2026년 2월 11일 · Unknown · financial · 출처 Yahoo Finance
This article first appeared on GuruFocus.
Q4 2025 Revenue: $7 million, predominantly from product sales (94%). Full Year 2025 Revenue: Approximately $27.2 million, including non-recurring Qualcomm-related revenue. Adjusted Full Year 2025 Revenue: Closer to $20 million, excluding non-recurring items. Q4 2025 Gross Margin: 37.7%, impacted by provisions for slow-moving inventory; approximately 43% excluding provisions. Q4 2025 R&D and SG&A Expenses: $11.5 million, down from $13.6 million in Q3. Q4 2025 IFRS Net Loss: $87.1 million, compared to a net profit of $900,000 in Q3. Q4 2025 Non-IFRS Net Loss: $18.5 million or $1.19 per ADS. Q4 2025 Operating Cash Burn: Approximately $7.7 million. Bitcoin Holdings at Year End 2025: 2,139 bitcoins valued at $187.1 million. Convertible Debt: $94.5 million due in July 2028, with 1,617 bitcoins pledged as collateral. Q1 2026 Revenue Expectation: Around $6.5 million, with potential $1 million shift to Q2. 2026 Revenue Target: Approximately $40 million to $45 million.
Warning! GuruFocus has detected 2 Warning Sign with SQNS. Is SQNS fairly valued? Test your thesis with our free DCF calculator.
Release Date: February 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Sequans Communications SA (NYSE:SQNS) reported a 72.6% sequential increase in revenues for Q4 2025, driven primarily by growth in product revenue. The company has a strong design win pipeline, with 44% of projects already in production, contributing to a potential $132 million in three-year revenue from production stage projects. Sequans Communications SA (NYSE:SQNS) has a significant order backlog and improving visibility, targeting approximately $40 million to $45 million in total global revenue for 2026. The company is making progress on its 5G e Redcap program, with first test chips expected this quarter and customer sampling beginning in mid-2027. Sequans Communications SA (NYSE:SQNS) has authorized a new ADS repurchase program, allowing for the buyback of up to an additional 10% of outstanding ADSs, reflecting a disciplined approach to capital management.
Negative Points
The company reported an IFRS net loss of $87.1 million in Q4 2025, compared to an IFRS net profit of $900,000 in the prior quarter. Sequans Communications SA (NYSE:SQNS) recorded a non-cash impairment charge of $56.9 million related to the mark-to-market value of its Bitcoin holdings in Q4. The company faces supply chain challenges, including substrate constraints and memory pricing pressures, which could affect shipment timing and costs. Sequans Communications SA (NYSE:SQNS) experienced a net realized loss of $8.4 million on the sale of Bitcoin, which was used to fund debt redemption and share buybacks. The company is working to reduce cash burn and reach a break-even run rate by Q4 2026, but working capital dynamics may create short-term cash flow variability.
Story Continues
Q & A Highlights
Q: How does licensing factor into the $40 to $45 million revenue guidance, and what percentage of design wins are expected to be in production? A: Georges Karam, CEO, explained that the guidance primarily reflects product revenue, with licensing contributing a smaller portion. They have secured a couple of million dollars in licensing for the year, with potential for more. Approximately 80-85% of revenue is expected from products, with 15-20% from services. By mid-year, at least 50% of design wins should be in production, potentially reaching 75% by year-end.
Q: What is the outlook for the RF transceiver business, and how significant could it become? A: Georges Karam noted that the RF transceiver business is expected to generate around $7 million in 2026, potentially more if demand increases. The business has existing customers in production and is sampling with new customers, which could lead to significant growth, potentially reaching $15 to $20 million annually if successful.
Q: How are you managing supply chain challenges, particularly with memory pricing and capacity? A: Georges Karam stated that while supply chain constraints exist, particularly with memory and substrate, they have secured production for Q3 and are working on multiple sourcing strategies. They are passing cost increases to customers where possible and expect more impact in the second half of the year.
Q: Can you provide more details on the competitive landscape for Cat 1 Bis and the upcoming 5G E Redcap? A: Georges Karam highlighted that Sequans and Qualcomm dominate the Cat 1 Bis market, providing a strong position. For 5G E Redcap, there is significant interest from carriers to transition from 4G to 5G, and Sequans is well-positioned to lead this transition with expected customer sampling in mid-2027.
Q: What is the strategy for share buybacks given the current share price and authorization to repurchase up to 10% of ADS? A: Georges Karam indicated that the company is assessing share buybacks based on share price and Bitcoin value. The intention is to buy back shares if the share price does not reflect underlying asset value, but the pace will depend on market dynamics and Bitcoin price movements.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
View Comments