Sequans Communications S (SQNS)
NYSE:SQNS
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Sequans Communications S A
(NYSE:SQNS)
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Rating:51Neutral
Price Target:
$3.50
▲(33.08% Upside)
Action:ReiteratedDate:05/09/26
The score is held back primarily by weak financial performance—shrinking TTM revenue, large losses, and persistent negative operating/free cash flow. The earnings call adds some support via improving near-term revenue guidance, backlog/pipeline visibility, and a plan toward breakeven and debt redemption, but liquidity, margin pressure, and execution/audit risks remain meaningful. Technically, near-term momentum is positive, yet the longer-term trend is still impaired; valuation is constrained by loss-making results and no dividend.
Positive Factors
Design-win pipeline & backlog
A >$300M multi-year pipeline with nearly half already in production and a $22M near-term backlog gives multi-quarter revenue visibility. Converting pipeline into production increases capacity utilization and provides durable demand that can amortize fixed R&D and support a path to sustained revenue growth.
Negative Factors
Persistent negative cash flow
Sustained negative operating and free cash flow indicate the business is burning cash and likely dependent on external financing or asset sales. Over 2-6 months this limits the company's ability to fund inventory builds, customer ramps, or R&D internally and increases execution risk if funding sources tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
Design-win pipeline & backlog
A >$300M multi-year pipeline with nearly half already in production and a $22M near-term backlog gives multi-quarter revenue visibility. Converting pipeline into production increases capacity utilization and provides durable demand that can amortize fixed R&D and support a path to sustained revenue growth.
Read all positive factors
Sequans Communications S A (SQNS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$52.69M
Dividend YieldN/A
Average Volume (3M)107.69K
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth-34.03%
EPS GrowthN/A
CountryUS
Employees155
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-381.54
Shares Outstanding14,332,441
10 Day Avg. Volume168,939
30 Day Avg. Volume107,689
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 Cap1.78
Enterprise Value/Revenue3.68
Enterprise Value/Gross Profit7.88
Enterprise Value/Ebitda-1.11
Forecast
1Y Price Target
$11.25Price Target Upside327.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-1.72
Revenue Forecast (FY)$40.55M
Sequans Communications S A Business Overview & Revenue Model
Company Description
Sequans Communications S.A., together with its subsidiaries, engages in the fabless designing, developing, and supplying of cellular semiconductor solutions for massive and broadband internet of things markets. It offers baseband solutions for use...
How the Company Makes Money
Sequans makes money primarily by selling cellular connectivity semiconductor products and related intellectual property for IoT devices. Its core revenue stream is product revenue from LTE-M/NB-IoT chipset platforms (cellular modem SoCs and compan...
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.
Data provided by:
The Fly
The FlySequans Communications S A Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
Overall the call presents constructive operational progress: a growing backlog, multiple design wins moving into production, tangible product momentum across Cat-M/Cat-1bis/RF, progress on 5G eRedCap, and a decisive balance sheet move to eliminate convertible debt and simplify capital structure. Near-term challenges include Q1 revenue and margin pressure, increased cash burn, realized losses from monetizing Bitcoin, supply-chain driven cost inflation and an outstanding audit/filing timing issue. Management has clear targets to reduce OpEx and drive breakeven by year-end and has provided specific guidance/visibility (backlog, Q2 revenue range, BTC redemption timetable) that supports their optimistic outlook.Positive Updates
Strong Design-Win Pipeline and Backlog
Design-win pipeline exceeds $300M of potential 3-year product revenue entering 2026; 44% already in production at the start of the year. Q1 added 3 projects that transitioned to production and management expects >50% of the pipeline (≈$150M of 3-year potential) to be in production by end of June. Product order backlog of ≈$22M secured for 2026 with early indications into Q1 2027.
Negative Updates
Quarterly Revenue Decline and Margin Compression
Q1 revenue of $6.1M declined from $6.9M in Q4 (down ~11.6% sequential). Gross margin decreased to 37.7% from 41.4% in Q4 (down 3.7 percentage points), reflecting product & revenue mix and supply-cost dynamics.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Design-Win Pipeline and Backlog
Design-win pipeline exceeds $300M of potential 3-year product revenue entering 2026; 44% already in production at the start of the year. Q1 added 3 projects that transitioned to production and management expects >50% of the pipeline (≈$150M of 3-year potential) to be in production by end of June. Product order backlog of ≈$22M secured for 2026 with early indications into Q1 2027.
Read all positive updates
Company Guidance
Sequans guided Q2 revenue of $6.8–$7.4M (Q1 was $6.1M) and said product revenue (≈90%+ of Q1) should build sequentially through 2026, supported by a ~ $22M product backlog and a >$300M design‑win pipeline (44% in production at the start of the year; 3 additional projects moved to production in Q1; management expects >50% of the pipeline — ~ $150M of 3‑year potential revenue — to be in production by end‑June). They reiterated a path to cash‑flow breakeven by year‑end while driving cash operating expenses below $10M (target ≈$9M) — normalized cash burn was just under $10M in Q1 (vs ~$7.7M in Q4). Q1 gross margin was 37.7% (Q4 41.4%); Q1 IFRS net loss was $54.3M (non‑IFRS loss $20.7M, $1.42/ADS) vs Q4 IFRS loss $76.4M (non‑IFRS $16.2M, $1.04/ADS). On the balance sheet they are redeeming $94.5M of convertible debt (≈62% redeemed as of Apr 30, ~$35.9M remaining, expected fully redeemed by June 1), funded via Bitcoin sales (Q1 mark‑to‑market BTC loss $29.3M and realized BTC sale loss $11.7M); cash was $10.6M at 3/31, BTC holdings were 1,514 at quarter‑end and 1,114 as of 4/30 with at least ~600 BTC expected post‑redemption. 5G eRedCap test chips arrived and customer sampling is targeted H2 2027; management also cited ~$4–5M of near‑term RF transceiver revenue visibility and a larger RF opportunity (> $100M) with very high margins.Sequans Communications S A Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
34
Negative
Cash Flow
20
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.46M | 27.28M | 36.83M | 33.62M | 60.55M | 50.88M |
| Gross Profit | 11.91M | 14.81M | 27.74M | 24.14M | 42.88M | 27.19M |
| EBITDA | -84.28M | -81.32M | 148.14M | -15.91M | 15.66M | 1.47M |
| Net Income | -157.33M | -102.76M | 57.57M | -40.99M | -9.01M | -20.26M |
Balance Sheet | ||||||
| Total Assets | 158.09M | 248.95M | 106.53M | 109.17M | 98.75M | 89.56M |
| Cash, Cash Equivalents and Short-Term Investments | 10.63M | 13.40M | 62.09M | 5.71M | 10.67M | 4.83M |
| Total Debt | 50.58M | 70.07M | 16.36M | 80.69M | 66.50M | 70.79M |
| Total Liabilities | 85.31M | 121.23M | 51.17M | 115.24M | 96.65M | 113.87M |
| Stockholders Equity | 72.78M | 127.72M | 55.36M | -6.07M | 2.10M | -24.31M |
Cash Flow | ||||||
| Free Cash Flow | -35.61M | -28.87M | -39.26M | -36.83M | -24.50M | -37.42M |
| Operating Cash Flow | -28.95M | -22.94M | -19.51M | -7.26M | -1.84M | -8.51M |
| Investing Cash Flow | -189.49M | -216.26M | 93.69M | -24.44M | -26.05M | -19.67M |
| Financing Cash Flow | 216.99M | 243.39M | -70.79M | 31.74M | 28.71M | 25.43M |
Sequans Communications S A Technical Analysis
Neutral
2.63
Price Trends
2.94
Negative
4.13
Negative
8.28
Negative
Market Momentum
-0.15
Negative
41.78
Neutral
71.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SQNS, the sentiment is Neutral. The current price of 2.63 is below the 20-day moving average (MA) of 2.66, below the 50-day MA of 2.94, and below the 200-day MA of 8.28, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 41.78 is Neutral, neither overbought nor oversold. The STOCH value of 71.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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% | |
56 Neutral | $352.46M | -4.18 | -58.66% | ― | -31.51% | -241.84% | |
52 Neutral | $293.77M | -4.14 | -27.53% | ― | 22.06% | 11.78% | |
51 Neutral | $52.69M | >-0.01 | -134.56% | ― | -34.03% | ― | |
51 Neutral | $123.24M | -1.76 | 58.01% | ― | -68.60% | -220.58% | |
50 Neutral | $165.08M | -5.48 | -10.13% | ― | -20.64% | 44.67% | |
47 Neutral | $36.45M | -2.36 | 109.22% | ― | -38.72% | 16.01% |
* Technology Sector Average
SQNS
Sequans Communications S A
3.46
-12.44
-78.24%
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211.76%
VLN
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2.79
0.32
12.96%
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1.70
0.05
3.03%
Sequans Communications S A Corporate Events
Sequans Posts Q1 2026 Loss as Bitcoin Strategy and IoT Mix Reshape Balance Sheet
May 5, 2026
On May 5, 2026, Sequans reported preliminary unaudited results for the quarter ended March 31, 2026, showing revenue of $6.1 million, down 12.5% sequentially and 24.8% year on year, as prior-year licensing income from Qualcomm rolled off even whil...
Sequans Shareholders Approve Major Capital Reduction and Share Cancellation Powers
Feb 19, 2026
On February 19, 2026, Sequans Communications S.A. held a combined ordinary and extraordinary shareholders’ meeting at which investors approved all proposals submitted by the board. Shareholders voted to immediately reduce the company’s...
Sequans to Redeem $94.5 Million of Convertible Debt Using Bitcoin Collateral
Feb 13, 2026
On February 10, 2026, Sequans Communications entered into a second amendment and consent related to its June 22, 2025 secured convertible debenture purchase agreement. Under this amendment, the company will redeem the remaining $94.5 million princ...
Sequans Posts 2025 Loss on Bitcoin Impairment but Touts Growing IoT Pipeline and Buybacks
Feb 10, 2026
On February 10, 2026, Sequans reported unaudited results for the fourth quarter and full year ended December 31, 2025, with Q4 revenue rising 72.6% sequentially to $7 million on predominantly product-driven IoT sales, but falling year-on-year due ...
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.