Sequans Communications Preliminary Second Quarter 2025 Financial Results

2025-07-31 06:07:56

(MENAFN- Newsfile Corp) Paris, France--(Newsfile Corp. - July 31, 2025) - Sequans Communications S.A. (NYSE: SQNS) ("Sequans" or the "Company"), a pioneer in Bitcoin Treasury and a leading provider of 5G/4G cellular IoT semiconductor solutions, today announced preliminary financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Summary Preliminary Results Table ⁽ * ⁾ :

(in US$ millions, except share and per share data)	Q2 2025 ⁽¹⁾		Q1 2025 ⁽¹⁾		Q2 2024
Revenue	$8.1		$8.1		$9.7
Gross profit	$5.2		$5.2		$8.1
Gross margin (%)	64.4	%	64.5	%	84.0	%
Operating income (loss)	($8.7)		($6.8)		($3.7)
Net profit (loss)	($9.1)		($7.3)		($0.6)
Diluted income (loss) per ADS	($0.36)		($0.29)		($0.02)
Non-IFRS diluted income (loss) per ADS ⁽²⁾	($0.32)		($0.24)		($0.23)
Weighted average number of diluted ADS (IFRS)	25,406,045		25,156,570		24,765,063
Weighted average number of diluted ADS (Non-IFRS)	25,406,045		25,156,570		24,765,063
(1) Final results are subject to finalization of the allocation of the ACP acquisition purchase price
(2) See Use of Non-IFRS/non-GAAP Financial Measures disclosure on page 3. IFRS Net Loss in Q2 2024 includes significant non-cash interest expense, debt amendment and change in value of embedded derivative that are excluded from Non-IFRS measures
(*) Bitcoin KPIs will be presented beginning with the results of the third quarter of 2025

"Sequans has successfully deployed the net proceeds from the $384 million financing completed on July 7 to launch its Bitcoin Treasury strategy, resulting in the initial acquisition of 3,072 Bitcoin," said Dr. Georges Karam, CEO of Sequans. "We are committed to this strategy and believe it will deliver meaningful long-term value for shareholders. We look forward to sharing more about our long-term treasury plans before the end of this quarter. We are also pleased to report that our IoT business continues to improve as we work toward our target of achieving breakeven operating income in 2026."

Second Quarter 2025 Financial Summary:

Revenue : Revenue was $8.1 million, an increase of 1.1% compared to the first quarter of 2025 and a decrease of 15.8% compared to the second quarter of 2024. Product revenue was $3.9 million, an increase of 10.3% compared to the first quarter of 2025 and an increase of 59.0% compared to the second quarter of 2024. License and services revenue was $4.3 million compared to $4.5 million in the first quarter of 2025 and $7.2 million in the second quarter of 2024, with the variation primarily related to the timing of revenue recognition for the 5G broadband platform license to Qualcomm in both the first and second quarters of 2025 and for the 4G manufacturing license to Qualcomm in the second quarter of 2024.

Gross margin: Gross margin was 64.4% compared to 64.5% in the first quarter of 2025 and 84.0% in the second quarter of 2024.

Operating profit (loss): Operating loss was $8.7 million compared to operating loss of $6.8 million in the first quarter of 2025 and operating loss of $3.7 million in the second quarter of 2024. The operating loss in the second quarter of 2025 reflected a number of non-recurring items such as restructuring costs and advisory fees related to major transactions. No research and development costs were capitalized in 2025 whereas over $5 million was capitalized in the second quarter of 2024.

Net loss: Net loss was $9.1 million, or ($0.36) per diluted ADS, compared to net loss of $7.3 million, or ($0.29) per diluted ADS, in the first quarter of 2025 and net loss of $0.6 million, or ($0.02) per diluted ADS, in the second quarter of 2024.

Non-IFRS loss: Excluding 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 $8.1 million, or ($0.32) per diluted ADS, in the second quarter of 2025 compared to non-IFRS net loss of $6.1 million, or ($0.24) per diluted ADS in the first quarter of 2025, and non-IFRS net loss of $5.8 million, or ($0.23) per diluted ADS, in the second quarter of 2024.

Cash: Cash and cash equivalents at June 30, 2025, totaled $41.6 million compared to $45.9 million at March 31, 2025. This excludes the $358.5 million net proceeds from the private placements of equity and convertible debt completed on July 7, 2025.

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