Gapwaves AB Class B (GAPW.B) AI Stock Analysis

• Market Cap: kr457.85M
• Dividend Yield: N/A
• Average Volume (3M): 86.36K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.52
• Revenue Growth: 53.78%
• EPS Growth: 19.38%
• Country: SE
• Employees: 45
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.60
• Shares Outstanding: 28,719,849
• 10 Day Avg. Volume: 81,025
• 30 Day Avg. Volume: 86,361
• PEG Ratio: -0.67
• Price to Book (P/B): 3.98
• Price to Sales (P/S): 5.16
• P/FCF Ratio: -14.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.79
• Revenue Forecast (FY): kr114.50M

• Rating: 43 Neutral
• Price Target: kr10.00 ▼(-33.33% Downside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is held back primarily by persistent losses and ongoing cash burn, with technicals also weak as the stock trades below all key moving averages and shows bearish momentum. A relatively low-leverage balance sheet provides some offset, but valuation is difficult to support while earnings remain negative.

Positive Factors

Revenue acceleration

Modest but clear top-line acceleration in 2025 indicates improving commercial traction and successful early design‑win activity. Sustained revenue growth is a durable sign that engineering efforts and customer validation are progressing toward repeatable product sales and potential volume programs.

Relatively strong balance sheet

A sizable equity base and low leverage provide financial resilience against ongoing operating losses, supporting R&D and commercialization efforts without immediate refinancing. This structural strength increases runway and optionality for strategic partnerships or staged scaling as revenues grow.

Strategic mmWave positioning

Focus on waveguides and antennas for mmWave 5G/6G targets a structural, multi‑year market expansion in high‑frequency infrastructure and sensing. Owning specialized RF technology and IP in a growing TAM supports durable demand potential if the company converts design wins into production.

Negative Factors

Persistent cash burn

Consistently negative operating and free cash flow show the business is not self‑funding and relies on external capital to sustain operations. Over a multi‑month horizon this cash burn limits flexibility, raises dilution or refinancing risk, and pressures the company to convert design work into high‑volume revenue quickly.

Negative gross profit and large losses

Negative gross margin and deep net losses indicate unit economics are currently unfavorable and that scale or cost structure improvements are required. Without durable gross‑profit recovery, revenue growth alone will not lead to sustainable profitability over the medium term.

Deeply negative ROE

Very negative returns on equity signal shareholder value destruction and imply the balance sheet buffer can erode if losses persist. This structural weakness can hinder capital raising and bargaining power in partnerships, increasing execution risk for scaling manufacturing and commercial programs.

Gapwaves AB Class B Business Overview & Revenue Model

Company Description

Gapwaves AB (publ) provides waveguide and antenna products. It offers radar antennas, 5G phased arrays, flat panel antennas, flange adapters, and waveguide filters. The company was incorporated in 2011 and is headquartered in Gothenburg, Sweden.

How the Company Makes Money

Gapwaves AB generates revenue primarily through the design, production, and sale of antennas and related components using its unique Gapwaves waveguide technology. The company's key revenue streams include the sale of antennas for automotive radar systems, which are increasingly in demand due to the growth of autonomous driving technologies, and telecommunications infrastructure. Gapwaves also engages in partnerships and collaborations with major players in the automotive and telecommunications industries to integrate its technology into their products, thereby expanding its market reach and revenue potential. Additionally, the company may earn income from licensing its patented technology to other manufacturers, providing an additional stream of revenue.

Gapwaves AB Class B Financial Statement Overview

Summary

Despite modest revenue acceleration in 2025, profitability remains very weak (gross profit turned negative and net losses stayed large) and cash flow is consistently negative with ongoing operating cash burn. The balance sheet is a relative strength with low leverage and a solid equity base, but persistent losses and deeply negative ROE are a material risk.

Income Statement

Revenue growth accelerated in 2025 (up ~6.8% vs ~1.4% in 2024), indicating some top-line traction. However, profitability remains very weak: 2025 gross profit turned negative and operating losses persisted, with net losses still large (net margin roughly -64% in 2025 after ~-79% in 2024). Overall, the company is growing revenue modestly but has not demonstrated a stable or improving earnings profile.

Balance Sheet

The balance sheet is a relative strength, supported by a sizable equity base (equity ~117m vs assets ~166m in 2025) and low leverage (debt-to-equity ~0.12 in 2025; zero debt in several prior years). The key weakness is poor shareholder returns, as ongoing losses drive deeply negative returns on equity (around -50% in 2024–2025), which can erode balance-sheet strength over time if losses continue.

Cash Flow

Cash generation is a major pressure point: operating cash flow and free cash flow were negative across all years shown, including 2025 (operating cash flow about -30.6m; free cash flow about -32.5m). While free cash flow improved versus 2024 (positive growth rate), the business still consumes cash, and the negative operating cash flow relative to net income indicates ongoing burn rather than self-funding operations.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	90.55M	66.08M	27.51M	64.02M	34.86M
Gross Profit	-46.98M	42.70M	-22.41M	43.18M	21.83M
EBITDA	-31.34M	-42.42M	-60.73M	-14.19M	-34.87M
Net Income	-58.24M	-52.07M	-69.23M	-15.34M	-36.31M
Balance Sheet
Total Assets	165.79M	130.99M	171.58M	251.51M	253.59M
Cash, Cash Equivalents and Short-Term Investments	87.15M	40.75M	89.33M	185.43M	211.16M
Total Debt	13.52M	0.00	0.00	0.00	1.46M
Total Liabilities	48.52M	28.42M	18.27M	29.63M	25.51M
Stockholders Equity	117.27M	102.57M	153.31M	221.88M	228.08M
Cash Flow
Free Cash Flow	-32.53M	-29.89M	-49.10M	-23.89M	-50.73M
Operating Cash Flow	-30.56M	-28.06M	-47.52M	-23.39M	-41.61M
Investing Cash Flow	-6.93M	-21.28M	-48.57M	-2.11M	-10.21M
Financing Cash Flow	85.13M	0.00	0.00	-229.00K	185.12M

Gapwaves AB Class B Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:GAPW.B, the sentiment is Neutral. The current price of 15 is above the 20-day moving average (MA) of 11.83, above the 50-day MA of 13.76, and below the 200-day MA of 16.02, indicating a neutral trend. The MACD of -0.82 indicates Negative momentum. The RSI at 53.23 is Neutral, neither overbought nor oversold. The STOCH value of 83.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:GAPW.B.

Gapwaves AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WAYS	60 Neutral	kr313.11M	30.42	―	―	10.55%	―
ALCA	57 Neutral	kr688.76M	-61.49	―	―	-7.91%	-33.91%
KEBNI.B	50 Neutral	kr400.58M	-2,091.43	8.68%	―	9.30%	―
MAVEN	44 Neutral	kr211.08M	-14.26	-5.81%	―	-9.79%	-144.24%
GAPW.B	43 Neutral	kr457.85M	-6.89	-52.89%	―	53.78%	19.38%