Sequans Communications S.A.

to the second quarter 2025 Sequon's earnings conference call. My name is Lisa, and I'll be your operator for today's conference. After the speaker's presentation, there will be a question and answer session. If you would like to ask the question, please press star 11 on your telephone. You will then hear an automated message advising your hand is raised. If you would like to remove yourself from the queue, please press star 11 again. Please note this conference is being recorded. I will now turn the call over to David Hanover, Investor Relations. David, you may begin.

Thank you, Operator, and thank you to everyone participating in today's call. Joining me on the call from Sequence Communications are George Karam, CEO and Chairman, and Deborah Choate, CFO. Before turning the call over to George, I would like to remind our participants of the following important information on behalf of Sequence. First, Sequon's issued an earnings press release this morning, and you'll find a copy of the release on the company's website at www.sequons.com under the newsroom section. Second, this conference call contains projections and other forward-looking statements regarding future events or our future financial performance and potential financing sources. All statements other than present and historical facts and conditions contained in this release including any statements regarding our business strategy, cost optimization plans, strategic options, the ability to enter into new strategic agreements, expectations for sales, our ability to convert our pipeline to revenue, and our objectives for future operations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A, and the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934 as amended. These statements are only predictions and reflect our current beliefs and expectations with respect to our future events and are based on assumptions and subject to risk and uncertainties and subject to change at any time. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. Given these risks and uncertainties, you should not rely on or place undue reliance on these forward-looking statements. Actual events or results may differ materially from those contained in the projections or forward-looking statements. More information on factors that could affect our business and financial results are included in our public filings made with the Securities and Exchange Commission. And now I'd like to hand the call over to George Caron. Please go ahead, George.

Thank you, David. Good morning to everyone. We are pleased to hold our first earnings conference call since our decision to adopt Bitcoin as our primary treasury reserve asset. We view Bitcoin as a long-term store of value asset and intend to strategically accumulated over time. Our approach involves actively acquiring and holding Bitcoin using net proceeds from equity and debt issuances executed from time to time based on market conditions, as well as cash generated from operations and intellectual property monetization. We are committed to this strategy and believe it will unlock significant long-term value for our shareholders. We look to continue to accumulate Bitcoin for our treasury and do not intend to sell. At the end of last week, Sequence successfully completed the deployment of all net proceeds from the $384 million offering closed on July 7, 2025, to launch our Bitcoin treasury strategy. As of July 25th, the company holds 3,072 Bitcoins acquired using the full net proceeds from the offering at a total cost of approximately $358.5 million. This reflects an average purchase price, including fees, of $116,690 per Bitcoin. According to bitcointreasuries.net, this position sequence among the top 25 largest public Bitcoin treasury companies globally. Also, we are uniquely positioned as a European Bitcoin treasury company in the US, which may attract a broader international shareholder base. With the price of Bitcoin today around $118,000, This represents a Bitcoin NAV of around $363 billion. We are focused on delivering best-in-class disclosure and transparency practices for our shareholders. We have added a metrics dashboard to our website specifically dedicated to the Bitcoin treasury strategy. These metrics will continue to be enhanced as we work to integrate additional industry standard Bitcoin Treasury KPIs into our dashboard. Following our initial deployment, our short-term strategy for the second half of 2025 is to continue the momentum we've built and further expand our Bitcoin reserves. We intend to pursue this through three primary channels. First, deploying a portion of the available cash on our balance sheet. Second, utilizing net proceeds expected from the exercise of common warrants issued in the offering successfully closed on July 7th. And third, allocating additional capital anticipated from the public equity market. Collectively, these initiatives are designed to establish a strong foundation for the continued evolution of our treasury strategy. Beyond this year, We are developing a plan to expand this strategy. We expect this to include the assurance of equity, debt, and fixed income instruments, along with other highly-accurative options, such as the monetization of our operational business and intellectual property. Our goal is to continue increasing the Bitcoin per share and to generate Bitcoin yield to our shareholders. To ensure flawless execution, We have partnered with Swan Bitcoin, a premier platform for Bitcoin wealth management and institutional services. Through a strategic Bitcoin treasury management agreement, Swan will support us with its world-class team and deep expertise. This partnership positions us strongly to lead in this era of Bitcoin treasury strategy and to drive long-term value for our shareholders. Now turning to our IOT business, this business continues to improve and move in the right direction. We strongly believe that we are well positioned to leverage the operating business to help accelerate our Bitcoin treasury strategy. Our second quarter IOT revenue was $8.14 million, in line with our guidance, with a product revenue of $3.85 million, up 10% quarter to quarter, and 59% year over year. Product revenue growth was mainly driven by Monarch 2 shipment. We continue to expect product revenue to ramp in the second half of 2025 and in 2026, driven mainly by the move of design wind projects from the development phase to mass production and shipment. Business momentum continues to be focused around our 4G IoT products offering, with the main two modem categories, LTM and Cat1BIS, supported by our Monarch and Calliope families, respectively. We are adding new opportunities every week, specifically with Cat1BIS Calliope 2 platform, which is needed to address security and fleet management applications. Our total three years revenue pipeline now exceeds $485 million, with $250 million already at the design win stage. All design win projects are progressing well, and we remain confident that by the end of 2025, approximately half of them will have reached mass production and shipment. In the second quarter, three additional design win projects advanced to this stage and are expected to contribute to our future revenue growth. In terms of new design wins, we secured five new IoT projects in the second quarter. I'm pleased to announce that we have secured a major design win with Iris, our new family of RF transceivers product that we have just launched to market, addressing many radio applications outside the usual IoT market like defense, drones, and V2X automotive. These six design wins represent in total close to $30 million of three years revenue. We'll move them to the design win stage as soon as the customers have reached the sampling phase of their products integrating our technology. Finally, regarding our 5G IoT roadmap strategy, development of the eRedCap 5G platform is progressing well. We are on track to deliver best-in-class technology, building on the success of our 4G IoT solutions. Customer interest remains strong, driven by our unique value proposition that enables a seamless transition from 4G to 5G while ensuring long-term application viability. Turning to licensing and services, we have a strong track record of successfully monetizing our intellectual property through strategic licensing agreement. Notable examples include our $60 million 5G Taurus license with a Chinese partner, and the $200 million sale of our 4G IP to Qualcomm, which included a backward license. Looking ahead, we believe our eRadCap and RF technologies will further strengthen this trajectory. Additionally, our Chinese Taurus licensing partner is progressing toward production, with royalty revenues expected to begin in 2026. In summary, we are reaffirming our outlook that Given the current business momentum, our IoT operations are on track to become cash flow positive in the second half of 2026. Our objective is to leverage the value generated by this business to support further investment in our Bitcoin treasury. This will complement the capital already raised for that purpose with the goal of increasing our Bitcoin holdings and enhancing long-term shareholder value. I will now turn the call over to Deborah to review the second quarter of 2025 financial results in greater detail. Deborah.