Gapwaves AB (publ) publishes Interim Report for Q2 2026

Second quarter: April 1^st – June 30^th  

• Net sales amounted to 13,1 MSEK (24,1), a decrease of 46% compared with the same quarter of 2025.
• EBITDA amounted to -16,6 MSEK (-7,2), while EBITDA adjusted for results from shares in associated companies amounted to -13,3 MSEK (-3,8).
• EBIT amounted to -18,5 MSEK (-8,8), whereas EBIT adjusted for results from shares in associated companies amounted to -15,2 MSEK (-5,5).
• The result for the period amounted to -17,9 MSEK (-7,9).
• Earnings per share before and after dilution was neg. (neg.).
• Total cash flow for the period amounted to -22,6 MSEK (-0,3).
• The Group’s cash and cash equivalents amounted to 50,9 MSEK (34,2).

January-June 2026 

• Net sales amounted to 31,9 MSEK (46,9) a decrease of -32% compared with the same period in 2025.
• EBITDA amounted to -28,9 MSEK (-13,0), while EBITDA adjusted for results from shares in associated companies amounted to -20,6 MSEK (-6,4).
• EBIT amounted to -32,7 MSEK (-16,3), whereas EBIT adjusted for results from shares in associated companies amounted to -24,4 MSEK (-9,7).
• The result for the period amounted to –31,1 MSEK (-16,9).
• Earnings per share before and after dilution was neg. (neg.).
• Total cash flow for the period amounted to -37,3 MSEK (-5,6).

Significant events during the period:

• Gapwaves entered into a development agreement with Gotmic for the development of waveguide packages intended for high-power amplifier modules.
• An agreement was entered into with the Austrian supplier AT&S.
• Gapwaves received Vinnova funding to develop waveguide technology for in-cabin radar with Acconeer.
• Volume production for Valeo was launched at Frencken in China.

Significant events after the end of the period:

• Per Norén was proposed by Gapwaves' Nomination Committee as a new board member and Chairman of the Board.
• Gapwaves receives an order from Valeo for accelerated production capacity and delivery volume.

CEO Comment
 
Progress in the transition to high-volume production

2026 is a transition year as we continue to evolve Gapwaves from a development-focused company into a complete technology and product supplier with recurring product revenues. The objective is to build a more diversified business with stable, long-term growth. During the quarter, the start of production for Valeo in China was completed as planned. Production and product sales remain at an early stage and will increase gradually as volumes ramp up over the coming years. We also continue to develop our supply chain, broaden our customer base, and expand into new growth areas.

Revenue for the quarter was lower than in the corresponding period last year and amounted to 13,1 MSEK (24,1), while EBITDA adjusted for results from shares in associated companies amounted to -13,3 MSEK (-3,8). The primary reason for the lower revenue is that the comparison quarter in 2025 included significant revenues from production equipment, which typically arise in connection with the signing of new production agreements. Project revenues from ongoing customer development activities were also significantly higher in Q2 2025. The lower level of project revenues this year reflects the continued caution around new investments seen across parts of the automotive industry. Taken together, these factors affect the comparability with the corresponding period last year in terms of revenue mix. As we continue our transition towards becoming a technology and product company with recurring product revenues, project revenues will remain an important part of our business. However, project revenues naturally fluctuate between quarters and years, and it will take time before revenue from increasing product volumes fully offsets variations in project- and equipment-related revenues.

From Start of Production to volume ramp-up
During the quarter, the start of production for Valeo was completed as planned at our manufacturing partner Frencken in China, starting automated volume production. This was a very important goal for 2026 and a fundamental step in our commercialisation journey. Volumes will increase gradually over the next two years as production ramps up.
The transition continues to entail launch and ramp-up costs as production scales. These costs are a natural part of establishing high-volume production and an investment in future growth. The current production volumes are still limited and will be increased gradually over the coming years, resulting in a continued higher cost level before the full benefits of economies of scale are realised.
A very positive piece of news that we can finally share is that Gapwaves’ waveguide antenna technology is now implemented in Geely vehicles that have been on the roads in China since 2025, featuring Valeo radar sensors equipped with Gapwaves antennas. Geely is China’s second-largest automotive manufacturer and a group that owns car manufacturers such as Volvo Cars, Polestar, Zeekr and others.
We strengthened our supplier base during the quarter through the agreement with AT&S and have now surpassed two million antennas produced based on Gapwaves technology since the company was founded. The majority of this volume relates to licensed production for HELLA, but the milestone clearly demonstrates that our technology performs well at industrial scale and in production.

Continued commercial progress
During the quarter, several of our ongoing discussions with Tier 1 suppliers and OEMs developed positively, strengthening our position for future development projects and production agreements. We also continue to expand into new markets. The projects with Gotmic and Acconeer demonstrate the potential of our technology in areas such as defence, satellite communications, telecommunications, and in-cabin radar. These projects illustrate the broad applicability of Gapwaves’ technology and its commercial potential across several growth markets.

Challenging market conditions for Sensrad
The development of our associated company Sensrad AB has been significantly weaker than anticipated and several headwinds that arose during the quarter resulted in significant lower sales and new players entering the market. Following an updated impairment test of our assets based on this new development, an impairment of the shares in Sensrad of 35,2 MSEK was made during the quarter in the Parent Company's financial statements, which does not affect the Group's financial statements. Sensrad is implementing measures to adapt the business to the current market environment.

Finally, 2026 is a transition year in which significant work is being carried out to create the conditions for future growth, both in terms of volumes and recurring product revenues. The successful completion of the Valeo start of production represents an important building block in this effort. The work to expand production capacity and strengthen the supply chain continues and will remain central to the company’s growth over the coming years. Together with the other progress made during the quarter, this provides a solid foundation for Gapwaves’ continued development. I would also like to extend my sincere thanks to our employees, customers, suppliers and shareholders for your continued trust and commitment.

Gothenburg, 17 July 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/

Online presentation
Gapwaves CEO Jonas Ehinger and CFO Nils Mösko will present the report today, July 17^th, 11:00 AM, 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/1170066/live-q-gapwaves-4  
A recording will be available afterwards on the company’s website and on Redeye’s website.