Gapwaves (GAPW) Q4 2025 earnings summary

Executive summary

• Achieved a milestone of over one million antennas produced, including more than 840,000 in 2025, reflecting strong technology and production scalability, mainly through the partner Frencken in China.

• Record annual sales reached 90.6 MSEK, with Q4 sales of 23.3 MSEK, driven by strong automotive demand and high-volume ramp-up, especially for Valeo.

• Transitioned to a strategic, high-volume supplier with production expansion planned in China for 2026 and a focus on scalable, asset-light business model.

• Completed an oversubscribed rights issue, raising nearly 72 MSEK, significantly improving cash flow and supporting ongoing scale-up.

• Focus shifted to ramping up production, establishing long-term revenue streams, and preparing for high-volume manufacturing.

Financial highlights

• Q4 net sales were 23.3 MSEK, up 32% year-over-year; full year net sales were 90.6 MSEK, up 37% from the previous year.

• Q4 adjusted EBITDA was -19.7 MSEK; full year adjusted EBITDA was -33.9 MSEK, with losses widening due to production ramp-up and cost mix.

• Cash flow for Q4 improved to 59.4 MSEK, and full year cash flow was 47.7 MSEK, mainly due to the rights issue.

• Financial costs rose sharply, mainly due to startup and scaling costs in Gothenburg and China.

• Cash and cash equivalents at year-end were 87.2 MSEK.

Outlook and guidance

• 2026 is expected to be a transitional year, focusing on scaling up high-volume automotive production, efficiency improvements, and expansion into new segments such as defense and drone detection.

• Production volumes are forecasted to reach at least 4.5–5 million antennas in 2026, with high-volume production lines in China commencing.

• Margin profile in 2026 will depend on the mix of high-margin project revenue and lower-margin high-volume production.

• Exploring new growth segments and initial deals to diversify revenue streams.

• Additional revenue from production equipment anticipated with high-volume production in China for Valeo in 2026.