Education
About Us
Working with TipRanks
Follow Us
Sequans Communications S A (SQNS)
NYSE:SQNS
Top Page
Sequans Communications S A
(NYSE:SQNS)
Rating:49Neutral
Price Target:
$1.50
▲(64.84% Upside)
Sequans Communications S A (SQNS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.74M
Dividend YieldN/A
Average Volume (3M)6.36M
Price to Earnings (P/E)―
Beta (1Y)0.10
Revenue Growth32.23%
EPS GrowthN/A
CountryUS
Employees155
SectorTechnology
Sector Strength85
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.29
Shares Outstanding142,716,400
10 Day Avg. Volume3,767,769
30 Day Avg. Volume6,356,456
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.30
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit0.27
Enterprise Value/Ebitda0.10
Forecast
1Y Price Target
$5.50Price Target Upside504.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Sequans Communications S A Business Overview & Revenue Model
Company DescriptionSequans Communications S.A. designs, develops, and supplies cellular semiconductor solutions for massive and broadband Internet of Things (IoT) markets in Taiwan, South Korea, China, rest of Asia, the United States, and internationally. It offers a set of 5G/4G chips and modules for non-smartphone devices. The company provides a comprehensive product portfolio for 5G/4G massive IoT applications based on its Monarch LTE-M/NB-IoT and Calliope Cat 1 chip platforms featuring low power consumption, a set of integrated functionalities, and deployment capability. It also offers a product portfolio for 5G/4G broadband and critical IoT applications based on its Cassiopeia Cat 4/Cat 6 and Taurus 5G chip platforms optimized for residential, enterprise, and industrial applications. The company serves OEMs and ODMs Customers, as well as 4G and 5G wireless carriers. Sequans Communications S.A. was incorporated in 2003 and is headquartered in Paris, France.
How the Company Makes MoneySequans generates revenue primarily through the sale of semiconductor chips and modules that are used in IoT devices and applications. Its revenue model is based on the direct sale of these products to original equipment manufacturers (OEMs) and system integrators who incorporate Sequans' technology into their devices. Key revenue streams include licensing fees from technology partnerships, as well as recurring revenues from long-term contracts and collaborations with major telecommunications companies and device manufacturers. Significant partnerships with industry leaders in the IoT space also contribute to its earnings by expanding market reach and enhancing the adoption of Sequans' solutions across various applications.
Sequans Communications S A Earnings Call Summary
Earnings Call Date:Jul 07, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in revenue and key product lines, such as Monarch 2 and Calliope 2, as well as a strong design-win pipeline. However, these achievements were offset by sequential revenue decline, a decrease in product gross margin, and a notable net loss. Despite the challenges, the company is managing costs effectively and is optimistic about future growth.Q1-2025 Updates
Positive Updates
Revenue Growth and Exceeding Guidance
First quarter revenue of $8.1 million, slightly above the high end of guidance, with a 34% increase from $6.1 million in Q1 2024.
Product Revenue Increase
Product revenue reached $3.5 million, marking a 42% increase from the first quarter of 2024.
Monarch 2 and Calliope 2 Progress
Monarch 2 and Calliope 2 are key drivers of growth, with several metering projects entering the pilot rollout phase and preparation for product launches in the second half of 2025.
5G RedCap and eRedCap Roadmap
The acquisition of ACP accelerated the 5G eRedCap roadmap by 18 months, positioning Sequans as a leader in next-generation 5G IoT.
Strong Design-Win Pipeline
Total pipeline reaching approximately $480 million, with $250 million already in the design-win phase.
Cost Management and Cash Position
Operating expenses reduced to $11 million in Q1 2025, with cash and short-term deposits at $45.9 million.
Negative Updates
Sequential Revenue Decline
Sequential revenue declined by 27% from Q4 2024 due to the timing of deliveries and variability in product shipments.
Product Gross Margin Decrease
Product gross margin was 31% in Q1 2025, down from 35.5% in Q4 2024 due to a higher portion of module sales and initial sales of Calliope 2.
Net Loss
Net loss for Q1 2025 was $7.3 million, compared to a net loss of $2.4 million in Q4 2024.
Cash Burn and Non-Recurring Expenses
Cash and short-term deposits decreased, with non-operating items causing a $9 million drag on cash burn in Q1 2025.
Company Guidance
During the Sequans Communications First Quarter 2025 Financial Results Conference call, the company provided guidance indicating a positive revenue trajectory and strategic initiatives for growth. They reported first-quarter revenue of $8.1 million, a 34% increase year-over-year, with product revenue accounting for $3.5 million of this total, marking a 42% rise from the previous year. Sequans highlighted the continued rollout of their Monarch 2 process as a key driver of this growth and noted the expansion of their design-win pipeline, now reaching approximately $480 million in potential revenue, with $250 million already in the design-win phase. They emphasized their focus on transitioning design-win projects into production, with expectations for 30 projects to generate revenue by the end of 2025, up from the current 18. Sequans also projected an operational break-even target by 2026, aiming to manage cash operating expenses below $10 million per quarter and reducing their cash burn rate to below $5 million by the end of 2025. Additionally, they anticipate second-quarter 2025 revenue in the range of $8 million to $9 million and expect significant contributions from their next-generation chips by late 2027.Sequans Communications S A Financial Statement Overview
Summary
Sequans Communications shows strong profitability improvements with positive net income and robust margins. However, cash flow challenges persist, with negative operating and free cash flows, indicating a need for better cash management.Income Statement
The company shows a significant improvement in profitability metrics in the TTM period. The gross profit margin improved to 67.6% due to an increase in gross profit. The net profit margin also turned positive at 142.2%, reflecting a significant turnaround from previous years of losses. Revenue showed moderate growth of 1.6% in the TTM compared to the previous year. However, the EBIT and EBITDA margins demonstrate notable strength at 176.7% and 191.6%, respectively, indicating substantial operational efficiency gains.68
Positive
Balance Sheet
The balance sheet reflects a mixed picture with some strengths and weaknesses. The debt-to-equity ratio improved significantly due to an increase in stockholders' equity, standing at 0.26, indicating lower leverage. However, the equity ratio of 47% suggests a moderate level of financial stability. Return on equity is remarkable at 128.1%, driven by the positive net income. The company's asset base slightly decreased, indicating a cautious approach to asset expansion.55
Neutral
Cash Flow
Cash flow metrics present a challenging scenario, as the company reported negative operating cash flows of -$40.3 million in the TTM period. Free cash flow also remains negative, although the free cash flow growth improved slightly. The operating cash flow to net income ratio is negative, highlighting cash generation issues despite reported net income. However, free cash flow to net income showed improvement, suggesting better cash conversion rates.45
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.36M | 36.76M | 33.62M | 60.55M | 50.88M | 50.92M |
| Gross Profit | 25.24M | 27.77M | 24.14M | 42.88M | 27.19M | 23.45M |
| EBITDA | 71.61M | 37.46M | -15.91M | 11.83M | -4.41M | -34.38M |
| Net Income | 53.13M | 57.04M | -40.99M | -9.01M | -20.28M | -54.48M |
Balance Sheet | ||||||
| Total Assets | 88.29M | 105.26M | 109.17M | 98.75M | 89.56M | 87.32M |
| Cash, Cash Equivalents and Short-Term Investments | 41.60M | 62.09M | 5.71M | 5.67M | 4.83M | 7.57M |
| Total Debt | 10.94M | 16.36M | 80.69M | 65.14M | 66.07M | 69.42M |
| Total Liabilities | 46.82M | 50.08M | 115.24M | 96.65M | 113.87M | 124.45M |
| Stockholders Equity | 41.47M | 55.18M | -6.07M | 2.10M | -24.31M | -37.13M |
Cash Flow | ||||||
| Free Cash Flow | -45.23M | -39.26M | -36.83M | -24.50M | -37.38M | -33.16M |
| Operating Cash Flow | -40.28M | -19.37M | -7.26M | -1.84M | -8.76M | -19.39M |
| Investing Cash Flow | 135.56M | 93.69M | -24.44M | -26.05M | -19.37M | -24.76M |
| Financing Cash Flow | -89.61M | -70.79M | 31.74M | 28.71M | 25.38M | 37.62M |
Sequans Communications S A Technical Analysis
Negative
0.91
Price Trends
1.83
Negative
1.84
Negative
2.32
Negative
Market Momentum
-0.27
Negative
34.28
Neutral
9.05
Positive
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 0.91 is below the 20-day moving average (MA) of 1.16, below the 50-day MA of 1.83, and below the 200-day MA of 2.32, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 34.28 is Neutral, neither overbought nor oversold. The STOCH value of 9.05 is Positive, 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $35.62B | 7.50 | -10.94% | 1.87% | 8.86% | -10.27% | |
51 Neutral | $93.09M | ― | -36.97% | ― | 6.14% | 1.71% | |
49 Neutral | $22.74M | ― | 415.99% | ― | 32.23% | ― | |
49 Neutral | $51.45M | ― | -936.03% | ― | ― | ― | |
45 Neutral | $42.31M | ― | -2911.20% | ― | -44.05% | -2.33% | |
43 Neutral | $71.50M | ― | 17.45% | ― | 28.31% | -239.16% | |
40 Underperform | $62.81M | ― | -51.84% | ― | -61.52% | 35.64% |
* Technology Sector Average
Performance Comparison
SQNS
Sequans Communications S A
0.91
-1.49
-62.08%
GSIT
GSI Technology
3.01
0.37
14.02%
PXLW
Pixelworks
9.98
1.73
20.97%
WKEY
WISeKey International Holding
5.55
3.36
153.42%
MOBX
Mobix Labs
1.10
-0.09
-7.56%
GCTS
GCT Semiconductor Holding
1.30
-1.52
-53.90%
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.