Sequans Communications (NYSE:SQNS) Posts Quarterly Earnings Results, Beats Estimates By $0.37 EPS

Sequans Communications (NYSE:SQNS) announced its quarterly earnings data on Tuesday. The semiconductor company reported ($0.12) EPS for the quarter, topping analysts’ consensus estimates of ($0.49) by $0.37, FiscalAI reports. Sequans Communications had a negative return on equity of 32.69% and a negative net margin of 81.62%.The business had revenue of $6.96 million during the quarter.

Here are the key takeaways from Sequans Communications’ conference call:

• ADS buybacks: Repurchased ~9.7% of outstanding ADSs in Q4 and the board authorized up to an additional 10% buyback, with repurchases targeted when ADSs trade below implied net cash + digital asset value.
• IoT momentum and 2026 guidance: Q4 product revenue was $7M (FY?2025 ~$27.2M, adj. ~$20M) and management targets ~$40–45M in 2026, supported by a >$550M three?year product funnel and >$300M design?win pipeline with 44% of projects in production (aiming for >50% by June).
• Large Q4 accounting loss and Bitcoin impact: IFRS net loss of $87.1M in Q4 driven by a $56.9M non?cash Bitcoin mark?to?market impairment (non?IFRS loss $18.5M); the company sold Bitcoin to fund ~$101M of debt redemption and buybacks and holds 2,139 BTC (1,617 BTC pledged as collateral).
• Cost and cash targets: R&D+SG&A declined to $11.5M in Q4 with a target run?rate ~ $10.5M (approx. $9M cash) and a stated objective of reaching cash?flow breakeven by Q4 2026 after continuing OpEx reductions; normalized operating cash burn was ~$7.7M in Q4.
• Product roadmap and supply risks: 5G eRedCap test chips are due this quarter with customer sampling mid?2027 and potential revenue mid?2028, while near?term growth is led by CAT?M, CAT?1bis and RF transceivers — though substrate/memory price and capacity pressures could affect timing and margins into H2 2026.

Sequans Communications Stock Performance

Shares of SQNS opened at $3.51 on Wednesday. Sequans Communications has a 12-month low of $3.05 and a 12-month high of $58.30. The stock has a market cap of $50.31 million, a P/E ratio of -0.43 and a beta of 0.29. The company has a current ratio of 0.97, a quick ratio of 0.87 and a debt-to-equity ratio of 0.68. The company has a 50-day moving average of $5.09 and a two-hundred day moving average of $7.58.

Analyst Ratings Changes

Several equities analysts recently commented on SQNS shares. Weiss Ratings reissued a “sell (d)” rating on shares of Sequans Communications in a report on Monday, December 29th. Lake Street Capital initiated coverage on Sequans Communications in a report on Wednesday, December 10th. They issued a “buy” rating and a $18.00 target price on the stock. Finally, B. Riley Financial decreased their price target on Sequans Communications from $13.00 to $11.00 and set a “buy” rating on the stock in a research note on Thursday, November 20th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Sequans Communications has a consensus rating of “Moderate Buy” and an average price target of $21.33.

Insider Buying and Selling at Sequans Communications

In related news, major shareholder Daniel Asher acquired 57,809 shares of the business’s stock in a transaction that occurred on Tuesday, January 13th. The stock was purchased at an average cost of $5.51 per share, for a total transaction of $318,527.59. Following the transaction, the insider directly owned 1,789,487 shares of the company’s stock, valued at approximately $9,860,073.37. This trade represents a 3.34% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Over the last three months, insiders have purchased 223,032 shares of company stock worth $1,194,030. Company insiders own 9.40% of the company’s stock.

Hedge Funds Weigh In On Sequans Communications

Institutional investors and hedge funds have recently modified their holdings of the company. Alyeska Investment Group L.P. purchased a new stake in Sequans Communications in the 3rd quarter worth approximately $2,590,000. Moore Capital Management LP acquired a new stake in shares of Sequans Communications during the third quarter worth $581,000. Bank of America Corp DE purchased a new stake in shares of Sequans Communications in the third quarter valued at $26,000. Finally, Boothbay Fund Management LLC grew its position in shares of Sequans Communications by 1.5% in the second quarter. Boothbay Fund Management LLC now owns 1,673,609 shares of the semiconductor company’s stock valued at $2,460,000 after purchasing an additional 25,000 shares during the period. Hedge funds and other institutional investors own 63.33% of the company’s stock.

Sequans Communications Company Profile

Sequans Communications is a fabless semiconductor company specializing in cellular IoT and broadband connectivity solutions. The company designs and delivers a range of LTE and 5G chips, modules and connectivity platforms that enable low-power wide-area (LPWA) networking as well as high-speed broadband services. Sequans’s products are targeted at Internet of Things (IoT) applications, including smart metering, industrial automation, smart cities and consumer electronics, as well as more data-intensive use cases such as fixed wireless access and private networks.

The company’s portfolio includes single-mode LTE chipsets for narrowband IoT (NB-IoT) and LTE-M, multi-mode platforms that combine LTE and 5G New Radio (NR) support, and modules that integrate RF front-ends, power management and embedded software.