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

• Market Cap: kr396.80M
• Dividend Yield: N/A
• Average Volume (3M): 86.36K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.42
• 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: kr10.50 ▼(-30.00% 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

Low leverage; sizable equity base

A strong equity base and very low debt provide durable financial flexibility, giving the company runway to fund R&D, absorb development cycles and pursue design-in opportunities without immediate refinancing pressure. This supports long-term strategy execution and preserves negotiating leverage with partners.

Accelerating revenue growth

Improving top-line momentum signals growing customer adoption or successful design wins, which is fundamental to transitioning from engineering projects to recurring product revenue. Sustained revenue acceleration is a prerequisite for scaling manufacturing and achieving positive unit economics over the medium term.

Specialized mmWave waveguide technology

Proprietary waveguide and antenna capabilities address structural industry demand for high-frequency solutions in 5G/6G and sensing. This technological specialization creates a durable competitive edge for integration into radios and modules, underpinning long-term engineering services and potential volume programs.

Negative Factors

Persistent negative cash flow

Consistent operating and free cash outflows indicate the business currently consumes cash rather than self-funds growth. Over months this reduces runway, increases reliance on external financing or equity raises, and constrains the company's ability to scale production or invest in commercialisation without diluting shareholders.

Negative gross profit & large losses

Negative gross profit shows unit economics are currently unfavourable, meaning revenue growth doesn't cover direct costs. This structural margin deficit must be corrected via cost reductions, pricing power, or scale; otherwise the company cannot reach sustained profitability even with higher revenues.

Deeply negative returns on equity

Very negative ROE signals shareholder capital is being eroded by losses, which undermines long-term capital strength. If persistent, this erosion can force dilutive financing, limit strategic investments, and weaken the balance sheet's protective value despite low leverage.

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 makes money by selling high-frequency hardware and related development work to customers that integrate these components into wireless products and systems. Primary revenue streams typically include: (1) product revenue from the sale of waveguides, antenna arrays, and associated RF components/modules designed around the company’s waveguide platform; (2) engineering and development revenue from customer-funded design-in projects, prototyping, and customization where Gapwaves adapts its antenna/waveguide solutions to a specific customer’s radio architecture, form factor, or frequency band; and (3) potential volume/production revenue when a customer program moves from prototype/validation into serial manufacturing, leading to recurring sales tied to the customer’s end-product shipments. Earnings are influenced by the company’s ability to secure design wins, convert them into high-volume programs, maintain manufacturability/cost targets for its solutions, and form commercial collaborations with semiconductor, radio, or system vendors that drive adoption in 5G/6G and other mmWave markets.

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: Negative
• Last Price: 15.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:GAPW.B, the sentiment is Negative. The current price of 15 is above the 20-day moving average (MA) of 11.48, above the 50-day MA of 12.62, and below the 200-day MA of 15.95, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 41.87 is Neutral, neither overbought nor oversold. The STOCH value of 14.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	kr367.04M	32.02	―	―	10.55%	―
ALCA	57 Neutral	kr801.51M	-55.21	―	―	-7.91%	-33.91%
KEBNI.B	50 Neutral	kr361.18M	-22.37	8.68%	―	9.30%	―
MAVEN	47 Neutral	kr271.99M	-18.80	-5.81%	―	-9.79%	-144.24%
GAPW.B	43 Neutral	kr396.80M	-8.02	-52.89%	―	53.78%	19.38%