Gapwaves earnings for the third quarter of 2026 showed that rising antenna production has yet to offset declining project and equipment revenue. Net sales fell 55.6% to SEK 9 million from SEK 20.4 million a year earlier, even as quarterly antenna output increased by about one-third. Results released on October 22 and discussed on October 23 also outlined stronger Valeo demand, further capacity expansion and a proposed capital raising.
Key Takeaways
- Higher antenna volumes have not yet replaced lost project and production-equipment revenue.
- Valeo demand is driving capacity expansion, while Desay SV production is planned for Q1 2027.
- Losses and ramp-up costs persist as Gapwaves seeks funding and develops counter-drone applications.
Table of Contents
- Gapwaves earnings expose the gap between volume and revenue
- Valeo demand drives the next capacity expansion
- Higher output does not yet establish a path to profit
- Funding plans accompany the Sensrad exit
- Conclusion
Gapwaves earnings expose the gap between volume and revenue
Gapwaves’ third-quarter interim results show a business shifting toward series production. Product sales became its largest revenue stream, but their growth did not fully replace the equipment sales and higher development-project revenue included in the year-earlier quarter.
Production using Gapwaves technology rose to 1.6 million antennas in Q3 from 1.2 million in Q2. Year-to-date output reached 3.6 million, mainly through HELLA’s licensed production and the Valeo production program in China. Management expects more than 4.5 million antennas to be produced during 2026.
Adjusted EBITDA, which excludes results from associated companies, improved to a loss of SEK 14.2 million from a loss of SEK 15.3 million. Reported EBITDA nevertheless deteriorated, underscoring the distinction between the adjusted operating measure and the wider financial result.
| Item | Details |
|---|---|
| Q3 reported EBITDA | Loss of SEK 19.5 million, versus a loss of SEK 17.7 million a year earlier. |
| Q3 net result | Loss of SEK 38.8 million, versus a loss of SEK 19.1 million. |
| Quarter-end cash and cash equivalents | SEK 47.0 million, versus SEK 28.0 million a year earlier. |
| January–September net sales | SEK 40.9 million, down 39.1% from SEK 67.2 million. |
Valeo demand drives the next capacity expansion
Gapwaves said it expects to deliver nearly twice as many antennas to Valeo in 2026 as originally planned. The company has also begun developing antennas for Valeo’s next-generation radar sensors, extending the relationship beyond current products.
Additional production equipment ordered by Frencken is scheduled to enter operation at the end of 2027, enabling higher volumes from 2028. Management described the addition as roughly 3.5 million antennas of annual capacity within an existing high-volume line designed ultimately to reach about 10 million units a year—not a separate new line.
A supply agreement with Desay SV adds another customer program. Gapwaves antennas will be integrated into radar products for a global Asian vehicle manufacturer, with the start of production planned for the first quarter of 2027.
Higher output does not yet establish a path to profit
CFO Niels Muskar said production yields remained below the required level during the ramp-up, while scrapping and inventory write-downs weighed on gross margin. Gapwaves is working to reduce product costs and improve yields.
Muskar declined to say whether annual production of 10 million antennas would make the company profitable at the operating level, citing too many variables. CEO Jonas Ehinger said that volume would be an important contribution, but other products would also be needed.
Management is pursuing radar seekers for counter-drone systems as a potentially higher-margin complement to automotive antennas. Ehinger described lower prospective volumes but significantly higher pricing and margins. He expected initial prototype contracts relatively soon and possible supply within a year; those expectations are not completed commercial orders.
Funding plans accompany the Sensrad exit
Gapwaves proposed a rights issue exceeding SEK 60 million to support expansion. The financing remains a proposed transaction rather than completed funding and could dilute shareholders who do not participate.
The company also transferred its 30% stake in Sensrad to principal owner Qamcom on October 22 for SEK 1, after fully writing down the shares and outstanding shareholder loans. Gapwaves cited weaker-than-expected sales and increased competition, and said it would provide no further capital.
The transfer retains a conditional recovery mechanism: if Qamcom sells all or part of Sensrad’s shares or assets before December 31, 2028, Gapwaves is entitled to 30% of the consideration Qamcom receives. That preserves a possibility of recovery without committing additional funding.
Conclusion
The next scheduled customer milestone is Desay SV’s planned production start in Q1 2027. Before then, Gapwaves earnings will depend on how quickly rising automotive volumes translate into product revenue and better production yields, while the proposed rights issue remains a financing step to watch.
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