Sequans Communications (NYSE: SQNS) grows IoT revenue and trims Q2 2026 loss
Rhea-AI Filing Summary
Sequans Communications S.A. reported preliminary, unaudited Q2 2026 revenue of $7.5 million, up 23.2% from Q1 2026 and down 8.4% from Q2 2025, with the prior-year quarter boosted by Qualcomm license and services revenue. Product sales drove most of Q2 revenue, rising 39.4% quarter over quarter and 83.7% year over year, supported by more than 40 design-win projects in mass production that represent 55% of a $300 million three-year product revenue pipeline and a backlog extending into 2027.
Gross margin was 32.9% versus 37.7% in Q1 2026 and 64.4% in Q2 2025, when Qualcomm-related revenue added 36 percentage points. Operating loss was $7.2 million compared with $50.5 million in Q1 2026 and $8.5 million in Q2 2025. Q2 results included a $3.0 million non-cash impairment on Bitcoin holdings and a $5.3 million realized net gain on Bitcoin sales; net loss was $9.8 million, or $0.65 per diluted ADS, while non-IFRS net loss was $4.0 million, or $0.27 per diluted ADS, substantially lower than in Q1 2026.
Cash and cash equivalents were $21.0 million at June 30, 2026, up from $10.6 million at March 31, 2026. The company held 314 Bitcoin with market value of $18.4 million, down from 1,514 Bitcoin valued at $103.2 million at March 31, 2026, after significant sales used primarily to redeem convertible debt. Sequans enters the second half of 2026 with a debt-free balance sheet and notes that all reported figures are preliminary and may change following final re-evaluation of the convertible debt.
Positive
- Debt-free balance sheet after repaying $94.5 million of convertible debt in the first half of 2026, funded largely by Bitcoin sales, while ending Q2 2026 with $21.0 million in cash and maintaining 314 Bitcoin on the balance sheet.
- Core IoT product momentum, with product sales up 39.4% quarter over quarter and 83.7% year over year in Q2 2026, supported by over 40 design-win projects already in mass production and a $300 million three-year product revenue pipeline.
Negative
- Large IFRS losses, with Q2 2026 net loss of $9.8 million and first-half 2026 IFRS loss of $85.988 million, driven by $32.341 million digital asset impairments and a $31.498 million loss on debt extinguishment.
- Margin compression, as Q2 2026 gross margin fell to 32.9% from 37.7% in Q1 2026 and 64.4% in Q2 2025, reflecting a shift toward product revenue and the absence of prior Qualcomm-related high-margin license and services income.
Filing Explained
At June 30, 2026, all 314 Bitcoin were unrestricted and available for sale, while the balance sheet reported 1,525,077,202 shares outstanding.
The company reports preliminary unaudited second-quarter results in this Form 6-K, with issued and outstanding shares of 1,525,077,202 at
Form 6-K is an interim report used by a foreign private issuer to furnish material information published in its home market.
At
Key Figures
Q2 2026 Revenue: $7.5 million
Q2 2026 Gross Margin: 32.9%
Q2 2026 Operating Loss: $7.2 million
+5 more
8 metrics
Q2 2026 Revenue
$7.5 million
Preliminary unaudited revenue for the quarter ended June 30, 2026; up 23.2% vs Q1 2026 and down 8.4% vs Q2 2025.
Q2 2026 Gross Margin
32.9%
Gross margin for Q2 2026 compared with 37.7% in Q1 2026 and 64.4% in Q2 2025.
Q2 2026 Operating Loss
$7.2 million
Operating loss in Q2 2026 versus $50.5 million in Q1 2026 and $8.5 million in Q2 2025.
Q2 2026 Net Loss
$9.8 million
IFRS net loss in Q2 2026; loss per diluted ADS was $0.65.
Q2 2026 Non-IFRS Net Loss
$4.0 million
Non-IFRS net loss in Q2 2026; non-IFRS diluted loss per ADS was $0.27.
Cash and Cash Equivalents
$21.0 million
Cash and cash equivalents at June 30, 2026 versus $10.6 million at March 31, 2026.
Bitcoin Holdings
314 Bitcoin; $18.4 million
Unrestricted Bitcoin at June 30, 2026, compared with 1,514 Bitcoin valued at $103.2 million at March 31, 2026.
Digital Asset Impairment 1H 2026
$32.341 million
Cumulative non-cash impairment losses on digital assets for the six months ended June 30, 2026.
Key Terms
Non-IFRS financial measures, embedded derivatives, digital assets, debt extinguishment, +2 more
6 terms
Non-IFRS financial measures financial
"To supplement our unaudited consolidated financial statements prepared in accordance with IFRS, we disclose certain non-IFRS..."
Non-IFRS financial measures are company-reported numbers that modify or exclude items from standard accounting results so management can highlight what it sees as underlying business performance—common examples are adjusted EBITDA or adjusted earnings per share. They matter to investors because they can make trends clearer by removing unusual or noncash items, like cleaning lens smudges off a camera, but they require scrutiny since companies decide what to exclude and comparisons across firms may not be uniform.
embedded derivatives financial
"Non-cash change in the fair value of embedded derivatives related to compound financial instruments issued in July 2025..."
An embedded derivative is a hidden financial option or payout rule built into a larger contract—like a bond, loan, or supply agreement—that makes part of the deal behave like a separate financial bet whose value swings with interest rates, currencies, commodity prices, or a company’s stock. Investors care because these built‑in features can change reported assets, liabilities and profits and add unexpected risk or upside, like finding a bonus or penalty clause inside a rental lease.
digital assets financial
"Digital asset Impairment losses and Digital asset gain (loss) on sales, net are presented within operating expenses..."
Digital assets are electronic files or representations of value stored electronically, such as cryptocurrencies, digital tokens, or digital art. They matter to investors because they can be bought, sold, and used for transactions much like physical assets, but exist entirely in digital form, offering new opportunities for investment and financial innovation.
debt extinguishment financial
"Net loss in the first quarter of 2026 included a non-cash loss of $31.5 million on the early extinguishment of debt..."
Debt extinguishment is the process of eliminating a company's obligation to repay borrowed money, whether by paying it off, refinancing it with new borrowing, or settling it for less than the original amount. For investors, it matters because removing or replacing debt changes a business’s cash needs, risk profile and reported profit—much like paying off a mortgage early or refinancing at a different rate alters your monthly budget and long‑term costs.
Bitcoin treasury strategy financial
"Risks include our planned exit fom our Bitcoin treasury strategy and fluctuations on the value of Bitcoin..."
A bitcoin treasury strategy is a company decision to hold Bitcoin as part of its corporate cash and reserves instead of keeping all funds in traditional currencies or short-term investments. It matters to investors because it can boost potential returns if Bitcoin rises but also increases financial volatility and regulatory or tax complexities—think of it as swapping part of a company’s emergency savings for a high-risk, high-reward asset like speculative gold.
research tax credit receivable financial
"Research tax credit receivable totaled 5,700 at June 30, 2026 within current assets..."
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Sequans (SQNS) revenue perform in Q2 2026?
Sequans generated $7.5 million of revenue in Q2 2026, up 23.2% from Q1 2026 and down 8.4% from Q2 2025. The year-over-year decline reflects strong Qualcomm license and services revenue in 2025; excluding that, revenue grew 84.2% year over year.
What were Sequans (SQNS) profitability metrics in Q2 2026?
Sequans reported a Q2 2026 net loss of $9.8 million, or $0.65 per diluted ADS. On a non-IFRS basis, which excludes several non-cash items, net loss was $4.0 million, or $0.27 per diluted ADS, significantly lower than the $20.6 million non-IFRS loss in Q1 2026.
How has Sequans (SQNS) balance sheet changed by June 30, 2026?
At June 30, 2026, Sequans held $21.0 million in cash and cash equivalents, up from $10.6 million at March 31, 2026, and had fully redeemed its convertible debt. Bitcoin holdings declined to 314 coins with $18.4 million market value, from 1,514 coins valued at $103.2 million in March.
What is Sequans (SQNS) digital asset and Bitcoin exposure in 2026?
Sequans recorded a $3.0 million Bitcoin impairment in Q2 2026 and realized a $5.3 million net gain on Bitcoin sales that helped fund debt redemption. It ended Q2 2026 holding 314 Bitcoin worth $18.4 million and cites risks around its planned exit from the Bitcoin treasury strategy.
What are Sequans (SQNS) preliminary first-half 2026 results?
For the six months ended June 30, 2026, Sequans reported $13.513 million in revenue versus $16.196 million in 2025 and an IFRS net loss of $85.988 million. Non-IFRS net loss was $24.552 million, with results heavily affected by $32.341 million digital asset impairments and a $31.498 million debt extinguishment loss.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934
For the month of August 2026
Commission File Number: 001-35135
Sequans Communications S.A.
(Translation of Registrant’s name into English)
15-55 boulevard Charles de Gaulle
92700 Colombes, France
Telephone : +33 1 70 72 16 00
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F R Form 40-F £
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Yes £ NoR
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes £ NoR
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
The information in this report furnished on Form 6-K shall be incorporated by reference into each of the following Registration Statements under the Securities Act of 1933, as amended, of the registrant: Form S-8 (File Nos. 333-203539, 333-211011, 333-214444, 333-215911, 333-219430, 333-226458, 333-233473, 333-239968, 333-259914, 333-266481 and 333-289027) and Form F-3 (File Nos. 333-271884 and 333-288709).
EXPLANATORY NOTE
On August 4, 2026, Sequans Communications S.A. issued a press release announcing its unaudited financial results for the quarter ended June 30, 2026. A copy of the press release is attached to this Form 6-K as Exhibit 99.1 and is incorporated herein by reference.
EXHIBIT INDEX
The following exhibit is filed as part of this Form 6-K:
| Exhibit | Description | ||||
| 99.1 | Press release dated August 4, 2026 | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
SEQUANS COMMUNICATIONS S.A. (Registrant) | ||||||||||||||
| Date: August 4, 2026 | By: | /s/ Norman Brodt | ||||||||||||
| Norman Brodt | ||||||||||||||
| Chief Financial Officer | ||||||||||||||
 | NEWS | ||||
Sequans Communications
Unaudited Second Quarter 2026 Preliminary Financial Results
PARIS - 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 | $7.5 | $6.1 | $8.1 | ||||||||
| Gross profit | $2.5 | $2.3 | $5.2 | ||||||||
| Gross margin (%) | 32.9 | % | 37.7 | % | 64.4 | % | |||||
| Operating income (loss) | ($7.2) | ($50.5) | ($8.5) | ||||||||
| Net profit (loss) | ($9.8) | ($76.2) | ($9.0) | ||||||||
| Diluted income (loss) per ADS | ($0.65) | ($5.23) | ($3.53) | ||||||||
Non-IFRS diluted income (loss) per ADS (3) | ($0.27) | ($1.41) | ($3.14) | ||||||||
| 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 $7.5 million, exceeding our guidance range and representing 23% growth compared to the first quarter of 2026," said Dr. Georges Karam, CEO of Sequans. "Product sales drove the vast majority of this performance, increasing more than 80% year-over-year, a clear reflection of the ongoing conversion of our design-win pipeline. We now have more than 40 design-win projects in mass production, representing 55% of our $300 million three-year product revenue pipeline. We also secured our first drone customer in the quarter, reflecting the strong interest we are seeing in our RF transceiver technology for drone and defense applications. With a growing backlog extending into 2027 and multiple active licensing discussions underway, we believe Sequans is well positioned to continue scaling its business and advance toward cash-flow break-even."
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 $21 million in cash and 314 Bitcoin on the balance sheet. We enter the second half of 2026 with a debt-free balance sheet, strong financial flexibility, and what we believe is an increasingly compelling story across our 4G product portfolio, our RF and defense platform, and our 5G eRedCap roadmap."
Second Quarter 2026 Financial Summary:
Revenue: Total revenue was $7.5 million, an increase of 23.2% compared to the first quarter of 2026. Compared to the second quarter of 2025, this represents a decrease of 8.4%. The second quarter of 2025 included significant license and services revenue from Qualcomm related to the 2024 transaction. Excluding these revenues, revenue for the second quarter of 2026 increased 84.2% year over year.
Product sales accounted for the vast majority of revenue in the second quarter 2026, increasing 39.4% compared to the first quarter of 2026 and 83.7% compared to the second quarter of 2025.
Gross margin: Gross margin was 32.9% compared to 37.7% in the first quarter of 2026 and 64.4% in the second quarter of 2025, reflecting higher product sales in the revenue mix in the second quarter of 2026 compared with the prior periods. Gross margin in the second quarter of 2025 included a 36%pts benefit from the Qualcomm transaction.
Sequans reports unaudited second quarter 2026 financial results
Page 2
Operating loss: Operating loss was $7.2 million compared to operating loss of $50.5 million in the first quarter of 2026 and $8.5 million in the second quarter of 2025. The operating loss in the second and the first quarter of 2026 included unrealized losses on impairment of the value of our Bitcoin investment of $3.0 million and $29.3 million, respectively, and a realized net gain of $5.3 million in the second quarter of 2026 and a realized net loss of $11.7 million in the first quarter of 2026, on the sales of Bitcoin primarily to finance the redemption of the convertible debt and to strengthen the cash position on the balance sheet.
Net loss: Net loss was $9.8 million, or ($0.65) per diluted ADS, in the second quarter of 2026 compared to net loss of $76.2 million, or ($5.23) per diluted ADS, in the first quarter of 2026 and net loss of $9.0 million, or ($3.53) per diluted ADS, in the second quarter of 2025. Net loss in the first quarter of 2026 included non-cash gains on the change in value of the embedded derivative related to compound financial instruments issued in July 2025 for $10.6 million off-set by non-cash loss of $31.5 million on the early extinguishment of debt.
Net loss in the second quarter included net interest expense of $2.4 million and $4.9 million in the first quarter of 2026, that was primarily non-cash and related to the IFRS accounting for the convertible debt issued in July 2025.
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 $4.0 million, or ($0.27) per diluted ADS in the second quarter of 2026 compared to non-IFRS net loss of $20.6 million or ($1.41) per diluted ADS in the first quarter of 2026, and non-IFRS net loss of $8.0 million or ($3.14) per diluted ADS, in the second quarter of 2025.
Cash: Cash and cash equivalents at June 30, 2026 totaled $21.0 million compared with $10.6 million at March 31, 2026.
Digital assets: At June 30, 2026, the Company held 314 Bitcoin with a market value of $18.4 million all of which is unrestricted and available for sale. This compares to Bitcoin holdings on March 31, 2026 of 1,514 Bitcoin with a market value of $103.2 million at the end of March 2026 and of which 1,217 Bitcoin ($82.9 million) were pledged as security.
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.
Sequans reports unaudited second quarter 2026 financial results
Page 3
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 fom 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 reports unaudited second quarter 2026 financial results
Page 4
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three months ended | ||||||||||||||||||||||||||
| (in thousands of US$, except share and per share amounts) | 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 | ($0.65) | ($5.23) | ($3.53) | |||||||||||||||||||||||
| Diluted income (loss) per ADS | ($0.65) | ($5.23) | ($3.53) | |||||||||||||||||||||||
| Weighted average number of ADS used for computing: | ||||||||||||||||||||||||||
| — Basic | 14,983,376 | 14,576,046 | 2,540,605 | |||||||||||||||||||||||
| — Diluted | 14,983,376 | 14,576,046 | 2,540,605 | |||||||||||||||||||||||
| (1) The financial results for the three months ended March 31, 2026 differ from the preliminary unaudited results disclosed in the Company’s May 5, 2026 earnings press releases. The changes primarily relate to the re-evaluation of the value of the convertible debt upon the amendment on February 10, 2026 to permit the full redemption of the notes. | ||||||||||||||||||||||||||
| (2) The financial results for the six months ended June 30, 2025 differ from the preliminary unaudited results disclosed in the Company’s July 31, 2025 earnings press releases. The changes primarily relate to the finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management’s review. | ||||||||||||||||||||||||||
Sequans reports unaudited second quarter 2026 financial results
Page 5
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Six months ended June 30, | |||||||||||||||||
| (in thousands of US$, 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 | ($5.82) | ($6.42) | |||||||||||||||
| Diluted income (loss) per ADS | ($5.82) | ($6.42) | |||||||||||||||
| Weighted average number of ADS used for computing: | |||||||||||||||||
| — Basic | 14,778,513 | 2,528,226 | |||||||||||||||
| — Diluted | 14,778,513 | 2,528,226 | |||||||||||||||
| (1) The financial results for the six months ended June 30, 2025 differ from the preliminary unaudited results disclosed in the Company’s July 31, 2025 earnings press releases. The changes primarily relate to the finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management’s review. | |||||||||||||||||
Sequans reports unaudited second quarter 2026 financial results
Page 6
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
| At June 30, | At Dec 31, | |||||||||||||
| (in thousands of US$) | 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, euro 0.01 nominal value, 1,525,077,202 shares authorized, issued and outstanding at June 30, 2026 (1,599,589,702 shares at December 31, 2025) | $ | 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 reports unaudited second quarter 2026 financial results
Page 7
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 reports unaudited second quarter 2026 financial results
Page 8
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS
| (in thousands of US$, except share and per share amounts) | Three months ended | ||||||||||||||||||||||
| 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 | ($0.65) | ($5.23) | ($3.53) | ||||||||||||||||||||
| Add back | |||||||||||||||||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) | $0.03 | $0.03 | $0.35 | ||||||||||||||||||||
| Non-cash impairment of digital assets | $0.20 | $2.01 | $0.00 | ||||||||||||||||||||
| Non-cash change in the fair value of embedded derivatives | ($0.01) | ($0.73) | $0.00 | ||||||||||||||||||||
Non-cash interest on convertible debt and other financing (2) | $0.16 | $0.34 | $0.04 | ||||||||||||||||||||
| Non-cash impact on gain (loss) on debt extinguishment | $0.00 | $2.16 | $0.00 | ||||||||||||||||||||
| Non-IFRS basic profit (loss) per ADS | ($0.27) | ($1.41) | ($3.14) | ||||||||||||||||||||
| IFRS diluted profit (loss) per ADS | ($0.65) | ($5.23) | ($3.53) | ||||||||||||||||||||
| Add back | |||||||||||||||||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) | $0.03 | $0.03 | $0.35 | ||||||||||||||||||||
| Non-cash impairment of digital assets | $0.20 | $2.01 | $0.00 | ||||||||||||||||||||
| Non-cash change in the fair value of embedded derivatives | ($0.01) | ($0.73) | $0.00 | ||||||||||||||||||||
Non-cash interest on convertible debt and other financing (2) | $0.16 | $0.34 | $0.04 | ||||||||||||||||||||
| Non-cash impact on gain (loss) on debt extinguishment | $0.00 | $2.16 | $0.00 | ||||||||||||||||||||
| Non-IFRS diluted profit (loss) per ADS | ($0.27) | ($1.41) | ($3.14) | ||||||||||||||||||||
| (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 reports unaudited second quarter 2026 financial results
Page 9
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 | ($5.82) | ($6.42) | |||||||||||||||
| Add back | |||||||||||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) | $0.06 | $0.75 | |||||||||||||||
| Non-cash impairment of digital assets | $2.19 | $0.00 | |||||||||||||||
| Non-cash change in the fair value of embedded derivatives | ($0.73) | $0.00 | |||||||||||||||
Non-cash interest on convertible debt and other financing (2) | $0.50 | $0.09 | |||||||||||||||
| Non-cash impact on gain (loss) on debt extinguishment | $2.13 | $0.00 | |||||||||||||||
| Non-IFRS basic profit (loss) per ADS | ($1.66) | ($5.58) | |||||||||||||||
| IFRS diluted profit (loss) per ADS | ($5.82) | ($6.42) | |||||||||||||||
| Add back | |||||||||||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) | $0.06 | $0.75 | |||||||||||||||
| Non-cash impairment of digital assets | $2.19 | $0.00 | |||||||||||||||
| Non-cash change in the fair value of embedded derivatives | ($0.73) | $0.00 | |||||||||||||||
Non-cash interest on convertible debt and other financing (2) | $0.50 | $0.09 | |||||||||||||||
| Non-cash impact on gain (loss) on debt extinguishment | $2.13 | $0.00 | |||||||||||||||
| Non-IFRS diluted profit (loss) per ADS | ($1.66) | ($5.58) | |||||||||||||||
| (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. | |||||||||||||||||