Sequans Communications S.A.

Total revenue for the second quarter was $7.5 million. Revenue increased 23.2% versus Q1 2026 and declined 8.4% versus Q2 2025, though excluding the prior-year Qualcomm-related license/services revenue, revenue grew 84.2% year over year. Gross margin was 32.9% versus 37.7% in Q1 and 64.4% in Q2 2025; operating expenses were about $11.9 million. Operating loss was $7.2 million, net loss was $9.6 million or $0.65 per diluted ADS, and non-IFRS net loss was $4 million or $0.27 per diluted ADS. Cash and cash equivalents were $21 million at June 30, and Sequans held 314 Bitcoin valued at about $18.4 million. For Q3, management expects revenue of $8.5 million to $10 million, with upside at the high end tied to a potential licensing agreement.

Georges Karam said Sequans has substantially concluded its Bitcoin treasury strategy and is now focused on its core IoT semiconductor business, licensing, RF, defense/drone opportunities, and 5G eRedCap. He emphasized that the company is seeing stronger conversion of design wins into production, a growing backlog into 2027, and improving visibility into revenue. His tone was constructive and confident, but he repeatedly stressed disciplined execution, cost control, and opportunistic monetization of the remaining Bitcoin.

Norman Brodt highlighted Q2 revenue of $7.5 million, gross margin of 32.9%, operating expenses of about $11.9 million, operating loss of $7.2 million, and net loss of $9.6 million or $0.65 per diluted ADS. He also noted a $3 million noncash impairment on Bitcoin holdings, a $5.3 million realized net gain on Bitcoin sales, and debt-related net interest expense of $2.4 million versus $4.9 million in Q1. On the balance sheet, he pointed to $21 million of cash at June 30, $23 million of operating cash usage in the first half, $127.7 million provided by investing activities from Bitcoin sales, and a clean unencumbered balance sheet after debt repayment. He said Sequans is targeting $10 million per quarter of operating expense on a recurring basis and expects lower OpEx in the second half.

Analysts focused on the path to breakeven, licensing revenue timing, RF market size, Bitcoin liquidation, and margin trends. Management said breakeven is still a next-year target, supported by product growth, cost reductions, and some services revenue, while acknowledging that licensing timing is hard to predict and could cause quarter-to-quarter variability. On RF, Georges said the pipeline includes more than 20 opportunities, the first drone program has been signed with shipments starting early next year, and the business could scale to $10 million to $20 million annually over time. On Bitcoin, management said the goal is ultimately to convert the remaining holdings to cash, but not under pressure and only when the company sees a better price and better timing.