Sequans Communications (NYSE: SQNS) reported preliminary unaudited revenue of $6.1 million for the first quarter of 2026, representing a 12.5% decrease from the fourth quarter of 2025 and a 24.8% decline compared to the first quarter of 2025, according to a press release.

The 5G/4G cellular IoT semiconductor company posted a net loss of $54.3 million, or $3.73 per diluted ADS, for the quarter ended March 31, 2026. This compared to a net loss of $76.4 million in the fourth quarter of 2025 and $7.3 million in the first quarter of 2025.

Product sales comprised 84% of total revenue in the first quarter, increasing 45% compared to the same period in 2025 while declining 15% from the previous quarter. The company attributed the year-over-year revenue decrease partly to significant license and services revenue from Qualcomm in the first quarter of 2025 related to intellectual property transactions.

Gross margin decreased to 37.7% from 41.4% in the fourth quarter of 2025 and 64.5% in the first quarter of 2025. The operating loss was $50.5 million, compared to $72.1 million in the previous quarter and $6.8 million in the prior year period.

The company's financial results included substantial Bitcoin-related impacts. Operating losses in both the first quarter of 2026 and fourth quarter of 2025 included unrealized Bitcoin impairment losses of $29.3 million and $56.3 million, respectively, plus realized net losses of $11.7 million and $6.1 million from Bitcoin sales.

Cash and cash equivalents totaled $10.6 million at March 31, 2026, down from $13.4 million at December 31, 2025. The company held 1,514 Bitcoin valued at $103.2 million as of March 31, with 1,217 Bitcoin pledged as collateral for $66.2 million in convertible debt.

Sequans scheduled a conference call for May 5, 2026, at 8:00 a.m. ET to discuss the results.