Gapwaves (GAPW) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked a continued transition from project-based to high-volume product sales, with industrialization and ramp-up of production, especially in China with Valeo and ongoing license production with HELLA and Frencken.

• Net sales for Q1 2026 were 18.8 MSEK, down 17.4% year-over-year, reflecting the shift to volume production and macroeconomic headwinds impacting project revenues.

• Over 1.5 million antennas have been produced since inception, with strong volume growth and increasing demand from customers such as Valeo and HELLA.

• Asset-light business model leverages external production partners, enabling flexibility and scalability across geographies.

• Ongoing efficiency program expected to show effects in the second half of 2026.

Financial highlights

• Q1 2026 net sales: 18.8 MSEK (22.8 MSEK Q1 2025), a 17.4% decrease year-over-year and 25% below analyst estimates.

• Adjusted EBITDA for Q1 2026 was -7.3 MSEK (down from -2.5 MSEK Q1 2025), with EBITDA at -12.3 MSEK.

• Total cash flow for Q1 2026 was -14.7 MSEK (down from -5.3 MSEK Q1 2025), impacted by investments in production capacity and meeting accelerated demand.

• Cash and cash equivalents: 73.0 MSEK (33.8 MSEK Q1 2025).

• EBIT: -14.1 MSEK (-7.5 MSEK Q1 2025); adjusted EBIT: -9.2 MSEK (-4.2 MSEK Q1 2025).

Outlook and guidance

• 2026 is positioned as a transitional year, with a focus on scaling production, entering new segments, and adapting cost structure.

• Efficiency improvements are expected to contribute positively in the second half of 2026.

• Profitability depends on reaching high-volume production and securing new project contracts; black numbers possible only after achieving higher annual volumes.

• Long-term demand for radar antennas remains strong, driven by regulatory and consumer trends in automotive safety.