SQNS

Bull points

• Revenues for the first quarter of 2025 increased 34% to $8.1 million, up from $6.1 million in the first quarter of 2024.
• We anticipate certain non-recurring items again in Q2, including final payments to ACP shareholders. However, we maintain a disciplined spending approach and target to finish 2025 with over $25 million in cash.
• Based on our capital allocation plan, we do not foresee the need for an equity raise in 2025 or 2026.

Bear points

• IFRS operating loss was $6.8 million in the quarter compared to an operating loss of $5.6 million in Q4 2024 and a loss of $8.5 million in the first quarter of 2024.
• Net loss in Q1 2025 was $7.3 million or 29 cents per diluted ADS. This compares to a net loss of 2.4 million or 10 cents per diluted ADS in Q4 2024 and to a net loss in the first quarter of last year of $11.8 million or 48 cents per diluted ADS.
• We had several non-operating or unusual items that had an approximate $9 million drag on cash burn in the first quarter, including the payment of bonus and severance packages expensed in 2024, the impact of the termination of our factoring agreement, and the ACP acquisition payments.