Free cash flow remains structurally negative, with a quarterly burn of $16.1M in 2026Q1 and capital expenditures representing 19.8% of revenue.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 |
|---|
| Cash from Operations | -28.95M | -22.94M | -19.51M | -7.26M | -1.84M | -8.51M | -19.39M | 5.09M | -23.3M | -28.89M | -15.59M | -16.4M | -24.41M | -24.34M | -22.87M | 2.76M | 1.48M | -11.85M | -7.96M |
| Operating CF Margin % | - | -84.11% | -52.97% | -21.6% | -3.04% | -16.72% | -38.08% | 16.49% | -57.88% | -59.85% | -34.2% | -50.14% | -107.98% | -177.55% | -102.76% | 2.95% | 2.16% | -60.61% | -35% |
| Operating CF Growth % | -686.69% | -17.58% | -168.71% | -294.83% | 78.38% | 56.13% | -481.07% | 121.84% | 19.35% | -85.29% | 4.95% | 32.8% | -0.25% | -6.45% | -927.69% | 86.56% | 112.5% | -48.89% | - |
| Net Income | -157.33M | -102.76M | 61.1M | -40.99M | -6.26M | -19.64M | -53.58M | -37.52M | -36.72M | -25.86M | -24.5M | -27.05M | -33.96M | -35.44M | -32.79M | -58K | -2.54M | -16.81M | -8.21M |
| Depreciation & Amortization | 5.56M | 7.97M | 64.04M | 11.23M | 12.01M | 10.55M | 9.77M | 8.4M | 6.16M | 5.58M | 5.29M | 5.28M | 5.3M | 6.34M | 6.2M | 5.9M | 3.91M | 3.65M | 3.28M |
| Stock-Based Compensation | 879K | 0 | 4.09M | 7.1M | 5.48M | 5.13M | 2.98M | 1.8M | 1.81M | 1.64M | 1.12M | 867K | 1.28M | 2.17M | 3.19M | 4.17M | 1.13M | 1.18M | 933K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 200K | 715K | 1.1M | 1.68M | 54K | -88K | 1.7M | -450K | 749K | 1M | -137K |
| Other Non-Cash Items | 118.21M | 65.88M | -148.76M | 9.61M | 379K | 1.45M | 28.83M | 9.09M | 5.78M | 4.61M | 3.77M | 1.66M | 20K | -34K | -137K | 162K | 154K | 341K | 304K |
| Working Capital Changes | 3.58M | 5.97M | 15K | 5.78M | -13.45M | -6.01M | -7.39M | 23.31M | -525K | -15.56M | -2.37M | 1.16M | 2.91M | 2.72M | -1.03M | -6.97M | -1.93M | -1.2M | -4.13M |
| Change in Receivables | -247.63K | 2.86M | 1.56M | -3.25M | 6.66M | -2.32M | -9.26M | 7.17M | 6.8M | -7.08M | 705K | -9.27M | -1.62M | 462K | 3.68M | 5.14M | -9.26M | -2.25M | -2.27M |
| Change in Inventory | -1.21M | -1.28M | 3.14M | 3.05M | -2.95M | -208K | 439K | 1.58M | -1.09M | 1.32M | -4.63M | 5.13M | -2.62M | 861K | 3.37M | -2.87M | -7.21M | 104K | -1.32M |
| Change in Payables | 1.91M | 4.95M | -13.08M | 7.25M | -6.97M | 4.69M | 6.22M | -705K | -5.25M | -5.94M | 2.35M | 2.04M | 3.42M | 1.27M | -3.32M | -6.99M | 14.11M | 843K | -2.11M |
| Cash from Investing | -189.49M | -216.26M | 93.69M | -24.44M | -26.05M | -19.67M | -24.76M | -9.1M | -8.31M | -6.22M | -5.27M | -5.34M | -5.46M | -4.1M | -6.14M | -10.33M | -7.38M | -3.56M | -4.14M |
| Capital Expenditures | -6.65M | -5.93M | -19.74M | -29.57M | -22.66M | -28.92M | -13.78M | -9.15M | -8.75M | -6.16M | -5.39M | -5.48M | -6.24M | -3.92M | -5.57M | -11.04M | -6.37M | -3.4M | -4.07M |
| CapEx % of Revenue | 26.13% | 21.75% | 53.61% | 87.97% | 37.43% | 56.84% | 27.05% | 29.63% | 21.74% | 12.77% | 11.83% | 16.76% | 27.62% | 28.58% | 25.03% | 11.78% | 9.29% | 17.37% | 17.9% |
| Acquisitions | -1.3M | -2.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 374K | 5.48M | 0 | 0 | 0 | 0 | 0 | 1K | 66.28K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 45.49M | 0 | 113.43M | 5.13M | 68K | 47K | 29K | 50K | 71K | 60K | -45K | -5.46M | 937K | 0 | -565K | 709K | 50K | -3 | -282 |
| Cash from Financing | 216.99M | 243.39M | -70.79M | 31.74M | 28.71M | 25.43M | 37.62M | 6.02M | 40.74M | 17.84M | 32.78M | 17.71M | 5.12M | 36.93M | 527K | 55.06M | 7.84M | 7.34M | 17.42M |
| Debt Issued (Net) | 43.64M | 69.07M | -64.2M | 7.64M | 71K | 20.75M | 10.78M | 151K | 20.66M | 2.3M | 9.18M | 13.52M | 3.4M | -231K | -40K | -4.8M | -88K | 5.61M | 8.33M |
| Equity Issued (Net) | 174.98M | 175.84M | 0 | 25.45M | 30.11M | 9.85M | 29.27M | 8.27M | 20.84M | 15.86M | 23.85M | 29K | -300K | 37.13M | 25.84K | 59.93M | 8.26M | 1.81M | 9.09M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -10.33M | -9.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -296.57K | 0 | 0 | 0 | -754K | 0 | 0 |
| Other Financing | -1.63M | -1.52M | -6.59M | -1.36M | -1.47M | -5.17M | -2.43M | -2.39M | -761K | -327K | -251K | 4.16M | 2.02M | 34K | 541.16K | -77K | -324K | -86K | 0 |
| Net Change in Cash | -1.32M | 4.3M | 3.39M | 34K | 836K | -2.74M | -6.52M | 2.01M | 9.14M | -17.25M | 11.91M | -4.04M | -24.75M | 8.49M | -28.47M | 47.48M | 1.95M | -8.06M | 5.3M |
| Free Cash Flow | -35.61M | -28.87M | -39.26M | -36.83M | -24.5M | -37.42M | -33.16M | -4.06M | -32.05M | -35.05M | -20.98M | -21.88M | -30.65M | -28.26M | -28.82M | -8.28M | -4.89M | -15.25M | -12.03M |
| FCF Margin % | -139.84% | -105.86% | -106.58% | -109.57% | -40.47% | -73.55% | -65.13% | -13.15% | -79.62% | -72.62% | -46.03% | -66.91% | -135.6% | -206.13% | -129.52% | -8.83% | -7.13% | -77.98% | -52.9% |
| FCF Growth % | -1.3% | 26.45% | -6.58% | -50.33% | 34.53% | -12.85% | -717.25% | 87.34% | 8.57% | -67.06% | 4.14% | 28.6% | -8.43% | 1.94% | -248.16% | -69.3% | 67.93% | -26.75% | - |
| FCF per Share | -244.28 | -2.07 | -1.38 | -1.64 | -1.33 | -2.55 | -2.95 | -0.43 | -3.42 | -4.51 | -3.29 | -3.70 | -5.18 | -6.22 | -8.31 | -2.54 | -1.76 | -5.47 | -4.32 |
| FCF Conversion (FCF/Net Income) | 0.23x | 0.22x | -0.34x | 0.18x | 0.20x | 0.42x | 0.36x | -0.14x | 0.64x | 1.10x | 0.63x | 0.60x | 0.72x | 0.68x | 0.69x | -6.40x | -0.55x | 0.70x | 0.96x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and Going Concern
According to the provided financial data, Sequans exhibits a chronic inability to convert net income into operating cash flow, with the OCF/NI ratio frequently oscillating between extreme values, such as the 13.90x observed in 2024Q4, signaling significant volatility in the underlying quality of reported earnings.
The wide divergence between net income and operating cash flow suggests that non-cash items and accounting adjustments are heavily distorting the company's true economic performance. Investors should monitor this gap closely, as it indicates that reported losses may not fully capture the actual cash drain required to sustain operations.
As reported in recent financial statements, Sequans' free cash flow trajectory remains consistently negative, with a quarterly burn of $16.1M in 2026Q1, highlighting a structural inability to generate self-sustaining cash flow despite the company's focus on specialized 5G/4G IoT semiconductor solutions.
The persistent negative FCF margins suggest that the company's current business model is not yet capable of covering its operational and capital expenditure requirements. This trend warrants further investigation into whether the company can reach a cash-flow-positive inflection point before its existing liquidity is exhausted.
Based on reported figures, Sequans' capital expenditure relative to revenue reached an alarming 19.8% in 2026Q1, reflecting a high level of capital intensity that appears disproportionate to the company's current, contracting revenue base and limited ability to amortize fixed design costs.
The high ratio of CapEx to revenue suggests that the company is forced to continue heavy investment in R&D and infrastructure just to maintain its competitive standing. This capital-intensive nature may further constrain the firm's ability to achieve profitability in the near term.
As evidenced by the $25.4M working capital outflow in 2024Q4, Sequans' cash flow is highly sensitive to fluctuations in working capital, which may indicate challenges in managing inventory levels or collecting receivables from its concentrated base of industrial and metering customers.
The erratic nature of working capital changes suggests that operational efficiency is being hampered by external demand cycles or internal supply chain pressures. This volatility adds another layer of uncertainty to the company's cash flow forecasting and overall liquidity management.
Based on the provided cash flow statements, Sequans has limited capacity for capital deployment, with recent periods showing minor share repurchases despite the company's ongoing cash burn, which may suggest a misalignment between management's capital allocation strategy and the firm's urgent need for liquidity.
The use of cash for share repurchases while the company is simultaneously burning through its cash reserves appears counterintuitive and warrants further scrutiny. Investors should monitor whether these actions are intended to signal confidence or if they represent an inefficient use of scarce capital resources.
Quick answers to the most common questions about buying SQNS stock.
Sequans Communications S.A. (SQNS) generated $-22.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sequans Communications S.A. (SQNS) reported negative free cash flow of $28.9M in 2025, indicating capital requirements exceeded cash from operations.
Sequans Communications S.A. (SQNS) spent $5.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Sequans Communications S.A. (SQNS) spent $9.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.