Sequans Communications S.A. completed a repurchase of 1,516,973 American Depositary Shares (ADSs), representing 9.7 % of its outstanding shares, and announced a new buyback program that can cover up to an additional 10 % of its ADSs. The average price paid was $6.17 per share, including fees and commissions, and the program was fully funded by proceeds from the company’s Bitcoin treasury dispositions.
The buyback was financed through the sale of Bitcoin held in Sequans’ treasury, which totaled $365.6 million as of September 30, 2025. The proceeds were used not only to repurchase shares but also to redeem 50 % of the company’s convertible debt, thereby reducing leverage and improving the debt‑to‑NAV ratio. This disciplined use of digital‑asset proceeds underscores Sequans’ strategy of leveraging its Bitcoin holdings to support capital allocation and balance‑sheet strength.
Sequans’ decision to repurchase shares comes amid a challenging financial backdrop. In Q3 2025, the company reported revenue of $4.3 million, a 47.3 % decline from Q2 2025 and a 57.5 % drop from Q3 2024, while gross margin contracted to 40.9 % from 82.5 % the previous year due to a shift away from high‑margin license revenue. To counteract these headwinds, Sequans has launched a 20 % cost‑reduction program and aims to reach break‑even by Q4 2026. The buyback, therefore, is part of a broader effort to optimize capital structure and signal confidence in the company’s long‑term prospects.
CEO Dr. Georges Karam said, “Completing our initial buyback program and launching a new one underscores our commitment to enhancing shareholder value. By repurchasing shares at prices below NAV and continuing to optimize our Bitcoin treasury strategy, we are increasing Bitcoin per share and reinforcing our focus on accretive growth. We remain dedicated to delivering long‑term value through disciplined capital allocation and strategic execution.” The statement highlights the company’s belief that the buyback will raise the Bitcoin‑per‑share metric and support future growth initiatives.
The new buyback program, authorized to cover up to 10 % of outstanding ADSs, signals Sequans’ intent to maintain flexibility in capital allocation while continuing to focus on its core IoT semiconductor business. The company’s emphasis on cost discipline, debt reduction, and Bitcoin‑backed financing positions it to navigate the current revenue decline and pursue opportunities in the growing IoT market. The repurchase at a price below NAV suggests that the market value of the shares is undervalued relative to the company’s net asset value, providing an attractive entry point for the company to return capital to shareholders.
In summary, Sequans’ completion of a 9.7 % ADS repurchase and the launch of a new buyback program demonstrate a proactive approach to capital management amid financial challenges. By leveraging Bitcoin proceeds, reducing debt, and targeting a lower‑than‑NAV share price, the company aims to strengthen its balance sheet, enhance shareholder value, and reinforce its long‑term growth strategy.
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