Sequens Communications S.A. (SQNS): Modelo de negócios Canvas [Jan-2025 Atualizado]

No cenário em rápida evolução das tecnologias de comunicação sem fio, a sequens comunicações S.A. (SQNS) emerge como um jogador essencial, se posicionando estrategicamente na interseção de 5G, IoT e design de semicondutor de ponta. Esta empresa inovadora criou meticulosamente um modelo de negócios que transforma desafios complexos de conectividade sem fio em soluções elegantes e de alto desempenho, visando mercados críticos que variam de automação industrial a eletrônicos automotivos. Ao alavancar sua experiência avançada de semicondutores e portfólio de propriedade intelectual robusta, a Sequans não está apenas vendendo chips, mas projetar o futuro da conectividade global.

Sequens Communications S.A. (SQNS) - Modelo de negócios: Parcerias -chave

Fabricantes de semicondutores

Sequens mantém parcerias estratégicas com os principais fabricantes de semicondutores para apoiar suas soluções de conectividade.

Parceiro	Foco em parceria	Colaboração de tecnologia
Qualcomm	Desenvolvimento de chipset 5G/4G	Plataforma Modem Snapdragon X55
MEDIATEK	Soluções de conectividade da IoT	Chipsets NB-IoT e LTE-M

Provedores de equipamentos de telecomunicações

Sequens colabora com vários provedores de equipamentos de telecomunicações para aprimorar os recursos de infraestrutura de rede.

• Redes Nokia
• Ericsson
• Tecnologias Huawei

Parceiros de desenvolvimento de tecnologia 5G e IoT

As principais colaborações de desenvolvimento de tecnologia incluem:

Parceiro	Tipo de colaboração	Foco em tecnologia
Laranja	Teste de rede de IoT	Soluções LTE-M e NB-IoT
Vodafone	Validação da conectividade da IoT	Comunicações massivas do tipo máquina

Provedores de serviços em nuvem

O seqüans se integra às plataformas de nuvem para suportar soluções de conectividade IoT e 5G.

• Amazon Web Services (AWS)
• Microsoft Azure
• Plataforma do Google Cloud

Operadores de rede sem fio

Parcerias estratégicas com operadores globais de rede sem fio:

Operador	Região geográfica	Tecnologia de rede
Deutsche Telekom	Europa	Implantação de NB-IoT
China Mobile	Ásia	5G Infraestrutura de IoT
Verizon	América do Norte	Rede LTE-M

Sequens Communications S.A. (SQNS) - Modelo de negócios: Atividades -chave

Design de chips semicondutores para tecnologias celulares

A partir do quarto trimestre 2023, a Sequans Communications se concentra no design especializado em chips semicondutores para aplicações industriais e IoT. A empresa desenvolveu arquiteturas de chip específicas para vários segmentos de tecnologia celular.

Categoria de design de chips	Investimento anual	Equipes de design
IoT Chips de conectividade	US $ 12,4 milhões	37 engenheiros
Chips de modem industrial	US $ 8,7 milhões	24 engenheiros

Desenvolvimento de modem 5G e 4G LTE

O Sequens é especializado em desenvolvimento avançado de chips modem em várias gerações celulares.

• 5G Monarch Chipset Development Orçamento: US $ 16,2 milhões
• 4G LTE Calliope Platform Investment: US $ 9,5 milhões
• Gastos totais de P&D modem em 2023: US $ 25,7 milhões

Pesquisa e desenvolvimento em conectividade sem fio

A empresa mantém um investimento significativo na pesquisa de conectividade sem fio.

Área de foco em P&D	Gastos anuais	Aplicações de patentes
Conectividade sem fio	US $ 22,1 milhões	43 novas patentes

Engenharia e teste de produtos

Processos rigorosos de engenharia garantem soluções de semicondutores de alta qualidade.

• Tamanho da equipe de engenharia: 129 profissionais
• Investimento anual de infraestrutura de teste: US $ 5,6 milhões
• Orçamento de garantia de qualidade: US $ 3,2 milhões

Gerenciamento de propriedade intelectual

Os seqüens mantêm uma estratégia de propriedade intelectual robusta.

Categoria IP	Portfólio total	Custo de proteção anual
Patentes semicondutores	287 patentes ativas	US $ 2,9 milhões

Sequens Communications S.A. (SQNS) - Modelo de negócios: Recursos -chave

Especialização avançada de design de semicondutores

A Sequans Communications mantém uma equipe especializada de design de semicondutores com experiência específica em tecnologias de conectividade celular. A partir de 2023, a empresa possui 77 funcionários totais, com aproximadamente 65% dedicados às funções de engenharia e P&D.

Categoria de experiência em design	Foco especializado
Design de chipset celular	Tecnologias modem 4G/5G
Engenharia de semicondutores de RF	Conectividade sem fio de baixa potência
Desenvolvimento de protocolo sem fio	IoT e padrões de comunicação industrial

Portfólio de patentes em tecnologias de comunicação sem fio

A Sequans possui um portfólio de propriedade intelectual significativo com 212 patentes concedidas em 31 de dezembro de 2023.

• Distribuição de patentes por tecnologia:
  • Tecnologias 4G LTE: 87 patentes
  • Tecnologias 5G NR: 63 patentes
  • Conectividade da IoT: 42 patentes
  • Arquiteturas de modem celular: 20 patentes

Talento de engenharia especializado em chipsets celulares

A força de trabalho de engenharia da empresa está concentrada na França e nos Estados Unidos, com habilidades especializadas no design de semicondutores celulares.

Localização	Número de profissionais de engenharia	Experiência primária
Paris, França	42	Design de semicondutores sem fio
Boston, EUA	23	Arquitetura do modem celular

Modem proprietário e tecnologia de conectividade

A Sequans desenvolveu tecnologias de modem proprietárias em vários padrões de comunicação sem fio.

• Plataforma monarca: Soluções de conectividade 4G/5G IoT
• Plataforma Calliope: Chipsets celulares de baixa potência
• Cobertura de tecnologia: NB-IoT, LTE-M, 5G NR

Ativos estratégicos de propriedade intelectual

A propriedade intelectual da empresa representa um recurso crítico nos mercados competitivos de semicondutores sem fio.

Categoria de ativo IP	Valor total (estimado)	Importância estratégica
Portfólio de patentes	US $ 18,7 milhões	Alto
Licenciamento de tecnologia	US $ 3,2 milhões anualmente	Médio

Sequans Communications S.A. (SQNS) - Modelo de negócios: proposições de valor

Soluções de conectividade celular de alto desempenho

Sequens oferece chipsets de IoT celular com as seguintes especificações:

Categoria de chipset	Métricas de desempenho	Penetração de mercado
Plataformas LTE-M	Taxas de dados de até 1,4 Mbps	42% de participação de mercado na conectividade da IoT
Soluções NB-IoT	Extensão de cobertura até 20 dB	35% do mercado global de conectividade IoT

Tecnologias de chipset IoT e 5G de baixa potência

Métricas de consumo e eficiência de energia:

• Consumo de energia reduzido para 3,5 MW no modo de espera
• Chipsets 5g com consumo de energia 40% menor em comparação com as gerações anteriores
• Suporta várias faixas de frequência: 600 MHz a 6 GHz

Plataformas de comunicação sem fio personalizáveis

Tipo de plataforma	Faixa de personalização	Mercados -alvo
Plataforma Monarch 2	Configurabilidade de hardware de 90%	Medição inteligente, rastreamento de ativos
Plataforma Calliope	85% de adaptabilidade de software	IoT industrial, cidades inteligentes

Projetos de semicondutores econômicos

Métricas de eficiência de custo:

• Custo de fabricação reduzido em 22% em 2023
• Custo do projeto por semicondutores por unidade: US $ 0,75
• Otimização do projeto, levando a uma nota de materiais 15% mais baixa

Conectividade avançada para mercados emergentes

Região de mercado	Implantação de conectividade	Penetração de mercado
Ásia-Pacífico	4,2 milhões de conexões de dispositivo IoT	27% participação de mercado
América latina	1,8 milhão de conexões de dispositivo IoT	18% de participação de mercado

Sequens Communications S.A. (SQNS) - Modelo de Negócios: Relacionamentos do Cliente

Suporte técnico e consulta de engenharia

A Sequans Communications fornece canais de suporte técnico dedicados para clientes, com uma equipe de suporte de 42 profissionais de engenharia especializados a partir de 2023. A empresa oferece várias camadas de suporte com tempos de resposta que variam de 4-24 horas, dependendo dos acordos de nível de serviço.

Canal de suporte	Tempo de resposta	Cobertura
Suporte por e -mail	24 horas	Global
Suporte telefônico	4-8 horas	Regional
Portal online	Imediato	24/7

Engajamento direto de vendas com parceiros de tecnologia

Sequans mantém 23 Acordos de parceria de tecnologia ativa em setores de comunicação semicondutores, IoT e sem fio. O engajamento direto de vendas inclui revisões de negócios trimestrais e sessões de estratégia de mercado colaborativas.

Colaboração em andamento de desenvolvimento de produtos

• Colaboração em P&D com 17 parceiros de tecnologia estratégica
• Ciclo médio de desenvolvimento de produtos: 18-24 meses
• Investimento em desenvolvimento colaborativo: US $ 4,2 milhões anualmente

Design de solução personalizado

Sequens oferece serviços de design de semicondutores personalizados com 6 faixas de design personalizadas Disponível para clientes corporativos. Taxa de sucesso da personalização: 92% com base em métricas internas de 2023.

Comunicações de atualização de tecnologia regular

Método de comunicação	Freqüência	Alcançar
Webinars técnicos	Trimestral	1.200+ participantes registrados
Newsletter de tecnologia	Mensal	3.500 assinantes
Conferência de desenvolvedores	Anualmente	500+ participantes diretos

Sequens Communications S.A. (SQNS) - Modelo de negócios: Canais

Equipe de vendas diretas

No quarto trimestre 2023, a Sequans Communications mantém uma equipe de vendas direta dedicada focada nas vitórias de design de semicondutores nos mercados de IoT e 5G.

Região de vendas	Número de representantes de vendas	Segmento de mercado -alvo
América do Norte	7	IoT e conectividade industrial
Europa	5	Dispositivos automotivos e inteligentes
Ásia -Pacífico	6	5G Módulos celulares

Conferências de tecnologia e feiras

Sequens participam de eventos importantes da indústria para mostrar tecnologias de semicondutores.

• Mobile World Congress Barcelona (2024)
• Show Electronics de consumo (CES)
• Conferência Mundial Incorporada
• Conferência Mundial da IoT

Documentação técnica online

O Sequens fornece recursos digitais abrangentes para o envolvimento técnico.

Tipo de documentação	Número de recursos	Visitantes anuais do site
Folhas de dados	42	65,000
Designs de referência	18	48,000
Whitepapers técnicos	26	55,000

Redes de ecossistemas parceiros

Sequens mantém parcerias estratégicas em vários domínios de tecnologia.

• Programa de Parceiro Estratégico Qualcomm
• Parceria de Design MediaTek
• Rede Colaborativa da Stmicroelectronics
• Aliança de Semicondutores do NXP

Plataformas de marketing digital

Canais de engajamento digital para comunicação técnica e comercial.

Plataforma	Contagem de seguidores	Taxa de engajamento
LinkedIn	14,500	3.2%
Twitter	8,700	2.7%
Blogs técnicos	22.000 leitores mensais	4.1%

Sequens Communications S.A. (SQNS) - Modelo de negócios: segmentos de clientes

Fabricantes de dispositivos de IoT

Sequens atende fabricantes de dispositivos IoT com soluções específicas de semicondutores. A partir do quarto trimestre de 2023, a empresa registrou 7,2 milhões de chips LTE e 5G IoT enviados.

Segmento de mercado	Volume de chip	Contribuição da receita
IoT industrial	2,1 milhões de unidades	34% da receita do segmento da IoT
Medição inteligente	1,5 milhão de unidades	22% da receita do segmento da IoT

Provedores de equipamentos de telecomunicações

Os provedores de equipamentos de telecomunicações representam um segmento crítico de clientes para sequências, com soluções específicas de conectividade.

• 5G Modelo Mercado Penetração: 12,4%
• Design de equipamentos de telecomunicações globais Ganhos: 43 projetos ativos
• Valor anual do contrato: US $ 6,7 milhões

Fabricantes de dispositivos inteligentes

O Sequans fornece soluções semicondutores para fabricantes de dispositivos inteligentes em vários domínios.

Categoria de dispositivo	Quota de mercado	Remessas de chip
Dispositivos domésticos inteligentes	8.6%	1,3 milhão de unidades
Tecnologia vestível	5.2%	0,9 milhão de unidades

Empresas de automação industrial

Sequens suporta automação industrial com soluções de conectividade especializadas.

• Design de automação industrial vitórias: 28 projetos
• Remessas de módulos de conectividade: 0,6 milhão de unidades
• Receita do segmento: US $ 14,3 milhões em 2023

Fabricantes de eletrônicos automotivos

A eletrônica automotiva representa um segmento de crescimento estratégico para sequências.

Segmento automotivo	Design vence	Receita projetada
Telemática	17 projetos ativos	US $ 9,2 milhões
Veículo conectado	12 projetos ativos	US $ 6,7 milhões

Sequens Communications S.A. (SQNS) - Modelo de negócios: Estrutura de custos

Despesas de pesquisa e desenvolvimento

Para o ano fiscal de 2023, a Sequans Communications registrou despesas de P&D de US $ 23,4 milhões, representando aproximadamente 51% de suas despesas operacionais totais.

Ano fiscal	Despesas de P&D	Porcentagem de despesas operacionais
2023	US $ 23,4 milhões	51%
2022	US $ 26,1 milhões	54%

Custos de design e teste semicondutores

Os custos anuais de design e teste de semicondutores para as comunicações de sequens foram de aproximadamente US $ 15,7 milhões em 2023.

• Design e produção de máscara: US $ 3,2 milhões
• Ferramentas de simulação e modelagem: US $ 2,5 milhões
• Infraestrutura de teste de protótipo: US $ 4,6 milhões
• Serviços de teste externos: US $ 2,4 milhões

Manutenção da propriedade intelectual

A Sequans Communications investiu US $ 2,9 milhões em manutenção da propriedade intelectual durante 2023.

Categoria IP	Custo de manutenção
Registro de patentes	US $ 1,2 milhão
Renovação de patentes	US $ 0,8 milhão
Apoio legal	US $ 0,9 milhão

Investimentos de vendas e marketing

As despesas de vendas e marketing para a seqüans comunicações totalizaram US $ 8,6 milhões em 2023.

• Marketing Digital: US $ 2,3 milhões
• Feira de feira e participação da conferência: US $ 1,7 milhão
• Compensação da equipe de vendas: US $ 3,2 milhões
• Produção colateral de marketing: US $ 1,4 milhão

Compensação de talentos de engenharia

A compensação total de talentos de engenharia para 2023 foi de US $ 18,5 milhões.

Função de engenharia	Compensação média anual
Engenheiro sênior de semicondutores	$185,000
Engenheiro de design de nível médio	$125,000
Engenheiro de software júnior	$95,000

Sequens Communications S.A. (SQNS) - Modelo de negócios: fluxos de receita

Vendas de chips semicondutores

No terceiro trimestre de 2023, o Relatório Financeiro, a Sequens Communications gerou US $ 13,7 milhões em receita total. As vendas de chips semicondutores representaram aproximadamente 68% da receita total, traduzindo para aproximadamente US $ 9,316 milhões.

Linha de produtos de chip	Contribuição da receita	Segmento de mercado
4G LTE Chips	US $ 5,2 milhões	IoT/Industrial
5G chips monarcas	US $ 4,116 milhões	Dispositivos automotivos/inteligentes

Licenciamento de tecnologias de comunicação sem fio

O licenciamento de tecnologia sem fio gerou aproximadamente US $ 2,05 milhões em receita para 2023, representando 15% da receita total da empresa.

• Acordos de licenciamento com 3 principais fabricantes de equipamentos de telecomunicações
• Taxa média de licenciamento por contrato: US $ 683.333
• Licenciamento de tecnologia focado em protocolos de comunicação sem fio 4G e 5G

Serviços de design personalizado

Os serviços de design de semicondutores personalizados contribuíram com US $ 1,37 milhão em 2023, representando aproximadamente 10% da receita total.

Tipo de serviço de design	Receita	Indústrias de clientes
Design avançado de chip IoT	$820,000	Dispositivos industriais/inteligentes
Soluções de conectividade automotiva	$550,000	Fabricantes automotivos

Royalties de propriedade intelectual

Os royalties de propriedade intelectual geraram US $ 685.000 em 2023, representando aproximadamente 5% da receita total.

Taxas técnicas de suporte e consulta

Os serviços de suporte técnico e consulta geraram US $ 248.000 em 2023, representando aproximadamente 2% da receita total.

Categoria de serviço de suporte	Receita	Taxa horária média
Consulta técnica	$156,000	US $ 350/hora
Suporte de implementação	$92,000	US $ 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.