Sequans (SQNS) posts Q1 2026 loss as Bitcoin and debt dominate results
Filing Impact
Filing Sentiment
Form Type
6-K
Rhea-AI Filing Summary
Sequans Communications reported preliminary unaudited results for Q1 2026 showing weak revenue and very large losses driven by its Bitcoin strategy and financing structure. Revenue was $6.1M, down 12.5% from Q4 2025 and 24.8% from Q1 2025, as prior-year results benefited from significant Qualcomm license and services revenue.
Gross margin fell to 37.7% from 64.5% a year earlier, reflecting a heavier mix of product sales. Operating loss widened to $50.5M, including $29.3M of digital asset impairment and $11.7M of realized Bitcoin losses linked to redeeming convertible debt and an ADS buyback. Net loss was $54.3M, or ($3.73) per diluted ADS.
On a non‑IFRS basis, which excludes major non‑cash items, net loss was still substantial at $20.7M, or ($1.42) per ADS. Cash and cash equivalents were $10.6M at March 31, 2026. The company held 1,514 Bitcoin valued at $103.2M, with $82.9M pledged as collateral for $66.2M of remaining convertible debt, highlighting continued exposure to Bitcoin price movements as it works toward fully redeeming the debt by June 1, 2026.
Positive
- Product revenue mix improving: In Q1 2026, 84% of revenue came from product sales, which increased 45% versus Q1 2025, indicating underlying IoT semiconductor demand despite lower total revenue.
- Progress reducing convertible debt: Remaining convertible debt fell to $42.3M at March 31, 2026, with plans to redeem all by June 1, 2026, which would unencumber pledged Bitcoin.
Negative
- Large reported losses driven by Bitcoin strategy: Q1 2026 net loss was $54.3M, including $29.3M of digital asset impairment and $11.7M of realized Bitcoin sale losses tied to financing activities.
- Core profitability remains weak even on non‑IFRS basis: Non‑IFRS net loss was $20.7M in Q1 2026 versus $6.1M in Q1 2025, showing significant underlying cash‑style losses after excluding major non‑cash items.
- Revenue and margin deterioration: Revenue declined 24.8% year over year to $6.1M, while gross margin dropped to 37.7% from 64.5%, reflecting loss of high‑margin license revenue.
Insights
Heavy Bitcoin-related charges and leverage overshadow product momentum.
Sequans posted Q1 2026 revenue of $6.1M, down sharply year over year as prior periods included one‑time Qualcomm license revenue. Product sales now represent 84% of revenue and grew 45% versus Q1 2025, but cannot yet offset high operating costs.
Reported net loss of $54.3M was dominated by digital asset impairment of $29.3M and realized Bitcoin sale losses of $11.7M. Even on a non‑IFRS basis, excluding major non‑cash items, loss was $20.7M, indicating a structurally loss‑making profile at current scale.
The balance sheet shows substantial Bitcoin holdings—$103.2M at March 31, 2026, with $82.9M pledged against $66.2M of convertible debt—alongside cash of $10.6M. Management plans to redeem the remaining debt by June 1, 2026, after which pledged Bitcoin becomes unrestricted, but results demonstrate how Bitcoin volatility and complex financing significantly influence earnings.
Key Figures
Q1 2026 revenue: $6.1M
Q1 2026 gross margin: 37.7%
Q1 2026 operating loss: $50.5M
+5 more
8 metrics
Q1 2026 revenue
$6.1M
Down 12.5% vs Q4 2025 and 24.8% vs Q1 2025
Q1 2026 gross margin
37.7%
Versus 41.4% in Q4 2025 and 64.5% in Q1 2025
Q1 2026 operating loss
$50.5M
Includes Bitcoin impairment and sale losses
Q1 2026 net loss
$54.3M
Equals ($3.73) per diluted ADS
Non-IFRS net loss Q1 2026
$20.7M
Non-IFRS diluted loss per ADS ($1.42)
Bitcoin holdings March 31, 2026
1,514 BTC / $103.2M
1,217 BTC ($82.9M) pledged as collateral
Convertible debt balance
$42.3M
Current liability at March 31, 2026
Cash and cash equivalents
$10.6M
Balance at March 31, 2026
Key Terms
digital asset impairment losses, embedded derivative, convertible debt, non-IFRS net loss, +2 more
6 terms
digital asset impairment losses financial
"Digital asset Impairment losses | (29,334) | | | (56,283) |"
embedded derivative financial
"change in value of the embedded derivative related to compound financial instruments issued in July 2025"
An embedded derivative is a built-in feature inside a contract—like a bond, loan, or lease—that causes part of the payout to change based on something else, such as a stock price, interest rate, or commodity price. It matters to investors because that hidden feature can add separate risk and volatility to a security’s value and accounting treatment, like finding a removable engine in a car that changes how fast it can go and how much it’s worth.
convertible debt financial
"pledged as security for the remaining $66.2 million of convertible debt issued in July 2025"
A convertible debt is a loan a company takes that gives the lender the option to swap the owed money for a set number of the company’s shares instead of getting cash back. It matters to investors because it can change who owns the company and how much their shares are worth: if lenders convert, existing shareholders can be diluted, but conversion can also signal confidence and reduce a company’s cash pressure — like getting a coupon that can be redeemed for store ownership rather than a refund.
non-IFRS net loss financial
"non-IFRS net loss was $20.7 million, or ($1.42) per diluted ADS"
Non-IFRS net loss is a company’s reported loss that has been adjusted by removing certain items that strict international accounting rules (IFRS) would normally include, such as one-time charges, stock-based pay, or restructuring costs. Investors use it like a cleaned-up view of a company’s results to see recurring profitability, but it can mask real expenses, so comparing it with the official IFRS net loss helps judge how much is being removed.
Bitcoin treasury financial
"our planned exit fom our Bitcoin treasury Sequans reports preliminary unaudited first quarter 2026 financial results"
A bitcoin treasury is a collection of bitcoin holdings owned by a company or organization, similar to how a savings account stores money. It represents a strategic reserve of digital currency that can be used for investments, operational costs, or future growth. For investors, a bitcoin treasury can signal financial strength or a company's confidence in cryptocurrencies as part of its long-term plans.
compound financial instruments financial
"accounting for the compound financial instruments issued in July 2025 and related embedded derivative"
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 May 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 and 333-266481) and Form F-3 (File No. 333-271884, 333-288708, 333-288709).
EXPLANATORY NOTE
On May 5, 2026, Sequans Communications S.A. issued a press release announcing its unaudited financial results for the quarter ended March 31, 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 May 5, 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: May 5, 2026 | By: | /s/ Deborah Choate | ||||||||||||
| Deborah Choate | ||||||||||||||
| Chief Financial Officer | ||||||||||||||
 | NEWS | ||||
Sequans Communications
Preliminary Unaudited First Quarter 2026 Financial Results
PARIS - May 5, 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 first quarter ended March 31, 2026.
First Quarter 2026 Summary Preliminary Unaudited Results Table:
| (in US$ millions, except share and per share data) | Q1 2026 | Q4 2025 (1) | Q1 2025 | ||||||||
| Revenue | $6.1 | $6.9 | $8.1 | ||||||||
| Gross profit | $2.3 | $2.9 | $5.2 | ||||||||
| Gross margin (%) | 37.7 | % | 41.4 | % | 64.5 | % | |||||
| Operating income (loss) | ($50.5) | ($72.1) | ($6.8) | ||||||||
| Net profit (loss) | ($54.3) | ($76.4) | ($7.3) | ||||||||
| Diluted income (loss) per ADS | ($3.73) | ($4.93) | ($0.29) | ||||||||
Non-IFRS diluted income (loss) per ADS (2) | ($1.42) | ($1.04) | ($0.24) | ||||||||
| Weighted average number of diluted ADS (IFRS) | 14,576,046 | 15,504,809 | 25,156,570 | ||||||||
| Weighted average number of diluted ADS (Non-IFRS) | 14,576,046 | 15,504,809 | 25,156,570 | ||||||||
(1) The financial results for 2025 differ from the preliminary unaudited results disclosed in the Company’s February 10, 2026 earnings press release. The changes primarily relate to the timing and amount of revenue recognized, adjustments related to the accounting for the compound financial instruments issued in July 2025 and related embedded derivative, the classification of digital asset losses between impairment and losses on sale, the accounting for acquired licenses, property plant and equipment, and new leases, 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 IoT semiconductor business continues to demonstrate solid momentum, supported by a growing backlog, a maturing design-win pipeline, increased product revenue and an increasing number of projects transitioning into production,” said Dr. Georges Karam, CEO of Sequans. “We are seeing continued strength across Cat-M, Cat-1bis, along with early engagement in 5G eRedCap, which we believe will play a central role in the next phase of IoT connectivity. We are also seeing encouraging interest in our newly introduced RF Transceivers for drones and defense applications. With improving visibility and a strong foundation across our core product portfolio, we believe Sequans is well positioned to drive sequential growth and move toward cash-flow break-even.”
Dr. Karam added, “At the same time, we have taken decisive steps to simplify and strengthen our balance sheet, enabling us to sharpen our focus on executing our IoT strategy and advancing our 5G roadmap. As the IoT market transitions from 4G to 5G, we believe Sequans is uniquely positioned to leverage its existing customer base and technology leadership to capture this opportunity. We believe Sequans is entering an important phase of execution, with the foundation in place to scale the business and capture the next wave of growth in IoT connectivity.”
First Quarter 2026 Financial Summary:
Revenue: Total revenue was $6.1 million, a decrease of 12.5% compared to the fourth quarter of 2025 and a decrease of 24.8% compared to the first quarter of 2025. Revenue in the first quarter of 2026 was 84% from product sales; product sales increased 45% compared to the first quarter of 2025, while reflecting a seasonal decrease of 15% compared to the fourth quarter of 2025. In the first quarter of 2025, revenue included significant license and services revenue from Qualcomm related to the 2024 sale and license of intellectual property.
Gross margin: Gross margin was 37.7% compared to 41.4% in the fourth quarter of 2025 and 64.5% in the first quarter of 2025, reflecting higher product sales in the revenue mix in the first quarter of 2026 compared with the prior periods, both of which included a significant amount of license and services revenue.
Operating loss: Operating loss was $50.5 million compared to operating loss of $72.1 million in the fourth quarter of 2025 and $6.8 million in the first quarter of 2025. The operating loss in the first quarter of 2026 and in fourth quarter of 2025 included unrealized losses on impairment of the value of our Bitcoin investment of $29.3 million and $56.3 million, respectively, and realized net losses of $11.7 million and $6.1 million, respectively, on the sales of Bitcoin primarily to finance the redemption of convertible debt and the Company's ADS buyback program.
Sequans reports preliminary unaudited first quarter 2026 financial results
Page 2
Net loss: Net loss was $54.3 million, or ($3.73) per diluted ADS, compared to net loss of $76.4 million, or ($4.93) per diluted ADS, in the fourth quarter of 2025 and net loss of $7.3 million, or ($0.29) per diluted ADS, in the first quarter of 2025. Net loss in the first quarter of 2026 and in the fourth quarter of 2025 included non-cash gains on the change in value of the embedded derivative related to compound financial instruments issued in July 2025 for $9.9 million and $30.8 million, respectively, nearly off-set by non-cash losses of $9.9 million and $29.3 million, respectively, on the early extinguishment of debt, and included net interest expense of $3.9 million and $5.3 million, respectively, 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 $20.7 million, or ($1.42) per diluted ADS, in the first quarter of 2026 compared to non-IFRS net loss of $16.2 million, or ($1.04) per diluted ADS in the fourth quarter of 2025, and non-IFRS net loss of $6.1 million, or ($0.24) per diluted ADS, in the first quarter of 2025.
Cash: Cash and cash equivalents at March 31, 2026 totaled $10.6 million compared with $13.4 million at December 30, 2025.
Digital assets: At March 31, 2026, the Company held 1,514 Bitcoin with a market value of $103.2 million, of which 1,217 Bitcoin ($82.9 million) was pledged as security for the remaining $66.2 million of convertible debt issued in July 2025. As of April 30, 2026, the Company held 1,114 Bitcoin with a market value of $84.9 million, of which 817 Bitcoin ($62.3 million) was pledged as security for the remaining $35.9 million of convertible debt. The remaining debt is scheduled to be redeemed by June 1, 2026, at which time all remaining Bitcoin will be unrestricted and available for sale.
Conference Call Details
Date: Tuesday, May 5, 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/BIc0264ac506fc4ae09bd78844e6d8f586. Upon registration, participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique registrant ID.
Those who wish to join the live webcast can access it here: https://edge.media-server.com/mmc/p/tf9babvo/
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, bitcoin treasury and business strategy for 2026 and beyond, financing requirements, 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 fom our Bitcoin treasury
Sequans reports preliminary unaudited first quarter 2026 financial results
Page 3
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, 2024, “Risk Related to Our Bitcoin Strategy and Holdings” filed on Form 6-K on July 17, 2025 and other documents that may be filed from time to time with the SEC, including the annual report for the year ended December 31, 2025 expected to be filed by May 15, 2026. 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. We have not filed our Form 20-F for the year ended December 31, 2025. As a result, all 2025 financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates that are identified prior to the time we file our Form 20-F.
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). Sequans’ engineers design and develop innovative, secure, and scalable technologies that power the next generation of AI-connected applications – including secured payment, smart mobility and logistics, smart cities, industrial, e-health, and smart homes. Sequans offers a comprehensive portfolio of 4G/5G solutions, including LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap and eRedCap platforms, all purpose-built for IoT and delivering breakthroughs in wireless connectivity, power efficiency, security, and performance. The company also provides advanced design services and technology licensing.
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 preliminary unaudited first 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) | March 31, 2026. | Dec 31, 2025 (1) | March 31, 2025 (1) | |||||||||||||||||||||||
| Revenue | 6,054 | 6,915 | 8,054 | |||||||||||||||||||||||
| Cost of revenue | (3,771) | (4,049) | (2,863) | |||||||||||||||||||||||
| Gross profit | 2,283 | 2,866 | 5,191 | |||||||||||||||||||||||
| Other operating Income (expenses) | — | (320) | — | |||||||||||||||||||||||
| Research and development expense | (7,368) | (7,720) | (7,223) | |||||||||||||||||||||||
| Sales and marketing expense | (2,023) | (1,902) | (2,355) | |||||||||||||||||||||||
| General and administrative expense | (2,375) | (2,688) | (2,451) | |||||||||||||||||||||||
| Digital asset Impairment losses | (29,334) | (56,283) | — | |||||||||||||||||||||||
| Digital asset losses on sales, net | (11,683) | (6,102) | — | |||||||||||||||||||||||
| Total operating income (expenses) | (52,783) | (75,015) | (12,029) | |||||||||||||||||||||||
| Operating profit (loss) | (50,500) | (72,149) | (6,838) | |||||||||||||||||||||||
| Financial income (expense): | ||||||||||||||||||||||||||
| Interest income (expense), net | (3,895) | (5,168) | 368 | |||||||||||||||||||||||
| Change in fair value of derivative financial instruments | 9,942 | 30,804 | — | |||||||||||||||||||||||
| Gain (loss) on debt extinguishment | (9,866) | (29,348) | — | |||||||||||||||||||||||
| Foreign exchange gain (loss) | 153 | (347) | (517) | |||||||||||||||||||||||
| Profit (Loss) before income taxes | (54,166) | (76,208) | (6,987) | |||||||||||||||||||||||
| Income tax expense | (146) | (219) | (281) | |||||||||||||||||||||||
| Profit (Loss) | $ | (54,312) | $ | (76,427) | $ | (7,268) | ||||||||||||||||||||
| Attributable to: | ||||||||||||||||||||||||||
| Shareholders of the parent | (54,312) | (76,427) | (7,268) | |||||||||||||||||||||||
| Minority interests | — | — | — | |||||||||||||||||||||||
| Basic income (loss) per ADS | ($3.73) | ($4.93) | ($0.29) | |||||||||||||||||||||||
| Diluted income (loss) per ADS | ($3.73) | ($4.93) | ($0.29) | |||||||||||||||||||||||
| Weighted average number of ADS used for computing: | ||||||||||||||||||||||||||
| — Basic | 14,576,046 | 15,504,809 | 25,156,570 | |||||||||||||||||||||||
| — Diluted | 14,576,046 | 15,504,809 | 25,156,570 | |||||||||||||||||||||||
| (1) The financial results for 2025 differ from the preliminary unaudited results disclosed in the Company’s February 10, 2026 and May 6, 2025 earnings press releases. The changes primarily relate to the timing and amount of revenue recognized, adjustments related to the accounting for the compound financial instruments issued in July 2025 and related embedded derivative, the classification of digital asset losses between impairment and losses on sale, the accounting for acquired licenses, property plant and equipment, and new leases, finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management’s review. | ||||||||||||||||||||||||||
Sequans reports preliminary unaudited first quarter 2026 financial results
Page 5
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
| At March 31, | At Dec 31, | |||||||||||||
| (in thousands of US$) | 2026 | 2025 (1) | ||||||||||||
| ASSETS | ||||||||||||||
| Non-current assets | ||||||||||||||
| Property, plant and equipment | $ | 4,322 | $ | 4,299 | ||||||||||
| Intangible assets | 7,862 | 8,522 | ||||||||||||
| Goodwill | 3,676 | 3,676 | ||||||||||||
| Digital assets pledge as collateral for convertible debt | 82,917 | 141,505 | ||||||||||||
| Digital assets, unrestricted | 20,238 | 45,686 | ||||||||||||
| Deposits and other receivables | 750 | 2,161 | ||||||||||||
| Prepaid expenses | 2,110 | 2,213 | ||||||||||||
| Other non-current financial assets | 400 | 409 | ||||||||||||
| Total non-current assets | 122,275 | 208,471 | ||||||||||||
| Current assets | ||||||||||||||
| Inventories | 4,025 | 3,933 | ||||||||||||
| Trade receivables | 3,778 | 3,278 | ||||||||||||
| Contract assets | 107 | 98 | ||||||||||||
| Prepaid expenses | 2,773 | 2,564 | ||||||||||||
| Other receivables | 9,261 | 5,953 | ||||||||||||
| Research tax credit receivable | 5,246 | 5,898 | ||||||||||||
| Cash and cash equivalents | 10,628 | 13,386 | ||||||||||||
| Total current assets | 35,818 | 35,110 | ||||||||||||
| Total assets | $ | 158,093 | $ | 243,581 | ||||||||||
| EQUITY AND LIABILITIES | ||||||||||||||
| Equity | ||||||||||||||
| Issued capital, euro 0.01 nominal value, 1,522,766,502 shares authorized, issued and outstanding at March 31, 2026 (1,599,589,702 shares at December 31, 2025) | $ | 17,831 | $ | 18,718 | ||||||||||
| Share premium | 177,196 | 185,598 | ||||||||||||
| Other capital reserves | 77,991 | 77,515 | ||||||||||||
| Treasury shares | (933) | (9,363) | ||||||||||||
| Accumulated deficit | (199,386) | (145,074) | ||||||||||||
| Other components of equity | 83 | 284 | ||||||||||||
| Total equity | 72,782 | 127,678 | ||||||||||||
| Non-current liabilities | ||||||||||||||
| Government research financing | 1,886 | 3,297 | ||||||||||||
| Lease liabilities | 1,238 | 1,225 | ||||||||||||
| Trade payables and other non-current liabilities | 1,272 | 1,360 | ||||||||||||
| Provisions | 2,194 | 2,112 | ||||||||||||
| Deferred tax liabilities | 127 | 129 | ||||||||||||
| Contract liabilities | 3,153 | 3,157 | ||||||||||||
| Total non-current liabilities | 9,870 | 11,280 | ||||||||||||
| Current liabilities | ||||||||||||||
| Trade payables | 7,467 | 10,081 | ||||||||||||
| Convertible debt | 42,265 | 56,422 | ||||||||||||
| Convertible debt embedded derivative | 170 | 10,800 | ||||||||||||
| Lease liabilities | 241 | 601 | ||||||||||||
| Government loan | 482 | 979 | ||||||||||||
| Government research financing | 4,301 | 4,308 | ||||||||||||
| Contract liabilities | 7,636 | 7,224 | ||||||||||||
| Income tax liabilities - Parent | 3,057 | 3,124 | ||||||||||||
| Other current liabilities and provisions | 9,822 | 11,084 | ||||||||||||
| Total current liabilities | 75,441 | 104,623 | ||||||||||||
| Total equity and liabilities | $ | 158,093 | $ | 243,581 | ||||||||||
| (1) The financial position at December 31, 2025 differs from the preliminary unaudited results disclosed in the Company’s February 10, 2026 earnings press release. The changes primarily relate to the timing and amount of revenue recognized, adjustments related to the accounting for the compound financial instruments issued in July 2025 and related embedded derivative, the classification of digital asset losses between impairment and losses on sale, the accounting for acquired licenses, property plant and equipment, and new leases, and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management’s review. | ||||||||||||||
Sequans reports preliminary unaudited first quarter 2026 financial results
Page 6
SEQUANS COMMUNICATIONS S.A.
PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
| Three months ended March 31, | ||||||||||||||||||||
| (in thousands of US$) | 2026 | 2025 (1) | ||||||||||||||||||
| Operating activities | ||||||||||||||||||||
| Loss before income taxes | $ | (54,166) | (6,987) | |||||||||||||||||
| Adjustments to reconcile profit before tax to net cash flows | ||||||||||||||||||||
| Depreciation and impairment of property, plant and equipment | 597 | 900 | ||||||||||||||||||
| Amortization and impairment of intangible assets | 782 | 765 | ||||||||||||||||||
| Impairment of digital assets | 29,334 | — | ||||||||||||||||||
| Share-based payment expense | 476 | 1,014 | ||||||||||||||||||
| Decrease in provision | (77) | (32) | ||||||||||||||||||
| Interest expense, net | 3,895 | (368) | ||||||||||||||||||
| Change in the fair value of convertible debt embedded derivative | (9,942) | — | ||||||||||||||||||
| Loss (gain) on debt extinguishment, net of non-cash transaction costs | 9,866 | — | ||||||||||||||||||
| Foreign exchange loss (gain) | (39) | (195) | ||||||||||||||||||
| Loss (gain) on disposal of intangible and tangible assets | — | 12 | ||||||||||||||||||
| Loss on digital assets | 11,683 | — | ||||||||||||||||||
| Working capital adjustments | ||||||||||||||||||||
| Decrease in trade receivables and other receivables | (2,858) | 1,240 | ||||||||||||||||||
| Decrease (increase) in inventories | (36) | (103) | ||||||||||||||||||
| Increase in research tax credit receivable | 660 | (355) | ||||||||||||||||||
| Increase (decrease) in trade payables and other liabilities | (3,291) | (281) | ||||||||||||||||||
| Increase (Decrease) in contract liabilities | 175 | (3,868) | ||||||||||||||||||
| Increase in government grant advances | (1,248) | (881) | ||||||||||||||||||
| Income tax paid | (474) | (245) | ||||||||||||||||||
| Net cash flow used in operating activities | (14,663) | (9,384) | ||||||||||||||||||
| Investing activities | ||||||||||||||||||||
| Purchase of intangible assets and property, plant and equipment | (1,199) | (461) | ||||||||||||||||||
| Proceeds from sale of intangible assets | 43,017 | — | ||||||||||||||||||
| Investment in ACP Advanced Circuit Pursuit, net of cash acquired | — | (1,080) | ||||||||||||||||||
| Sale (Purchase) of financial assets | 99 | (40) | ||||||||||||||||||
| Decrease (increase) of short-term deposit | — | 19,000 | ||||||||||||||||||
| Interest received | 38 | 552 | ||||||||||||||||||
| Net cash flow from (used in) investing activities | 41,955 | 17,971 | ||||||||||||||||||
| 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 | (342) | (348) | ||||||||||||||||||
| Repayment of convertible debt | (28,254) | — | ||||||||||||||||||
| Repayment of government loans | (369) | (326) | ||||||||||||||||||
| Repayment of loans | — | (420) | ||||||||||||||||||
| Repayment of interest-bearing research project financing | (40) | (370) | ||||||||||||||||||
| Interest paid | (185) | (528) | ||||||||||||||||||
| Net cash flows from (used in) financing activities | (30,050) | (5,734) | ||||||||||||||||||
| Net increase in cash and cash equivalents | (2,758) | 2,853 | ||||||||||||||||||
| Net foreign exchange difference | — | 2 | ||||||||||||||||||
| Cash and cash equivalents at January 1 | 13,386 | 9,093 | ||||||||||||||||||
| Cash and cash equivalents at end of the period | 10,628 | 11,948 | ||||||||||||||||||
(1) The financial results for 2025 differ from the preliminary unaudited results disclosed in the Company’s February 10, 2026 and May 6, 2025 earnings press releases. The changes primarily relate to the timing and amount of revenue recognized, adjustments related to the accounting for the compound financial instruments issued in July 2025 and related embedded derivative, the classification of digital asset losses between impairment and losses on sale, the accounting for acquired licenses, property plant and equipment, and new leases, and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management’s review. | ||||||||||||||||||||
Sequans reports preliminary unaudited first quarter 2026 financial results
Page 7
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 | ||||||||||||||||||||||
| March 31, 2026 | Dec 31, 2025 (3) | March 31, 2025 | |||||||||||||||||||||
| IFRS profit (loss) as reported | $ | (54,312) | $ | (76,427) | $ | (7,268) | |||||||||||||||||
| Add back | |||||||||||||||||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) | 476 | 356 | 1,014 | ||||||||||||||||||||
| Non-cash impairment of digital assets | 29,334 | 56,283 | — | ||||||||||||||||||||
| Non-cash change in the fair value of embedded derivatives | (9,942) | (30,804) | — | ||||||||||||||||||||
Non-cash interest on convertible debt and other financing (2) | 3,872 | 5,075 | 111 | ||||||||||||||||||||
| Non-cash impact on gain (loss) on debt extinguishment | 9,866 | 29,348 | — | ||||||||||||||||||||
| Non-IFRS profit (loss) adjusted | $ | (20,706) | $ | (16,169) | $ | (6,143) | |||||||||||||||||
| IFRS basic profit (loss) per ADS as reported | ($3.73) | ($4.93) | ($0.29) | ||||||||||||||||||||
| Add back | |||||||||||||||||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) | $0.03 | $0.02 | $0.04 | ||||||||||||||||||||
| Non-cash impairment of digital assets | $2.01 | $3.63 | $0.00 | ||||||||||||||||||||
| Non-cash change in the fair value of embedded derivatives | ($0.68) | ($1.99) | $0.00 | ||||||||||||||||||||
Non-cash interest on convertible debt and other financing (2) | $0.27 | $0.33 | $0.01 | ||||||||||||||||||||
| Non-cash impact on gain (loss) on debt extinguishment | $0.68 | $1.90 | $0.00 | ||||||||||||||||||||
| Non-IFRS basic profit (loss) per ADS | ($1.42) | ($1.04) | ($0.24) | ||||||||||||||||||||
| IFRS diluted profit (loss) per ADS | ($3.73) | ($4.93) | ($0.29) | ||||||||||||||||||||
| Add back | |||||||||||||||||||||||
Non-cash stock-based compensation expense according to IFRS 2 (1) | $0.03 | $0.02 | $0.04 | ||||||||||||||||||||
| Non-cash impairment of digital assets | $2.01 | $3.63 | $0.00 | ||||||||||||||||||||
| Non-cash change in the fair value of embedded derivatives | ($0.68) | ($1.99) | $0.00 | ||||||||||||||||||||
Non-cash interest on convertible debt and other financing (2) | $0.27 | $0.33 | $0.01 | ||||||||||||||||||||
| Non-cash impact on gain (loss) on debt extinguishment | $0.68 | $1.90 | $0.00 | ||||||||||||||||||||
| Non-IFRS diluted profit (loss) per ADS | ($1.42) | ($1.04) | ($0.24) | ||||||||||||||||||||
| (1) Included in the IFRS profit (loss) as follows: | |||||||||||||||||||||||
| Cost of product revenue | $ | 2 | $ | (21) | $ | 16 | |||||||||||||||||
| Research and development | 156 | 209 | 205 | ||||||||||||||||||||
| Sales and marketing | 70 | (93) | 223 | ||||||||||||||||||||
| General and administrative | 248 | 261 | 570 | ||||||||||||||||||||
| (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 February 10, 2026 and May 6, 2025 earnings press releases. The changes primarily relate to the timing and amount of revenue recognized, adjustments related to the accounting for the compound financial instruments issued in July 2025 and related embedded derivative, the classification of digital asset losses between impairment and losses on sale, the accounting for acquired licenses, property plant and equipment, and new leases, finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management’s review. | |||||||||||||||||||||||
FAQ
How did Sequans (SQNS) perform financially in Q1 2026?
Sequans reported Q1 2026 revenue of $6.1 million and a net loss of $54.3 million. Losses were heavily influenced by digital asset impairment and Bitcoin sale losses, along with interest and derivative effects from its convertible debt structure.
Why did Sequans’ Q1 2026 revenue and gross margin decline year over year?
Revenue fell to $6.1 million, down 24.8% from Q1 2025, and gross margin dropped to 37.7%. The prior year included significant Qualcomm license and services revenue, whereas 2026 results were more weighted toward lower‑margin product sales.
What is Sequans’ non-IFRS net loss and why is it used?
Non‑IFRS net loss was $20.7 million, or ($1.42) per ADS, in Q1 2026. This measure excludes non-cash items such as digital asset impairment, stock-based compensation, fair-value changes in derivatives, and certain debt-related effects to highlight underlying operating performance.
What is Sequans’ Bitcoin and cash position as of March 31, 2026?
Sequans held 1,514 Bitcoin with a market value of $103.2 million, including $82.9 million pledged as collateral for convertible debt. Cash and cash equivalents were $10.6 million, underscoring reliance on digital assets in its capital structure.
How much convertible debt does Sequans still have and when will it be redeemed?
At March 31, 2026, Sequans had $42.3 million of remaining convertible debt issued in July 2025. The company states that the remaining debt is scheduled to be redeemed by June 1, 2026, after which pledged Bitcoin will become unrestricted.