Sequans Revenue Jumps 182.8% to $9.1 Million as It Ends Bitcoin Holdings
Key Facts
Sequans on Nov. 3 reported preliminary, unaudited results for the quarter ended Sept. 30, 2026, with revenue of $9.1 million, up 21.9% from the previous quarter and 182.8% from the same period last year. Revenue compared with $7.5 million in the second quarter and $3.2 million in the third quarter of 2025. The company said product sales accounted for the vast majority of total revenue during the quarter. Those sales rose 20.5% sequentially and more than quadrupled from a year earlier. The chief executive attributed the growth to projects the company had won converting to production revenue, alongside broader customer demand and a growing backlog.
Management said the backlog now extends into the second half of 2027, indicating the horizon covered by current orders. After its second-quarter results, the company had said the backlog extended into 2027 and that it viewed this as support for continued business expansion and progress toward cash flow breakeven. In a September filing, it said its six-month product backlog at the end of the second quarter was more than three times its level a year earlier. It also said it had secured its first design win with a customer in the drone sector in the second quarter. Management cited the shift of design projects into production and broader demand as central to its explanation for the acceleration in third-quarter revenue.
Gross margin was 33.0% in the third quarter, compared with 32.9% in the second quarter and 25.3% in the third quarter of 2025. At the same time, operating loss narrowed to $1 million, from $7.2 million in the previous quarter and $24.4 million a year earlier. The company attributed part of the sequential decline in loss to lower operating expenses as part of its ongoing cost-cutting efforts. The quarter’s results included a net realized gain of $6.2 million from the sale of Bitcoin. Second-quarter results included unrealized impairment losses of $3.0 million on Bitcoin, placing the two items in the comparison between periods.
Net loss was $1.5 million, or $0.10 per diluted American depositary share, compared with a loss of $9.8 million, or $0.65 per share, in the second quarter. In the third quarter of 2025, the loss was $16.6 million, or $1.19 per share. On the measure the company presents outside International Financial Reporting Standards, net loss was $0.6 million, or $0.04 per diluted share. That compares with a loss of $4.0 million, or $0.27 per share, in the previous quarter, and $12.3 million, or $0.88 per share, a year earlier. Losses narrowed on both measures compared with the two prior periods, while the net result remained in the red.
Cash, cash equivalents and short-term deposits totaled $39.7 million on Sept. 30, compared with $21.0 million on June 30. The company ended the quarter with no Bitcoin holdings after selling all 314 Bitcoin it held at the end of June. Those holdings had a market value of $18.4 million on June 30, according to the results statement. Sequans said on Sept. 24 that it had completed its exit from its Bitcoin treasury strategy and that the sale of its remaining balance refocused it on expanding its semiconductor business. The company tied its forward plan to growth in its semiconductor business, expansion of its Internet of Things products, radio-frequency transceiver platforms, licensing opportunities and advanced 5G technology.
Sequans shares, listed under the ticker SQNS, closed at $2.48 on Nov. 2, one day before the results announcement. The company scheduled a call to review its third-quarter results for Nov. 3 at 8:00 a.m. Eastern Time, or 14:00 Central European Time. It said the published financial results were preliminary and subject to change due to customary closing procedures, audit adjustments and completion of management’s review. The notice covers the financial figures the company reported in its announcement. The call follows the announcement of revenue growth and narrower losses, with the company continuing to report a net loss.