What are the investment strengths of Sequans Communications SA (SQNS)?

Gross margin 70% TTM vs industry 43% median - strong unit economics if revenue stabilizes; R&D 86% of revenue signals product investment Trading at 0.18x book with 28.4M tangible book value vs 7.4M market cap - asset value exceeds market cap by 3.8x

What are the investment risks for Sequans Communications SA (SQNS)?

Operating loss of 30.3M on 37.3M revenue (-81% margin) with revenue declining 17% 3Y CAGR - structural unprofitability Cash 18.6M with -45.5M FCF burn implies dilutive financing or bankruptcy within 6 months absent turnaround

Sequans Communications SA

SQNS

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Sequans Communications SA AI Insights

Informational only. Not investment advice.

As of 2026-02-20

Snapshot

Net margin 1,435% TTM vs industry median 0% - driven by non-operating gains (EBITDA 143.8M vs operating loss 30.3M suggests one-time items)[Net Margin TTM]
FCF of -45.5M TTM while reporting 53.6M net income - massive disconnect signals non-cash gains masking cash burn[Free Cash Flow TTM]
P/E of 0.58x vs industry median 38.7x with P/B 0.18x - market pricing in reversal of reported earnings[P/E Ratio]

Watch Triggers

Cash and Equivalents: Falls below 10M or financing announced — At -45.5M FCF burn, cash runway is critical - financing terms will determine equity dilution
Total Revenue TTM: Sequential quarter shows positive growth — Revenue decline (-17% 3Y) must reverse for operating leverage to work on 70% gross margins
Operating Income TTM: Loss narrows below 20M quarterly — Path to cash breakeven requires operating loss reduction from -81% margin

Bull Case

Gross margin 70% TTM vs industry 43% median - strong unit economics if revenue stabilizes; R&D 86% of revenue signals product investment

Gross Margin TTMResearch and Development TTM

Trading at 0.18x book with 28.4M tangible book value vs 7.4M market cap - asset value exceeds market cap by 3.8x

P/B RatioTangible Book Value

Bear Case

Operating loss of 30.3M on 37.3M revenue (-81% margin) with revenue declining 17% 3Y CAGR - structural unprofitability

Operating Margin TTMTotal Revenue 3Y Growth

Cash 18.6M with -45.5M FCF burn implies dilutive financing or bankruptcy within 6 months absent turnaround

Cash and EquivalentsFree Cash Flow TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

25%

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Forward Thesis

Cash runway under 6 months at current burn rate without financing or operational turnaround

3-12mhigh

Cash of 18.6M vs FCF burn of -45.5M TTM
Revenue declining 15.8% YoY with -17% 3Y CAGR
Operating loss of 30.3M on 37.3M revenue

Cash 18.6M, FCF -45.5M TTMRevenue -15.8% 1Y, -17% 3Y CAGROperating margin -81% TTM

Valuation Context

Caveats

Public Strategies Rankings

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SQNS Fundamentals

Manufacturing → Computer and Electronic Product Manufacturing

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$8.05M		—
Enterprise Value	$389,715		—
P/E Ratio	0.63		—
Total Revenue - TTM	$37.33M	+32.1%	—
Earnings Per Share (diluted) - TTM	$5.00		—
Operating Margin - TTM	-81.1%	+34.6%	—
Net Margin - TTM	144%	+283.4%	—
Free Cash Flow - TTM	$-45.46M		—
Return on Common Equity - TTM	0%		—
Beta 5Y (Monthly)	unknown		—

SQNS Dividend History

No dividends

SQNS Stock Splits

3 stock splits

09/17/2510:1 split

10/09/242.5:1 split

11/29/194:1 split

SQNS SEC Filings

Filing Date	Report Date	Report Type	Filing Link
07/31/25	06/30/25	6-K	0001383395-25-000080
05/06/25	03/31/25	6-K	0001383395-25-000021
04/30/25	12/31/24	20-F	0001383395-25-000018
11/05/24	09/30/24	6-K	0001383395-24-000067
08/23/24	06/30/24	6-K	0001383395-24-000054
06/18/24	03/31/24	6-K	0001383395-24-000042
05/15/24	12/31/23	20-F	0001383395-24-000034
11/02/23	09/30/23	6-K	0001383395-23-000066
08/07/23	06/30/23	6-K	0001383395-23-000040
05/03/23	03/31/23	6-K	0001383395-23-000020
03/31/23	12/31/22	20-F	0001383395-23-000013
11/02/22	09/30/22	6-K	0001383395-22-000047
08/02/22	06/30/22	6-K	0001383395-22-000036
05/03/22	03/31/22	6-K	0001383395-22-000025
05/03/22	12/31/21	6-K	0001383395-22-000025
11/02/21	09/30/21	6-K	0001383395-21-000042
09/30/21	06/30/21	6-K	0001383395-21-000039
04/27/21	03/31/21	6-K	0001383395-21-000020
04/27/21	12/31/20	6-K	0001383395-21-000020
11/16/20	09/30/20	6-K	0001383395-20-000051
08/03/21	06/30/20	6-K	0001383395-21-000034
07/28/20	06/30/20	6-K	0001383395-20-000034
04/23/20	03/31/20	6-K	0001383395-20-000017
04/23/20	12/31/19	6-K	0001383395-20-000017
10/27/20	09/30/19	6-K	0001383395-20-000043
11/06/19	09/30/19	6-K	0001383395-19-000049
07/30/19	06/30/19	6-K	0001383395-19-000044
05/09/19	03/31/19	6-K	0001383395-19-000031
05/09/19	12/31/18	6-K	0001383395-19-000031
10/30/18	09/30/18	6-K	0001383395-18-000031
07/31/18	06/30/18	6-K	0001383395-18-000028
05/02/18	03/31/18	6-K	0001383395-18-000018
05/02/18	12/31/17	6-K	0001383395-18-000018
12/06/17	09/30/17	6-K	0001383395-17-000042
08/01/17	06/30/17	6-K	0001383395-17-000026
06/13/17	03/31/17	6-K	0001193125-17-202446
05/02/17	12/31/16	6-K	0001383395-17-000006
10/31/17	09/30/16	6-K	0001383395-17-000037
10/27/16	09/30/16	6-K	0001157523-16-007049
07/28/16	06/30/16	6-K	0001157523-16-006265
04/28/16	03/31/16	6-K	0001157523-16-005281
04/28/16	12/31/15	6-K	0001157523-16-005281
10/22/15	09/30/15	6-K	0001157523-15-003376
07/23/15	06/30/15	6-K	0001157523-15-002460
04/23/15	03/31/15	6-K	0001157523-15-001259
04/23/15	12/31/14	6-K	0001157523-15-001259
10/23/14	09/30/14	6-K	0001157523-14-004022
07/24/14	06/30/14	6-K	0001157523-14-002948
04/24/14	03/31/14	6-K	0001157523-14-001535
04/24/14	12/31/13	6-K	0001157523-14-001535
11/20/13	09/30/13	6-K	0001193125-13-448453
07/25/13	06/30/13	6-K	0001157523-13-003533
04/25/13	03/31/13	6-K	0001193125-13-171957
04/25/13	12/31/12	6-K	0001193125-13-171957
10/25/12	09/30/12	6-K	0001193125-12-434303
07/26/12	06/30/12	6-K	0001193125-12-315576
04/26/12	03/31/12	6-K	0001193125-12-183652
03/31/14	12/31/11	20-F	0001193125-14-122528
03/30/12	12/31/11	20-F	0001193125-12-143524
10/24/11	09/30/11	6-K	0001193125-11-278634
07/28/11	06/30/11	6-K	0001193125-11-199687
11/08/12	06/30/11	6-K/A	0001193125-12-460393
04/28/11	03/31/11	6-K	0001193125-11-113314
11/08/12	03/31/11	6-K/A	0001193125-12-460366
03/29/13	12/31/10	20-F	0001193125-13-133726
04/15/11	12/31/10	424B4	0001193125-11-099660
10/24/11	09/30/10	6-K	0001193125-11-278634
07/28/11	06/30/10	6-K	0001193125-11-199687
04/28/11	03/31/10	6-K	0001193125-11-113314