What factors drove the changes in Sequans's revenue and profit?

What guidance did Sequans's management provide for the next earnings period?

Did Sequans beat or miss consensus estimates last quarter?

What is Sequans's latest dividend and current dividend yield?

What does Sequans do and what are its main business segments?

What were the key takeaways from Sequans's earnings call?

What were the key takeaways from Sequans’s earnings call?

What is the market's earnings forecast for Sequans next quarter?

- **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

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