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Sequans Communications S A
(NYSE:SQNS)
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Rating:49Neutral
Price Target:
$2.50
▲(0.00% Upside)
Action:Reiterated
Date:08/10/26
The score is held down primarily by weak financial performance (large TTM losses and continued cash burn), with only partial support from an improved balance sheet. Technicals remain unfavorable given the stock is below key longer-term moving averages and MACD is negative. The latest earnings call was a relative bright spot, citing improving product momentum and supportive guidance, but near-term execution risk remains elevated due to margins, cash burn, and reliance on licensing timing.
Positive Factors
Design-win conversion & product pipeline
A large share of the multi-year product pipeline is already in mass production and over 40 design-win projects are live. That shifts revenue mix toward recurring product shipments, improves revenue visibility and reduces dependence on one-off licensing, supporting a steadier route to scale and breakeven.
Negative Factors
Negative operating cash flow & ongoing burn
The company continues to consume cash from operations, with substantial YTD operating burn noted. Despite one-off investing proceeds, sustained negative operating cash flow threatens runway and makes the path to self-funded growth contingent on scaling product revenue and converting pipeline into predictable cash receipts.
Read all positive and negative factors
Positive Factors
Negative Factors
Design-win conversion & product pipeline
A large share of the multi-year product pipeline is already in mass production and over 40 design-win projects are live. That shifts revenue mix toward recurring product shipments, improves revenue visibility and reduces dependence on one-off licensing, supporting a steadier route to scale and breakeven.
Read all positive factors
Sequans Communications S A Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue comes from each business line and end market—such as semiconductor chipsets, modules, connectivity services, licensing, or specific verticals like IoT, industrial, and automotive. Reveals which segments are driving growth and where margins are strongest, and flags concentration risk if a large share comes from one product, customer, or legacy technology. Use shifts in segment mix to judge whether Sequans is moving toward more recurring, higher‑value revenue or still reliant on cyclical, one‑time sales.
Shows how much revenue comes from each business line and end market—such as semiconductor chipsets, modules, connectivity services, licensing, or specific verticals like IoT, industrial, and automotive. Reveals which segments are driving growth and where margins are strongest, and flags concentration risk if a large share comes from one product, customer, or legacy technology. Use shifts in segment mix to judge whether Sequans is moving toward more recurring, higher‑value revenue or still reliant on cyclical, one‑time sales.
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The Fly
The FlySequans Communications S A (SQNS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.09M
Dividend YieldN/A
Average Volume (3M)70.79K
Price to Earnings (P/E)―
Beta (1Y)1.05
Revenue Growth-33.68%
EPS GrowthN/A
CountryUS
Employees171
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-11.33
Shares Outstanding14,977,665
10 Day Avg. Volume71,166
30 Day Avg. Volume70,791
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.49
Price to Sales (P/S)2.29
P/FCF Ratio-2.17
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$7.50Price Target Upside200.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-2.55
Revenue Forecast (FY)$38.16M
Sequans Communications S A Business Overview & Revenue Model
Company Description
Sequans Communications S.A., together with its affiliated companies, operates as a fabless semiconductor firm. It specializes in conceiving, developing, and supplying cellular communication solutions specifically designed for both the high-through...
How the Company Makes Money
Sequans makes money primarily by selling its cellular IoT semiconductor products to device makers and module manufacturers. Its core revenue stream is product revenue from shipments of IoT connectivity chipsets (and, where applicable, integrated m...
Sequans Communications S A Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
Positive. The call emphasized strong sequential product revenue growth (23% QoQ), accelerated conversion of design wins into mass production (40+ projects, 55% of a >$300M pipeline in production), a cleaner debt-free balance sheet with $21M cash, materially reduced Bitcoin impairments, and a clear pathway toward breakeven (targeting H1 2027). Offsetting risks include a reported YoY revenue decline driven by prior-year licensing, compressed gross margins (32.9%), ongoing operating cash burn ($23M YTD), persistent supply-chain pressures (memory, silicon, packaging), and uncertainty around timing of licensing agreements and monetization of remaining Bitcoin. Overall, the positive operational momentum and balance-sheet improvements outweigh the remaining challenges.Positive Updates
Sequential Revenue Growth and Product Momentum
Q2 revenue of approximately $7.5M, up 23.2% sequentially vs Q1 2026; majority product-driven with product sales up 39% sequentially and >80% year-over-year (excluding a prior-year Qualcomm license impact).
Negative Updates
Year-over-Year Revenue Decline (Reported)
Reported Q2 revenue declined 8.4% versus Q2 2025, driven primarily by the absence of significant license/services revenue that had benefited the prior-year quarter (Qualcomm transaction).
Read all updates
Q2-2026 Updates
Positive
Negative
Sequential Revenue Growth and Product Momentum
Q2 revenue of approximately $7.5M, up 23.2% sequentially vs Q1 2026; majority product-driven with product sales up 39% sequentially and >80% year-over-year (excluding a prior-year Qualcomm license impact).
Read all positive updates
Company Guidance
Sequans guided Q3 revenue of $8.5M–$10M (with the high end contingent on closing one of several licensing opportunities), following Q2 product-driven revenue of ~$7.5M (up 23% sequentially) and product sales up 39% sequentially (nearly doubling YoY ex-Qualcomm); the company says >40 design-win projects are in mass production, 55% of its >$300M three‑year product pipeline (~$165M) is already in production, several programs are expected to each generate >$4M annualized revenue starting in 2027, and management remains on track to target breakeven in H1 2027. Key financials and operating metrics cited with the guidance include Q2 gross margin of 32.9%, OpEx of ~$11.9M (targeting ~<$10M/quarter recurring), non‑IFRS net loss of $4M ($0.27/ADS), cash of ~$21M plus 314 BTC (~$18–$20M), YTD operating cash burn of $23M, investing proceeds of $127.7M and financing outflows of $97M after redeeming convertible debt; the roadmap also notes 5G eRedCap sampling targeted in H2 2027 with product revenue expected in 2028 and meaningful licensing/services upside ranging from several hundred thousand to >$10M per opportunity.Sequans Communications S A Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
54
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.78M | 27.28M | 36.83M | 33.62M | 60.55M | 50.88M |
| Gross Profit | 9.12M | 14.81M | 27.74M | 24.14M | 42.88M | 27.19M |
| EBITDA | -135.03M | -81.32M | 148.14M | -15.91M | 15.66M | 1.47M |
| Net Income | -157.99M | -102.76M | 57.57M | -40.99M | -9.01M | -20.26M |
Balance Sheet | ||||||
| Total Assets | 83.62M | 248.95M | 106.53M | 109.17M | 98.75M | 89.56M |
| Cash, Cash Equivalents and Short-Term Investments | 20.97M | 13.40M | 62.09M | 5.71M | 10.67M | 4.83M |
| Total Debt | 7.27M | 70.07M | 16.36M | 80.69M | 66.50M | 70.79M |
| Total Liabilities | 41.91M | 121.23M | 51.17M | 115.24M | 96.65M | 113.87M |
| Stockholders Equity | 41.71M | 127.72M | 55.36M | -6.07M | 2.10M | -24.31M |
Cash Flow | ||||||
| Free Cash Flow | -42.93M | -28.87M | -39.26M | -36.83M | -24.50M | -37.42M |
| Operating Cash Flow | -35.53M | -22.94M | -19.51M | -7.26M | -1.84M | -8.51M |
| Investing Cash Flow | -111.97M | -216.26M | 93.69M | -24.44M | -26.05M | -19.67M |
| Financing Cash Flow | 149.77M | 243.39M | -70.79M | 31.74M | 28.71M | 25.43M |
Sequans Communications S A Technical Analysis
Negative
2.50
Price Trends
3.10
Negative
3.16
Negative
4.07
Negative
Market Momentum
-0.12
Negative
45.28
Neutral
62.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SQNS, the sentiment is Negative. The current price of 2.5 is below the 20-day moving average (MA) of 2.70, below the 50-day MA of 3.10, and below the 200-day MA of 4.07, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 62.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SQNS.
Sequans Communications S A Risk Analysis
Sequans Communications S A disclosed 57 risk factors in its most recent earnings report. Sequans Communications S A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We are not in compliance with the Continued Listing Criteria of the New York Stock Exchange (NYSE), and our failure to regain compliance may result in the delisting of our ADSs. Q4, 2023
2.
We need to enter into a strategic transaction or raise significant equity or debt financing in the near term. If we fail to do so, we may be unable to continue to operate our business and may need to seek a court ordered restructuring. Q4, 2023
Sequans Communications S A Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $41.62M | 0.65 | -2573.87% | ― | -38.72% | 16.01% | |
49 Neutral | $42.09M | -0.24 | -134.56% | ― | -33.68% | ― | |
49 Neutral | $264.62M | -15.29 | -59.94% | ― | -21.32% | -113.45% | |
46 Neutral | $145.27M | -4.36 | -12.72% | ― | -18.37% | 8.69% | |
46 Neutral | $188.39M | -5.45 | -29.33% | ― | 11.92% | 7.07% | |
45 Neutral | $234.51M | -3.02 | 60.21% | ― | -32.54% | -89.88% |
* Technology Sector Average
SQNS
Sequans Communications S A
2.72
-10.18
-78.91%
MX
MagnaChip
3.66
0.98
36.57%
PXLW
Pixelworks
6.45
-2.08
-24.34%
QUIK
QuickLogic
13.76
7.99
138.47%
VLN
Valens
1.67
-0.51
-23.39%
GCTS
GCT Semiconductor Holding
2.45
1.09
80.15%
Sequans Communications S A Corporate Events
Sequans Communications Posts Strong IoT Growth and Streamlines Balance Sheet in Q2 2026
Aug 4, 2026
On August 4, 2026, Sequans reported preliminary unaudited results for the quarter ended June 30, 2026, highlighting IoT semiconductor revenue of $7.5 million, above guidance and up 23% from Q1, though below a license‑heavy Q2 2025. Product s...
Sequans Shareholders Approve 2025 Accounts and New Auditor at June 30 Meeting
Jun 30, 2026
At a combined ordinary and extraordinary shareholders’ meeting on June 30, 2026, Sequans Communications shareholders approved all board-backed resolutions except a capital increase reserved for employees, with about 99.9% of outstanding ordi...
Sequans Taps VP Finance Norman Brodt as New CFO as Long-Serving Finance Chief Retires
Jun 2, 2026
On June 2, 2026, Sequans Communications announced a planned leadership change in its finance organization, marking the end of an era for its long-serving chief financial officer. The move comes as the company continues to position its 4G/5G IoT se...
Sequans Clears 2025 Convertible Debt, Refocuses on Core IoT Chip Business
May 28, 2026
On May 28, 2026, Sequans Communications announced it had fully redeemed all remaining convertible debt issued in July 2025, using proceeds from the sale of part of its Bitcoin holdings, leaving approximately 658 unrestricted Bitcoin on its balance...
Sequans Calls June 30, 2026 Shareholder Vote on 2025 Results and Major Capital Authorization
May 26, 2026
Sequans Communications S.A. has convened an ordinary and extraordinary general shareholders’ meeting for June 30, 2026, to vote on 17 resolutions, including approval of its 2025 statutory and consolidated financial statements, which show a &...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.