Q3 FY2026
Filed Nov 3, 2026Sequans reported preliminary unaudited Q3 2026 revenue of $9.1 million, with revenue up 21.9% sequentially and 182.8% year-over-year, while operating loss narrowed to $1.0 million.
Revenue growth accelerated, gross margin improved, operating and non-IFRS losses narrowed substantially, and cash and short-term deposits increased to $39.7 million following the Bitcoin treasury exit. The nine-month loss and operating cash outflow remain material.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 revenueother | $9.1M | 21.9% | 182.8% |
| Q3 2026 cost of revenueother | ($6,088) (in thousands of US$) | – | – |
| Q3 2026 gross profitother | $3M | – | – |
| Q3 2026 gross marginother | 33.0% | – | – |
| Q3 2026 research and development expenseother | ($6,656) (in thousands of US$) | – | – |
| Q3 2026 sales and marketing expenseother | ($1,576) (in thousands of US$) | – | – |
| Q3 2026 general and administrative expenseother | ($2,055) (in thousands of US$) | – | – |
| Q3 2026 digital asset impairment lossesother | — | – | – |
| Q3 2026 digital asset gain (loss) on sales, netother | $6.24M | – | – |
| Q3 2026 total operating income (expenses)other | ($4,045) (in thousands of US$) | – | – |
| Q3 2026 operating profit (loss)other | ($1.0) million | – | – |
| Q3 2026 interest income (expense), netother | ($411) (in thousands of US$) | – | – |
| Q3 2026 change in fair value of derivative financial instrumentsother | — | – | – |
| Q3 2026 foreign exchange gain (loss)other | $179K | – | – |
| Q3 2026 profit (loss) before income taxesother | ($1,275) (in thousands of US$) | – | – |
| Q3 2026 income tax expenseother | ($203) (in thousands of US$) | – | – |
| Q3 2026 IFRS net profit (loss)other | ($1.5) million | – | – |
| Q3 2026 IFRS diluted income (loss) per ADSother | ($0.10) | – | – |
| Q3 2026 weighted average number of diluted ADS (IFRS)other | 15,003,281 | – | – |
| Q3 2026 non-IFRS net profit (loss) adjustednon-GAAP | ($0.6) million | – | – |
| Q3 2026 non-IFRS diluted income (loss) per ADSnon-GAAP | ($0.04) | – | – |
| Nine months ended September 30, 2026 revenueother | $22.60M | – | – |
| Nine months ended September 30, 2026 gross profitother | $7.74M | – | – |
| Nine months ended September 30, 2026 operating profit (loss)other | ($58,754) (in thousands of US$) | – | – |
| Nine months ended September 30, 2026 gain (loss) on debt extinguishmentother | ($31,498) (in thousands of US$) | – | – |
| Nine months ended September 30, 2026 IFRS profit (loss)other | ($87,466) (in thousands of US$) | – | – |
| Nine months ended September 30, 2026 IFRS diluted income (loss) per ADSother | ($5.89) | – | – |
| Nine months ended September 30, 2026 non-IFRS profit (loss) adjustednon-GAAP | ($25,156) (in thousands of US$) | – | – |
| Nine months ended September 30, 2026 non-IFRS diluted profit (loss) per ADSnon-GAAP | ($1.69) | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Purchase of treasury shares was ($933) (in thousands of US$) for the nine months ended September 30, 2026.
- The Company reported no dividend or share-repurchase program guidance.
What drove it
- Revenue increased 21.9% sequentially and 182.8% year-over-year to $9.1 million.
- Product sales accounted for the vast majority of revenue and increased 20.5% compared to the second quarter of 2026.
- Product sales increased more than 4 times as compared to the third quarter of 2025.
- Management cited conversion of its design-win pipeline into production revenue, expanding customer demand, and backlog extending into the second half of 2027.
- Gross margin was 33.0%, compared to 32.9% in the second quarter of 2026 and 25.3% in the third quarter of 2025.
- The third-quarter operating loss included a realized net gain of $6.2 million on sales of Bitcoin.
- The Company stated that lower operating expenses compared with the second quarter reflected continued cost-reduction efforts.
Concerns
- All financial results are preliminary, unaudited, and subject to change due to normal year-end closing procedures, audit adjustments, and completion of management's review.
- Nine-month IFRS loss was ($87,466) (in thousands of US$), including digital asset impairment losses of ($32,341) (in thousands of US$) and a loss on debt extinguishment of ($31,498) (in thousands of US$).
- Net cash flow used in operating activities was ($27,701) (in thousands of US$) for the nine months ended September 30, 2026.
- Revenue concentration within product sales is indicated by the statement that product sales accounted for the vast majority of revenue.
- The company identified the ability to convert its product pipeline and design wins into revenue as a risk.
What to watch
- Conversion of the design-win pipeline and backlog extending into the second half of 2027 into production revenue.
- Progress in the 4G IoT product portfolio, RF transceiver platform for defense, drone, and space markets, and next-generation 5G eRedCap technology.
- Expansion of high-margin licensing opportunities cited by management.
- Operating-expense discipline and progress toward long-term profitability following the Bitcoin treasury exit.
- Cash use from operations after cash and short-term deposits reached $39.7 million at September 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents and short-term deposits at September 30, 2026 totaled $39.7 million, compared with $21.0 million at June 30, 2026.
- Cash and cash equivalents were 6,244 (in thousands of US$) and short-term deposits were 33,500 (in thousands of US$) at September 30, 2026.
- Convertible debt was — at September 30, 2026, compared with 56,422 (in thousands of US$) at December 31, 2025.
- Total assets were $84,691 (in thousands of US$) and total equity was 40,630 (in thousands of US$) at September 30, 2026.
- Net cash flow used in operating activities was ($27,701) (in thousands of US$) for the nine months ended September 30, 2026, compared with ($21,967) (in thousands of US$) for the prior-year period.
- Net cash flow from investing activities was 117,832 (in thousands of US$), including proceeds from sale of digital assets of 154,684 (in thousands of US$).
- Net cash flows used in financing activities were ($97,273) (in thousands of US$), including repayment of convertible debt of ($94,500) (in thousands of US$).
- Net increase in cash and cash equivalents was ($7,142) (in thousands of US$) for the nine months ended September 30, 2026.
Analysis
Sequans delivered a strong top-line quarter from a low prior-year base. Q3 2026 revenue was $9.1 million, up 21.9% from Q2 2026 and 182.8% from Q3 2025. Management said product sales accounted for the vast majority of revenue, rose 20.5% sequentially, and increased more than 4 times from the prior-year quarter. It attributed growth to design-win conversion, customer demand, and backlog extending into the second half of 2027.
Gross margin was 33.0%, versus 32.9% in Q2 2026 and 25.3% in Q3 2025. Gross profit was $3.0 million. Operating loss narrowed to $1.0 million from $7.2 million in Q2 2026 and $24.4 million in Q3 2025. The comparison includes the absence of digital-asset impairment losses in Q3 2026, versus $3.0 million in Q2 2026 and $11.2 million in Q3 2025, as well as a $6.2 million realized net gain on Bitcoin sales and lower operating expenses.
IFRS net loss was $1.5 million, or ($0.10) per diluted ADS, and non-IFRS net loss was $0.6 million, or ($0.04) per diluted ADS. Net interest expense was $0.4 million, compared with $2.4 million in Q2 2026 and $6.4 million in Q3 2025. The nine-month result remained substantially negative, with an IFRS loss of ($87,466) thousand, reflecting digital asset impairment losses and a loss on debt extinguishment.
The Bitcoin treasury exit materially changed liquidity and the balance sheet. The Company held no Bitcoin at September 30, 2026, after selling 314 Bitcoin held at June 30, 2026. Cash, cash equivalents, and short-term deposits totaled $39.7 million, while convertible debt was reported as — at September 30, 2026. Operating cash use of ($27,701) thousand over the first nine months remains an important measure of the operating funding requirement.
No numerical financial guidance was provided. Management's forward priorities are the 4G IoT portfolio, RF transceiver expansion into defense, drone, and space markets, 5G eRedCap technology, and licensing opportunities. The release frames continued revenue conversion, margin retention, cost control, and operating cash use as the central reported items to monitor.
Management, verbatim
Our third quarter results demonstrate the continued acceleration of our core IoT semiconductor business and the progress we are making toward building a more profitable company.
Dr. Georges Karam, CEO of Sequans
The completion of our Bitcoin treasury exit represents another important milestone, allowing us to enter the final quarter of 2026 with a significantly strengthened financial foundation, a simplified capital structure, and approximately $40 million in cash and short-term deposits and a nearly debt-free balance sheet.
Dr. Georges Karam, CEO of Sequans
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross-margin guidance
- Forward operating-expense guidance
- Forward tax-rate guidance
- Prior-release outlook for comparison
- Reported segment revenue amounts
- Free cash flow
- Dividend amount
- Formal share-repurchase program amount
- Q3 2026 operating cash flow
- Q3 2026 capital expenditures
- Q3 2026 free cash flow
- Detailed product sales revenue amount
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.