Sequans Communications (SQNS) Q2 2025 earnings summary

Executive summary

• Launched a Bitcoin treasury strategy, deploying $384M from a July 2025 offering to acquire 3,072 Bitcoins at an average price of $116,690 per Bitcoin, making the company a top 25 public Bitcoin holder globally.

• Product revenue grew 10.3% sequentially and 59% year-over-year, driven by Monarch II shipments, while license and services revenue declined.

• IoT business reported Q2 2025 revenue of $8.14M, up 1.1% sequentially but down 15.8% year-over-year.

• Operating and net losses widened due to non-recurring restructuring and advisory costs, with net loss at $9.1M ($0.36 per diluted ADS) in Q2 2025.

• Short-term plan includes further Bitcoin accumulation using available cash, warrant exercises, and additional equity capital, with a long-term goal to expand via equity, debt, and monetization of operational business and IP.

Financial highlights

• Q2 2025 total revenue was $8.1M, up 1.1% sequentially; gross margin was 64.4%, down from 84% a year ago.

• Operating expenses rose to $14M from $12M in Q1 2025 due to non-recurring restructuring and advisory fees.

• Non-IFRS net loss was $8.1M in Q2 2025 vs. $6.1M in Q1 2025 and $5.8M a year ago.

• Cash, cash equivalents, and short-term deposits were $41.6M at June 30, excluding $358.5M in post-period financing.

• Six-month revenue was $16.2M, with a gross profit of $10.4M.

Outlook and guidance

• Product revenue expected to ramp in H2 2025 and 2026 as design-win projects move to mass production.

• IoT operations on track to become cash flow positive in H2 2026.

• Management targets breakeven operating income in 2026 and will provide further details on the Bitcoin Treasury strategy before the end of Q3 2025.

• Bitcoin yield target for 2025 is above 10%, potentially reaching 15% depending on capital deployment.