Gapwaves (GAPW) investor relations material

Executive summary

• Transition year marked by shift from project-based to recurring product revenues, with Valeo high-volume production launch in China completed as planned, setting foundation for future volume growth.

• Over 2 million antennas produced using proprietary technology since inception.

• Supplier base strengthened through new agreements with AT&S and Gotmic, and new applications progressing beyond core automotive radar.

• Sensrad AB, an associated company, faced significant market headwinds, resulting in an impairment of 35.2 MSEK at the parent level.

Financial highlights

• Q2 2026 net sales were MSEK 13.1, down 46% year-over-year from MSEK 24.1, reflecting lower project and equipment revenues.

• Adjusted EBITDA for Q2 2026 was MSEK -13.3, compared to MSEK -3.8 in Q2 2025.

• EBIT: -18.5 MSEK (-8.8 MSEK Q2 2025); adjusted EBIT: -15.2 MSEK (-5.5 MSEK Q2 2025).

• Result for the period: -17.9 MSEK (-7.9 MSEK Q2 2025).

• Total cash flow for Q2 2026 was MSEK -22.6, including MSEK 10.8 in loan repayments.

Outlook and guidance

• Long-term market outlook remains unchanged, with a focus on transitioning to product sales and ramping up production.

• Production and product sales are at an early stage and expected to ramp up gradually over the next two years as volumes increase.

• Continued volume growth expected with Valeo and Hella, and additional growth drivers in autonomous vehicles, defense, and in-cabin radar.

• Near-term focus on expanding Valeo ramp-up and developing new business segments, with antenna production forecast to exceed 10 million units by 2027.

• Ongoing investments in production capacity and supply chain to support long-term growth.