Sequans Communications S.A. Q3 2026 Earnings Recap

Sequans’ shares rose 7.7% after earnings, as investors appeared to reward accelerating IoT product growth and visibility: Q3 revenue increased 183% year over year, while backlog extends into the second half of 2027. Revenue was in line with management’s guidance range, so the positive signal is growth and forward visibility rather than a reported guidance beat.

Key Takeaways

• Q3 revenue was approximately $9.1 million, up 22% from Q2’s $7.5 million and 183% from $3.2 million a year earlier; it was in line with the company’s guidance range.
• Product sales increased more than 4x year over year and accounted for the vast majority of Q3 revenue. The company said its Q3 book-to-bill ratio was well above one, with backlog extending into the second half of 2027.
• Revenue for the first nine months of 2026 totaled $22.6 million, exceeding full-year 2025 revenue of $18.3 million, excluding $8 million of non-recurring Qualcomm-related revenue.
• The design-win pipeline remains at $300 million in potential three-year product revenue. Two more projects entered mass production in Q3, and Sequans expects the mass-production portion to exceed $180 million by year-end.
• Growth remains concentrated in 4G IoT for now: Monarch CAT-M products generated more than 80% of Q3 product revenue. The 5G eRedCap test chip is in-house, but customer engagement is planned for the second half of 2027, with revenue expected in 2028.