Sequans Communications reported preliminary financial results for the nine‑month period ending September 30 2025, with revenue of $4.3 million, a decline of 47.3% from Q2 2025 and 57.5% from Q3 2024. The company posted an operating loss of $20.4 million and a net loss of $6.7 million, translating to a net loss of $0.48 per diluted ADS.
At September 30, 2025, Sequans held 3,234 BTC valued at $365.6 million, pledged as collateral for $189 million of convertible debt. The company sold 970 BTC, reducing the debt to $94.5 million and leaving 2,264 BTC on hand. The debt‑to‑NAV ratio fell from 55% to 39%, improving financial flexibility and supporting the planned ADS buyback program.
The operating loss was driven by an $8.2 million unrealized impairment of Bitcoin holdings and a $20.6 million gain on the embedded derivative of the July 2025 convertible debt, offset by a $6.9 million interest expense. No capitalized R&D costs were reported for 2025.
Revenue decline was largely due to a sharp drop in high‑margin license and services income, partly linked to the conclusion of payments from a prior intellectual‑property deal with Qualcomm. Product revenue remained relatively flat, reflecting ongoing demand for Sequans’ IoT solutions.
Sequans projects Q4 2025 revenue above $7 million and aims for breakeven by Q4 2026. The company plans to continue cost‑reduction measures to lower cash operating expenses by 2026.
The company has adopted Bitcoin as its primary treasury reserve asset since July 2025, using the holdings to reduce leverage and enhance financial stability. The sale of Bitcoin to redeem convertible debt is a key component of this strategy.
Sequans continues to emphasize its IoT product business, with a growing three‑year revenue design‑win pipeline expected to enter mass production in the near term.
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