Sequans Communications S A (SQNS) AI Stock Analysis

• Market Cap: $90.12M
• Dividend Yield: N/A
• Average Volume (3M): 143.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: 2.80%
• EPS Growth: N/A
• Country: US
• Employees: 155
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.79
• Shares Outstanding: 14,332,441
• 10 Day Avg. Volume: 132,165
• 30 Day Avg. Volume: 143,527
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 2.35
• P/FCF Ratio: -2.21
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 4.82
• Enterprise Value/Gross Profit: 7.74
• Enterprise Value/Ebitda: 1.57
• 1Y Price Target: $20.00
• Price Target Upside: 260.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -0.82
• Revenue Forecast (FY): $46.93M

• Rating: 43 Neutral
• Price Target: $5.00 ▼(-9.91% Downside)

Sequans Communications S A's overall stock score reflects significant financial challenges, including declining revenue and persistent losses. The technical analysis indicates a bearish trend, and valuation is difficult due to the lack of profitability metrics. While the earnings call highlighted some positive strategic initiatives, immediate financial concerns overshadow potential long-term benefits.

Positive Factors

IoT Business Pipeline Growth

A growing IoT pipeline indicates strong demand for Sequans' products, positioning the company for future revenue growth as these projects transition to production.

Debt Reduction

Reducing debt enhances financial flexibility, allowing Sequans to focus on strategic growth initiatives and potentially improve its credit profile.

5G IoT Project Milestone

Progress in 5G technology development strengthens Sequans' competitive position in the IoT market, aligning with industry trends towards advanced connectivity solutions.

Negative Factors

Revenue Decline

Significant revenue decline highlights challenges in maintaining sales momentum, potentially impacting long-term growth and profitability.

Operating Loss Increase

Rising operating losses indicate ongoing financial difficulties, which could strain resources and hinder investment in growth initiatives.

Cash Flow Challenges

Negative cash flows suggest liquidity issues, limiting Sequans' ability to fund operations and invest in strategic opportunities without external financing.

Sequans Communications S A Business Overview & Revenue Model

Company Description

Sequans 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 Money

Sequans Communications generates revenue primarily through the sale of its semiconductor products, including LTE and 5G chipsets. The company has established key partnerships with various device manufacturers and operators, which enable it to integrate its solutions into a wide array of IoT devices and applications. Additionally, Sequans earns revenue from licensing its technology and providing engineering services to help customers develop their products. The growing demand for IoT connectivity and the expansion of 5G networks also contribute significantly to its earnings, as more industries adopt these technologies.

Sequans Communications S A Financial Statement Overview

Summary

Sequans Communications S A is facing significant financial challenges. The income statement shows declining revenue and persistent losses, while the balance sheet indicates manageable leverage but poor returns on equity. Cash flow issues further exacerbate the financial instability, with negative operating and free cash flows. The company needs to address these issues to improve its financial health and stability.

Income Statement

Sequans Communications S A has faced significant challenges in its income statement. The TTM data shows a negative revenue growth rate of -15.55%, indicating declining sales. The gross profit margin remains relatively strong at 67.55%, but the net profit margin is negative, reflecting ongoing losses. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies and profitability issues.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.26, suggesting manageable leverage. However, the return on equity is negative, indicating that the company is not generating returns for shareholders. The equity ratio is not explicitly provided, but the overall financial position shows a need for improvement in asset utilization and equity growth.

Cash Flow

Cash flow analysis shows a concerning picture with negative operating and free cash flows. The free cash flow growth rate is positive at 24.98%, but this is from a negative base, indicating volatility. The operating cash flow to net income ratio is negative, suggesting cash flow issues relative to earnings. The free cash flow to net income ratio is slightly better but still indicates cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.53M	36.83M	33.62M	60.55M	50.88M	50.92M
Gross Profit	19.63M	27.74M	24.14M	42.88M	27.19M	23.45M
EBITDA	97.10M	148.14M	-15.91M	15.66M	1.47M	-29.94M
Net Income	-25.03M	57.57M	-40.99M	-9.01M	-20.26M	-54.52M
Balance Sheet
Total Assets	431.77M	106.53M	109.17M	98.75M	89.56M	87.16M
Cash, Cash Equivalents and Short-Term Investments	13.43M	62.09M	5.71M	10.67M	4.83M	7.57M
Total Debt	164.14M	16.36M	80.69M	66.50M	70.79M	80.48M
Total Liabilities	206.05M	51.17M	115.24M	96.65M	113.87M	123.96M
Stockholders Equity	225.72M	55.36M	-6.07M	2.10M	-24.31M	-36.81M
Cash Flow
Free Cash Flow	-57.02M	-39.26M	-36.83M	-24.50M	-37.42M	-33.16M
Operating Cash Flow	-49.93M	-19.51M	-7.26M	-1.84M	-8.51M	-19.39M
Investing Cash Flow	-380.93M	93.69M	-24.44M	-26.05M	-19.67M	-24.76M
Financing Cash Flow	270.57M	-70.79M	31.74M	28.71M	25.43M	37.62M

Sequans Communications S A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 5.55 is above the 20-day moving average (MA) of 5.00, below the 50-day MA of 5.63, and below the 200-day MA of 12.98, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 53.91 is Neutral, neither overbought nor oversold. The STOCH value of 84.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VLN	58 Neutral	$213.94M	-7.23	-23.56%	―	7.53%	-15.00%
QUIK	49 Neutral	$134.16M	-13.54	-39.72%	―	-28.05%	-488.63%
PXLW	47 Neutral	$42.73M	-1.47	―	―	-38.72%	16.01%
MX	46 Neutral	$103.99M	-2.79	-8.46%	―	-7.79%	10.04%
SQNS	43 Neutral	$90.12M	―	-18.19%	―	2.80%	―
GCTS	43 Neutral	$63.38M	-1.42	―	―	-46.98%	-186.82%

Sequans Communications S A Corporate Events

Sequans Communications Announces Senior Operations Executive Departure and Leadership Reassignment

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 been reassigned internally to Chief of Staff and acting Executive Vice President of Engineering Bertrand Debray, signaling the company’s intent to ensure continuity in operations by consolidating leadership roles at the executive level.

The most recent analyst rating on (SQNS) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Sequans Communications S A stock, see the SQNS Stock Forecast page.

Sequans Communications Reports Q3 2025 Financial Results Amid Strategic Bitcoin Moves

On November 4, 2025, Sequans Communications announced its preliminary financial results for the third quarter of 2025, revealing a significant decrease in revenue and gross margin compared to previous periods. The company reported a net loss of $6.7 million, attributed to a decrease in high-margin license revenue and an unrealized loss on Bitcoin investment. Despite these challenges, Sequans has reduced its debt by leveraging Bitcoin holdings and increased its IoT revenue design win pipeline to $300 million. The company remains optimistic about its long-term growth prospects, with plans to ramp up its IoT business and continue its Bitcoin treasury strategy.

The most recent analyst rating on (SQNS) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Sequans Communications S A stock, see the SQNS Stock Forecast page.

Sequans Redeems Convertible Debt with Bitcoin Sale

On November 4, 2025, Sequans Communications S.A. announced the redemption of 50% of its convertible debt issued in July 2025, reducing its total outstanding debt from $189 million to $94.5 million. This strategic move was funded by selling 970 Bitcoin, lowering the company’s Bitcoin holdings to 2,264 BTC and reducing its debt-to-NAV ratio from 55% to 39%. This deleveraging is expected to enhance Sequans’ financial flexibility, boost its ADS buyback program, and allow the company to pursue future capital market initiatives, reinforcing its commitment to delivering long-term shareholder value.

The most recent analyst rating on (SQNS) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Sequans Communications S A stock, see the SQNS Stock Forecast page.