 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' filings with 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 be filed from time to time with the SEC. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. 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 stock-based compensation and the non-cash impacts of convertible debt extensions, end effective interest adjustments related to the convertible debt with embedded derivatives and other financings. We believe that these measures can be useful to facilitate comparisons among different companies. These non-GAAP measures have limitations in that the non-GAAP measures we use may not be directly comparable 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 primary treasury 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 - including secured 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/Gerrick Johnson, 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
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three months ended | ||||||||||||
| (in thousands of US$, except share and per share amounts) | June 30, 2025 (1) | March 31, 2025 (1) | June 30, 2024 | |||||||||
| Revenue: | ||||||||||||
| Product revenue | $ | 3,872 | $ | 3,509 | $ | 2,435 | ||||||
| License and services revenue | 4,270 | 4,545 | 7,240 | |||||||||
| Total revenue | 8,142 | 8,054 | 9,675 | |||||||||
| Cost of revenue | (2,900 | ) | (2,863 | ) | (1,547 | ) | ||||||
| Gross profit | 5,242 | 5,191 | 8,128 | |||||||||
| Operating income (expenses) : | ||||||||||||
| Research and development expense | (8,779 | ) | (7,227 | ) | (5,789 | ) | ||||||
| Sales and marketing expense | (2,176 | ) | (2,337 | ) | (3,131 | ) | ||||||
| General and administrative expense | (3,019 | ) | (2,451 | ) | (2,916 | ) | ||||||
| Total operating income (expenses) | (13,974 | ) | (12,015 | ) | (11,836 | ) | ||||||
| Operating profit (loss) | (8,732 | ) | (6,824 | ) | (3,708 | ) | ||||||
| Financial income (expense): | ||||||||||||
| Interest income (expense), net | 250 | 368 | (10,806 | ) | ||||||||
| Change in fair value of convertible debt derivative | - | - | 39 | |||||||||
| Impact of debt amendment | - | - | 13,952 | |||||||||
| Foreign exchange gain (loss) | (476 | ) | (517 | ) | 90 | |||||||
| Profit (Loss) before income taxes | (8,958 | ) | (6,973 | ) | (433 | ) | ||||||
| Income tax expense | (154 | ) | (281 | ) | (146 | ) | ||||||
| Profit (Loss) | $ | (9,112 | ) | $ | (7,254 | ) | $ | (579 | ) | |||
| Attributable to: | ||||||||||||
| Shareholders of the parent | (9,112 | ) | (7,254 | ) | (579 | ) | ||||||
| Minority interests | - | - | - | |||||||||
| Basic income (loss) per ADS | ( | ) | ( | ) | ( | ) | ||||||
| Diluted income (loss) per ADS | ( | ) | ( | ) | ( | ) | ||||||
| Weighted average number of ADS used for computing: | ||||||||||||
| - Basic | 25,406,045 | 25,156,570 | 24,765,063 | |||||||||
| - Diluted | 25,406,045 | 25,156,570 | 24,765,063 | |||||||||
| (1) Final results are subject to finalization of the allocation of the ACP acquisition purchase price. | ||||||||||||
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Six months ended June 30, | ||||||||
| (in thousands of US$, except share and per share amounts) | 2025 (1) | 2024 | ||||||
| Revenue: | ||||||||
| Product revenue | $ | 7,381 | $ | 4,903 | ||||
| License and services revenue | 8,815 | 10,799 | ||||||
| Total revenue | 16,196 | 15,702 | ||||||
| Cost of revenue | (5,763 | ) | (3,720 | ) | ||||
| Gross profit | 10,433 | 11,982 | ||||||
| Operating income (expenses): | ||||||||
| Research and development expense | (16,006 | ) | (12,402 | ) | ||||
| Sales and marketing expense | (4,513 | ) | (6,003 | ) | ||||
| General and administrative expense | (5,470 | ) | (5,818 | ) | ||||
| Total operating income (expenses) | (25,989 | ) | (24,223 | ) | ||||
| Operating profit (loss) | (15,556 | ) | (12,241 | ) | ||||
| Financial income (expense): | ||||||||
| Interest income (expense), net | 618 | (14,124 | ) | |||||
| Change in fair value of convertible debt derivative | - | 3 | ||||||
| Impact of debt amendment | - | 13,952 | ||||||
| Foreign exchange gain (loss) | (993 | ) | 354 | |||||
| Profit (Loss) before income taxes | (15,931 | ) | (12,056 | ) | ||||
| Income tax expense | (435 | ) | (313 | ) | ||||
| Profit (Loss) | $ | (16,366 | ) | $ | (12,369 | ) | ||
| Attributable to: | ||||||||
| Shareholders of the parent | (16,366 | ) | (12,369 | ) | ||||
| Minority interests | - | - | ||||||
| Basic income (loss) per ADS | ( | ) | ( | ) | ||||
| Diluted income (loss) per ADS | ( | ) | ( | ) | ||||
| Weighted average number of ADS used for computing: | ||||||||
| - Basic | 25,282,261 | 24,705,875 | ||||||
| - Diluted | 25,282,261 | 24,705,875 | ||||||
| (1) Final results are subject to finalization of the allocation of the ACP acquisition purchase price. | ||||||||
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
| At June 30, | At Dec 31, | ||||||
| (in thousands of US$) | 2025 (1) | 2024 | |||||
| ASSETS | |||||||
| Non-current assets | |||||||
| Property, plant and equipment | $ | 4,244 | $ | 4,308 | |||
| Intangible assets | 13,118 | 5,641 | |||||
| Deposits and other receivables | 3,653 | 3,246 | |||||
| Other non-current financial assets | 435 | 353 | |||||
| Total non-current assets | 21,450 | 13,548 | |||||
| Current assets | |||||||
| Inventories | 2,884 | 2,874 | |||||
| Trade receivables | 2,693 | 4,809 | |||||
| Contract assets | 13 | 122 | |||||
| Prepaid expenses | 1,755 | 1,410 | |||||
| Other receivables | 13,081 | 17,492 | |||||
| Research tax credit receivable | 4,815 | 4,184 | |||||
| Short-term deposits | 23,000 | 53,000 | |||||
| Cash and cash equivalents | 18,600 | 9,093 | |||||
| Total current assets | 66,841 | 92,984 | |||||
| Total assets | $ | 88,291 | $ | 106,532 | |||
| EQUITY AND LIABILITIES | |||||||
| Equity | |||||||
| Issued capital, | $ | 2,974 | $ | 2,934 | |||
| Share premium | 14,473 | 14,512 | |||||
| Other capital reserves | 76,397 | 74,504 | |||||
| Accumulated deficit | (52,161 | ) | (35,795 | ) | |||
| Other components of equity | (215 | ) | (796 | ) | |||
| Total equity | 41,468 | 55,359 | |||||
| Non-current liabilities | |||||||
| Government loan | - | 616 | |||||
| Government research financing | 4,723 | 5,669 | |||||
| Lease liabilities | - | 333 | |||||
| Trade payables and other non-current liabilities | 667 | - | |||||
| Provisions | 2,147 | 1,400 | |||||
| Deferred tax liabilities | 190 | 173 | |||||
| Contract liabilities | 2,641 | 809 | |||||
| Total non-current liabilities | 10,368 | 9,000 | |||||
| Current liabilities | |||||||
| Trade payables | 9,812 | 6,106 | |||||
| Interest-bearing receivables financing | - | 3,742 | |||||
| Lease liabilities | 1,126 | 1,439 | |||||
| Government loan | 1,837 | 1,802 | |||||
| Government research financing | 3,250 | 4,062 | |||||
| Contract liabilities | 5,513 | 11,021 | |||||
| Income tax liabilities - Parent | 3,761 | 2,827 | |||||
| Other current liabilities and provisions | 11,156 | 11,174 | |||||
| Total current liabilities | 36,455 | 42,173 | |||||
| Total equity and liabilities | $ | 88,291 | $ | 106,532 | |||
| (1) Final results are subject to finalization of the allocation of the ACP acquisition purchase price. | |||||||
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
| Six months ended June 30, | |||||||||
| (in thousands of US$) | 2025 (1) | 2024 | |||||||
| Operating activities | |||||||||
| Loss before income taxes | $ | (15,931 | ) | $ | (12,056 | ) | |||
| Non-cash adjustment to reconcile income before tax to net cash from (used in) operating activities | |||||||||
| Depreciation and impairment of property, plant and equipment | 1,418 | 1,670 | |||||||
| Amortization and impairment of intangible assets | 1,960 | 2,748 | |||||||
| Share-based payment expense | 1,893 | 2,964 | |||||||
| Decrease in provision | (92 | ) | (219 | ) | |||||
| Interest (income) expense, net | (620 | ) | 14,124 | ||||||
| Change in the fair value of convertible debt embedded derivative | - | (3 | ) | ||||||
| Foreign exchange loss (gain) | (525 | ) | 216 | ||||||
| Loss on disposal of intangible and tangible assets | 12 | - | |||||||
| Working capital adjustments | |||||||||
| Decrease in trade receivables and other receivables | 3,066 | 5,209 | |||||||
| Decrease in inventories | 48 | 1,812 | |||||||
| Increase in research tax credit receivable | (509 | ) | (987 | ) | |||||
| Increase in trade payables and other liabilities | 1,790 | 792 | |||||||
| Increase (Decrease) in contract liabilities | (5,146 | ) | 5,102 | ||||||
| Increase in government grant advances | 2,044 | 3,112 | |||||||
| Income tax paid | (586 | ) | (560 | ) | |||||
| Net cash flow from (used in) operating activities | (11,178 | ) | 9,972 | ||||||
| Investing activities | |||||||||
| Purchase of intangible assets and property, plant and equipment | (1,109 | ) | (1,200 | ) | |||||
| Capitalized development expenditures | - | (14,851 | ) | ||||||
| Investment in ACP Advanced Circuit Pursuit, net of cash acquired | (3,586 | ) | - | ||||||
| Sale (Purchase) of financial assets | (151 | ) | 60 | ||||||
| Decrease of short-term deposit | 30,000 | - | |||||||
| Interest received | 990 | 27 | |||||||
| Net cash flow from (used in) investing activities | 26,144 | (15,964 | ) | ||||||
| Financing activities | |||||||||
| Proceeds (repayment of) from interest-bearing receivables financing | (3,742 | ) | 577 | ||||||
| Proceeds from related party loans | - | 14,000 | |||||||
| Payment of lease liabilities | (749 | ) | (753 | ) | |||||
| Repayment of government loans | (678 | ) | (679 | ) | |||||
| Repayment of loans | (420 | ) | - | ||||||
| Repayment of interest-bearing research project financing | (395 | ) | (266 | ) | |||||
| Interest paid | (637 | ) | (412 | ) | |||||
| Net cash flows from (used in) financing activities | (5,492 | ) | 13,401 | ||||||
| Net increase (decrease) in cash and cash equivalents | 9,474 | 7,409 | |||||||
| Net foreign exchange difference | 33 | (6 | ) | ||||||
| Cash and cash equivalents at January 1 | 9,093 | 5,705 | |||||||
| Cash and cash equivalents at end of the period | 18,600 | 13,108 | |||||||
| (1) Final results are subject to finalization of the allocation of the ACP acquisition purchase price. | |||||||||
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 | ||||||||||
| June 30, 2025 (3) | March 31, 2025 | June 30, 2024 | |||||||||
| IFRS profit (loss) as reported | $ | (9,112 | ) | $ | (7,254 | ) | $ | (579 | ) | ||
| Add back | |||||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | 879 | 1,014 | 1,847 | ||||||||
| Non-cash change in the fair value of convertible debt embedded derivative | - | - | (39 | ) | |||||||
| Non-cash interest on convertible debt and other financing (2) | 108 | 111 | 6,972 | ||||||||
| Non-IFRS profit (loss) adjusted | $ | (8,125 | ) | $ | (6,129 | ) | $ | (5,751 | ) | ||
| IFRS basic profit (loss) per ADS as reported | ( | ) | ( | ) | ( | ) | |||||
| Add back | |||||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | $ | 0.03 | $ | 0.04 | $ | 0.07 | |||||
| Non-cash change in the fair value of convertible debt embedded derivative | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||
| Non-cash interest on convertible debt and other financing (2) | $ | 0.01 | $ | 0.01 | $ | 0.28 | |||||
| Non-IFRS basic profit (loss) per ADS | ( | ) | ( | ) | ( | ) | |||||
| IFRS diluted profit (loss) per ADS | ( | ) | ( | ) | ( | ) | |||||
| Add back | |||||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | $ | 0.03 | $ | 0.04 | $ | 0.07 | |||||
| Non-cash change in the fair value of convertible debt embedded derivative | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||
| Non-cash interest on convertible debt and other financing (2) | $ | 0.01 | $ | 0.01 | $ | 0.28 | |||||
| Non-IFRS diluted profit (loss) per ADS | ( | ) | ( | ) | ( | ) | |||||
| (1) Included in the IFRS profit (loss) as follows: | |||||||||||
| Cost of product revenue | $ | 13 | $ | 16 | $ | 27 | |||||
| Research and development | 181 | 205 | 509 | ||||||||
| Sales and marketing | 191 | 223 | 435 | ||||||||
| General and administrative | 494 | 570 | 876 | ||||||||
| (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 | |||||||||||
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS
| (in thousands of US$, except share and per share amounts) | Six months ended June 30, | |||||||
| 2025 (3) | 2024 | |||||||
| IFRS profit (loss) as reported | $ | (16,366 | ) | $ | (12,369 | ) | ||
| Add back | ||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | 1,893 | 2,964 | ||||||
| Non-cash change in the fair value of convertible debt embedded derivative | - | (3 | ) | |||||
| Non-cash interest on convertible debt and other financing (2) | 218 | 8,805 | ||||||
| Non-cash impact of convertible debt amendment | - | (13,952 | ) | |||||
| Non-IFRS profit (loss) adjusted | $ | (14,255 | ) | $ | (14,555 | ) | ||
| IFRS basic profit (loss) per ADS as reported | ( | ) | ( | ) | ||||
| Add back | ||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | $ | 0.07 | $ | 0.12 | ||||
| Non-cash change in the fair value of convertible debt embedded derivative | $ | 0.00 | $ | 0.00 | ||||
| Non-cash interest on convertible debt and other financing (2) | $ | 0.01 | $ | 0.35 | ||||
| Non-cash impact of convertible debt amendment | $ | 0.00 | ( | ) | ||||
| Non-IFRS basic profit (loss) per ADS | ( | ) | ( | ) | ||||
| IFRS diluted profit (loss) per ADS | ( | ) | ( | ) | ||||
| Add back | ||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | $ | 0.07 | $ | 0.12 | ||||
| Non-cash change in the fair value of convertible debt embedded derivative | $ | 0.00 | $ | 0.00 | ||||
| Non-cash interest on convertible debt and other financing (2) | $ | 0.01 | $ | 0.35 | ||||
| Non-cash impact of convertible debt amendment | $ | 0.00 | ( | ) | ||||
| Non-IFRS diluted profit (loss) per ADS | ( | ) | ( | ) | ||||
| (1) Included in the IFRS profit (loss) as follows: | ||||||||
| Cost of product revenue | $ | 29 | $ | 44 | ||||
| Research and development | 386 | 827 | ||||||
| Sales and marketing | 414 | 678 | ||||||
| General and administrative | 1,064 | 1,415 | ||||||
| (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 | ||||||||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/260802
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