Sequans Communications S A (SQNS)
NYSE:SQNS
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Sequans Communications S A
(NYSE:SQNS)
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Rating:44Neutral
Price Target:
$2.50
▼(-1.57% Downside)
Action:ReiteratedDate:03/28/26
The score is held down primarily by weak financial performance (losses, declining 2025 revenue, and persistent cash burn). Technicals also remain bearish with the stock below key moving averages, despite oversold signals. The earnings call adds some support via 2026 revenue guidance and improving design-win/production momentum, but near-term cash burn and treasury/debt-related volatility remain meaningful risks.
Positive Factors
Design-win funnel & production ramp
A >$550M multi-year design-win funnel with 44% already in production gives Sequans multi-year revenue visibility. Higher conversion to production reduces execution risk, supports predictable volume growth, and enables margin leverage as fixed costs are spread across higher product sales over 2–3 years.
Negative Factors
Persistent operating cash burn
Sequans has sustained negative operating and free cash flow, with Q4 normalized operating cash burn near $7.7M. Persistent cash burn increases reliance on asset sales or external funding, compresses runway, and raises dilution/refinancing risk if design-win conversions or revenue ramps slip versus plan in the coming 6–12 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Design-win funnel & production ramp
A >$550M multi-year design-win funnel with 44% already in production gives Sequans multi-year revenue visibility. Higher conversion to production reduces execution risk, supports predictable volume growth, and enables margin leverage as fixed costs are spread across higher product sales over 2–3 years.
Read all positive factors
Sequans Communications S A (SQNS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$40.63M
Dividend YieldN/A
Average Volume (3M)80.68K
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth2.80%
EPS GrowthN/A
CountryUS
Employees155
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-1.19
Shares Outstanding14,332,441
10 Day Avg. Volume49,478
30 Day Avg. Volume80,676
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 Cap2.37
Enterprise Value/Revenue3.51
Enterprise Value/Gross Profit6.50
Enterprise Value/Ebitda-1.18
Forecast
1Y Price Target
$12.50Price Target Upside392.13% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.94
Revenue Forecast (FY)$47.05M
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 Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong operational momentum in the IoT semiconductor business with clear progress on product shipments, a sizable and improving design-win funnel, targeted 2026 revenue guidance ($40M–$45M) and active capital allocation (ADS buybacks). Offsetting these positives are large accounting losses and noncash charges tied to the Bitcoin treasury strategy and debt remeasurement that produced a substantial IFRS net loss, a widened non-IFRS loss, and realized Bitcoin losses. Management is focused on reducing OpEx and reaching cash-flow breakeven by Q4 2026, but near-term cash burn, supply-chain cost pressure, and multi-year timelines for 5G revenue remain risks. Overall the operational outlook is constructive while financial results are currently weighed down by treasury and debt-related items, producing a mixed but stable outlook.Positive Updates
Quarterly Revenue and Product Mix
Q4 revenue of $7.0M (in line with expectations), with >94% of Q4 revenue from product sales and ~6% from services.
Negative Updates
Large Noncash Bitcoin Impairment
Q4 recorded a noncash impairment charge of $56.9M related to mark-to-market value of Bitcoin (vs $8.2M in Q3), materially affecting IFRS results.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Revenue and Product Mix
Q4 revenue of $7.0M (in line with expectations), with >94% of Q4 revenue from product sales and ~6% from services.
Read all positive updates
Company Guidance
The company guided to roughly $40–45M of revenue for 2026, with Q1 revenue expected around $6.5M (with ~ $1.0M of that at risk of slipping into Q2) and a goal of approaching cash‑flow breakeven by Q4 2026; this guidance builds on Q4 2025 product revenue of $7.0M and full‑year 2025 revenue of ~$27.2M (adjusted underlying ≈ $20M). Sequans said its revenue funnel now exceeds $550M of potential three‑year product revenue (including >$300M from design wins), 44% of design wins are already in production (up from 38% at Q3) representing ~ $132M of potential three‑year revenue from production‑stage projects, and the company added 9 new projects in Q4 while 3 projects moved into production. Operational targets include reducing combined R&D and SG&A (Q4 was $11.5M) toward an H2 target of about $10.5M per quarter (≈$9.0M cash after ~ $1.5M depreciation), Q4 normalized operating cash burn ~ $7.7M, and product gross margin ex‑inventory provisions of ~43% (reported Q4 GM 37.7% including provisions); product mix was >94% product / ~6% services in Q4, Cat M and Cat 1 Bis are key 2026 drivers, RF transceivers have committed backlog (management cited a near‑term $5–7M opportunity with upside to a $15–20M run‑rate longer term), IP licensing opportunities are in the ~$2–10M+ range each, 5G eRedcap test chips are expected this quarter with customer sampling mid‑2027 and initial revenue potential in 2028, and the board has authorized additional ADS repurchases up to 10% (after repurchasing ~9.7% in Q4).Sequans Communications S A Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
38
Negative
Cash Flow
18
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.28M | 36.83M | 33.62M | 60.55M | 50.88M |
| Gross Profit | 14.81M | 27.74M | 24.14M | 42.88M | 27.19M |
| EBITDA | -81.32M | 148.14M | -15.91M | 15.66M | 1.47M |
| Net Income | -102.76M | 57.57M | -40.99M | -9.01M | -20.26M |
Balance Sheet | |||||
| Total Assets | 248.95M | 106.53M | 109.17M | 98.75M | 89.56M |
| Cash, Cash Equivalents and Short-Term Investments | 13.40M | 62.09M | 5.71M | 10.67M | 4.83M |
| Total Debt | 70.07M | 16.36M | 80.69M | 66.50M | 70.79M |
| Total Liabilities | 121.23M | 51.17M | 115.24M | 96.65M | 113.87M |
| Stockholders Equity | 127.72M | 55.36M | -6.07M | 2.10M | -24.31M |
Cash Flow | |||||
| Free Cash Flow | -28.87M | -39.26M | -36.83M | -24.50M | -37.42M |
| Operating Cash Flow | -22.94M | -19.51M | -7.26M | -1.84M | -8.51M |
| Investing Cash Flow | -216.26M | 93.69M | -24.44M | -26.05M | -19.67M |
| Financing Cash Flow | 243.39M | -70.79M | 31.74M | 28.71M | 25.43M |
Sequans Communications S A Technical Analysis
Negative
2.54
Price Trends
3.67
Negative
4.68
Negative
9.37
Negative
Market Momentum
-0.15
Negative
37.41
Neutral
10.59
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 2.54 is below the 20-day moving average (MA) of 3.10, below the 50-day MA of 3.67, and below the 200-day MA of 9.37, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 37.41 is Neutral, neither overbought nor oversold. The STOCH value of 10.59 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
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% | |
50 Neutral | $162.87M | -4.09 | -58.66% | ― | -28.05% | -488.63% | |
49 Neutral | $104.59M | -3.11 | -11.40% | ― | -7.79% | 10.04% | |
49 Neutral | $81.19M | -1.76 | ― | ― | -46.98% | -186.82% | |
48 Neutral | $31.93M | -2.36 | 109.22% | ― | -38.72% | 16.01% | |
48 Neutral | $124.25M | -4.64 | -27.53% | ― | 7.53% | -15.00% | |
44 Neutral | $40.63M | -0.61 | -99.13% | ― | 2.80% | ― |
* Technology Sector Average
SQNS
Sequans Communications S A
2.54
-18.16
-87.73%
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Sequans Communications S A Corporate Events
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 ...
Sequans Calls February 19, 2026 Shareholder Vote on Major Capital Reduction After ADS Buyback
Jan 16, 2026
On January 16, 2026, Sequans Communications S.A. disclosed that its board has convened an ordinary and extraordinary general shareholders’ meeting for February 19, 2026 to vote on a series of share capital reduction measures and related form...
Sequans Communications Regains NYSE Listing Compliance After $195 Million Equity Raise
Jan 15, 2026
On January 15, 2026, Sequans Communications announced that it had regained compliance with New York Stock Exchange continued listing standards, resolving a deficiency first flagged by the exchange on June 5, 2025, when the company’s average ...
Sequans Communications Announces Senior Operations Executive Departure and Leadership Reassignment
Jan 5, 2026
On January 5, 2026, Sequans Communications S.A. reported that Executive Vice President of Operations Danny Kedar has left the company to pursue other business opportunities, marking a senior management change. His operational responsibilities have...
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.
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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.