Sequans Communications S.A.

SQNS

Semiconductors · Technology

Price

$3.06

+0.03 (+0.99%)

Market Cap

$47.6M

Exchange

New York Stock Exchange

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Weak

Stability

Good

Valuation

Data not available

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Share count falling — buybacks

−5.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 14.7M (2021) → 13.9M (2025)

Winston Score History

The full picture

Sequans Communications is a French semiconductor company that designs chips used in cellular wireless devices — specifically for 4G LTE and 5G networks. Its chips power products like smart meters, GPS trackers, industrial sensors, and other "Internet of Things" (IoT) devices that need to connect to cellular networks. Sequans is one of the few companies in the world focused almost entirely on chips for IoT cellular connectivity rather than smartphones.

The company earns money by selling its chips to device manufacturers and licensing its chip designs to other companies. Sequans operates globally, with customers in North America, Europe, and Asia, though it is a small company with a market cap near zero and has consistently spent far more than it earns. Its deep specialization in IoT cellular chips gives it a niche position, but the heavy operating losses and dependence on a narrow market create serious financial risk — the company must grow chip volumes significantly or secure licensing deals to reach profitability.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-8.4% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-80.6% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$30M/ year

→ Flat (+5% vs prior year)

109.8% of revenue

7.3x the sector average (15%)

Steady R&D investment year-over-year

Insider Activity

38.1%ownership

Insiders own a meaningful stake in the company

Cash Runway

~7 months

$21M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Sequans Communications S.A. has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

32.9%

Modest — 32.9% gross margin

Profit after running costs

Operating Margin

-127.1%

Losing money on operations — -127.1%

Return on the money invested

ROCE

-101.4%

Weak — -101.4% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-33.6%

Shrinking sales (-33.6% YoY)

Profit growth

EPS YoY

-622.1%

Earnings shrinking (-622.1% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-173.3%

Burning cash (-173.3%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.14

Conservative — low debt load (0.14)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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