Sequans Communications S.A. (SQNS): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el panorama en rápida evolución de las tecnologías de comunicación inalámbrica, Sequans Communications S.A. (SQNS) emerge como un jugador fundamental, colocándose estratégicamente en la intersección del diseño de semiconductores 5G, IoT y de vanguardia. Esta empresa innovadora ha creado meticulosamente un modelo de negocio que transforma los desafíos de conectividad inalámbricos complejos en soluciones elegantes y de alto rendimiento, dirigiéndose a mercados críticos que van desde la automatización industrial hasta la electrónica automotriz. Al aprovechar su experiencia avanzada de semiconductores y su cartera de propiedad intelectual robusta, Sequans no solo vende chips, sino que ingeniería el futuro de la conectividad global.

Sequans Communications S.A. (SQNS) - Modelo de negocios: asociaciones clave

Fabricantes de semiconductores

Sequans mantiene asociaciones estratégicas con fabricantes de semiconductores líderes para apoyar sus soluciones de conectividad.

Pareja	Enfoque de asociación	Colaboración tecnológica
Qualcomm	Desarrollo de chipset 5G/4G	Plataforma módem Snapdragon X55
Mediatokek	Soluciones de conectividad IoT	Chipsets NB-IoT y LTE-M

Proveedores de equipos de telecomunicaciones

Sequans colabora con múltiples proveedores de equipos de telecomunicaciones para mejorar las capacidades de infraestructura de red.

• Redes Nokia
• Ericsson
• Tecnologías Huawei

Socios de desarrollo de tecnología 5G e IoT

Las colaboraciones de desarrollo de tecnología clave incluyen:

Pareja	Tipo de colaboración	Enfoque tecnológico
Naranja	Prueba de red IoT	Soluciones LTE-M y NB-IoT
Vodafone	Validación de conectividad IoT	Comunicaciones masivas de tipo máquina

Proveedores de servicios en la nube

Sequans se integra con plataformas en la nube para admitir soluciones de conectividad IoT y 5G.

• Servicios web de Amazon (AWS)
• Microsoft Azure
• Plataforma en la nube de Google

Operadores de red inalámbricos

Asociaciones estratégicas con operadores de redes inalámbricas globales:

Operador	Región geográfica	Tecnología de red
Deutsche Telekom	Europa	Implementación de NB-IoT
China Mobile	Asia	5G IoT Infraestructura
Verizon	América del norte	Red LTE-M

Sequans Communications S.A. (SQNS) - Modelo de negocio: actividades clave

Diseño de chip de semiconductores para tecnologías celulares

A partir del cuarto trimestre de 2023, Sequans Communications se centra en el diseño especializado de chips de semiconductores para aplicaciones IoT e industriales. La compañía ha desarrollado arquitecturas de chips específicas para varios segmentos de tecnología celular.

Categoría de diseño de chips	Inversión anual	Equipos de diseño
Chips de conectividad IoT	$ 12.4 millones	37 ingenieros
Chips de módem industrial	$ 8.7 millones	24 ingenieros

Desarrollo de módem 5G y 4G LTE

Sequans se especializa en el desarrollo avanzado de chips de módem en múltiples generaciones celulares.

• Presupuesto de desarrollo de chipset de monarca 5G: $ 16.2 millones
• Inversión de plataforma 4G LTE Calliope: $ 9.5 millones
• Gasto total de I + D de módem en 2023: $ 25.7 millones

Investigación y desarrollo en conectividad inalámbrica

La compañía mantiene una inversión significativa en investigación de conectividad inalámbrica.

Área de enfoque de I + D	Gasto anual	Solicitudes de patentes
Conectividad inalámbrica	$ 22.1 millones	43 nuevas patentes

Ingeniería y prueba de productos

Los rigurosos procesos de ingeniería aseguran soluciones de semiconductores de alta calidad.

• Tamaño del equipo de ingeniería: 129 profesionales
• Inversión de infraestructura de prueba anual: $ 5.6 millones
• Presupuesto de garantía de calidad: $ 3.2 millones

Gestión de propiedad intelectual

Sequans mantiene una sólida estrategia de propiedad intelectual.

Categoría de IP	Cartera total	Costo de protección anual
Patentes de semiconductores	287 patentes activas	$ 2.9 millones

Sequans Communications S.A. (SQNS) - Modelo de negocios: recursos clave

Experiencia avanzada de diseño de semiconductores

Sequans Communications mantiene un equipo especializado de diseño de semiconductores con experiencia específica en tecnologías de conectividad celular. A partir de 2023, la compañía tiene 77 empleados en total, con aproximadamente el 65% dedicado a las funciones de ingeniería y I + D.

Categoría de experiencia en diseño	Enfoque especializado
Diseño del chipset celular	Tecnologías de módem 4G/5G
Ingeniería de semiconductores de RF	Conectividad inalámbrica de baja potencia
Desarrollo de protocolo inalámbrico	Normas de comunicación industrial e IoT

Portafolio de patentes en tecnologías de comunicación inalámbrica

Sequans posee una importante cartera de propiedades intelectuales con 212 patentes otorgadas al 31 de diciembre de 2023.

• Distribución de patentes por tecnología:
  • Tecnologías 4G LTE: 87 Patentes
  • Tecnologías 5G NR: 63 patentes
  • Conectividad IoT: 42 patentes
  • Arquitecturas módem celulares: 20 patentes

Talento de ingeniería especializado en chips de celulares

La fuerza laboral de ingeniería de la compañía se concentra en Francia y Estados Unidos, con habilidades especializadas en el diseño de semiconductores celulares.

Ubicación	Número de profesionales de la ingeniería	Experiencia principal
París, Francia	42	Diseño de semiconductores inalámbricos
Boston, EE. UU.	23	Arquitectura módem celular

Módem patentado y tecnología de conectividad

Sequans ha desarrollado tecnologías modernas patentadas en múltiples estándares de comunicación inalámbrica.

• Plataforma monarca: 4G/5G Soluciones de conectividad IoT
• Plataforma de calliope: Conjuntos de chips de baja potencia
• Cobertura tecnológica: NB-IoT, LTE-M, 5G NR

Activos estratégicos de propiedad intelectual

La propiedad intelectual de la compañía representa un recurso crítico en los mercados competitivos de semiconductores inalámbricos.

Categoría de activos de IP	Valor total (estimado)	Importancia estratégica
Cartera de patentes	$ 18.7 millones	Alto
Licencias de tecnología	$ 3.2 millones anualmente	Medio

Sequans Communications S.A. (SQNS) - Modelo de negocio: propuestas de valor

Soluciones de conectividad celular de alto rendimiento

Sequans ofrece chips de IoT celulares con las siguientes especificaciones:

Categoría de chipset	Métricas de rendimiento	Penetración del mercado
Plataformas LTE-M	Hasta 1.4 Mbps de datos	Cuota de mercado del 42% en la conectividad IoT
Soluciones NB-IoT	Extensión de cobertura de hasta 20 dB	Mercado de conectividad IoT del 35%

Tecnologías de chipset IoT de baja potencia y 5G

Consumo de energía y métricas de eficiencia:

• Consumo de energía reducido a 3.5 MW en modo de espera
• Chipsets 5G con un consumo de energía 40% menor en comparación con las generaciones anteriores
• Admite múltiples bandas de frecuencia: 600 MHz a 6 GHz

Plataformas de comunicación inalámbrica personalizables

Tipo de plataforma	Rango de personalización	Mercados objetivo
Plataforma de Monarca 2	90% de configuración de hardware	Medición inteligente, seguimiento de activos
Plataforma de calliope	85% de adaptabilidad del software	IoT industrial, ciudades inteligentes

Diseños de semiconductores rentables

Métricas de rentabilidad:

• Costo de fabricación reducido en un 22% en 2023
• Costo de diseño de semiconductores por unidad: $ 0.75
• La optimización del diseño que conduce a una factura de materiales 15% más baja

Conectividad avanzada para mercados emergentes

Región de mercado	Implementación de conectividad	Penetración del mercado
Asia-Pacífico	4.2 millones de conexiones de dispositivo IoT	Cuota de mercado del 27%
América Latina	1,8 millones de conexiones de dispositivo IoT	Cuota de mercado del 18%

Sequans Communications S.A. (SQNS) - Modelo de negocios: relaciones con los clientes

Soporte técnico y consulta de ingeniería

Sequans Communications ofrece canales de soporte técnico dedicados para los clientes, con un equipo de soporte de 42 profesionales de ingeniería especializados a partir de 2023. La compañía ofrece múltiples niveles de soporte con tiempos de respuesta que van desde 4 a 4 horas dependiendo de los acuerdos de nivel de servicio.

Canal de soporte	Tiempo de respuesta	Cobertura
Soporte por correo electrónico	24 horas	Global
Soporte telefónico	4-8 horas	Regional
Portal en línea	Inmediato	24/7

Compromiso directo de ventas con socios tecnológicos

Sequans mantiene 23 acuerdos de asociación de tecnología activa a través de sectores de comunicación semiconductores, IoT e inalámbricos. El compromiso de ventas directas incluye revisiones comerciales trimestrales y sesiones de estrategia de mercado colaborativo.

Colaboración continua de desarrollo de productos

• Colaboración de I + D con 17 socios de tecnología estratégica
• Ciclo promedio de desarrollo de productos: 18-24 meses
• Inversión en desarrollo colaborativo: $ 4.2 millones anuales

Diseño de solución personalizado

Sequans ofrece servicios de diseño de semiconductores a medida con 6 pistas de diseño personalizadas Disponible para clientes empresariales. Tasa de éxito de personalización: 92% basado en 2023 métricas internas.

Comunicaciones de actualización de tecnología regular

Método de comunicación	Frecuencia	Alcanzar
Seminarios web técnicos	Trimestral	1,200+ participantes registrados
Boletín de tecnología	Mensual	3,500 suscriptores
Conferencia de desarrolladores	Anualmente	Más de 500 asistentes directos

Sequans Communications S.A. (SQNS) - Modelo de negocios: canales

Equipo de ventas directas

A partir del cuarto trimestre de 2023, Sequans Communications mantiene un equipo de ventas directo dedicado que se centra en las victorias de diseño de semiconductores en los mercados IoT y 5G.

Región de ventas	Número de representantes de ventas	Segmento del mercado objetivo
América del norte	7	IoT e conectividad industrial
Europa	5	Dispositivos automotrices e inteligentes
Asia Pacífico	6	5G módulos celulares

Conferencias tecnológicas y ferias comerciales

Sequans participa en eventos clave de la industria para mostrar tecnologías de semiconductores.

• Mobile World Congress Barcelona (2024)
• Consumer Electronics Show (CES)
• Conferencia mundial integrada
• Conferencia Mundial de IoT

Documentación técnica en línea

Sequans proporciona recursos digitales completos para la participación técnica.

Tipo de documentación	Número de recursos	Visitantes del sitio web anual
Hojas de datos	42	65,000
Diseños de referencia	18	48,000
Paperadores técnicos	26	55,000

Redes de ecosistemas de socios

Sequans mantiene asociaciones estratégicas en múltiples dominios de tecnología.

• Programa de socio estratégico Qualcomm
• Asociación de diseño de MediaTek
• Red de colaboración stmicroelectronics
• Alianza de semiconductores NXP

Plataformas de marketing digital

Canales de participación digital para comunicación técnica y comercial.

Plataforma	Recuento de seguidores	Tasa de compromiso
LinkedIn	14,500	3.2%
Gorjeo	8,700	2.7%
Blogs técnicos	22,000 lectores mensuales	4.1%

Sequans Communications S.A. (SQNS) - Modelo de negocios: segmentos de clientes

Fabricantes de dispositivos IoT

Sequans sirve a fabricantes de dispositivos IoT con soluciones de semiconductores específicas. A partir del cuarto trimestre de 2023, la compañía reportó 7.2 millones de chips LTE y 5G IoT enviados.

Segmento de mercado	Volumen de chips	Contribución de ingresos
IoT industrial	2.1 millones de unidades	34% de los ingresos del segmento IoT
Medición inteligente	1,5 millones de unidades	22% de los ingresos del segmento IoT

Proveedores de equipos de telecomunicaciones

Los proveedores de equipos de telecomunicaciones representan un segmento crítico de clientes para Sequans, con soluciones de conectividad específicas.

• Penetración del mercado de módem 5G: 12.4%
• Gana del diseño de equipos de telecomunicaciones globales: 43 proyectos activos
• Valor anual del contrato: $ 6.7 millones

Fabricantes de dispositivos inteligentes

Sequans proporciona soluciones de semiconductores para fabricantes de dispositivos inteligentes en varios dominios.

Categoría de dispositivo	Cuota de mercado	Envíos de chips
Dispositivos para el hogar inteligente	8.6%	1.3 millones de unidades
Tecnología portátil	5.2%	0.9 millones de unidades

Empresas de automatización industrial

Sequans admite la automatización industrial con soluciones de conectividad especializadas.

• Gana del diseño de automatización industrial: 28 proyectos
• Envíos del módulo de conectividad: 0.6 millones de unidades
• Ingresos del segmento: $ 14.3 millones en 2023

Fabricantes de electrónica automotriz

La electrónica automotriz representa un segmento de crecimiento estratégico para Sequans.

Segmento automotriz	El diseño gana	Ingresos proyectados
Telemática	17 proyectos activos	$ 9.2 millones
Vehículo conectado	12 proyectos activos	$ 6.7 millones

Sequans Communications S.A. (SQNS) - Modelo de negocio: Estructura de costos

Gastos de investigación y desarrollo

Para el año fiscal 2023, Sequans Communications reportó gastos de I + D de $ 23.4 millones, lo que representa aproximadamente el 51% de sus gastos operativos totales.

Año fiscal	Gastos de I + D	Porcentaje de gastos operativos
2023	$ 23.4 millones	51%
2022	$ 26.1 millones	54%

Costos de diseño y prueba de semiconductores

Los costos anuales de diseño y prueba de semiconductores para las comunicaciones de Sequans fueron de aproximadamente $ 15.7 millones en 2023.

• Diseño y producción de máscaras: $ 3.2 millones
• Herramientas de simulación y modelado: $ 2.5 millones
• Infraestructura de prueba prototipo: $ 4.6 millones
• Servicios de prueba externos: $ 2.4 millones

Mantenimiento de la propiedad intelectual

Sequans Communications invirtió $ 2.9 millones en mantenimiento de la propiedad intelectual durante 2023.

Categoría de IP	Costo de mantenimiento
Presentación de patentes	$ 1.2 millones
Renovación de patente	$ 0.8 millones
Apoyo legal	$ 0.9 millones

Inversiones de ventas y marketing

Los gastos de ventas y marketing para Sequans Communications totalizaron $ 8.6 millones en 2023.

• Marketing digital: $ 2.3 millones
• FUERZA CROKE y participación en la conferencia: $ 1.7 millones
• Compensación del equipo de ventas: $ 3.2 millones
• Producción colateral de marketing: $ 1.4 millones

Compensación de talento de ingeniería

La compensación total de talentos de ingeniería para 2023 fue de $ 18.5 millones.

Papel de ingeniería	Compensación anual promedio
Ingeniero de semiconductores senior	$185,000
Ingeniero de diseño de nivel medio	$125,000
Ingeniero de software junior	$95,000

Sequans Communications S.A. (SQNS) - Modelo de negocios: flujos de ingresos

Ventas de chips de semiconductores

A partir del informe financiero del tercer trimestre de 2023, Sequans Communications generó $ 13.7 millones en ingresos totales. Las ventas de chips de semiconductores representaron aproximadamente el 68% de los ingresos totales, que se traducen en aproximadamente $ 9.316 millones.

Línea de productos de chips	Contribución de ingresos	Segmento de mercado
Chips 4G LTE	$ 5.2 millones	IoT/Industrial
5G chips de monarca	$ 4.116 millones	Dispositivos automotrices/inteligentes

Licencias de tecnologías de comunicación inalámbrica

La licencia de tecnología inalámbrica generó aproximadamente $ 2.05 millones en ingresos para 2023, lo que representa el 15% de los ingresos totales de la compañía.

• Acuerdos de licencia con 3 principales fabricantes de equipos de telecomunicaciones
• Tarifa de licencia promedio por acuerdo: $ 683,333
• La licencia tecnológica se centró en los protocolos de comunicación inalámbrica 4G y 5G

Servicios de diseño personalizados

Servicios de diseño de semiconductores personalizados contribuyó con $ 1.37 millones en 2023, representando aproximadamente el 10% de los ingresos totales.

Tipo de servicio de diseño	Ganancia	Industrias de clientes
Diseño avanzado de chips IoT	$820,000	Dispositivos industriales/inteligentes
Soluciones de conectividad automotriz	$550,000	Fabricantes de automóviles

Regalías de propiedad intelectual

Las regalías de propiedad intelectual generaron $ 685,000 en 2023, lo que representa aproximadamente el 5% de los ingresos totales.

Soporte técnico y tarifas de consulta

Los servicios de soporte técnico y consulta generaron $ 248,000 en 2023, representando aproximadamente el 2% de los ingresos totales.

Categoría de servicio de soporte	Ganancia	Tarifa promedio por hora
Consulta técnica	$156,000	$ 350/hora
Soporte de implementación	$92,000	$ 250/hora

Sequans Communications S.A. (SQNS) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Sequans Communications S.A. over competitors for their cellular IoT needs. It boils down to longevity, a clear upgrade path, and a unique financial underpinning that supports long-term product commitment.

Ultra-low power consumption for multi-year battery life in IoT devices

The value here is extending the operational life of deployed assets, which directly cuts maintenance costs. Sequans Communications S.A. designs its platforms to maximize battery duration for remote devices.

• Monarch 3 platform provides 5G NR eRedCap to LTE-M, delivering ultra-low power efficiency.
• Existing LTE-M/NB-IoT and Cat 1 chip platforms feature industry-leading low power consumption.

Seamless migration path from 4G to 5G eRedCap technology

This addresses the risk of technology obsolescence for customers deploying now. Sequans Communications S.A. offers a defined path forward using its third-generation chips announced at Mobile World Congress 2025.

The migration strategy is built around product compatibility:

• Calliope 3 adds 5G NR eRedCap capability to the existing LTE Cat 1bis solution.
• Monarch 3 adds 5G NR eRedCap capability to the existing LTE-M solution.
• Customers using Calliope 2 (LTE Cat 1bis) and Monarch 2 (LTE-M/NB-IoT) have a clear roadmap to 5G NR eRedCap.

The industry timeline shows this matters now, even if mass adoption is later. Initial RedCap deployments are targeted for 2025-2026, with mass adoption expected closer to 2027-2029. Sequans Communications S.A. plans to start providing samples of the new chips in 2026.

Highly integrated, certified cellular IoT chipsets and modules

You get a complete, ready-to-integrate solution, reducing your time-to-market and certification burden. Sequans Communications S.A. offers a comprehensive portfolio to cover various IoT needs.

Technology Platform	Supported Standards	IoT Revenue Design Win Pipeline (as of Q3 2025)
Monarch Family	LTE-M/NB-IoT	$300 million
Calliope Family	4G LTE Cat 1bis
Next Generation	5G NR RedCap/eRedCap

Full-package solution: silicon, software stack, and long-term support

This means you are buying more than just silicon; you are buying a commitment to the technology's lifecycle. The company's focus on the IoT business is reflected in its financial targets, showing commitment to supporting the product roadmap.

Financial indicators supporting long-term commitment for the IoT segment:

• Sequans Communications S.A. expects its IoT product business to reach operating breakeven by 2026.
• The company is implementing a 20% cost reduction program to manage expenses.

Financial flexibility and long-term value from Bitcoin treasury strategy

This strategy is positioned as a way to provide long-term protection for shareholder value. The deployment of this treasury has directly impacted financial flexibility, allowing for debt reduction and share support.

Key Bitcoin Treasury Metrics (as of late 2025):

Metric	Value/Amount	Date/Context
Total Bitcoin Held	2,264 Bitcoin	As of the Q3 2025 report (post-debt repayment/buyback)
Bitcoin Holdings Market Value	$365.6 million	As of September 30, 2025
Total Bitcoin Investment	Approximately $377.2 million	Total net investment as of October 3, 2025
Average Acquisition Price	Approximately $116,643 per Bitcoin	Inclusive of fees, as of October 3, 2025
Debt Reduction Action	Repaid half of the convertible debt using released Bitcoin	Following debt agreement amendment
Cash Position (Excluding Treasury Proceeds)	$13.4 million	Q3 2025 Cash and cash equivalents

The company used the released Bitcoin to repay half of its debt, which was secured by 3,234 Bitcoin as of September 30, 2025. The company also sold 970 of the released Bitcoin to reinforce its repurchase program. This move enhanced financial flexibility and meaningfully reduced the debt-to-NAV ratio.

Sequans Communications S.A. (SQNS) - Canvas Business Model: Customer Relationships

You're looking at how Sequans Communications S.A. keeps its key customers locked in and engaged, which is defintely more than just shipping chips. The relationship is built on deep technical integration, especially for design-in projects.

Dedicated, long-term technical support for design-in projects

Sequans Communications S.A. embeds its support into the customer's product lifecycle. This isn't a simple help desk; it's technical partnership for the long haul. While specific 2025 support team size isn't public, in 2023, the company supported its design-ins with a team of 42 specialized engineering professionals. This support structure is critical because once a customer integrates a Sequans Communications S.A. modem into a device, switching vendors becomes very difficult.

• Support channels in 2023 included Phone Support with 4-8 hours response time regionally.
• Email Support offered a 24 hours response time globally.

Strategic, high-touch engagement for IP licensing and custom design services

Sequans Communications S.A. formally launched its dedicated IP licensing and engineering services business line in September 2025. This signals a shift to high-touch, strategic engagements beyond standard product sales. The value proposition here is access to core technology assets, which requires close collaboration.

The financial commitment to these relationships is visible in past and current licensing deals. For example, Sequans Communications S.A. has a history of significant IP monetization, including a $200,000,000 sale of its 4G IP to Qualcomm. Furthermore, a Chinese licensing partner for the 5G Taurus platform, valued at $60,000,000, is expected to begin generating royalty revenues in 2026. The License and services revenue for the first quarter of 2025 was $4.5 million.

The new offering includes:

• Advanced RF Transceiver and Analog Silicon IP.
• Modem and SoC IP based on 5G RedCap and eRedCap technologies.
• Carrier-grade 5G Protocol Stack.

Direct sales and engineering teams managing the design-win pipeline

The pipeline of future business is managed through direct engagement, which translates into confirmed design-wins. This is where the long-term revenue visibility comes from. As of the third quarter of 2025, the total three-year revenue design win pipeline stood at $300m.

Here's a look at the pipeline health:

Metric	Value	Date/Context
Total 3-Year Revenue Pipeline	Approximately $480 million	Prior to Q3 2025
Confirmed Design Wins within Pipeline	More than half of the $480 million	As of Q1 2025
Design Win Pipeline (Latest Figure)	$300 million	Q3 2025
Projects Expected in Mass Production by 2026	Over 45% of the $300 million pipeline	Expected by end of 2026

The company maintains a network of relationships to support this, including 23 active technology partnership agreements as of 2023.

High stickiness due to carrier certification and embedded software

The stickiness comes from the deep integration of Sequans Communications S.A.'s technology into certified, deployed IoT devices. Once a chip is certified by a major carrier for use in a specific region or application, the cost and time for a customer to re-certify a competitor's chip are substantial barriers to switching. This embedded nature of the software and certification creates high switching costs.

The intellectual property underpinning this is significant. As of December 31, 2023, Sequans Communications S.A. held 212 granted patents. For instance, 42 of those patents were specifically related to IoT Connectivity. The Monarch 2 Platform, for example, offers 90% hardware configurability, allowing deep customization that locks in the customer.

Finance: draft 13-week cash view by Friday.

Sequans Communications S.A. (SQNS) - Canvas Business Model: Channels

You're looking at how Sequans Communications S.A. gets its semiconductor and service offerings into the hands of customers as of late 2025. The channels are a mix of direct engagement for big deals and leveraging partners for broader reach, which is clearly reflected in the revenue composition we see in the latest filings.

Direct sales force to large OEMs and industrial customers (e.g., Honeywell, Itron)

Direct engagement targets major Original Equipment Manufacturers (OEMs) and large industrial players, often securing significant technology licensing deals. The impact of these large, lumpy deals is evident when looking at the revenue mix. For instance, in the second quarter of 2025, license and services revenue accounted for $4.3 million, or 52.44% of the total revenue of $8.1 million. By the third quarter of 2025, this high-margin license revenue stream significantly diminished, with total revenue dropping to $4.3 million, which caused the gross margin to fall from 64.4% in Q2 to 40.9% in Q3. The Q3 results specifically noted the impact of the last license revenues from Qualcomm being recognized in Q2 2025.

Global network of distributors for module sales to smaller integrators

Module sales to smaller integrators and a wider customer base rely on the global distribution network. This channel is represented by the product revenue component. In Q2 2025, product revenue was $3.9 million, making up 47.56% of the total revenue. We see this product business strengthening year-over-year, as Q1 2025 product revenue of $3.5 million was up 42.2% compared to Q1 2024. Management noted strong business with AsiaTel, which acts as a channel partner for vertical applications like auto tracking. Furthermore, the company expects to have more than 30 customer projects moving from design-win to production by the end of 2025, up from about 18 in production at the start of the year.

Direct licensing of IP to strategic technology partners

Technology licensing is a crucial, albeit variable, channel. The major recent example involved the 5G broadband platform license to Qualcomm, which provided significant revenue recognition tailwinds in Q1 and Q2 of 2025. Looking forward, Sequans Communications S.A. anticipates receiving royalty revenue from a Chinese partner who licensed its 5G TORUS broadband platform starting in 2026. This licensing strategy is key to the company's long-term financial goals, targeting operating income break-even in 2026.

Online resources and technical documentation for developer support

Support for developers using Sequans Communications S.A.'s chips and modules is facilitated through online resources. While specific usage statistics aren't public, the success of new product lines depends on this self-service support structure. The company is seeing momentum with Monarch 2 projects and Calliope 2 pre-production shipments, which are expected to ramp through the second half of 2025. The overall 3-year revenue pipeline was stated to be approximately $480 million as of Q1 2025, with over half representing design-wins that require developer support to reach mass production.

Here's a quick look at how the revenue streams, which flow through these channels, compared in the middle of 2025:

Metric	Q2 2025 Amount (US$ millions)	Q2 2025 Percentage	Q3 2025 Amount (US$ millions)	Q3 2025 Percentage
Total Revenue	8.1	100.0%	4.3	100.0%
Product Revenue	3.87	47.56%	Not Separated	Not Separated
License and Services Revenue	4.27	52.44%	Significantly Lower	Significantly Lower

What this estimate hides is the cash flow timing; for example, the Q3 2025 revenue drop was an optical impact from license revenue recognition ending, not necessarily a direct drop in cash from product sales, though cash and equivalents did fall to $13.4 million at September 30, 2025.

You should review the Q4 2025 guidance, which projects total revenue to exceed $7 million, to see if the product channel is picking up the slack left by the license revenue cycle.

Finance: draft 13-week cash view by Friday.

Sequans Communications S.A. (SQNS) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Sequans Communications S.A. as of late 2025. The company's strategy centers on providing cellular IoT semiconductor solutions, with a clear focus on migrating existing 4G customers to future-proof 5G eRedCap platforms. This customer base is segmented by the specific connectivity technology they require, which maps directly to Sequans' product families like Monarch and Calliope.

The overall health of customer engagement is reflected in the design-win pipeline. As of the first quarter of 2025, the total 3-year revenue pipeline stood at approximately $480 million, with more than half of that amount representing confirmed design-wins. By the third quarter of 2025, management noted that the IoT business design win pipeline was growing well, with a target for more than 45% of customer projects to move into mass production and start generating revenue by the end of 2025. This pipeline activity is the best indicator of future commercial segments, even though Q3 2025 revenue was only $4.3 million, reflecting the completion of prior license revenue recognition.

The primary customer groups are those building high-volume, power-sensitive connected devices. The company's technology supports a wide array of applications, from smart metering to asset tracking. Furthermore, Sequans Communications S.A. also targets technology companies directly for IP licensing, especially for their new 5G eRedCap technology, which is a key differentiator for future-proofing customer products.

Here is a breakdown of the key customer segments and the associated quantitative context available from recent performance indicators:

Customer Segment Focus	Relevant Sequans Technology	Pipeline/Design Win Context (as of Q1 2025)	Recent Revenue Context (Q3 2025)
Industrial IoT OEMs	Monarch 3 (LTE-M/NB-IoT with eRedCap)	Significant portion of the $480 million 3-year pipeline	Product revenue was $3.9 million in Q2 2025
Utilities and Smart Metering	Monarch 2/3 (LTE-M/NB-IoT)	Targeted by Monarch 2 for longevity and low power	Part of the overall IoT revenue stream
Fleet Management/Asset Tracking	Calliope 3 (LTE Cat 1bis with eRedCap)	Mentioned as a target for Calliope 2/3 applications	License and services revenue was $4.3 million in Q2 2025
Technology Companies (IP Licensing)	5G NR eRedCap IP	Focus on providing a clear roadmap for 5G transition	License revenue recognition is timing-dependent; Q3 2025 saw lower license revenue
Advanced Verticals (Defense/Auto)	Advanced RF Transceivers (Implied)	General focus on secure and scalable technologies	Overall revenue was $4.3 million in Q3 2025

The product roadmap directly addresses the longevity and transition needs of these segments:

• Monarch 2 is designed for industries like smart metering, healthcare, and asset tracking.
• Calliope 3 adds 5G eRedCap to LTE Cat 1bis, suitable for fleet management and security devices.
• Monarch 3 adds 5G eRedCap to LTE-M, targeting cellular LPWA applications.
• Sequans plans to begin providing samples of the third-generation chips (Calliope 3 and Monarch 3) to customers in 2026.
• The company noted a specific 5G broadband platform license recognition with Qualcomm in Q1 and Q2 2025.

Finance: draft 13-week cash view by Friday.

Sequans Communications S.A. (SQNS) - Canvas Business Model: Cost Structure

You're looking at the cost side of Sequans Communications S.A. (SQNS) as of late 2025, and it's a mix of heavy upfront investment and recent balance sheet management. The cost structure is heavily influenced by their semiconductor development cycle and their unique treasury strategy.

High fixed cost for Research and Development (R&D) for 5G RedCap

The development of next-generation platforms, like the Monarch 3 and Calliope 3 supporting 5G eRedCap, necessitates significant, ongoing Research and Development spending. This R&D functions as a high fixed cost base, essential for maintaining a competitive product portfolio in the cellular IoT space. To be fair, the company reported that no R&D costs were capitalized in 2025, meaning the full weight of these development expenditures hit the income statement as an expense during the year. This focus on R&D is what management sees as necessary to offset against the cost discipline in operating expenses to reach breakeven by 2026.

Cost of Goods Sold (COGS) for semiconductor manufacturing and packaging

The direct costs associated with producing the semiconductor chips and modules-the Cost of Goods Sold-are a variable component tied directly to shipment volumes. For the third quarter of 2025, the reported gross margin was 40.9% on revenues of $4.3 million. Here's the quick math on the implied COGS for that quarter:

Metric	Value (Q3 2025)
Revenue	$4.3 million
Gross Margin	40.9%
Implied COGS	$2.547 million (approx.)

This lower margin in Q3 2025, compared to 64.4% in Q2 2025, reflects a mix shift away from higher-margin license revenue towards product sales, directly impacting the COGS ratio relative to total revenue.

Operating expenses, targeted to be below $10 million per quarter in 2026

Sequans Communications S.A. is actively working to streamline its overhead. The company has put in place cost reduction measures targeting a specific future metric. The goal for cash operating expenses for 2026 is set quite clearly:

• Cash operating expenses, excluding stock compensation expense and depreciation expense, are targeted to be below $10,000,000 per quarter in 2026.

For context on the recent run rate, the operating expenses in Q3 2025, excluding the unrealized loss on the mark to market of the Bitcoin Treasury asset, were $14,000,000, which was stable compared to Q2 2025.

Non-cash interest expense related to the $189 million convertible debt

A significant non-cash cost stems from the accounting treatment of the convertible debt. The company had outstanding debt that included a $189 million tranche issued in July 2025, which was partially redeemed in November 2025. For Q3 2025, the IFRS reporting included substantial non-cash charges related to this instrument:

• Net interest expense was $6,900,000, which was primarily non-cash and related to IFRS accounting for the July 2025 convertible debt.
• There was also a non-cash $20.6 million gain on the change in value of the embedded derivative related to this debt in Q3 2025.

These non-cash impacts are specifically excluded when calculating Non-IFRS loss, showing the material difference between accounting costs and cash outflows related to financing.

Impairment losses on Bitcoin treasury assets

The decision to adopt Bitcoin as the primary treasury reserve asset introduces a volatile, non-operating cost component that hits the operating loss line item under IFRS rules. For the third quarter of 2025, this was a concrete number you need to track:

The operating loss for Q3 2025 included an $8.2 million unrealized loss on impairment of the value of the Bitcoin investment, which was marked to market. This contrasts with the company holding 3,234 bitcoins valued at $365.6 million at the time of that report.

Sequans Communications S.A. (SQNS) - Canvas Business Model: Revenue Streams

Product sales of cellular IoT chipsets and modules generated $4.3 million in revenue for the third quarter ended September 30, 2025. This compares to $8.1 million in revenue for the second quarter of 2025. The gross margin for Q3 2025 was 40.9%.

Technology IP licensing fees are a component of the revenue mix, which is high-margin. The gross margin compression to 40.9% in Q3 2025 from 64.4% in Q2 2025 reflects the lower amount of this high margin license revenue in the third quarter. The company expects recurring revenue from this stream in 2026.

Engineering services and customization fees are grouped with license revenue, which saw a reduction in Q3 2025. For context, in Q2 2025, license and services revenue was $4.3 million, down from $7.2 million in the prior year period. The three-year revenue design win pipeline stood at $300 million as of Q3 2025.

Potential gains from the Bitcoin treasury strategy are a distinct, long-term optionality revenue consideration. The company holds a significant digital asset position, which is actively managed. Here are the key figures related to this treasury activity as of the Q3 2025 preliminary results announcement on November 4, 2025:

Metric	Value
Total Bitcoin Held (as of 9/30/2025)	2,264 Bitcoin
Bitcoin Value at 9/30/2025	$365.6 million (for 3,234 BTC pledged)
Bitcoin Sold to Date (to repay debt/buyback)	970
Bitcoin Released from Pledge	1,617
Convertible Debt Repaid with Released Bitcoin	Half of $189 million
Target Bitcoin Treasury by 2030	100,000 BTC

The execution of the treasury strategy involved significant capital raising:

• Initial funding for the initiative was approximately $384 million gross proceeds.
• This funding came from issuing $195 million in equity securities and $189 million in convertible secured debentures.
• The company completed an initial purchase of 370 BTC, with plans to expand holdings to over 3,000 BTC.
• The Q2 2025 financing deployed $384 million to acquire 3,072 Bitcoin.

The company also has a three-year revenue design win pipeline that increased to $300 million in Q3 2025.