Sequans Communications Unaudited Second Quarter 2026 Preliminary Financial Results
Rhea-AI Summary
Sequans Communications (NYSE: SQNS) reported preliminary unaudited Q2 2026 revenue of $7.5 million, up 23% QoQ but down 8.4% YoY, mainly due to lower Qualcomm-related license and services revenue versus Q2 2025. Product sales rose 39.4% QoQ and 83.7% YoY, and more than 40 design-win projects are now in mass production, representing 55% of a stated $300 million three-year product revenue pipeline.
Gross margin fell to 32.9% from 37.7% in Q1 2026 and 64.4% in Q2 2025, reflecting a higher product-sales mix and prior Qualcomm-related margin benefits. Operating loss narrowed to $7.2 million from $50.5 million in Q1, influenced by a $3.0 million digital asset impairment and a $5.3 million realized net gain on Bitcoin sales. Net loss was $9.8 million (−$0.65 per ADS) versus $76.2 million in Q1 2026 and $9.0 million in Q2 2025, while non-IFRS net loss improved to $4.0 million (−$0.27 per ADS).
According to Sequans, cash and cash equivalents increased to $21.0 million at June 30, 2026 from $10.6 million at March 31, 2026. Bitcoin holdings declined to 314 BTC (market value $18.4 million) from 1,514 BTC ($103.2 million) at March 31, partly due to sales used to redeem convertible debt and strengthen liquidity. The company ended the quarter with a debt-free balance sheet, down from $56.4 million in convertible debt and a $10.8 million embedded derivative liability at December 31, 2025. Total equity decreased to $41.7 million at June 30, 2026 from $127.7 million at year-end 2025, reflecting cumulative losses and changes in digital asset values.
Positive
- Revenue $7.5M, up 23.2% QoQ and 84.2% YoY excluding 2025 Qualcomm license revenue
- Product sales up 39.4% QoQ and 83.7% YoY in Q2 2026
- Non-IFRS net loss improved to $4.0M from $20.6M QoQ
- Operating loss narrowed to $7.2M from $50.5M in Q1 2026
- Cash balance increased to $21.0M from $10.6M QoQ
- Convertible debt and embedded derivative reduced to $0 at June 30, 2026
Negative
- Q2 2026 gross margin declined to 32.9% from 64.4% a year earlier
- Q2 2026 net loss of $9.8M and six-month loss of $86.0M
- Digital asset impairment and net loss on sales totaled $38.7M in H1 2026
- Total equity decreased to $41.7M from $127.7M at December 31, 2025
- H1 2026 revenue $13.5M, down from $16.2M in H1 2025
News Explained
The preliminary, unaudited Q2 cash-flow statement makes the liquidity mechanics explicit: during the six months ended
Market reaction after 2Q26 earnings report: SQNS +14.75%
Following this news, SQNS has gained 14.75%, reflecting a significant positive market reaction. Our momentum scanner has triggered 4 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $2.80.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 05 | First-quarter earnings | Negative | -0.3% | Revenue declined year over year amid losses and Bitcoin-related balance sheet exposure. |
| Feb 10 | Fourth-quarter earnings | Negative | -1.1% | Bitcoin impairments and realized losses drove a substantial quarterly net loss. |
| Nov 04 | Third-quarter earnings | Negative | -16.6% | Revenue fell sharply while Bitcoin-related financing and balance sheet actions continued. |
| Jul 31 | Second-quarter earnings | Negative | -6.7% | Revenue declined year over year during the company’s Bitcoin treasury strategy shift. |
| May 06 | First-quarter earnings | Positive | -23.2% | Product revenue and the three-year pipeline expanded despite quarterly revenue pressure. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events were generally followed by reactions aligned with the reported earnings direction, with one notable divergence.
Key Terms
non-ifrs financial
embedded derivative financial
convertible debt financial
rf transceiver technical
eredcap technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Paris, France--(Newsfile Corp. - August 4, 2026) - Sequans Communications S.A. (NYSE: SQNS) ("Sequans" or the "Company"), a leading provider of 5G/4G cellular IoT semiconductor solutions, today announced preliminary unaudited financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Summary Preliminary Unaudited Results Table:
| (in US$ millions, except share and per share data) | Q2 2026 | Q1 2026 (1) | Q2 2025 (2) |
| Revenue | | | |
| Gross profit | | | |
| Gross margin (%) | 32.9 % | 37.7 % | 64.4 % |
| Operating income (loss) | ( | ( | ( |
| Net profit (loss) | ( | ( | ( |
| Diluted income (loss) per ADS | ( | ( | ( |
| Non-IFRS diluted income (loss) per ADS (3) | ( | ( | ( |
| Weighted average number of diluted ADS (IFRS) | 14,983,376 | 14,576,046 | 2,540,605 |
| Weighted average number of diluted ADS (Non-IFRS) | 14,983,376 | 14,576,046 | 2,540,605 |
| (1) The financial results for Q1 2026 differ from the preliminary unaudited results disclosed in the Company's May 5, 2026 earnings press releases. The changes primarily relate to the re-evaluation of the value of the convertible debt upon the amendment on February 10, 2026 to permit the full redemption of the notes. | |||
| (2) The financial results for 2025 differ from the preliminary unaudited results disclosed in the Company's July 31, 2025 earnings press releases. The changes primarily relate to the finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management's review. | |||
| (3) See Use of Non-IFRS/non-GAAP Financial Measures disclosure on page 3. | |||
"Our IoT semiconductor business delivered a strong second quarter, with revenue of
Dr. Karam added, "We have also taken meaningful steps to simplify our capital structure and sharpen our focus on our core IoT strategy. Following the full redemption of our convertible debt in May, we have continued to reduce our Bitcoin position in a disciplined and opportunistic manner, ending the quarter with
Second Quarter 2026 Financial Summary:
Revenue: Total revenue was
Product sales accounted for the vast majority of revenue in the second quarter 2026, increasing
Gross margin: Gross margin was
Operating loss: Operating loss was
Net loss: Net loss was
Net loss in the second quarter included net interest expense of
Non-IFRS loss: Excluding non-cash impairment of digital assets, non-cash stock-based compensation, the non-cash impact of the fair-value, non-cash loss on early extinguishment of debt, 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, 2026 totaled
Digital assets: At June 30, 2026, the Company held 314 Bitcoin with a market value of
Conference Call Details
Date: Tuesday, August 4, 2026
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/BIabb1f7fac10a45dcbe122938051f361e. 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/ttvnxt2o/
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 financial condition, results of operations and business of Sequans, product revenue pipeline, bitcoin treasury and business strategy for 2026 and beyond. 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, our planned exit from our Bitcoin treasury strategy and potential adverse reactions or changes to business relationships resulting from the implementation of the Bitcoin treasury initiative and fluctuations on the value of Bitcoin and the implications of a decline in the value of Bitcoin on our collateral requirements. 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, our ability to convert our product pipeline and design wins into revenue, and a decline in the value of Bitcoin. 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, 2025 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. All financial results described in this earnings release should be considered preliminary and are subject to change due to the finalization of the re-evaluation of the value of the convertible debt.
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 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) and RF transceiver solutions for software-defined applications. 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, as well as mission-critical deployments in space and defense.
Sequans offers a comprehensive portfolio of 4G/5G solutions, including LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap and eRedCap platforms, all purpose-built for IoT and delivering breakthroughs in wireless connectivity, power efficiency, security, and performance. Sequans RF transceiver solutions enable highly flexible, programmable wireless systems optimized for performance and resilience in demanding environments. The company also provides advanced design services and technology licensing.
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
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, 2026. | March 31, 2026 (1) | June 30, 2025 (2) | |||||||||
| Revenue | 7,459 | 6,054 | 8,142 | |||||||||
| Cost of revenue | (5,005 | ) | (3,771 | ) | (2,900 | ) | ||||||
| Gross profit | 2,454 | 2,283 | 5,242 | |||||||||
| Research and development expense | (7,541 | ) | (7,368 | ) | (8,489 | ) | ||||||
| Sales and marketing expense | (2,059 | ) | (2,023 | ) | (2,198 | ) | ||||||
| General and administrative expense | (2,333 | ) | (2,375 | ) | (3,019 | ) | ||||||
| Digital asset Impairment losses | (3,007 | ) | (29,334 | ) | - | |||||||
| Digital asset gain (loss) on sales, net | 5,275 | (11,683 | ) | - | ||||||||
| Total operating income (expenses) | (9,665 | ) | (52,783 | ) | (13,706 | ) | ||||||
| Operating profit (loss) | (7,211 | ) | (50,500 | ) | (8,464 | ) | ||||||
| Financial income (expense): | ||||||||||||
| Interest income (expense), net | (2,384 | ) | (4,855 | ) | 138 | |||||||
| Change in fair value of derivative financial instruments | 170 | 10,630 | - | |||||||||
| Gain (loss) on debt extinguishment | - | (31,498 | ) | - | ||||||||
| Foreign exchange gain (loss) | (135 | ) | 153 | (476 | ) | |||||||
| Profit (Loss) before income taxes | (9,560 | ) | (76,070 | ) | (8,802 | ) | ||||||
| Income tax expense | (212 | ) | (146 | ) | (154 | ) | ||||||
| Profit (Loss) | $ | (9,772 | ) | $ | (76,216 | ) | $ | (8,956 | ) | |||
| Attributable to: | ||||||||||||
| Shareholders of the parent | (9,772 | ) | (76,216 | ) | (8,956 | ) | ||||||
| Minority interests | - | - | - | |||||||||
| Basic income (loss) per ADS | ( | ) | ( | ) | ( | ) | ||||||
| Diluted income (loss) per ADS | ( | ) | ( | ) | ( | ) | ||||||
| Weighted average number of ADS used for computing: | ||||||||||||
| - Basic | 14,983,376 | 14,576,046 | 2,540,605 | |||||||||
| - Diluted | 14,983,376 | 14,576,046 | 2,540,605 | |||||||||
| (1) The financial results for the three months ended March 31, 2026 differ from the preliminary unaudited results disclosed in the Company's May 5, 2026 earnings press releases. The changes primarily relate to the re-evaluation of the value of the convertible debt upon the amendment on February 10, 2026 to permit the full redemption of the notes. | ||||||||||||
| (2) The financial results for the six months ended June 30, 2025 differ from the preliminary unaudited results disclosed in the Company's July 31, 2025 earnings press releases. The changes primarily relate to the finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management's review. | ||||||||||||
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) | 2026 | 2025 (1) | ||||||
| Revenue | 13,513 | 16,196 | ||||||
| Cost of revenue | (8,776 | ) | (5,763 | ) | ||||
| Gross profit | 4,737 | 10,433 | ||||||
| Other operating Income (expenses) | - | |||||||
| Research and development expense | (14,909 | ) | (15,712 | ) | ||||
| Sales and marketing expense | (4,082 | ) | (4,553 | ) | ||||
| General and administrative expense | (4,708 | ) | (5,470 | ) | ||||
| Digital asset Impairment losses | (32,341 | ) | - | |||||
| Digital asset losses on sales, net | (6,408 | ) | - | |||||
| Total operating income (expenses) | (62,448 | ) | (25,735 | ) | ||||
| Operating profit (loss) | (57,711 | ) | (15,302 | ) | ||||
| Financial income (expense): | ||||||||
| Interest income (expense), net | (7,239 | ) | 506 | |||||
| Change in fair value of derivative financial instruments | 10,800 | - | ||||||
| Gain (loss) on debt extinguishment | (31,498 | ) | - | |||||
| Foreign exchange gain (loss) | 18 | (993 | ) | |||||
| Profit (Loss) before income taxes | (85,630 | ) | (15,789 | ) | ||||
| Income tax expense | (358 | ) | (435 | ) | ||||
| Profit (Loss) | $ | (85,988 | ) | $ | (16,224 | ) | ||
| Attributable to: | ||||||||
| Shareholders of the parent | (85,988 | ) | (16,224 | ) | ||||
| Minority interests | - | - | ||||||
| Basic income (loss) per ADS | ( | ) | ( | ) | ||||
| Diluted income (loss) per ADS | ( | ) | ( | ) | ||||
| Weighted average number of ADS used for computing: | ||||||||
| - Basic | 14,778,513 | 2,528,226 | ||||||
| - Diluted | 14,778,513 | 2,528,226 | ||||||
| (1) The financial results for the six months ended June 30, 2025 differ from the preliminary unaudited results disclosed in the Company's July 31, 2025 earnings press releases. The changes primarily relate to the finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management's review. | ||||||||
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
| At June 30, | At Dec 31, | ||||||
| (in thousands of US$) | 2026 | 2025 | |||||
| ASSETS | |||||||
| Non-current assets | |||||||
| Property, plant and equipment | $ | 3,824 | $ | 4,299 | |||
| Intangible assets | 8,261 | 8,522 | |||||
| Goodwill | 3,676 | 3,676 | |||||
| Digital assets pledge as collateral for convertible debt | - | 141,505 | |||||
| Digital assets, unrestricted | 18,376 | 45,686 | |||||
| Deposits and other receivables | 746 | 2,161 | |||||
| Prepaid expenses | 1,891 | 2,213 | |||||
| Other non-current financial assets | 397 | 409 | |||||
| Total non-current assets | 37,171 | 208,471 | |||||
| Current assets | |||||||
| Inventories | 4,007 | 3,933 | |||||
| Trade receivables | 5,092 | 3,278 | |||||
| Contract assets | 169 | 98 | |||||
| Prepaid expenses | 2,554 | 2,564 | |||||
| Other receivables | 7,954 | 5,953 | |||||
| Research tax credit receivable | 5,700 | 5,898 | |||||
| Cash and cash equivalents | 20,972 | 13,386 | |||||
| Total current assets | 46,448 | 35,110 | |||||
| Total assets | $ | 83,619 | $ | 243,581 | |||
| EQUITY AND LIABILITIES | |||||||
| Equity | |||||||
| Issued capital, | $ | 17,858 | $ | 18,718 | |||
| Share premium | 177,169 | 185,598 | |||||
| Other capital reserves | 78,459 | 77,515 | |||||
| Treasury shares | (933 | ) | (9,363 | ) | |||
| Accumulated deficit | (231,062 | ) | (145,074 | ) | |||
| Other components of equity | 223 | 284 | |||||
| Total equity | 41,714 | 127,678 | |||||
| Non-current liabilities | |||||||
| Government research financing | 2,354 | 3,297 | |||||
| Lease liabilities | 1,230 | 1,225 | |||||
| Trade payables and other non-current liabilities | 200 | 1,360 | |||||
| Provisions | 2,261 | 2,112 | |||||
| Deferred tax liabilities | 127 | 129 | |||||
| Contract liabilities | 2,273 | 3,157 | |||||
| Total non-current liabilities | 8,445 | 11,280 | |||||
| Current liabilities | |||||||
| Trade payables | 10,032 | 10,081 | |||||
| Convertible debt | - | 56,422 | |||||
| Convertible debt embedded derivative | - | 10,800 | |||||
| Lease liabilities | 73 | 601 | |||||
| Government loan | - | 979 | |||||
| Government research financing | 3,614 | 4,308 | |||||
| Contract liabilities | 5,932 | 7,224 | |||||
| Income tax liabilities - Parent | 3,047 | 3,124 | |||||
| Other current liabilities and provisions | 10,762 | 11,084 | |||||
| Total current liabilities | 33,460 | 104,623 | |||||
| Total equity and liabilities | $ | 83,619 | $ | 243,581 | |||
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
| Six months ended June 30, | |||||||||
| (in thousands of US$) | 2026 | 2025 (1) | |||||||
| Operating activities | |||||||||
| Loss before income taxes | $ | (85,630 | ) | (15,789 | ) | ||||
| Adjustments to reconcile profit before tax to net cash flows | |||||||||
| Depreciation and impairment of property, plant and equipment | 1,177 | 1,538 | |||||||
| Amortization and impairment of intangible assets | 1,576 | 1,586 | |||||||
| Impairment of digital assets | 32,341 | - | |||||||
| Share-based payment expense | 944 | 1,893 | |||||||
| Decrease in provision | (1,785 | ) | (92 | ) | |||||
| Interest expense, net | 7,239 | (508 | ) | ||||||
| Change in the fair value of convertible debt embedded derivative | (10,800 | ) | - | ||||||
| Loss (gain) on debt extinguishment, net of non-cash transaction costs | 31,498 | - | |||||||
| Foreign exchange loss (gain) | (5 | ) | (525 | ) | |||||
| Loss (gain) on disposal of intangible and tangible assets | (3 | ) | 12 | ||||||
| Loss on digital assets | 6,408 | - | |||||||
| Working capital adjustments | |||||||||
| Decrease in trade receivables and other receivables | (2,686 | ) | 3,066 | ||||||
| Decrease (increase) in inventories | 1,930 | 48 | |||||||
| Increase in research tax credit receivable | 210 | (509 | ) | ||||||
| Increase (decrease) in trade payables and other liabilities | (678 | ) | 644 | ||||||
| Increase (Decrease) in contract liabilities | (2,655 | ) | (5,146 | ) | |||||
| Increase in government grant advances | (1,402 | ) | 2,044 | ||||||
| Income tax paid | (716 | ) | (586 | ) | |||||
| Net cash flow used in operating activities | (23,037 | ) | (12,324 | ) | |||||
| Investing activities | |||||||||
| Purchase of intangible assets and property, plant and equipment | (2,593 | ) | (1,109 | ) | |||||
| Proceeds from sale of digital assets | 130,065 | - | |||||||
| Investment in ACP Advanced Circuit Pursuit, net of cash acquired | - | (2,440 | ) | ||||||
| Sale (Purchase) of financial assets | 102 | (151 | ) | ||||||
| Decrease (increase) of short-term deposit | - | 30,000 | |||||||
| Interest received | 77 | 990 | |||||||
| Net cash flow from (used in) investing activities | 127,651 | 27,290 | |||||||
| Financing activities | |||||||||
| Proceeds from exercise of pre-funded and common warrants | 73 | - | |||||||
| Proceeds (repayment of) from interest-bearing receivables financing | - | (3,742 | ) | ||||||
| Purchase of treasury shares | (933 | ) | - | ||||||
| Payment of lease liabilities | (498 | ) | (749 | ) | |||||
| Repayment of convertible debt | (94,500 | ) | - | ||||||
| Repayment of government loans | (734 | ) | (678 | ) | |||||
| Repayment of loans | - | (420 | ) | ||||||
| Repayment of interest-bearing research project financing | (80 | ) | (395 | ) | |||||
| Interest paid | (356 | ) | (637 | ) | |||||
| Net cash flows from (used in) financing activities | (97,028 | ) | (5,492 | ) | |||||
| Net increase in cash and cash equivalents | 7,586 | 9,474 | |||||||
| Net foreign exchange difference | - | 33 | |||||||
| Cash and cash equivalents at January 1 | 13,386 | 9,093 | |||||||
| Cash and cash equivalents at end of the period | 20,972 | 18,600 | |||||||
| (1) The financial results for the six months ended June 30, 2025 differ from the preliminary unaudited results disclosed in the Company's July 31, 2025 earnings press releases. The changes primarily relate to the finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management's review. | |||||||||
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, 2026 | March 31, 2026 (3) | June 30, 2025 (4) | ||||||||
| IFRS profit (loss) as reported | $ | (9,772 | ) | $ | (76,216 | ) | $ | (8,956 | ) | |
| Add back | ||||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | 468 | 476 | 879 | |||||||
| Non-cash impairment of digital assets | 3,007 | 29,334 | - | |||||||
| Non-cash change in the fair value of embedded derivatives | (170 | ) | (10,630 | ) | - | |||||
| Non-cash interest on convertible debt and other financing (2) | 2,474 | 4,979 | 108 | |||||||
| Non-cash impact on gain (loss) on debt extinguishment | - | 31,498 | - | |||||||
| Non-IFRS profit (loss) adjusted | $ | (3,993 | ) | $ | (20,559 | ) | $ | (7,969 | ) | |
| IFRS basic profit (loss) per ADS as reported | ( | ) | ( | ) | ( | ) | ||||
| Add back | ||||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | ||||||||||
| Non-cash impairment of digital assets | ||||||||||
| Non-cash change in the fair value of embedded derivatives | ( | ) | ( | ) | ||||||
| Non-cash interest on convertible debt and other financing (2) | ||||||||||
| Non-cash impact on gain (loss) on debt extinguishment | ||||||||||
| 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) | ||||||||||
| Non-cash impairment of digital assets | ||||||||||
| Non-cash change in the fair value of embedded derivatives | ( | ) | ( | ) | ||||||
| Non-cash interest on convertible debt and other financing (2) | ||||||||||
| Non-cash impact on gain (loss) on debt extinguishment | ||||||||||
| Non-IFRS diluted profit (loss) per ADS | ( | ) | ( | ) | ( | ) | ||||
| (1) Included in the IFRS profit (loss) as follows: | ||||||||||
| Cost of product revenue | $ | 2 | $ | 2 | $ | 13 | ||||
| Research and development | 154 | 156 | 181 | |||||||
| Sales and marketing | 56 | 70 | 191 | |||||||
| General and administrative | 256 | 248 | 494 | |||||||
| (2) Related to the difference between contractual and effective interest rates | ||||||||||
| (3) The financial results for the three months ended March 31, 2026 differ from the preliminary unaudited results disclosed in the Company's May 5, 2026 earnings press releases. The changes primarily relate to the re-evaluation of the value of the convertible debt upon the amendment on February 10, 2026 to permit the full redemption of the notes. | ||||||||||
| (4) The financial results for 2025 differ from the preliminary unaudited results disclosed in the Company's July 31, 2025 earnings press releases. The changes primarily relate to the finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management's review. | ||||||||||
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, | |||||||
| 2026 | 2025 (3) | |||||||
| IFRS profit (loss) as reported | $ | (85,988 | ) | $ | (16,224 | ) | ||
| Add back | ||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | 944 | 1,893 | ||||||
| Non-cash impairment of digital assets | 32,341 | - | ||||||
| Non-cash change in the fair value of embedded derivatives | (10,800 | ) | - | |||||
| Non-cash interest on convertible debt and other financing (2) | 7,453 | 218 | ||||||
| Non-cash impact on gain (loss) on debt extinguishment | 31,498 | - | ||||||
| Non-IFRS profit (loss) adjusted | $ | (24,552 | ) | $ | (14,113 | ) | ||
| IFRS basic profit (loss) per ADS as reported | ( | ) | ( | ) | ||||
| Add back | ||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | ||||||||
| Non-cash impairment of digital assets | ||||||||
| Non-cash change in the fair value of embedded derivatives | ( | ) | ||||||
| Non-cash interest on convertible debt and other financing (2) | ||||||||
| Non-cash impact on gain (loss) on debt extinguishment | ||||||||
| 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) | ||||||||
| Non-cash impairment of digital assets | ||||||||
| Non-cash change in the fair value of embedded derivatives | ( | ) | ||||||
| Non-cash interest on convertible debt and other financing (2) | ||||||||
| Non-cash impact on gain (loss) on debt extinguishment | ||||||||
| Non-IFRS diluted profit (loss) per ADS | ( | ) | ( | ) | ||||
| (1) Included in the IFRS profit (loss) as follows: | ||||||||
| Cost of product revenue | $ | 4 | $ | 29 | ||||
| Research and development | 310 | 386 | ||||||
| Sales and marketing | 126 | 414 | ||||||
| General and administrative | 504 | 1,064 | ||||||
| (2) Related to the difference between contractual and effective interest rates | ||||||||
| (3) The financial results for 2025 differ from the preliminary unaudited results disclosed in the Company's July 31, 2025 earnings press releases. The changes primarily relate to the finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management's review. | ||||||||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/307891