Sequans revenue rises 182.8% in third quarter to $9.1 million

Key Facts

Sequans reported preliminary, unaudited results on November 3 for the third quarter ended September 30, 2026, posting revenue of $9.1 million. Revenue rose 21.9% from the second quarter, when it was $7.5 million, and increased 182.8% year over year from $3.2 million in the third quarter of 2025. Operating loss narrowed to $1.0 million, compared with $7.2 million in the previous quarter and $24.4 million a year earlier. The company also recorded a net loss of $1.5 million, or $0.10 per diluted American depositary share. The results combine revenue growth and improved loss metrics with a realized gain from bitcoin sales during the quarter.

Product sales accounted for most of Sequans' revenue in the quarter, growing 20.5% from the second quarter and more than fourfold year over year. That growth accompanied an increase in gross margin to 33.0%, from 32.9% in the previous quarter and 25.3% in the third quarter of 2025. The quarter-on-quarter comparison shows a limited margin improvement, while the difference was more pronounced against the same period last year. By contrast, total revenue in the second quarter fell 8.4% year over year, despite rising 23.2% from the first quarter, according to the company's previous results. Sequans said at the time that product revenue had grown more than 80% year over year and that its six-month product backlog had tripled at quarter-end.

Third-quarter net loss narrowed to $1.5 million, or $0.10 per diluted American depositary share, compared with $9.8 million and $0.65 per share in the second quarter. Net loss was $16.6 million, or $1.19 per share, in the third quarter of 2025. At the operating level, loss declined to $1.0 million from $7.2 million in the previous quarter and $24.4 million a year earlier. Third-quarter results included a realized net gain of $6.2 million from bitcoin sales. Second-quarter results included unrealized losses of $3.0 million from bitcoin impairment, a separate item from the sale gain recorded in the third quarter.

Cash, cash equivalents and short-term deposits totaled $39.7 million on September 30, 2026, compared with $21.0 million on June 30. On September 24, the company announced it had completed its exit from its bitcoin treasury after selling its remaining holdings of 314 bitcoin, based on the June 30 balance. Sequans said it no longer holds cryptocurrency on its balance sheet. The company linked the shift to refocusing its strategic and financial attention on expanding its cellular, Internet of Things and software-defined radio semiconductor business. That priority is consistent with the product-sales growth shown in the third-quarter results, while the available figures do not break down how much each factor contributed to the increase in cash.

Chief Executive Officer Georges Karam said revenue growth reflected the conversion of design wins into production revenue, supported by expanding customer demand and a backlog extending into the second half of 2027. In the second quarter, the company reported its first design win for a drone product and cited opportunities for its radio-frequency transceiver technology in the defense, drone and space sectors. Karam said the company is focused on capitalizing on momentum in 4G IoT products and expanding its presence in defense, drone and space markets. He also cited the development of low-power 5G eRedCap technology. Management hosted the results call on November 3 at 8:00 a.m. Eastern time.