Sequans Communications: 3 Key Takeaways for Long-Term Investors

On its third quarter of 2026 earnings call, held on Nov. 3, 2026, Sequans Communications (NYSE:SQNS) announced that it completed its exit from digital assets to focus entirely on its semiconductor business. The asset sale leaves the chipmaker debt-free with $39.8 million in cash and short-term deposits to fund chip development. That capital backing helps fuel expansion in cellular Internet of Things (IoT) -- smart devices connected to mobile networks -- and defense hardware. Three things management said stand out for long-term investors.

1. Liquidating Bitcoin Yields a Debt-Free Balance Sheet

Management closed out its crypto strategy by selling its final 314 Bitcoin for $24.6 million in proceeds. The liquidation leaves the business debt-free with nearly $40 million in cash, eliminating non-operating volatility so leadership can direct its full capital toward semiconductor growth.

With this exit complete, the Bitcoin treasury chapter is closed, and the full strategy and financial attention of the company is now on our semiconductor business.
-- Georges Karam, Chief Executive Officer and Chairman

2. Production Conversions Provide Multiyear Revenue Visibility

Product sales increased fourfold year over year as customer projects reached mass manufacturing. Sequans Communications generated a book-to-bill ratio -- measuring new orders against current shipments -- well above 1, building a customer order backlog that extends into the second half of 2027.

This is reflected in its strong and growing backlog extending into the second half of 2027, which give us solid visibility and confidence in our product growth trajectory.
-- Georges Karam, Chief Executive Officer and Chairman

3. Defense and Drone Hardware Opens High-Margin Expansion

The company is expanding beyond commercial cellular markets with its Iris radio frequency (RF) transceiver -- hardware that processes wireless signals. Management logged over 20 customer leads in defense, drone, and space markets, representing more than $30 million in potential three-year revenue.

The first drone customer we announced last quarter is now ready for production, and we expect shipments to begin in Q4.
-- Georges Karam, Chief Executive Officer and Chairman

Looking Ahead

Product shipments are accelerating across utility metering and asset tracking, and corporate leadership isn't hiding its satisfaction.

With this foundation, we believe that Sequans is well-positioned to support its operating and strategic priorities going forward.
-- Norman Brodt, Chief Financial Officer

Sequans Communications holds custom intellectual property in 5G Reduced Capability (RedCap) chips for mid-tier devices. Leadership is navigating foundry capacity allocation at chipmaker TSMC while passing volatile flash memory costs directly to customers.

Overall, we believe Sequans is well-positioned with a clean balance sheet, improving visibility into product revenue, a differentiated technology portfolio across 4G, 5G, and RF, and multiple avenues for growth.
-- Georges Karam, Chief Executive Officer and Chairman

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