Press release

PARIS – August 4, 2026 – Sequans Communications S.A. (NYSE: SQNS) (“Sequans” or the “Company”), a leading provider of 5G/4G cellular IoT semiconductor solutions, today announced preliminary unaudited financial results for the second quarter ended June 30, 2026.

Second Quarter 2026 Summary Preliminary Unaudited Results Table:

“Our IoT semiconductor business delivered a strong second quarter, with revenue of $7.5 million, exceeding our guidance range and representing 23% growth compared to the first quarter of 2026,” said Dr. Georges Karam, CEO of Sequans. “Product sales drove the vast majority of this performance, increasing more than 80% year-over-year, a clear reflection of the ongoing conversion of our design-win pipeline. We now have more than 40 design-win projects in mass production, representing 55% of our $300 million three-year product revenue pipeline. We also secured our first drone customer in the quarter, reflecting the strong interest we are seeing in our RF transceiver technology for drone and defense applications. With a growing backlog extending into 2027 and multiple active licensing discussions underway, we believe Sequans is well positioned to continue scaling its business and advance toward cash-flow break-even.”

Dr. Karam added, “We have also taken meaningful steps to simplify our capital structure and sharpen our focus on our core IoT strategy. Following the full redemption of our convertible debt in May, we have continued to reduce our Bitcoin position in a disciplined and opportunistic manner, ending the quarter with $21 million in cash and 314 Bitcoin on the balance sheet. We enter the second half of 2026 with a debt-free balance sheet, strong financial flexibility, and what we believe is an increasingly compelling story across our 4G product portfolio, our RF and defense platform, and our 5G eRedCap roadmap.”

Second Quarter 2026 Financial Summary: 

Revenue: Total revenue was $7.5 million, an increase of 23.2% compared to the first quarter of 2026. Compared to the second quarter of 2025, this represents a decrease of 8.4%. The second quarter of 2025 included significant license and services revenue from Qualcomm related to the 2024 transaction. Excluding these revenues, revenue for the second quarter of 2026 increased 84.2% year over year.

Product sales accounted for the vast majority of revenue in the second quarter 2026, increasing 39.4% compared to the first quarter of 2026 and 83.7% compared to the second quarter of 2025. 

Gross margin: Gross margin was 32.9% compared to 37.7% in the first quarter of 2026 and 64.4% in the second quarter of 2025, reflecting higher product sales in the revenue mix in the second quarter of 2026 compared with the prior periods. Gross margin in the second quarter of 2025 included a 36%pts benefit from the Qualcomm transaction.

Operating loss: Operating loss was $7.2 million compared to operating loss of $50.5 million in the first quarter of 2026 and $8.5 million in the second quarter of 2025. The operating loss in the second and the first quarter of 2026 included unrealized losses on impairment of the value of our Bitcoin investment of $3.0 million and $29.3 million, respectively, and a realized net gain of $5.3 million in the second quarter of 2026 and a realized net loss of $11.7 million in the first quarter of 2026, on the sales of Bitcoin primarily to finance the redemption of the convertible debt and to strengthen the cash position on the balance sheet.

Net loss: Net loss was $9.8 million, or ($0.65) per diluted ADS, in the second quarter of 2026 compared to net loss of $76.2 million, or ($5.23) per diluted ADS, in the first quarter of 2026 and net loss of $9.0 million, or ($3.53) per diluted ADS, in the second quarter of 2025. Net loss in the first quarter of 2026 included non-cash gains on the change in value of the embedded derivative related to compound financial instruments issued in July 2025 for $10.6 million off-set by non-cash loss of $31.5 million on the early extinguishment of debt.

Net loss in the second quarter included net interest expense of $2.4 million and $4.9 million in the first quarter of 2026, that was primarily non-cash and related to the IFRS accounting for the convertible debt issued in July 2025.

Non-IFRS loss:  Excluding non-cash impairment of digital assets, non-cash stock-based compensation, the non-cash impact of the fair-value, non-cash loss on early extinguishment of debt, and effective interest adjustments related to the convertible debt and associated embedded derivatives and other financings, non-IFRS net loss was $4.0 million, or ($0.27) per diluted ADS in the second quarter of 2026 compared to non-IFRS net loss of $20.6 million or ($1.41) per diluted ADS in the first quarter of 2026, and non-IFRS net loss of $8.0 million or ($3.14) per diluted ADS, in the second quarter of 2025.

Cash: Cash and cash equivalents at June 30, 2026 totaled $21.0 million compared with $10.6 million at March 31, 2026.

Digital assets:  At June 30, 2026, the Company held 314 Bitcoin with a market value of $18.4 million all of which is unrestricted and available for sale. This compares to Bitcoin holdings on March 31, 2026 of 1,514 Bitcoin with a  market value of $103.2 million at the end of March 2026 and of which 1,217 Bitcoin ($82.9 million) were pledged as security.

Conference Call Details 

Date:      Tuesday, August 4, 2026

Time:      8:00 a.m. ET / 14:00 CET

The live webcast will be available on the Sequans Investor Relations website at https://sequans.com/investor-relations/investor-materials/.

To participate via telephone, please register in advance using this link:  https://register-conf.media-server.com/register/BIabb1f7fac10a45dcbe122938051f361e.  Upon registration, participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique registrant ID.

Those who wish to join the live webcast can access it here: : https://edge.media-server.com/mmc/p/ttvnxt2o/

The company suggests participants for both the conference call and those listening via the web dial in or sign on at least 15 minutes in advance of the call.

For those unable to participate in the live event, a replay will be available on the company’s website after 9:00 a.m. ET.

Forward Looking Statements

This press release contains certain statements that are, or may be deemed to be, forward-looking statements with respect to financial condition, results of operations and business of Sequans, product revenue pipeline, bitcoin treasury and business strategy for 2026 and beyond. These forward-looking statements include, but are not limited to, statements that are not historical fact. These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements also often use words such as “anticipate,” “committed to”, “target,” “continue,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “goal,” “believe,” “hope,” “aims,” “continue,” “could,” “project,” “should,” “will” or other words of similar meaning. These statements are based on assumptions and assessments made by Sequans in light of its experience and perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct, and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this announcement.

Forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Such risks and uncertainties include, but are not limited to, our planned exit fom our Bitcoin treasury strategy and potential adverse reactions or changes to business relationships resulting from the implementation of the Bitcoin treasury initiative and fluctuations on the value of Bitcoin and the implications of a decline in the value of Bitcoin on our collateral requirements. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business and competitive environments, market and regulatory forces, including tariffs and trade wars, our ability to convert our product pipeline and design wins into revenue, and a decline in the value of Bitcoin. If any one or more of these risks or uncertainties materialize or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward-looking statements should therefore be construed in the light of such factors. A more complete description of these and other material risks can be found in Sequans’ filings with the SEC, including its annual report on Form 20-F for the year ended December 31, 2025 and other documents that may be filed from time to time with the SEC. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. Sequans undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by applicable law. All financial results described in this earnings release should be considered preliminary and are subject to change due to the finalization of the re-evaluation of the value of the convertible debt.

Use of Non-IFRS/non-GAAP Financial Measures 

To supplement our unaudited consolidated financial statements prepared in accordance with IFRS, we disclose certain non-IFRS, or non-GAAP, financial measures. These measures exclude the non-cash impairment of digital assets, non-cash stock-based compensation and the non-cash impacts of convertible debt extensions, and effective interest adjustments related to the convertible debt with embedded derivatives and other financings. We believe that these measures can be useful to facilitate comparisons among different companies. These non-GAAP measures have limitations in that the non-GAAP measures we use may not be directly comparable to those reported by other companies. We seek to compensate for this limitation by providing a reconciliation of the non-GAAP financial measures to the most directly comparable IFRS measures in the table attached to this press release.

About Sequans Communications

Sequans Communications S.A. (NYSE: SQNS) is a leading fabless semiconductor company specializing in wireless 4G/5G cellular technology for the Internet of Things (IoT) and RF transceiver solutions for software-defined applications. Sequans’ engineers design and develop innovative, secure, and scalable technologies that power the next generation of AI-connected applications – including secured payment, smart mobility and logistics, smart cities, industrial, e-health, and smart homes, as well as mission-critical deployments in space and defense.

Sequans offers a comprehensive portfolio of 4G/5G solutions, including LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap and eRedCap platforms, all purpose-built for IoT and delivering breakthroughs in wireless connectivity, power efficiency, security, and performance. Sequans RF transceiver solutions enable highly flexible, programmable wireless systems optimized for performance and resilience in demanding environments. The company also provides advanced design services and technology licensing.

Founded in 2003, Sequans is headquartered in France and operates globally, with offices in the United States, United Kingdom, Switzerland, Israel, Finland, Taiwan, and China.

Visit Sequans at sequans.com and follow us on  LinkedIn and X.

Sequans investor relations: David Hanover/Rob Kelly, KCSA Strategic Communications (USA), +1 212.682.6300, ir@sequans.com

Sequans media relations: Linda Bouvet (France), +33 170721600 media@sequans.com

Condensed financial tables follow

SEQUANS COMMUNICATIONS S.A.

PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(1)  The financial results for the three months ended March 31, 2026 differ from the preliminary unaudited results disclosed in the Company’s May 5, 2026 earnings press releases. The changes primarily relate to the re-evaluation of the value of the convertible debt upon the amendment on February 10, 2026 to permit the full redemption of the notes.

(2) The financial results for the six months ended June 30, 2025 differ from the preliminary unaudited results disclosed in the Company’s July 31, 2025 earnings press releases. The changes primarily relate to the finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management’s review.

SEQUANS COMMUNICATIONS S.A.

PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(1) The financial results for the six months ended June 30, 2025 differ from the preliminary unaudited results disclosed in the Company’s July 31, 2025 earnings press releases. The changes primarily relate to the finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management’s review.

SEQUANS COMMUNICATIONS S.A.

PRELIMINARY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(1) The financial results for the six months ended June 30, 2025 differ from the preliminary unaudited results disclosed in the Company’s July 31, 2025 earnings press releases. The changes primarily relate to the finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management’s review. 

SEQUANS COMMUNICATIONS S.A.

PRELIMINARY UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS

SEQUANS COMMUNICATIONS S.A. 

PRELIMINARY UNAUDITED RECONCILIATION OF NON-IFRS FINANCIAL RESULTS

(3) The financial results for 2025 differ from the preliminary unaudited results disclosed in the Company’s July 31, 2025 earnings press releases. The changes primarily relate to the finalization of purchase accounting and other adjustments attributable to normal year-end closing procedures, audit adjustments, and the completion of management’s review.