Sequans Communications Unaudited Third Quarter 2026 Preliminary Financial Results
The completed Bitcoin exit leaves no Bitcoin holdings, while nine-month losses remain wider despite the third-quarter improvement.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Sequans Communications (NYSE: SQNS) reported preliminary unaudited third-quarter 2026 revenue of $9.1 million, alongside narrower operating and net losses. Revenue rose 21.9% sequentially and 182.8% year over year. Gross margin reached 33.0%, versus 32.9% and 25.3%, respectively. Net loss narrowed to $1.5 million, or $0.10 per diluted ADS, from $9.8 million in the second quarter and $16.6 million a year earlier.
Operating loss narrowed to $1.0 million, including a $6.2 million realized net gain on Bitcoin sales. Sequans completed its Bitcoin treasury exit, holding no Bitcoin at September 30. Cash, cash equivalents and short-term deposits totaled $39.7 million, versus $21.0 million at June 30. Convertible debt was zero, compared with $56.422 million at December 31, 2025. Despite quarterly improvement, nine-month net loss widened to $87.466 million from $32.851 million. The company said its growing backlog extends into the second half of 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major pointConvertible debt fell to zero at September 30, from $56.422 million at December 31, 2025.
- Moderate pointQ3 revenue of $9.1 million increased 21.9% sequentially and 182.8% year over year.
- Moderate pointQ3 gross margin of 33.0% exceeded 32.9% in Q2 and 25.3% a year earlier.
- Moderate pointQ3 operating loss narrowed to $1.0 million from $7.2 million sequentially and $24.4 million year over year.
- Moderate pointQ3 net loss narrowed to $1.5 million, versus $9.8 million sequentially and $16.6 million year over year.
- Moderate pointCash, cash equivalents and short-term deposits reached $39.7 million at September 30, versus $21.0 million at June 30.
- Moderate pointGrowing backlog extends into the second half of 2027, the company said.
9 minor points
- Minor pointQ3 product sales rose 20.5% sequentially and more than fourfold year over year.
- Minor pointQ3 research and development expense fell to $6.656 million from $7.541 million sequentially and $7.750 million year over year.
- Minor pointQ3 sales and marketing expense fell to $1.576 million from $2.059 million sequentially and $2.143 million year over year.
- Minor pointQ3 administrative expense fell to $2.055 million from $2.333 million sequentially and $3.850 million year over year.
- Minor pointQ3 net interest expense fell to $0.411 million from $2.384 million sequentially and $6.435 million year over year.
- Minor pointGovernment loan balance fell to zero at September 30, from $0.979 million at December 31, 2025.
- Minor pointNine-month revenue increased to $22.603 million from $19.410 million a year earlier.
- Minor point. Forward-looking: it has not happened yet and may not happen.Expansion plans include defense, drone and space markets through the RF transceiver platform.
- Minor pointNext-generation 5G eRedCap technology remains a company development priority.
Negative
- Major pointNine-month net loss widened to $87.466 million from $32.851 million; loss per ADS increased to $5.89 from $5.16.
- Major pointEquity fell to $40.630 million at September 30, from $127.678 million at December 31, 2025.
- Moderate pointNine-month operating loss widened to $58.754 million from $39.742 million a year earlier.
- Moderate pointNine-month gross profit fell to $7.739 million from $11.246 million despite higher revenue.
- Minor pointNine-month digital-asset impairment losses increased to $32.341 million from $11.092 million a year earlier.
3 minor points
- Minor pointNine-month debt-extinguishment loss totaled $31.498 million, versus none a year earlier.
- Minor pointNine-month digital-asset sales produced a $0.166 million net loss, versus none a year earlier.
- Minor pointNine-month net interest expense increased to $7.650 million from $5.929 million a year earlier.
News Explained
At
Key Figures
- Revenue
- $9.1 million
- Q3 2026 preliminary results
- Sequential revenue growth
- 21.9%
- Q3 2026 compared with Q2 2026
- Gross margin
- 33.0%
- Q3 2026; compared with 32.9% in Q2 2026 and 25.3% in Q3 2025
- Operating loss
- $1.0 million
- Q3 2026; compared with $7.2 million in Q2 2026 and $24.4 million in Q3 2025
- Net loss
- $1.5 million
- Q3 2026; compared with $9.8 million in Q2 2026 and $16.6 million in Q3 2025
- Diluted loss per ADS
- ($0.10)
- Q3 2026; compared with ($0.65) in Q2 2026 and ($1.19) in Q3 2025
- Cash and short-term deposits
- $39.7 million
- At September 30, 2026; compared with $21.0 million at June 30, 2026
Previous Earnings Reports
-
Q2 revenue was $7.5 million with 32.9% gross margin and a $7.2 million operating loss.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
convertible debt financial
embedded derivative financial
ads financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Paris, France--(Newsfile Corp. - November 3, 2026) - Sequans Communications S.A. (NYSE: SQNS) ("Sequans" or the "Company"), a leading provider of 5G/4G cellular IoT semiconductor solutions, today announced preliminary unaudited financial results for the third quarter ended September 30, 2026.
Third Quarter 2026 Summary Preliminary Unaudited Results Table:
| (in US$ millions, except share and per share data) | Q3 2026 | Q2 2026 | Q3 2025 (1) |
| Revenue | | | |
| Gross profit | | | |
| Gross margin (%) | 33.0 % | 32.9 % | 25.3 % |
| 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) | 15,003,281 | 14,983,376 | 13,933,963 |
| Weighted average number of diluted ADS (Non-IFRS) | 15,003,281 | 14,983,376 | 13,933,963 |
| (1) The financial results for 2025 differ from the preliminary unaudited results disclosed in the Company's November 4, 2025 earnings press release. 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. | |||
| (2) See Use of Non-IFRS/non-GAAP Financial Measures disclosure on page 3. | |||
"Our third quarter results demonstrate the continued acceleration of our core IoT semiconductor business and the progress we are making toward building a more profitable company," said Dr. Georges Karam, CEO of Sequans. "Revenue increased
Dr. Karam continued, "The completion of our Bitcoin treasury exit represents another important milestone, allowing us to enter the final quarter of 2026 with a significantly strengthened financial foundation, a simplified capital structure, and approximately
Third Quarter 2026 Financial Summary:
Revenue: Total revenue was
Product sales accounted for the vast majority of revenue in the third quarter 2026, increasing
Gross margin: Gross margin was
Operating loss: Operating loss was
Net loss: Net loss was
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 interest adjustments related to the convertible debt and associated embedded derivatives and other financings, non-IFRS net loss was
Cash: Cash and cash equivalents, and short term deposits at September 30, 2026 totaled
Digital assets: At September 30, 2026, the Company no longer held any Bitcoin. This compares to Bitcoin holdings on June 30, 2026 of 314 Bitcoin with a market value of then
Conference Call Details
Date: Tuesday, November 3, 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/BI718d58c2c95b432686adac1ce8ec1dab. 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, 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 ability to convert our design-win pipeline into production revenue. 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, and our ability to convert our product pipeline and design wins into revenue. 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 normal year-end closing procedures, audit adjustments, and the completion of management's review.
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) | Sept 30, 2026 | June 30, 2026 | Sept 30, 2025 (1) | |||||||||
| Revenue | 9,090 | 7,459 | 3,214 | |||||||||
| Cost of revenue | (6,088) | (5,005) | (2,401) | |||||||||
| Gross profit | 3,002 | 2,454 | 813 | |||||||||
| Other operating Income (expenses) | - | - | (418) | |||||||||
| Research and development expense | (6,656) | (7,541) | (7,750) | |||||||||
| Sales and marketing expense | (1,576) | (2,059) | (2,143) | |||||||||
| General and administrative expense | (2,055) | (2,333) | (3,850) | |||||||||
| Digital asset Impairment losses | - | (3,007) | (11,092) | |||||||||
| Digital asset gain (loss) on sales, net | 6,242 | 5,275 | - | |||||||||
| Total operating income (expenses) | (4,045) | (9,665) | (25,253) | |||||||||
| Operating profit (loss) | (1,043) | (7,211) | (24,440) | |||||||||
| Financial income (expense): | ||||||||||||
| Interest income (expense), net | (411) | (2,384) | (6,435) | |||||||||
| Change in fair value of derivative financial instruments | - | 170 | 14,196 | |||||||||
| Foreign exchange gain (loss) | 179 | (135) | 230 | |||||||||
| Profit (Loss) before income taxes | (1,275) | (9,560) | (16,449) | |||||||||
| Income tax expense | (203) | (212) | (178) | |||||||||
| Profit (Loss) | $ | (1,478 | ) | $ | (9,772 | ) | $ | (16,627 | ) | |||
| Attributable to: | ||||||||||||
| Shareholders of the parent | (1,478 | ) | (9,772 | ) | (16,627 | ) | ||||||
| Minority interests | - | - | - | |||||||||
| Basic income (loss) per ADS | ( | ) | ( | ) | ( | ) | ||||||
| Diluted income (loss) per ADS | ( | ) | ( | ) | ( | ) | ||||||
| Weighted average number of ADS used for computing: | ||||||||||||
| - Basic | 15,003,281 | 14,983,376 | 13,933,963 | |||||||||
| - Diluted | 15,003,281 | 14,983,376 | 13,933,963 | |||||||||
| (1) The financial results for the three months ended September 30, 2025 differ from the preliminary unaudited results disclosed in the Company's November 4, 2025 earnings press release. 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
| Nine months ended Sept 30, | ||||||||
| (in thousands of US$, except share and per share amounts) | 2026 | 2025 (1) | ||||||
| Revenue | 22,603 | 19,410 | ||||||
| Cost of revenue | (14,864) | (8,164) | ||||||
| Gross profit | 7,739 | 11,246 | ||||||
| Other operating Income (expenses) | - | (418) | ||||||
| Research and development expense | (21,565) | (23,462) | ||||||
| Sales and marketing expense | (5,658) | (6,696) | ||||||
| General and administrative expense | (6,763) | (9,320) | ||||||
| Digital asset Impairment losses | (32,341) | (11,092) | ||||||
| Digital asset losses on sales, net | (166) | - | ||||||
| Total operating income (expenses) | (66,493) | (50,988) | ||||||
| Operating profit (loss) | (58,754) | (39,742) | ||||||
| Financial income (expense): | ||||||||
| Interest income (expense), net | (7,650) | (5,929) | ||||||
| Change in fair value of derivative financial instruments | 10,800 | 14,196 | ||||||
| Gain (loss) on debt extinguishment | (31,498) | - | ||||||
| Foreign exchange gain (loss) | 197 | (763) | ||||||
| Profit (Loss) before income taxes | (86,905) | (32,238) | ||||||
| Income tax expense | (561) | (613) | ||||||
| Profit (Loss) | $ | (87,466 | ) | $ | (32,851 | ) | ||
| Attributable to: | ||||||||
| Shareholders of the parent | (87,466 | ) | (32,851 | ) | ||||
| Minority interests | - | - | ||||||
| Basic income (loss) per ADS | ( | ) | ( | ) | ||||
| Diluted income (loss) per ADS | ( | ) | ( | ) | ||||
| Weighted average number of ADS used for computing: | ||||||||
| - Basic | 14,854,203 | 6,364,302 | ||||||
| - Diluted | 14,854,203 | 6,364,302 | ||||||
| (1) The financial results for the nine months ended September 30, 2025 differ from the preliminary unaudited results disclosed in the Company's November 4, 2025 earnings press release. 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 Sept 30, | At Dec 31, | ||||||
| (in thousands of US$) | 2026 | 2025 | |||||
| ASSETS | |||||||
| Non-current assets | |||||||
| Property, plant and equipment | $ | 3,477 | $ | 4,299 | |||
| Intangible assets | 7,708 | 8,522 | |||||
| Goodwill | 3,676 | 3,676 | |||||
| Digital assets pledge as collateral for convertible debt | - | 141,505 | |||||
| Digital assets, unrestricted | - | 45,686 | |||||
| Deposits and other receivables | 742 | 2,161 | |||||
| Prepaid expenses | 970 | 2,213 | |||||
| Other non-current financial assets | 395 | 409 | |||||
| Total non-current assets | 16,968 | 208,471 | |||||
| Current assets | |||||||
| Inventories | 3,923 | 3,933 | |||||
| Trade receivables | 7,057 | 3,278 | |||||
| Contract assets | 485 | 98 | |||||
| Prepaid expenses | 3,628 | 2,564 | |||||
| Other receivables | 7,448 | 5,953 | |||||
| Research tax credit receivable | 5,438 | 5,898 | |||||
| Short-term deposits | 33,500 | - | |||||
| Cash and cash equivalents | 6,244 | 13,386 | |||||
| Total current assets | 67,723 | 35,110 | |||||
| Total assets | $ | 84,691 | $ | 243,581 | |||
| EQUITY AND LIABILITIES | |||||||
| Equity | |||||||
| Issued capital, | $ | 17,584 | $ | 18,718 | |||
| Share premium | 176,510 | 185,598 | |||||
| Other capital reserves | 78,897 | 77,515 | |||||
| Treasury shares | - | (9,363 | ) | ||||
| Accumulated deficit | (232,540 | ) | (145,074 | ) | |||
| Other components of equity | 179 | 284 | |||||
| Total equity | 40,630 | 127,678 | |||||
| Non-current liabilities | |||||||
| Government research financing | 1,572 | 3,297 | |||||
| Lease liabilities | 1,278 | 1,225 | |||||
| Trade payables and other non-current liabilities | 112 | 1,360 | |||||
| Provisions | 2,665 | 2,112 | |||||
| Deferred tax liabilities | 128 | 129 | |||||
| Contract liabilities | 3,340 | 3,157 | |||||
| Total non-current liabilities | 9,095 | 11,280 | |||||
| Current liabilities | |||||||
| Trade payables | 11,472 | 10,081 | |||||
| Convertible debt | - | 56,422 | |||||
| Convertible debt embedded derivative | - | 10,800 | |||||
| Lease liabilities | 43 | 601 | |||||
| Government loan | - | 979 | |||||
| Government research financing | 3,688 | 4,308 | |||||
| Contract liabilities | 6,251 | 7,224 | |||||
| Income tax liabilities - Parent | 3,019 | 3,124 | |||||
| Other current liabilities and provisions | 10,493 | 11,084 | |||||
| Total current liabilities | 34,966 | 104,623 | |||||
| Total equity and liabilities | $ | 84,691 | $ | 243,581 | |||
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
| Nine months ended Sept 30, | |||||||||
| (in thousands of US$) | 2026 | 2025 (1) | |||||||
| Operating activities | |||||||||
| Loss before income taxes | $ | (86,905 | ) | (32,238 | ) | ||||
| Adjustments to reconcile profit before tax to net cash flows | |||||||||
| Depreciation and impairment of property, plant and equipment | 1,742 | 2,161 | |||||||
| Amortization and impairment of intangible assets | 2,400 | 3,054 | |||||||
| Impairment of digital assets | 32,341 | 11,092 | |||||||
| Share-based payment expense | 1,382 | 2,655 | |||||||
| Decrease in provision | (2,107 | ) | (12 | ) | |||||
| Interest expense, net | 7,650 | 5,929 | |||||||
| Change in the fair value of convertible debt embedded derivative | (10,800 | ) | (14,196 | ) | |||||
| Loss (gain) on debt extinguishment, net of non-cash transaction costs | 31,498 | - | |||||||
| Foreign exchange loss (gain) | 16 | (786 | ) | ||||||
| Loss (gain) on disposal of intangible and tangible assets | 4 | 12 | |||||||
| Loss on digital assets | 166 | - | |||||||
| Working capital adjustments | |||||||||
| Decrease in trade receivables and other receivables | (4,656 | ) | 4,813 | ||||||
| Decrease (increase) in inventories | 2,590 | (1,379 | ) | ||||||
| Increase in research tax credit receivable | 473 | (1,593 | ) | ||||||
| Increase (decrease) in trade payables and other liabilities | 1,201 | 2,246 | |||||||
| Increase (Decrease) in contract liabilities | (1,532 | ) | (4,541 | ) | |||||
| Increase in government grant advances | (2,096 | ) | 1,385 | ||||||
| Income tax paid | (1,068 | ) | (569 | ) | |||||
| Net cash flow used in operating activities | (27,701 | ) | (21,967 | ) | |||||
| Investing activities | |||||||||
| Purchase of intangible assets and property, plant and equipment | (3,604 | ) | (5,209 | ) | |||||
| Purchase of digital assets | - | (373,840 | ) | ||||||
| Proceeds from sale of digital assets | 154,684 | - | |||||||
| Investment in ACP Advanced Circuit Pursuit, net of cash acquired | - | (2,816 | ) | ||||||
| Sale (Purchase) of financial assets | 107 | 367 | |||||||
| Decrease (increase) of short-term deposit | (33,500 | ) | 53,000 | ||||||
| Interest received | 145 | 1,325 | |||||||
| Net cash flow from (used in) investing activities | 117,832 | (327,173 | ) | ||||||
| Financing activities | |||||||||
| Private equity offering proceeds, net of transaction costs paid | 185,246 | ||||||||
| Proceeds from exercise of pre-funded and common warrants | 73 | - | |||||||
| Proceeds from convertible debt, net of transaction costs paid | 174,461 | ||||||||
| Repayment of interest-bearing receivables financing | - | (3,742 | ) | ||||||
| Proceeds from interest-bearing research project financing | 1,129 | ||||||||
| Purchase of treasury shares | (933 | ) | - | ||||||
| Payment of lease liabilities | (569 | ) | (1,167 | ) | |||||
| Repayment of convertible debt | (94,500 | ) | - | ||||||
| Repayment of government loans | (734 | ) | (1,041 | ) | |||||
| Repayment of loans | - | (420 | ) | ||||||
| Repayment of interest-bearing research project financing | (120 | ) | (422 | ) | |||||
| Interest paid | (490 | ) | (705 | ) | |||||
| Net cash flows from (used in) financing activities | (97,273 | ) | 353,339 | ||||||
| Net increase in cash and cash equivalents | (7,142 | ) | 4,199 | ||||||
| Net foreign exchange difference | - | 138 | |||||||
| Cash and cash equivalents at January 1 | 13,386 | 9,093 | |||||||
| Cash and cash equivalents at end of the period | 6,244 | 13,430 | |||||||
| (1) The financial results for the nine months ended September 30, 2025 differ from the preliminary unaudited results disclosed in the Company's November 4, 2025 earnings press release. 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 | |||||||||
| Sept 30, 2026 | June 30, 2026 | Sept 30, 2025 (3) | ||||||||
| IFRS profit (loss) as reported | $ | (1,478 | ) | $ | (9,772 | ) | $ | (16,627 | ) | |
| Add back | ||||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | 438 | 468 | 762 | |||||||
| Non-cash impairment of digital assets | - | 3,007 | 11,092 | |||||||
| Non-cash change in the fair value of embedded derivatives | - | (170 | ) | (14,196 | ) | |||||
| Non-cash interest on convertible debt and other financing (2) | 436 | 2,474 | 6,705 | |||||||
| Non-IFRS profit (loss) adjusted | $ | (604 | ) | $ | (3,993 | ) | $ | (12,264 | ) | |
| IFRS basic profit (loss) per ADS as reported | ( | ) | ( | ) | ( | ) | ||||
| Add back | ||||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | $ | 0.03 | $ | 0.03 | $ | 0.05 | ||||
| Non-cash impairment of digital assets | $ | 0.00 | $ | 0.20 | $ | 0.80 | ||||
| Non-cash change in the fair value of embedded derivatives | $ | 0.00 | ( | ) | ( | ) | ||||
| Non-cash interest on convertible debt and other financing (2) | $ | 0.03 | $ | 0.16 | $ | 0.48 | ||||
| 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 | $ | 0.03 | $ | 0.05 | ||||
| Non-cash impairment of digital assets | $ | 0.00 | $ | 0.20 | $ | 0.80 | ||||
| Non-cash change in the fair value of embedded derivatives | $ | 0.00 | ( | ) | ( | ) | ||||
| Non-cash interest on convertible debt and other financing (2) | $ | 0.03 | $ | 0.16 | $ | 0.48 | ||||
| Non-IFRS diluted profit (loss) per ADS | ( | ) | ( | ) | ( | ) | ||||
| (1) Included in the IFRS profit (loss) as follows: | ||||||||||
| Cost of product revenue | $ | 1 | $ | 2 | $ | 12 | ||||
| Research and development | 146 | 154 | 166 | |||||||
| Sales and marketing | 49 | 56 | 172 | |||||||
| General and administrative | 242 | 256 | 412 | |||||||
| (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 November 4, 2025 earnings press release. 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) | Nine months ended Sept 30, | |||||||
| 2026 | 2025 (3) | |||||||
| IFRS profit (loss) as reported | $ | (87,466 | ) | $ | (32,851 | ) | ||
| Add back | ||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | 1,382 | 2,655 | ||||||
| Non-cash impairment of digital assets | 32,341 | 11,092 | ||||||
| Non-cash change in the fair value of embedded derivatives | (10,800 | ) | (14,196 | ) | ||||
| Non-cash interest on convertible debt and other financing (2) | 7,889 | 6,924 | ||||||
| Non-cash impact on gain (loss) on debt extinguishment | 31,498 | - | ||||||
| Non-IFRS profit (loss) adjusted | $ | (25,156 | ) | $ | (26,376 | ) | ||
| IFRS basic profit (loss) per ADS as reported | ( | ) | ( | ) | ||||
| Add back | ||||||||
| Non-cash stock-based compensation expense according to IFRS 2 (1) | $ | 0.09 | $ | 0.42 | ||||
| Non-cash impairment of digital assets | $ | 2.18 | $ | 1.74 | ||||
| Non-cash change in the fair value of embedded derivatives | ( | ) | ( | ) | ||||
| Non-cash interest on convertible debt and other financing (2) | $ | 0.53 | $ | 1.09 | ||||
| Non-cash impact on gain (loss) on debt extinguishment | $ | 2.12 | $ | 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) | $ | 0.09 | $ | 0.42 | ||||
| Non-cash impairment of digital assets | $ | 2.18 | $ | 1.74 | ||||
| Non-cash change in the fair value of embedded derivatives | ( | ) | ( | ) | ||||
| Non-cash interest on convertible debt and other financing (2) | $ | 0.53 | $ | 1.09 | ||||
| Non-cash impact on gain (loss) on debt extinguishment | $ | 2.12 | $ | 0.00 | ||||
| Non-IFRS diluted profit (loss) per ADS | ( | ) | ( | ) | ||||
| (1) Included in the IFRS profit (loss) as follows: | ||||||||
| Cost of product revenue | $ | 6 | $ | 41 | ||||
| Research and development | 456 | 552 | ||||||
| Sales and marketing | 174 | 587 | ||||||
| General and administrative | 746 | 1,475 | ||||||
| (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 November 4, 2025 earnings press release. 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/322268
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Sequans SQNS preliminary third-quarter 2026 earnings?
Sequans reported $9.1 million in revenue and a $1.5 million net loss, or $0.10 per diluted ADS, for the quarter ended September 30, 2026. Revenue increased 21.9% sequentially and 182.8% year over year. The results are preliminary and unaudited.
Did Sequans SQNS complete its Bitcoin treasury exit?
Sequans completed its Bitcoin treasury exit and held no Bitcoin at September 30, 2026. It sold all 314 Bitcoin held at June 30 during the third quarter. Those holdings had a market value of $18.4 million at June 30.
How did Bitcoin sales affect Sequans SQNS third-quarter operating results?
Third-quarter operating results included a $6.242 million realized net gain on digital-asset sales, compared with $5.275 million in the second quarter. Third-quarter digital-asset impairment losses were zero, compared with $3.007 million in the second quarter and $11.092 million a year earlier.
What was Sequans SQNS adjusted loss in the third quarter of 2026?
Sequans reported a non-IFRS net loss of $0.6 million, or $0.04 per diluted ADS, compared with $4.0 million, or $0.27 per diluted ADS, in the second quarter. The year-earlier adjusted loss was $12.3 million, or $0.88 per diluted ADS. This measure excludes specified non-cash compensation, digital-asset impairment and financing adjustments.