$SQNS

SEQUANS COMMUNICATIONS

CIK:0001383395|SEC Filings

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Revenue [abstract]
Revenue	$ 26,325	$ 36,831	$ 33,616
Cost of revenue	(12,213)	(9,092)	(9,476)
Gross profit	14,112	27,739	24,140
Operating income (expenses):
Gain on sale of 4G intangible and tangible assets, net	0	153,129	0
Research and development	(31,183)	(28,527)	(26,124)
Sales and marketing	(8,598)	(11,773)	(11,861)
General and administrative	(12,008)	(14,402)	(15,993)
Digital assets impairment losses	(67,375)	0	0
Digital assets losses on sales, net	(6,102)	0	0
Impairment of 5G broadband platform intangible and tangible assets	0	(56,633)	0
Other operating income (expenses), net	(738)	0	0
Total operating income (expenses)	(126,004)	41,794	(53,978)
Operating income (loss)	(111,892)	69,533	(29,838)
Financial income (expense):
Interest expense	(12,498)	(23,728)	(11,409)
Interest income	1,401	850	176
Gain (loss) on debt extinguishment	(29,348)	13,952	247
Change in fair value of derivative financial instruments	45,000	3	3,200
Foreign exchange gain (loss), net	(1,110)	494	(692)
Income (loss) before income taxes	(108,447)	61,104	(38,316)
Income tax expense	(832)	(3,537)	(2,674)
Net profit (loss)	(109,279)	57,567	(40,990)
Attributable to:
Shareholders of the parent	$ (109,279)	$ 57,567	$ (40,990)
Basic earnings (loss) per share (in dollars per share)	$ (0.13)	$ 0.23	$ (0.18)
Diluted earnings (loss) per share (in dollars per share)	$ (0.13)	$ 0.20	$ (0.18)
Weighted average number of shares used for computing:
Basic (in shares)	867,366,665	248,290,190	225,183,996
Diluted (in shares)	867,366,665	284,021,015	225,183,996
Basic earnings (loss) per ADS (in dollars per share)	$ (12.60)	$ 23.19	$ (18.20)
Diluted earnings (loss) per ADS (in dollars per share)	$ (12.60)	$ 20.27	$ (18.20)
Income tax expense
Basis per ADS (in dollars per share)	8,673,667	2,482,902	2,251,840
Diluted per ADS (in dollars per share)	8,673,667	2,840,210	2,251,840

Statements of Cash Flow - USD ($) $ in Thousands	12 Months Ended
Statements of Cash Flow - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Operating activities:
Profit (loss) before income taxes	$ (108,447)	$ 61,104	$ (38,316)
Adjustments to reconcile profit before tax to net cash flows :
Amortization and impairment of property, plant and equipment	2,757	3,353	4,594
Amortization and impairment of intangible assets	2,962	60,690	7,348
Impairment of digital assets	67,375	0	0
Share-based payment expense	3,011	4,090	7,104
Increase (Decrease) in provisions	887	191	(97)
Interest expense, net	11,097	22,878	11,233
Change in the fair value of embedded derivatives	(45,000)	(3)	(3,200)
Loss (gain) on debt extinguishment, net of non-cash transaction cots	28,299	(13,952)	(247)
Foreign exchange loss (gain)	(2,533)	(29)	741
Loss (gain) on disposal of assets	12	(157,095)	0
Loss on sale of digital assets	6,102	0	0
Working capital adjustments:
Decrease (Increase) in trade receivables and other receivables	8,193	3,637	(41)
Decrease (Increase) in inventories	(1,275)	3,141	3,052
Increase in research tax credit receivable	(1,991)	(2,081)	(3,204)
Increase (Decrease) in trade payables and other liabilities	4,200	(13,076)	7,252
Increase (Decrease) in contract liabilities	(3,496)	5,978	(199)
Increase (Decrease) in government grant advances	2,108	2,416	(1,080)
Income tax paid	(679)	(753)	(2,201)
Net cash flow used in operating activities	(26,418)	(19,511)	(7,261)
Investing activities:
Purchase of intangible assets and property, plant and equipment	(2,243)	(3,316)	(5,457)
Purchase of digital assets	(377,200)	0	0
Capitalized development expenditures	0	(16,428)	(24,115)
Sale (Purchase) of financial assets	365	(30)	(41)
Decrease (Increase) of short-term deposit	53,000	(53,000)	5,000
Interest received	1,401	850	176
Investment in ACP Advanced Circuit Pursuit, net of cash acquired	(2,816)	0	0
Proceeds from sale of digital assets	116,532	0	0
Proceeds from sale of 4G intangible and tangible assets	0	165,611	0
Net cash flow from (used in) investments activities	(210,961)	93,687	(24,437)
Financing activities:
Private equity offering proceeds, including pre-funded warrants, net of transaction costs paid	152,140	0	25,450
Proceeds from convertible debt, net of transaction costs paid	174,395	0	0
Proceeds from exercise of pre-funded and 2025 warrants	32,521	0	0
Proceeds (repayment of) from interest-bearing receivables financing, net	(3,742)	3,329	1,483
Proceeds from interest-bearing research project financing	1,129	934	545
Proceeds from related party loans	0	14,000	9,000
Purchase of treasury shares	(9,363)	0	0
Repayment of loans	(420)	(23,000)	0
Repayment of government loans	(1,402)	(1,705)	(1,126)
Repayment of convertible debt	(100,643)	(54,935)	0
Repayment of interest-bearing research project financing	(461)	(1,316)	(939)
Payment of lease liabilities	(1,591)	(1,508)	(1,321)
Interest paid	(1,028)	(6,587)	(1,356)
Net cash flows from (used in) financing activities	241,535	(70,788)	31,736
Net increase in cash and cash equivalents	4,156	3,388	38
Net foreign exchange difference	137	0	(4)
Cash and cash equivalents at January 1	9,093	5,705	5,671
Cash and cash equivalents at period end	$ 13,386	$ 9,093	$ 5,705

Consolidated Statements of Financial Position € in Thousands	Dec. 31, 2025 USD ($)	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Non-current assets:
Property, plant and equipment	$ 4,299,000	$ 4,308,000	$ 6,815,000
Intangible assets	8,522,000	5,641,000	64,300,000
Goodwill	3,676,000	0	0
Digital assets, pledged as collateral for convertible debt	141,505,000	0	0
Digital assets, unrestricted	45,686,000		0
Deposits and other receivables	2,161,000	3,246,000	801,000
Prepaid expenses	2,213,000	0	0
Other non-current financial assets	409,000	353,000	360,000
Total non-current assets	208,471,000	13,548,000	72,276,000
Current assets:
Inventories	3,933,000	2,874,000	6,335,000
Trade receivables	3,278,000	4,809,000	8,115,000
Contract assets	98,000	122,000	497,000
Prepaid expenses	2,564,000	1,410,000	1,422,000
Other receivables	5,953,000	17,492,000	4,958,000
Research tax credit receivable	5,898,000	4,184,000	9,864,000
Short-term deposits	0	53,000,000	0
Cash and cash equivalents	13,386,000	9,093,000	5,705,000
Total current assets	35,110,000	92,984,000	36,896,000
Total assets	243,581,000	106,532,000	109,172,000
Equity (deficit):
Issued capital, euro 0.01 nominal value, 1,599,589,702 ordinary shares issued and outstanding at December 31, 2025 (251,408,922 at December 31, 2024 and 246,262,004 at December 31, 2023)	18,718,000	2,934,000	2,878,000
Share premium	185,598,000	14,512,000	14,568,000
Other capital reserves	77,515,000	74,504,000	70,261,000
Treasury shares	(9,363,000)	0	0
Accumulated deficit	(145,074,000)	(35,795,000)	(93,362,000)
Other components of equity	284,000	(796,000)	(416,000)
Total equity (deficit)	127,678,000	55,359,000	(6,071,000)
Non-current liabilities:
Government loans	0	616,000	173,000
Government research financing	3,297,000	5,669,000	3,083,000
Lease liabilities	1,225,000	333,000	1,645,000
Provisions	2,112,000	1,400,000	2,222,000
Trade payables and other non-current liabilities	1,360,000	0	0
Deferred tax liabilities	129,000	173,000	264,000
Contract liabilities	3,157,000	809,000	0
Total non-current liabilities	11,280,000	9,000,000	7,387,000
Current liabilities:
Trade payables	10,081,000	6,106,000	16,281,000
Interest-bearing financing of receivables	0	3,742,000	9,544,000
Convertible debt	56,422,000	0	52,278,000
Convertible debt embedded derivative	10,800,000	0	3,000
Lease liabilities	601,000	1,439,000	1,471,000
Unsecured related party loan	0	0	8,922,000
Government loans	979,000	1,802,000	1,727,000
Government research financing	4,308,000	4,062,000	2,879,000
Other current liabilities and provisions	11,084,000	11,174,000	8,899,000
Income tax liabilities of the parent company	3,124,000	2,827,000	0
Contract liabilities	7,224,000	11,021,000	5,852,000
Total current liabilities	104,623,000	42,173,000	107,856,000
Total equity and liabilities	$ 243,581,000	$ 106,532,000	$ 109,172,000