Sequans Q1 prelim revenue falls more than expected, records losses on Bitcoin holdings

Sequans Communications SA

05/05/2026 11:31

Overview

France IoT semiconductor firm's preliminary Q1 revenue declined and missed analyst expectations

Company posted a significant net loss, impacted by digital asset impairments and Bitcoin sales losses

Gross margin fell sharply due to higher product sales mix versus prior periods

Outlook

Company expects sequential growth driven by IoT semiconductor business momentum and growing backlog

Company plans to exit Bitcoin treasury strategy by June 1, 2026

Sequans sees improving visibility and strong foundation across core product portfolio

Result Drivers

PRODUCT SALES MIX - Higher proportion of product sales in revenue mix reduced gross margin versus prior periods

DIGITAL ASSET LOSSES - Large non-cash impairment and realized losses on Bitcoin holdings drove operating and net losses

IOT BUSINESS MOMENTUM - Co cited growing backlog, maturing design-win pipeline and increased product revenue in IoT semiconductors

Company press release: ID:nNFC5fgJJQ

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$6.1 mln
$6.18 mln (4 Analysts)
Q1 Net Income
-$54.3 mln
Q1 Gross Margin
37.7%
Q1 Operating Income
-$50.5 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the semiconductors peer group is "buy"

Wall Street's median 12-month price target for Sequans Communications SA is $11.00, about 212.5% above its May 4 closing price of $3.52

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)