Gapwaves (GAPW) Q4 2024 earnings summary

Executive summary

• Achieved record net sales in Q4 (SEK 17.6m, +164% YoY) and FY24 (SEK 66.1m, +140% YoY), driven by increased customer engagements and new agreements.

• Expanded partnerships with key Tier 1 industry players, securing new customers in Europe, Asia, and North America, including Valeo and Smartmicro.

• Business model focuses on scalable, flexible production with minimal Capex and strategic movement up the value chain.

• New production facility in Gothenburg became operational, supporting future expansion and innovation.

• Bosch discontinued a joint development agreement due to weak market demand for advanced radar.

Financial highlights

• Q4 net sales reached SEK 17.6m, up 164% year-over-year; FY24 net sales SEK 66.1m, up 140% year-over-year.

• Q4 adjusted EBITDA was SEK -7.8m (improved 41% YoY); FY24 adjusted EBITDA SEK -32.0m (improved 27% YoY).

• Q4 EBIT was SEK -13.2m, adjusted EBIT at SEK -9.6m; net loss for Q4 was SEK -12.1m, improved from -19.8m.

• Cash flow for Q4 was SEK -14.4m; year-end cash and equivalents were SEK 40.8m.

• Excluding sale of production equipment, year-over-year growth was 103%.

Outlook and guidance

• Focus for 2025 is on strengthening production capacity, expanding the customer pipeline, and driving long-term growth.

• Production for Valeo and Smartmicro to start on the new pilot line in Gothenburg in 2025.

• Anticipates continued growth driven by automation, regulatory trends, and increasing radar adoption in automotive and mobility sectors.