Key Highlights

  • SQNS shares were trading up 14.92% at $2.85 from a prior close of $2.48.
  • Third-quarter Revenue was $9.1 million, up 183% year over year.
  • The Bitcoin treasury exit is complete and the convertible Debt is fully redeemed.

Sequans Communications (NYSE:SQNS) was trading up 14.92% at $2.85 in today's regular session, a gain of $0.37 from the prior close of $2.48. The company reported third-quarter revenue of $9.1 million against an estimate of $9 million, and a net loss of $1.5 million, or $0.10 per diluted ADS, against an expected loss of $0.54. The loss includes a $6.2 million realized Bitcoin gain.

Sequans, headquartered in Paris and founded in 2003 by CEO Georges Karam, is a fabless semiconductor company that designs 4G and 5G cellular IoT solutions for massive and broadband IoT markets. Its products include baseband processors, RF transceivers, system-on-chip products, LTE modules and design support, and it has 171 employees.

Bitcoin Exit, Debt Redemption and Cash

The final 314 Bitcoin were sold for $24.6 million, completing the treasury exit. The convertible debt is fully redeemed and only a small amount of government-financed R&D debt remains. Cash and short-term deposits were about $40 million, with a further $2.5 million French government payment received in October, and third-quarter cash burn was about $5.9 million.

Revenue grew 22% sequentially, with product sales more than four times higher than a year earlier. Gross Margin was above 33%, and operating expenses fell to $10.3 million.

IoT Pipeline, Fourth-Quarter Guide and 2027 Targets

Fourth-quarter revenue guidance is $9.5 million to $11 million, with only a limited licensing contribution, so a major license deal would lift revenue above that range. Fourth-quarter gross margin is expected to be similar to the third quarter because memory prices are volatile, with the company targeting a company-wide gross margin well above 50% over time.

The IoT Business has book-to-bill well above 1 and Backlog extending into the second half of 2027. The design win pipeline is $300 million, with $165 million in mass production and more than $180 million expected by year end. Nine design wins were added in the quarter and CatM products were over 80% of product revenue. Operating expenses are targeted below $11 million per quarter, averaging close to $10 million in 2027. The Iris RF defense and drone business has more than 20 leads and over $30 million of three-year potential, with first drone production shipments expected in the fourth quarter, and the licensing pipeline exceeds $75 million. TSMC (NYSE:TSM) mature-node capacity allocation in 2027 is a Supply risk. Trailing Earnings are negative $3.67 per share and the 52-week range is $2.31 to $6.98.

Fourth-Quarter Licensing and Drone Shipments Are the Next Markers

Sequans is trading higher after completing its Bitcoin exit and reporting revenue growth of 183%. The next items to follow are fourth-quarter revenue against the $9.5 million to $11 million guide, any licensing deal, first drone production shipments and the 5G RedCap customer engagement planned for the second half of 2027.