Sequans announces share repurchase program of up to 1.57 million ADSs

PARIS - Sequans Communications S.A. (NYSE:SQNS), currently valued at $137 million, announced Tuesday that its Board of Directors has authorized a program to repurchase up to 1.57 million American Depositary Shares, representing approximately 10% of the company’s currently outstanding ADSs. According to InvestingPro data, the stock has seen a significant decline of over 72% year-to-date, potentially making this buyback announcement timely.

The repurchase program will run through June 30, 2026, according to a company press release. Sequans, which provides cellular IoT semiconductor solutions, said the initiative is part of its strategy that includes Bitcoin as its primary treasury reserve asset. InvestingPro analysis shows the company maintains a healthy balance sheet with more cash than debt and a current ratio of 1.83, though it’s currently burning through cash rapidly.

"While we recently established an ATM tool to enable us to raise capital to grow our Bitcoin holdings and increase net asset value, the buyback program gives us the flexibility to act when market conditions present an opportunity to support our share price," said Georges Karam, CEO of Sequans.

The company may repurchase ADSs at its discretion from time to time, subject to market conditions and compliance with applicable legal requirements. Purchases may be made through open market transactions or other methods permitted under securities laws and regulations.

Sequans noted that the program does not obligate the company to acquire any specific number of shares and may be modified, suspended, or discontinued at any time at its discretion.

Founded in 2003 and headquartered in France, Sequans describes itself as a fabless semiconductor company specializing in wireless 4G/5G cellular technology for the Internet of Things, while also positioning itself as a pioneer in Bitcoin Treasury. The company has demonstrated strong revenue growth of 32% in the last twelve months, despite challenging market conditions. Get access to 12 more exclusive InvestingPro tips and comprehensive analysis in our detailed Pro Research Report, available with an InvestingPro subscription.

In other recent news, Sequans Communications reported disappointing financial results for Q1 2025, with earnings per share (EPS) at -$3.6, significantly missing the forecast of -$0.06. Revenue also fell short, reaching $8.14 million compared to the expected $15.4 million, marking a 47.14% revenue surprise. Additionally, Sequans announced the formal launch of a new business initiative focused on technology IP licensing and engineering services, expanding beyond its traditional semiconductor product sales. The company will offer its radio frequency transceiver and analog silicon IP, among other technologies, to various industries. Furthermore, Sequans’ Board of Directors approved a plan to change the ratio of its American Depositary Shares to ordinary shares from 1:10 to 1:100, effective September 17, 2025. This change will function as a one-for-ten reverse ADS split for current holders. In another development, Sequans established a $200 million "at the market" equity offering program, allowing the sale of shares at the company’s discretion. This program will be conducted under Sequans’ shelf registration statement filed with the SEC.

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