Gapwaves (GAPW) Q2 2025 earnings summary

Executive summary

• Achieved 66% year-over-year sales growth in Q2 2025, reaching SEK 24.1 million, with improved EBITDA and profitability despite market uncertainty.

• Growth driven by increased development projects, new customer additions, and production equipment sales.

• Commenced serial production for Valeo in Gothenburg, with first deliveries on July 1, 2025, and expanded presence in Asia through a development agreement with Desay SV.

• Sensrad, a subsidiary, saw its largest customer in the defense sector and strong momentum in commercial and industrial traction.

• Strategic partnerships and long-term Tier 1 relations established with major industry players across Europe, Asia, and North America.

Financial highlights

• Q2 2025 net sales: SEK 24.1 million, up 66% year-over-year.

• Adjusted EBITDA for Q2: SEK -3.8 million, a 56% improvement year-over-year.

• Q2 EBIT: SEK -8.8 million; adjusted EBIT: SEK -5.5 million.

• Cash flow improved to SEK -0.3 million from SEK -2.2 million in Q2 2024, though working capital was impacted by higher accounts receivable.

• Cash and cash equivalents at period end: SEK 34.2 million.

Outlook and guidance

• Product sales expected to become the primary revenue source by 2027 as customers ramp up production.

• Significant revenues from Valeo anticipated in 2027, following a typical two-year ramp-up phase.

• Market environment expected to remain challenging for the rest of 2025, with some customers delaying investments while others accelerate projects.

• Underlying demand for gapwaveguide technology remains strong, driven by regulatory and technical trends in automotive and wireless sectors.

• Continued focus on profitable growth and expanding customer base, especially in Asia.