Gapwaves AB (publ) (the “Company” or “Gapwaves”) publishes its interim report for the third quarter of 2026. Gapwaves further announces that the Company has decided to transfer its 30 percent shareholding in Sensrad AB (“Sensrad”) to the principal owner, Qamcom Group AB (“Qamcom”), for a purchase price of SEK 1, and to write down in full the value of the shares in Sensrad and write off the outstanding shareholder loans. The transfer is part of Gapwaves' strategic work to prioritize the company's financial resources and sharpen its focus on the core business in order to drive continued growth.
Third quarter: July-September 2026
· Net sales amounted to 9,0 MSEK (20,4), a decrease of 55,6% compared with the same quarter last year.
· EBITDA amounted to -19,5 MSEK (-17,7), while EBITDA adjusted for results from shares in associated companies amounted to -14,2 MSEK (-15,3).
· EBIT amounted to -21,4 MSEK (-19,3), whereas EBIT adjusted for results from shares in associated companies amounted to -16,1 MSEK (-16,9).
· The result for the period amounted to -38,8 MSEK (-19,1).
· Earnings per share before and after dilution was neg. (neg.).
· Total cash flow for the period amounted to -4,5 MSEK (-6,2).
· The Group’s cash and cash equivalents amounted to 47,0 MSEK (28,0).
January-September 2026
· Net sales amounted to 40,9 MSEK (67,2) a decrease of 39,1% compared with the same period in 2025.
· EBITDA amounted to -48,4 MSEK (-30,6), while EBITDA adjusted for results from shares in associated companies amounted to -34,8 MSEK (-21,7).
· EBIT amounted to -54,1 MSEK (-35,6), whereas EBIT adjusted for results from shares in associated companies amounted to -40,5 MSEK (-26,6).
· The result for the period amounted to -69,9 MSEK (-36,0).
· Earnings per share before and after dilution was neg. (neg.).
· Total cash flow for the period amounted to -41,8 MSEK (-11,8).
Significant events during the period
· An order was received from Valeo for additional and accelerated production capacity.
· Gapwaves received a development order from Valeo for next-generation radar sensors.
· Frencken ordered continued capacity expansion in the Valeo program.
· Gapwaves took a strategic step into the Chinese automotive market through a supply agreement with Desay SV for series production of radar antennas for a global OEM.
· Per Norén was elected as the new Chairman of the Board of Gapwaves. His international experience in commercializing advanced technology, building global partnerships and scaling technology companies will be a valuable addition.
· During the quarter, Gapwaves fully wrote down the value of its shares in Sensrad and the remaining receivable relating to shareholder loans to the company.
Significant events after the end of the period
· Gapwaves decided to transfer its 30 percent shareholding in Sensrad to the principal owner, Qamcom.
Transfer of holding in Sensrad
Today, 22 October 2026, Gapwaves transferred the Company’s 30 percent holding in Sensrad to the principal owner, Qamcom. The purchase price for the shares amounts to SEK 1, and in the event that Qamcom, before 31 December 2028, transfers all or part of the shares or assets in Sensrad, Gapwaves shall receive 30 percent of the consideration Qamcom receives for such onward transfer. In light of Sensrad’s continued weak financial performance, the Company has decided not to contribute further capital to Sensrad, and considers the transfer to be the best way forward.
The transfer is part of Gapwaves’ work to prioritize the Company’s financial resources and strengthen its focus on the core business. The decision was made in light of Sensrad’s weaker-than-expected development, with significantly lower sales and increased competition as a result of new players entering the market. Against this background, Gapwaves has decided not to contribute further capital to Sensrad. The Company’s priority is to use its financial resources where they are expected to create the greatest long-term value for shareholders. Through the transfer, Gapwaves can concentrate its focus and resources on further developing the core business.
CEO Statement
Scale-up toward higher volumes continues
The third quarter confirms the transition: Gapwaves’ revenue increasingly comes from series production and less and less from individual development projects. Net sales of 9,0 MSEK are lower than last year, as project and equipment revenue has declined, but product sales are growing and Valeo is ordering larger volumes than planned. With increasing volumes, a new production agreement with Desay SV and further steps toward new market segments, the scale-up continues.
Growing product volumes and an increasingly strong base of recurring revenue
Net sales amounted to 9,0 MSEK (20,4). The comparison quarter included sales of production equipment and significantly higher project revenue. We are now in a phase where product sales are our largest revenue stream and where steadily increasing production volumes are laying the foundation for our continued growth.
During the quarter, production increased from 1,2 million antennas in the second quarter to 1,6 million in the third quarter, an increase of approximately 33 percent. The scale-up is thus continuing in a positive direction, with demand exceeding our original expectations.
Although product sales do not yet fully offset previous project revenue, we see strong development in the ongoing scale-up. What we are seeing now is only the beginning of a powerful increase in volumes, as production gradually ramps up and is expected to have an increasingly clear impact on net sales in the coming quarters. At the same time, the multi-year product programs are creating the conditions for a growing, more stable and more predictable revenue base.
Increased demand and volumes above plan
So far this year, 3,6 million antennas have been produced using Gapwaves’ technology, mainly through HELLA’s licensed production and our volume production for Valeo in China. Demand from Valeo continues to develop more strongly than expected, and we expect to deliver nearly twice as many antennas this year as originally planned.
The positive volume development also means that we are continuing to prepare for the next step in the scale-up. During the quarter, Frencken ordered additional production equipment for the Valeo program. The equipment is scheduled to be put into operation at the end of 2027 and will enable the higher volumes planned from 2028, within the previously communicated capacity of approximately ten million antennas per year. In parallel, we are continuing our work to optimize production processes and the supply chain. We have taken important steps from pilot production to production in the millions, and we are now seeing the scale-up gradually take effect. This strengthens our position for the coming years and creates the conditions for continued volume growth and increasing product revenue.
More customers and the next product generation
Gapwaves’ products are now found in a growing number of car models in the most important markets. We have also started developing antennas for Valeo’s next generation of radar sensors, which means the collaboration now extends to upcoming products as well. Through the supply agreement with Desay SV, we are taking a first step into the Chinese automotive market: our waveguide antennas will be integrated into Desay SV’s radar products for a global Asian vehicle manufacturer, with start of production (SOP) planned for Q1 2027. Gapwaves is thus working in parallel to scale up production, develop new products, and establish new customer partnerships and geographic markets.
Expansion into new growth markets
The establishment of our technology in new market segments is intensifying in parallel with the scale-up in Automotive. The collaboration with Gotmic is a concrete example of this. Waveguide packages developed for Gotmic’s high-power amplifier modules open up new opportunities for our MLW technology in defense, satellite communications and telecom. We are also continuing to evaluate additional applications where our technology can create value through high performance, low losses and the ability to be produced cost-effectively at industrial scale.
Financing
In order to accelerate the scale-up by strengthening commercial capacity, streamlining the supply chain, speeding up the commercialization of next-generation antenna technology and establishing a new growth platform in counter-drone systems, the Board of Directors is evaluating various options to strengthen the company’s financial position and flexibility in the near term.
In conclusion, we now have established high-volume production, a strengthened supply chain and customer partnerships that cover both today’s and tomorrow’s products. In the coming quarters, growth in product sales, new production agreements and the cost per antenna produced will form the foundation of our scale-up.
Thank you to our employees, customers, suppliers and shareholders for your trust.
Gothenburg, 22 October 2026
Jonas Ehinger, CEO Gapwaves AB (publ)
The full report is available as attached PDF and on the company’s website https://www.gapwaves.com/investors/financial-reports-and-documents/
Report presentation
CEO Jonas Ehinger will present the report tomorrow, Friday, 23 October, at 09:00 followed by a Q&A session. The presentation will be held in English and can be accessed via the link below: https://www.redeye.se/events/1170081/live-q-gapwaves-5
A recording will be available afterwards on the company’s website and on Redeye’s website.
