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- **Debt Restructuring Success**: Halved convertible debt via Bitcoin sales, reducing leverage to 35%.
- **IoT Pipeline Growth**: $300M design win pipeline with 20% YoY expansion, targeting $45M annualized revenue.
- **Buyback Arbitrage Opportunity**: $12 NAV vs $7 share price creates 71% upside for buybacks.
- **Cost Efficiency Drive**: 20% OpEx reduction to $10M/Q by 2026, preserving cash for growth initiatives.
- **Bitcoin Treasury Liquidity**: $23.4M cash post-Q3, with 1,617 BTC available for strategic transactions.

**【CEO Opening Remarks】**
- Announced reduction of convertible debt by 50% through strategic Bitcoin sales, lowering debt-to-NAV ratio to 35%.
- Highlighted IoT business pipeline of $300M over 3 years, with 20% YoY growth in design wins to $300M.
- Q4 2025 product revenue target: $7M (including $6M product + $1M services/IP licensing).
- 20% cost reduction program to limit cash burn and achieve breakeven by Q4 2026.

**【CFO Financial Commentary】**
- Q3 2025 revenue: $4.3M (-47.3% QoQ), gross margin: 40.9% (down from 64.4% Q2).
- Operating loss: $20.4M (including $8.2M Bitcoin impairment).
- Cash post-Q3: $13.4M (plus $10M Qualcomm escrow release, total $23.4M).
- Bitcoin holdings: 3,234 BTC ($365.6M market value), 1,617 BTC unpledged for buybacks.

**【Q&A Highlights】**
- **Bitcoin Sales**: Sold 970 BTC at average $108,600/unit to reduce debt.
- **Buyback Strategy**: ADS buyback program to capitalize on $12 NAV vs $7 share price.
- **IoT Growth**: 45%+ of $300M pipeline in production by end-2025, targeting $45M annualized revenue.
- **Strategic Alternatives**: Exploring preferred shares, yield generation, and IoT partnerships to unlock value.
- **Cost Reduction**: 20% OpEx cuts to $10M/Q by 2026, excluding R&D and G&A.


Sequans Communications S.A. (SQNS) Q3 2025 Earnings Call Transcript

- **Bitcoin Treasury Leadership**: 3,072 Bitcoins purchased, ranked top 25 globally, with 15%+ yield potential.
- **IoT Growth Engine**: $485M pipeline, 59% YoY product revenue growth, H2 2026 cash flow breakeven.
- **Strategic Licensing**: $200M Qualcomm deal, $60M 5G Taurus license, and ACP RF transceivers targeting $10M+ in 2026.
- **Financial Discipline**: $14M Q2 expenses (vs. $12M Q1), $41.6M cash post-Bitcoin purchase, $10M Qualcomm escrow inflow expected.

**【CEO Summary Section】**
- **Bitcoin Treasury Strategy**: Acquired 3,072 Bitcoins using $384 million net proceeds, positioning Sequans as one of the top 25 global Bitcoin treasury companies. Partnered with Swan Bitcoin for institutional-grade management. Bitcoin NAV as of July 25: ~$363 million.
- **IoT Business Performance**: Q2 2025 IoT revenue $8.14 million (Product revenue up 10% QoQ, 59% YoY). 3-year pipeline exceeds $485 million, with $250 million in design wins progressing to mass production. Secured 5 new design wins ($30M+ pipeline) for Iris RF transceivers targeting defense, drones, and V2X.
- **5G Roadmap**: eRedCap platform development on track; customer interest strong for seamless 4G-to-5G transition.
- **Licensing Momentum**: Chinese Taurus partner expected to begin royalty payments in 2026. Exploring additional licensing opportunities for eRedCap and RF technologies.
- **Cash Flow Target**: IoT operations to become cash flow positive by H2 2026, supporting Bitcoin accumulation.

**【CFO Financial Commentary】**
- **Q2 2025 Financials**: Total revenue $8.1 million (1.1% QoQ growth). Gross margin 64.4%. Operating expenses $14 million (vs. $12 million Q1), driven by $1.2 million nonrecurring costs (ACP integration, tax review). Net loss $9.1 million. Cash balance $41.6 million (down from $45.9 million) due to Bitcoin purchase and reduced cash burn.
- **Bitcoin Accounting**: Bitcoin assets marked-to-market under IFRS, with unrealized gains/losses impacting equity reserves. Q3+ press releases will include Bitcoin-related metrics.
- **Liquidity**: $10 million expected from Qualcomm escrow in September. Remaining balance sheet cash to support Bitcoin purchases and operations.

**【Q&A Highlights】**
- **Bitcoin Yield Target**: CEO targets >10% annualized yield for 2025, potentially 15%+ if market conditions allow. Sources include cash deployment, warrant exercises, and equity raises.
- **ACP Opportunity**: RF transceiver business expected to generate $6-10 million in 2026 revenue (70+ % gross margin), with licensing opportunities under evaluation.
- **IoT Cash Flow**: Management reaffirms H2 2026 breakeven target, with $250M design win pipeline driving product revenue growth.
- **Nonrecurring Expenses**: CFO details $1.2 million in Q2 costs (ACP integration, tax review, Bitcoin strategy fees).

Sequans Communications (SQNS)-31 Jul 25-2025 Q2 Earnings call transcript

- **Revenue Beat Guidance**: Q1 2025 revenue of $8.1 million (+34% YoY) driven by Monarch 2 and licensing deals.
- **Pipeline Expansion**: $480 million pipeline with 9 new projects, including $10 million+ annual revenue opportunities in 2026.
- **Next-Gen Chips**: Monarch 3/Calliope 3 set for 2026 launch, targeting 5G eRedCap and offering first-to-market advantage.
- **RF Transceiver Growth**: Defense/public safety opportunities expected to contribute $10 million+ in 2026.
- **Financial Discipline**: Operating cash expenses below $10 million/QTR, targeting 2026 breakeven.

**【CEO Summary Section】**
- Q1 2025 revenue reached $8.1 million, exceeding the high end of guidance, driven by Monarch 2 projects and licensing deals.
- Product revenue grew 42% YoY to $3.5 million, while License and Services revenue increased 28% YoY to $4.5 million.
- Monarch 2 pipeline expanded with $480 million of potential revenue across 9 new projects, including telematics, metering, and e-health.
- Calliope 2 shipments expected to ramp in H2 2025, targeting telematics and security markets.
- Next-gen chips (Monarch 3, Calliope 3) set for 2026 launch, supporting 5G eRedCap and offering first-to-market advantage.
- RF transceiver opportunities in defense and public safety expected to contribute $10 million+ in 2026.
- Operating cash expenses target below $10 million/QTR, with cash burn reducing to $5 million/QTR by end-2025.

**【CFO Financial Commentary】**
- Q1 2025 GAAP revenue: $8.1 million (+34% YoY), with Product gross margin at 31% (down from 35.5% Q4 2024 due to Calliope 2 launch costs).
- Operating loss: $6.8 million (vs. $5.6 million Q4 2024), with non-IFRS expenses declining to $11 million.
- Net loss: $7.3 million ($0.29 per ADS), improving from $11.8 million ($0.48 per ADS) in Q1 2024.
- Cash balance: $45.9 million, with $10 million Qualcomm escrow payment expected in Q3 and $5.5 million government grants in H2.
- 2026 breakeven target remains on track with disciplined expense management.

**【Q&A Highlights】**
- **Pipeline Velocity**: 50% of $250 million design win pipeline to enter production by end-2025, with high-velocity projects (fleet, security) contributing in 2026.
- **RF Transceiver Growth**: 22nm RF transceiver in mass production with one customer, with broader commercial launch planned for late 2026.
- **Licensing Outlook**: Chinese 5G Taurus partner expected to begin royalty payments in 2026, with 1-2 new RedCap/eRedCap deals likely by year-end.
- **Cash Management**: $25 million+ cash target for 2025, no equity raise anticipated in 2025-2026.

Sequans Communications (SQNS)-6 May 25-2025 Q1 Earnings call transcript

- **Revenue Momentum**: Q4 2024 product revenue doubles to $4.7M, driven by Qualcomm deal and new customer wins. 
- **Pipeline Strength**: $250M design win pipeline (50% metering) to generate $60M/year from 2025-2028. 
- **Strategic Expansion**: $200M design-in pipeline post-Q1 2025, targeting fast-cycle IoT markets. 
- **5G Leadership**: RedCap/eRedCap roadmap supported by ACP acquisition, with 2026 product launches. 
- **Financial Discipline**: 2026 breakeven target with < $10M/QTR cash burn, $7M government funding, and $10M Qualcomm escrow.

**【CEO Summary Section】**
- **Q4 Revenue Growth**: Total revenue reached $11 million, a 9% sequential increase, with product revenue doubling to $4.7 million from $2.4 million in Q3. 
- **Design Win Pipeline**: $250 million pipeline representing 3-year future revenue, with 50% from smart metering. Annualized contribution expected to average $60 million from 2025-2028. 
- **Strategic Deals**: $200 million Qualcomm deal strengthened financial position, enabling new customer engagements and design wins. 
- **Product Roadmap**: Cat 1bis Calliope 2 to start shipping in 2025, positioning for 5G RedCap/eRedCap transition. 
- **Market Expansion**: Pursuing new verticals (satellite, defense) and licensing opportunities, with $200 million design-in pipeline post-Q1 2025. 

**【CFO Financial Commentary】**
- **2024 Financial Highlights**: 
  - Total revenue $36.8 million (+9% YoY). 
  - Non-IFRS net profit $77.5 million ($2.73 per ADS), up from $30.6 million loss in 2023. 
  - Gross margin 75.5% (vs 71.8% in 2023). 
- **Q4 2024 Results**: 
  - Total revenue $11 million (+130% YoY). 
  - Product revenue $4.7 million (+19% YoY). 
  - Non-IFRS net loss $2.1 million ($0.08 per ADS). 
- **2025 Outlook**: 
  - Q1 revenue $7-8 million, with 50% product contribution. 
  - Target net cash operating expenses < $10 million/QTR, supported by $7 million government R&D funding. 
  - $10 million Qualcomm escrow payment due in Q3 2025. 

**【Q&A Key Takeaways】**
- **Design Win Timeline**: 2025-2026 launch of 70% pipeline, with 1/3 of $200M design-in pipeline decisions expected in Q1. 
- **Application Focus**: Fast-cycle markets (telematics, security) vs 4-year metering projects. 
- **RedCap Strategy**: Leveraging ACP acquisition to accelerate 5G IP development, targeting 2026 product launches. 
- **Cash Management**: Adequate liquidity to achieve 2026 breakeven, with conservative $10M/QTR cash burn target.

Sequans Communications (SQNS)-11 Feb 25-2024 Q4 Earnings call transcript

Sequans Communications (SQNS)-23 Aug 24-2024 Q2 Earnings call transcript

- **Revenue recovery and growth**: Q4 product revenue up 4x YoY, Q1 2024 forecast >$7M, targeting 2022 revenue levels by year-end.
- **Key market momentum**: Asset tracking partner expects 4x 2024 growth, smart metering projects launching Q4 2023, fleet management projects ramping Q3 2024.
- **5G roadmap clarity**: Taurus chipset sampling in 2024, initial sales in late 2025, with significant 2026 ramp-up.
- **Strategic funding boost**: $12M French government support and $9M Renesas loan strengthen liquidity.
- **Financial focus**: Cost optimization to improve margins, 2024 gross margin target >60%, 2023 operating loss $30M.

**【CEO Summary Section】**
- Q4 2023 revenue: $4.8 million (4x product revenue growth YoY), with $4 million in product revenue driven by clearing customer inventory and new project launches.
- Q1 2024 forecast: >$7 million revenue, with sequential growth expected through 2024 to match 2022 revenue levels.
- Key growth drivers:
  - Asset tracking: Top partner expects 4x 2024 growth, 2M+ Monarch 2 units backlog.
  - Smart metering: 2 Tier 1 customers launched Monarch 2 products in Q4, with 6-month backlog.
  - Fleet management: 4 Calliope 2 projects with a Tier 1 customer, first launch in Q3 2024.
- 5G roadmap: Taurus chipset sampling in 2024, initial sales in late 2025, ramp-up in 2026.
- Design pipeline: >$400 million potential 3-year revenue from current design wins.

**【CFO Financial Commentary】**
- 2023 full-year revenue: $33.6 million (-44.5% YoY), with Q4 product revenue rebound.
- Gross margin: 71.8% (2023), expected to decline to mid-40s as product sales grow.
- Operating expenses: $54.1 million (+30% YoY), driven by 5G R&D and Renesas deal costs.
- Q4 2023 results: Operating loss $12.8 million, cash $5.7 million, $9M Renesas loan received post-quarter.
- Q1 2024 outlook: >$7 million revenue, >60% gross margin, cost optimization initiatives.

**【Strategic Updates】**
- Renesas MOU terminated due to unfavorable tax ruling, but remains key partner.
- Exploring alternative strategic options; Board engaged with potential partners.
- Secured $12 million French government funding (EUR 11M) for R&D, with 25% upfront payment expected Q2 2024.
- In discussions with lenders to extend debt and European Investment Bank for additional financing.

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