Sequans Communications reported fourth‑quarter 2025 revenue of $7.0 million, a 72.6% sequential increase from $4.0 million in Q3 but a 37.0% decline from $11.0 million in Q4 2024. The drop reflects a shift from license and services revenue to product sales, which carry lower margins and higher inventory costs. The company’s gross margin fell to 37.7% from 42.4% in Q3, largely because the higher mix of product sales and provisions for slow‑moving inventory compressed profitability.
Operating loss for the quarter rose to $74.5 million from $20.5 million in Q3, driven by a $56.9 million unrealized loss on Bitcoin impairment and an $8.4 million realized loss on Bitcoin sales that were used to redeem debt and fund share repurchases. The Bitcoin‑related charges account for nearly 95% of the operating loss, underscoring the volatility of the company’s treasury strategy.
Full‑year 2025 net loss reached $102.4 million, a sharp reversal from the $57.6 million profit in 2024 that included a $153.1 million gain on a 4G asset sale. In Q3 2025 the company posted a net loss of $6.7 million, or $0.48 per diluted ADS, contrary to the article’s claim of a $0.90 per share profit. The year‑over‑year swing highlights the impact of Bitcoin impairments and the loss of the 2024 asset‑sale gain.
Sequans held 2,139 Bitcoin at year‑end, valued at $187.1 million. Of those, 1,617 Bitcoin were pledged as collateral for $94.5 million of convertible debt issued in July 2025. The company’s Bitcoin treasury approach is intended to provide liquidity for capital‑allocation initiatives, but the recent impairments have added significant headwinds to earnings.
Management guided 2026 revenue to $40–$45 million and reiterated its goal of cash‑flow breakeven by year‑end 2026. CEO Georges Karam emphasized the momentum in the IoT semiconductor business, noting a design‑win pipeline of more than $300 million over three years. He also highlighted disciplined capital allocation, balancing IoT execution with the Bitcoin treasury strategy.
Investors reacted negatively to the earnings, citing the sharp rise in operating and net losses, the revenue miss against analyst expectations, and the continued volatility of the Bitcoin holdings. The market’s concern reflects the tension between the company’s growth prospects in IoT and the financial risk posed by its treasury strategy.
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