Gapwaves (GAPW) Q3 2024 earnings summary

Executive summary

• Net sales grew 161% year-over-year in Q3 2024 to SEK 18.4m, driven by project, prototype, and production equipment sales.

• Secured new agreements and partnerships, including a major serial production deal with Valeo for ADAS applications.

• Continued investment in scaling production capabilities and personnel to support long-term growth.

• Cash and cash equivalents stood at SEK 54.7m at period end, with improved cash flow.

• Operating result (EBIT) was SEK -12.0m, with adjusted EBIT at SEK -8.5m; net loss for the quarter was SEK -11.9m.

Financial highlights

• Q3 net sales reached SEK 18.4m, up 160% year-over-year; YTD net sales at SEK 48.5m, up 133% year-over-year.

• Adjusted EBITDA for Q3 was SEK -6.7m, a 31% improvement year-over-year; YTD adjusted EBITDA at SEK -24.3m.

• Q3 EBIT: SEK -12.0m; adjusted EBIT: SEK -8.5m.

• Net loss for Q3: SEK -11.9m; nine-month net loss: SEK -39.9m.

• Cash flow for Q3: SEK -12.1m; cash and cash equivalents at period end: SEK 54.7m.

Outlook and guidance

• Pilot production line on track for Q4 launch, supporting new and existing contracts.

• Serial production and license revenue anticipated to start in 2025 following the Valeo agreement.

• Growing interest in intelligent transportation systems, smart city, and mobility markets expected to drive future growth.

• Market growth driven by regulatory and technical requirements for advanced radar sensors.