Sequans Communications S A (SQNS) AI Stock Analysis

• Market Cap: $19.42M
• Dividend Yield: N/A
• Average Volume (3M): 342.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: 31.78%
• EPS Growth: N/A
• Country: US
• Employees: 155
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -2.80
• Shares Outstanding: 14,332,441
• 10 Day Avg. Volume: 346,441
• 30 Day Avg. Volume: 342,830
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 2.36
• P/FCF Ratio: -2.21
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 0.27
• Enterprise Value/Ebitda: 0.10
• 1Y Price Target: $24.00
• Price Target Upside: 215.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 50 Neutral
• Price Target: $8.00 ▲(5.12% Upside)

Sequans Communications' overall stock score reflects a mixed financial performance with strong profitability improvements but significant cash flow challenges. The technical analysis indicates a bearish trend, and the lack of valuation data limits a comprehensive assessment. The absence of earnings call and corporate events data further constrains the analysis.

Sequans Communications S A Business Overview & Revenue Model

Company Description

Sequans Communications S A (SQNS) is a leading provider of 4G and 5G semiconductor solutions for massive IoT (Internet of Things) applications. The company specializes in developing and supplying chips and modules that enable wireless connectivity in a variety of sectors, including smart cities, industrial automation, automotive, and health care. Sequans focuses on delivering high-performance, cost-effective solutions that support the growing demand for IoT connectivity, leveraging its expertise in LTE and 5G technology.

How the Company Makes Money

Sequans 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 7.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 7.61 is below the 20-day moving average (MA) of 8.24, below the 50-day MA of 8.92, and below the 200-day MA of 18.36, indicating a bearish trend. The MACD of -0.62 indicates Negative momentum. The RSI at 39.27 is Neutral, neither overbought nor oversold. The STOCH value of 61.07 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SQNS	―	$19.42M	―	416.14%	―	31.78%	―
QUIK	―	$116.63M	-14.92	-28.91%	―	-25.90%	-459.91%
MX	―	$107.41M	-3.22	-7.81%	―	4.09%	9.30%
GCTS	―	$82.11M	-2.20	―	―	28.31%	-239.16%
VLN	―	$179.72M	―	-24.56%	―	8.70%	-13.95%
PXLW	―	$40.34M	-1.15	―	―	-44.05%	-2.33%

Sequans Communications S A Corporate Events

Sequans Communications Extends Warrant Expiration to Boost Engagement

On October 1, 2025, Sequans Communications S.A. announced an extension of the expiration date for its Common Warrants to December 31, 2025. This extension pertains to warrants initially issued in connection with private placements of equity and secured convertible debentures, originally exercisable for 90 days from July 7, 2025. The extension allows warrant holders more time to exercise their rights, potentially impacting the company’s financial strategy and offering stakeholders an extended opportunity to engage with the company’s equity offerings.

Sequans Communications Announces ADS Buyback Program

On September 30, 2025, Sequans Communications S.A. announced the launch of a program to repurchase up to 1.57 million American Depositary Shares (ADSs), representing approximately 10% of its outstanding ADSs, by June 30, 2026. This initiative is part of the company’s commitment to long-term value creation through its Bitcoin Treasury strategy, allowing Sequans to support its share price and enhance market net asset value (NAV). The buyback program provides flexibility for the company to repurchase ADSs based on market conditions and legal compliance, without obligating it to acquire a specific number of shares. This move is expected to strengthen Sequans’ ability to execute its long-term vision and deliver value to shareholders.

Sequans Communications Board Members Increase Stake in Confidence Boost

Sequans Communications S.A. recently reported voluntary disclosures of open-market purchases of its American Depositary Shares (ADS) by board members, reflecting confidence in the company’s strategic direction. Notably, on August 5, 2025, and August 25, 2025, board member Zvi Slonimsky purchased a total of 185,000 ADS, while on September 12, 2025, board members Jason Cohenour and Wes Cummins acquired 50,000 and 200,000 ADS, respectively. These actions underscore the board’s support for Sequans’ Bitcoin-focused treasury strategy and its cellular IoT semiconductor business, which is considered a key differentiator in the market.

Sequans Communications Announces ADS Ratio Change Effective September 17, 2025

On September 4, 2025, Sequans Communications announced a change in the ratio of its American Depositary Shares (ADSs) to ordinary shares, effective September 17, 2025. The new ratio of 1 ADS to 100 ordinary shares aims to enhance market appeal and ensure regulatory compliance. This change will result in a reverse split of the ADSs, increasing their trading price and making them more attractive to institutional investors. The adjustment follows a capital increase in July 2025 and is part of Sequans’ strategy to maintain NYSE listing requirements and support its Bitcoin treasury strategy.

Sequans Communications Reports Q2 2025 Financial Results and Bitcoin Strategy Launch

On July 31, 2025, Sequans Communications S.A. announced its preliminary financial results for the second quarter ended June 30, 2025. The company reported a revenue of $8.1 million, showing a slight increase from the previous quarter but a decrease compared to the same period last year. The gross margin stood at 64.4%, with an operating loss of $8.7 million. Sequans has launched a Bitcoin Treasury strategy, acquiring 3,072 Bitcoin, which is expected to deliver long-term value for shareholders. The IoT business is reportedly improving, with a target of achieving breakeven operating income by 2026.