Sequans Communications S.A. (SQNS): Business Model Canvas [Jan-2025 Mise à jour]

Dans le paysage rapide en évolution des technologies de communication sans fil, Sequans Communications S.A. (SQNS) émerge comme un acteur pivot, se positionnant stratégiquement à l'intersection de la conception de semi-conducteurs 5G, IoT et de pointe. Cette entreprise innovante a méticuleusement conçu un modèle commercial qui transforme les défis complexes de connectivité sans fil en solutions élégantes et hautes performances, ciblant les marchés critiques allant de l'automatisation industrielle à l'électronique automobile. En tirant parti de son expertise avancée de semi-conducteurs et de son portefeuille de propriété intellectuelle robuste, Sequans ne vend pas seulement des jetons, mais de l'ingénierie de l'avenir de la connectivité mondiale.

Sequans Communications S.A. (SQNS) - Modèle commercial: partenariats clés

Fabricants de semi-conducteurs

Sequan maintient des partenariats stratégiques avec les principaux fabricants de semi-conducteurs pour soutenir ses solutions de connectivité.

Partenaire	Focus de partenariat	Collaboration technologique
Qualcomm	Développement du chipset 5G / 4G	Plateforme de modem Snapdragon X55
Médiatiser	Solutions de connectivité IoT	Chipsets NB-IiT et LTE-M

Fournisseurs d'équipements de télécommunications

Sequans collabore avec plusieurs fournisseurs d'équipements de télécommunications pour améliorer les capacités d'infrastructure du réseau.

• Réseaux Nokia
• Éricson
• Huawei Technologies

Partenaires de développement technologique 5G et IoT

Les principales collaborations de développement technologique comprennent:

Partenaire	Type de collaboration	Focus technologique
Orange	Test de réseau IoT	Solutions LTE-M et NB-IOT
Vodafone	Validation de la connectivité IoT	Communications massives de type machine

Fournisseurs de services cloud

Sequans s'intègre aux plates-formes cloud pour prendre en charge les solutions de connectivité IoT et 5G.

• Amazon Web Services (AWS)
• Microsoft Azure
• Google Cloud Platform

Opérateurs de réseau sans fil

Partenariats stratégiques avec les opérateurs mondiaux de réseau sans fil:

Opérateur	Région géographique	Technologie de réseau
Deutsche Telekom	Europe	Déploiement NB-Iot
Chine mobile	Asie	Infrastructure IoT 5G
Verizon	Amérique du Nord	Réseau LTE-M

Sequans Communications S.A. (SQNS) - Modèle d'entreprise: Activités clés

Conception de puces semi-conductrices pour les technologies cellulaires

Depuis le quatrième trimestre 2023, Sequans Communications se concentre sur la conception spécialisée des puces semi-conductrices pour l'IoT et les applications industrielles. La société a développé des architectures de puces spécifiques pour divers segments de technologie cellulaire.

Catégorie de conception de puces	Investissement annuel	Équipes de conception
Chips de connectivité IoT	12,4 millions de dollars	37 ingénieurs
Chips de modem industriel	8,7 millions de dollars	24 ingénieurs

Développement du modem 5G et 4G LTE

Sequans est spécialisée dans le développement avancé des puces modem à travers plusieurs générations cellulaires.

• Budget de développement du chipset monarque 5G: 16,2 millions de dollars
• 4G LTE Calliope Platform Investment: 9,5 millions de dollars
• Total des dépenses de R&D modernes en 2023: 25,7 millions de dollars

Recherche et développement dans la connectivité sans fil

La société maintient des investissements importants dans la recherche sur la connectivité sans fil.

Zone de focus R&D	Dépenses annuelles	Demandes de brevet
Connectivité sans fil	22,1 millions de dollars	43 nouveaux brevets

Ingénierie et test des produits

Les processus d'ingénierie rigoureux garantissent des solutions de semi-conducteurs de haute qualité.

• Taille de l'équipe d'ingénierie: 129 professionnels
• Investissement annuel sur les infrastructures: 5,6 millions de dollars
• Budget d'assurance qualité: 3,2 millions de dollars

Gestion de la propriété intellectuelle

Sequan maintient une solide stratégie de propriété intellectuelle.

Catégorie IP	Portefeuille total	Coût de protection annuel
Brevets de semi-conducteurs	287 brevets actifs	2,9 millions de dollars

Sequans Communications S.A. (SQNS) - Modèle commercial: Ressources clés

Expertise de conception avancée des semi-conducteurs

Sequans Communications maintient une équipe de conception de semi-conducteurs spécialisée avec une expertise spécifique dans les technologies de connectivité cellulaire. En 2023, l'entreprise compte 77 employés au total, avec environ 65% dédiés aux fonctions d'ingénierie et de R&D.

Catégorie d'expertise de conception	Focus spécialisé
Conception de chipset cellulaire	Technologies modernes 4G / 5G
RF Semiconductor Engineering	Connectivité sans fil à faible puissance
Développement du protocole sans fil	IoT et normes de communication industrielle

Portefeuille de brevets dans les technologies de communication sans fil

Sequans détient un portefeuille de propriété intellectuelle importante avec 212 brevets accordés au 31 décembre 2023.

• Distribution des brevets par technologie:
  • 4G LTE Technologies: 87 brevets
  • 5G NR Technologies: 63 brevets
  • Connectivité IoT: 42 brevets
  • Architectures de modem cellulaire: 20 brevets

Talent d'ingénierie spécialisé dans les chipsets cellulaires

La main-d'œuvre d'ingénierie de l'entreprise est concentrée en France et aux États-Unis, avec des compétences spécialisées dans la conception de semi-conducteurs cellulaires.

Emplacement	Nombre de professionnels de l'ingénierie	Expertise primaire
Paris, France	42	Conception de semi-conducteurs sans fil
Boston, États-Unis	23	Architecture moderne cellulaire

Technologie de modem et de connectivité propriétaire

Sequans a développé des technologies de modem propriétaire à travers plusieurs normes de communication sans fil.

• Plate-forme monarque: Solutions de connectivité IoT 4G / 5G
• Plate-forme Calliope: Chipsets cellulaires à faible puissance
• Couverture technologique: NB-IOT, LTE-M, 5G NR

Actifs de propriété intellectuelle stratégique

La propriété intellectuelle de l'entreprise représente une ressource critique sur les marchés compétitifs sans fil semi-conducteurs.

Catégorie d'actifs IP	Valeur totale (estimée)	Importance stratégique
Portefeuille de brevets	18,7 millions de dollars	Haut
Licence de technologie	3,2 millions de dollars par an	Moyen

Sequans Communications S.A. (SQNS) - Modèle d'entreprise: propositions de valeur

Solutions de connectivité cellulaire haute performance

Sequans propose des chipsets IoT cellulaires avec les spécifications suivantes:

Catégorie de chipset	Métriques de performance	Pénétration du marché
Plates-formes LTE-M	Taux de données jusqu'à 1,4 Mbps	Part de marché de 42% dans la connectivité IoT
Solutions NB-Iot	Extension de couverture jusqu'à 20 dB	Marché mondial de la connectivité IoT à 35%

Technologies de chipset IoT et 5G à faible puissance

Métriques de consommation d'énergie et d'efficacité:

• La consommation d'énergie réduite à 3,5 MW en mode veille
• CHIPSETS 5G AVEC 40% de consommation d'énergie inférieure par rapport aux générations précédentes
• Prend en charge plusieurs bandes de fréquences: 600 MHz à 6 GHz

Plates-formes de communication sans fil personnalisables

Type de plate-forme	Plage de personnalisation	Marchés cibles
Plate-forme monarque 2	90% de configurabilité matérielle	Soutien intelligent, suivi des actifs
Plate-forme Calliope	85% d'adaptabilité logicielle	IoT industriel, villes intelligentes

Conceptions de semi-conducteurs rentables

Métriques de rentabilité:

• Coût de fabrication réduit de 22% en 2023
• Coût de conception de semi-conducteurs par unité: 0,75 $
• L'optimisation de la conception conduisant à une facture de matériaux de 15%

Connectivité avancée pour les marchés émergents

Région de marché	Déploiement de la connectivité	Pénétration du marché
Asie-Pacifique	4,2 millions de connexions de périphériques IoT	27% de part de marché
l'Amérique latine	1,8 million de connexions de périphériques IoT	18% de part de marché

Sequans Communications S.A. (SQNS) - Modèle d'entreprise: relations clients

Support technique et consultation d'ingénierie

Sequans Communications fournit des canaux de support technique dédiés aux clients, avec une équipe d'assistance de 42 professionnels de l'ingénierie spécialisés à partir de 2023. La société propose plusieurs niveaux de support avec des temps de réponse allant de 4 à 24 heures en fonction des accords de niveau de service.

Canal de support	Temps de réponse	Couverture
Assistance par e-mail	24 heures	Mondial
Support téléphonique	4-8 heures	Régional
Portail en ligne	Immédiat	24/7

Engagement des ventes directes avec des partenaires technologiques

Sequans maintient 23 accords de partenariat technologique actif À travers les secteurs de la communication semi-conducteurs, IoT et sans fil. L'engagement des ventes directes comprend des examens commerciaux trimestriels et des séances de stratégie de marché collaborative.

Collaboration de développement de produits en cours

• Collaboration de R&D avec 17 partenaires technologiques stratégiques
• Cycle de développement moyen des produits: 18-24 mois
• Investissement dans le développement collaboratif: 4,2 millions de dollars par an

Conception de solution personnalisée

Sequans propose des services de conception de semi-conducteurs sur mesure avec 6 pistes de conception personnalisées Disponible pour les clients d'entreprise. Taux de réussite de la personnalisation: 92% sur la base de 2023 mesures internes.

Communications de mise à jour de la technologie régulière

Méthode de communication	Fréquence	Atteindre
Webinaires techniques	Trimestriel	Plus de 1 200 participants enregistrés
Newsletter technologique	Mensuel	3 500 abonnés
Conférence des développeurs	Annuellement	Plus de 500 participants directs

Sequans Communications S.A. (SQNS) - Modèle d'entreprise: canaux

Équipe de vente directe

Depuis le quatrième trimestre 2023, Sequans Communications maintient une équipe de vente directe dédiée axée sur les victoires de conception de semi-conducteurs sur les marchés IoT et 5G.

Région de vente	Nombre de représentants commerciaux	Segment du marché cible
Amérique du Nord	7	IoT et connectivité industrielle
Europe	5	Automobile et appareils intelligents
Asie-Pacifique	6	Modules cellulaires 5G

Conférences de technologie et salons professionnels

Sequan participe à des événements clés de l'industrie pour présenter les technologies de semi-conducteurs.

• Congrès mondial mobile Barcelone (2024)
• Show de l'électronique grand public (CES)
• Conférence mondiale intégrée
• Conférence mondiale IoT

Documentation technique en ligne

Sequans fournit des ressources numériques complètes pour l'engagement technique.

Type de documentation	Nombre de ressources	Visiteurs annuels du site Web
Feuilles de données	42	65,000
Conceptions de référence	18	48,000
Blancs techniques	26	55,000

Réseaux d'écosystèmes partenaires

Sequans maintient des partenariats stratégiques dans plusieurs domaines technologiques.

• Programme de partenaire stratégique Qualcomm
• MediaTek Design Partnership
• Réseau collaboratif Stmicroelectronics
• NXP Semiconductor Alliance

Plateformes de marketing numérique

Canaux de fiançailles numériques pour la communication technique et commerciale.

Plate-forme	Nombre de suiveurs	Taux d'engagement
Liendin	14,500	3.2%
Gazouillement	8,700	2.7%
Blogs techniques	22 000 lecteurs mensuels	4.1%

Sequans Communications S.A. (SQNS) - Modèle d'entreprise: segments de clientèle

Fabricants d'appareils IoT

Sequans sert les fabricants de dispositifs IoT avec des solutions de semi-conducteur spécifiques. Au quatrième trimestre 2023, la société a déclaré 7,2 millions de puces IoT LTE et 5G expédiées.

Segment de marché	Volume de puce	Contribution des revenus
IoT industriel	2,1 millions d'unités	34% des revenus du segment IoT
Mesure intelligente	1,5 million d'unités	22% des revenus du segment IoT

Fournisseurs d'équipements de télécommunications

Les fournisseurs d'équipements de télécommunications représentent un segment de clientèle essentiel pour les séquans, avec des solutions de connectivité spécifiques.

• Pénétration du marché du modem 5G: 12,4%
• La conception mondiale de l'équipement de télécommunications gagne: 43 projets actifs
• Valeur du contrat annuel: 6,7 millions de dollars

Fabricants d'appareils intelligents

Sequans fournit des solutions semi-conductrices pour les fabricants d'appareils intelligents dans divers domaines.

Catégorie d'appareil	Part de marché	Envois de puces
Appareils à domicile intelligents	8.6%	1,3 million d'unités
Technologie portable	5.2%	0,9 million d'unités

Sociétés d'automatisation industrielle

Sequans prend en charge l'automatisation industrielle avec des solutions de connectivité spécialisées.

• Conception de l'automatisation industrielle gagne: 28 projets
• Envois de modules de connectivité: 0,6 million d'unités
• Revenu du segment: 14,3 millions de dollars en 2023

Fabricants d'électronique automobile

L'électronique automobile représente un segment de croissance stratégique pour les séquans.

Segment automobile	Design gagne	Revenus projetés
Télématique	17 projets actifs	9,2 millions de dollars
Véhicule connecté	12 projets actifs	6,7 millions de dollars

Sequans Communications S.A. (SQNS) - Modèle d'entreprise: Structure des coûts

Frais de recherche et de développement

Pour l'exercice 2023, Sequans Communications a déclaré des dépenses de R&D de 23,4 millions de dollars, ce qui représente environ 51% de leurs dépenses d'exploitation totales.

Exercice fiscal	Dépenses de R&D	Pourcentage des dépenses d'exploitation
2023	23,4 millions de dollars	51%
2022	26,1 millions de dollars	54%

Coûts de conception et de test des semi-conducteurs

Les coûts annuels de conception et de test des semi-conducteurs pour les communications Sequans se sont élevés à environ 15,7 millions de dollars en 2023.

• Conception et production du masque: 3,2 millions de dollars
• Outils de simulation et de modélisation: 2,5 millions de dollars
• Infrastructure de test de prototype: 4,6 millions de dollars
• Services de test externes: 2,4 millions de dollars

Maintenance de la propriété intellectuelle

Sequans Communications a investi 2,9 millions de dollars dans la maintenance de la propriété intellectuelle en 2023.

Catégorie IP	Coût de maintenance
Dépôt de brevet	1,2 million de dollars
Renouvellement des brevets	0,8 million de dollars
Soutien juridique	0,9 million de dollars

Investissements de vente et de marketing

Les frais de vente et de marketing pour les communications Sequans ont totalisé 8,6 millions de dollars en 2023.

• Marketing numérique: 2,3 millions de dollars
• Salon du commerce et participation de la conférence: 1,7 million de dollars
• Compensation de l'équipe de vente: 3,2 millions de dollars
• Production collatérale marketing: 1,4 million de dollars

Compensation des talents d'ingénierie

La rémunération totale des talents d'ingénierie pour 2023 était de 18,5 millions de dollars.

Rôle d'ingénierie	Compensation annuelle moyenne
Ingénieur senior semi-conducteur	$185,000
Ingénieur de conception de niveau intermédiaire	$125,000
Ingénieur logiciel junior	$95,000

Sequans Communications S.A. (SQNS) - Modèle d'entreprise: Strots de revenus

Ventes de puces semi-conductrices

Au cours du rapport financier du 3e 2023, Sequans Communications a généré 13,7 millions de dollars de revenus totaux. Les ventes de puces semi-conductrices représentaient environ 68% des revenus totaux, traduisant à environ 9,316 millions de dollars.

Gamme de produits à puce	Contribution des revenus	Segment de marché
Chips 4G LTE	5,2 millions de dollars	IoT / Industriel
Chips monarques 5G	4,116 millions de dollars	Automobiles / appareils intelligents

Licence des technologies de communication sans fil

Les licences de technologie sans fil ont généré environ 2,05 millions de dollars de revenus pour 2023, ce qui représente 15% du total des revenus de l'entreprise.

• Accords de licence avec 3 principaux fabricants d'équipements de télécommunications
• Frais de licence moyenne par accord: 683 333 $
• Les licences technologiques se sont concentrées sur les protocoles de communication sans fil 4G et 5G

Services de conception personnalisés

Les services de conception de semi-conducteurs personnalisés ont contribué 1,37 million de dollars en 2023, représentant environ 10% des revenus totaux.

Type de service de conception	Revenu	Industries des clients
Conception avancée de la puce IoT	$820,000	Appareils industriels / intelligents
Solutions de connectivité automobile	$550,000	Constructeurs automobiles

Royalités de la propriété intellectuelle

Les redevances en matière de propriété intellectuelle ont généré 685 000 $ en 2023, ce qui représente environ 5% des revenus totaux.

Frais de soutien technique et de consultation

Les services de soutien technique et de consultation ont généré 248 000 $ en 2023, représentant environ 2% du total des revenus.

Catégorie de service de support	Revenu	Taux horaire moyen
Consultation technique	$156,000	350 $ / heure
Assistance de la mise en œuvre	$92,000	250 $ / heure

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.