Gapwaves AB

Gapwaves AB has a strong liquidity position with a current ratio of 3.47, indicating that the company has more than three times as many current assets as current liabilities. The company has no long-term debt, and its total liabilities are relatively low at 25.74 million SEK compared to total assets of 151.75 million SEK. However, the company has negative operating and free cash flows, with operating cash flow at -7.33 million SEK and free cash flow at -13.26 million SEK.

The company's profitability metrics are concerning, with a return on equity of -11.43% and a return on assets of -9.49%. These figures indicate that the company is not generating returns for its shareholders or effectively utilizing its assets. The operating income is negative at -10.62 million SEK, and the net income is also negative at -14.41 million SEK. These results are below the industry median for profitability metrics, suggesting that the company is underperforming relative to its peers.

Gapwaves AB's revenue is concentrated in a single business segment, as disclosed in its financial statements. The company does not provide detailed geographic revenue breakdowns, but its operations are primarily based in Sweden. This lack of geographic diversification could expose the company to regional economic risks, particularly in the technology sector where global demand is a key driver.

The company's growth trajectory is mixed. While the current fiscal year's revenue is reported at 14.49 million SEK, analyst estimates suggest a mean revenue of 105 million SEK for the next fiscal year. This represents a significant increase in revenue expectations, but the company's negative operating and net income suggest that profitability may not improve at the same rate. The mean EPS estimate is -0.90 SEK, which is an improvement from the last actual EPS of -1.87 SEK.

The risk assessment for Gapwaves AB indicates low liquidity and dilution risks. The company has no immediate filing-based liquidity or dilution flags, and its capital structure is relatively simple with no long-term debt. However, the negative operating and free cash flows could pose a risk to liquidity in the future if the company is unable to improve its cash generation. The dilution potential is also low, as the number of shares outstanding is the same for both basic and diluted shares.

Recent events and filings do not indicate any significant changes in the company's operations or financial position. The company's price targets from analysts range from 20.00 SEK to 24.00 SEK, with a mean and median of 22.00 SEK. These price targets suggest that analysts have a cautiously optimistic view of the company's future performance, despite its current financial challenges.

Revenue grew 37% year-over-year to SEK 90.6 million in fiscal 2026, demonstrating strong top-line expansion momentum.

The company maintains a zero debt-to-equity ratio, ranking in the top quartile of its communications cohort for leverage.

Gross profit reached SEK 43.5 million in fiscal 2026, indicating the ability to generate significant gross margins on sales.

Analyst consensus suggests a mean price target of SEK 22, implying potential upside from current market levels.

Risk flags for dilution, liquidity, and credit are all rated low, suggesting manageable operational and financial risks.

Cash conversion ratio of 0.51 is below the cohort median of 0.76, indicating weaker efficiency in converting sales to cash.

Revenue kr 18.8M, −17,4% YoY.

• ▍Revenue kr 18.8M, −17,4% YoY

Revenue kr 23.3M, +32,6% YoY; Operating income −46,4% YoY.

• ▍Revenue kr 23.3M, +32,6% YoY
• ▍Operating income −46,4% YoY
• ▍Net income −83,3% YoY
• ▍Free cash flow −94,6% YoY
• ▍Net margin -95.3%

Revenue kr 20.4M, +10,8% YoY; Operating income −99,2% YoY.

• ▍Revenue kr 20.4M, +10,8% YoY
• ▍Operating income −99,2% YoY
• ▍Net income −60,6% YoY
• ▍Free cash flow −65,6% YoY
• ▍Net margin -93.8%

Revenue kr 24.1M, +66,0% YoY; Operating income +48,5% YoY.

• ▍Revenue kr 24.1M, +66,0% YoY
• ▍Operating income +48,5% YoY
• ▍Net income +45,2% YoY
• ▍Free cash flow +45,8% YoY
• ▍Net margin -32.8%

Revenue kr 22.8M; Operating income -kr 4.2M.

• ▍Revenue kr 22.8M
• ▍Operating income -kr 4.2M
• ▍Net margin -39.5%

Revenue kr 17.6M; Operating income -kr 9.6M.

• ▍Revenue kr 17.6M
• ▍Operating income -kr 9.6M
• ▍Net margin -69.0%

Revenue kr 18.4M; Operating income -kr 8.5M.

• ▍Revenue kr 18.4M
• ▍Operating income -kr 8.5M
• ▍Net margin -64.7%

Revenue kr 14.5M; Operating income -kr 10.6M.

• ▍Revenue kr 14.5M
• ▍Operating income -kr 10.6M
• ▍Net margin -99.4%

Revenue kr 90.6M, +37,0% YoY; Operating income −3,1% YoY.

• ▍Revenue kr 90.6M, +37,0% YoY
• ▍Operating income −3,1% YoY
• ▍Net income −11,8% YoY
• ▍Free cash flow −14,9% YoY
• ▍Net margin -64.3%

Revenue kr 66.1M, +140,2% YoY; Operating income +30,7% YoY.

• ▍Revenue kr 66.1M, +140,2% YoY
• ▍Operating income +30,7% YoY
• ▍Net income +24,8% YoY
• ▍Free cash flow +25,3% YoY
• ▍Net margin -78.8%

Revenue kr 27.5M, −57,0% YoY; Operating income −149,6% YoY.

• ▍Revenue kr 27.5M, −57,0% YoY
• ▍Operating income −149,6% YoY
• ▍Net income −284,4% YoY
• ▍Free cash flow −413,9% YoY
• ▍Net margin -251.7%

Revenue kr 64.0M, +83,7% YoY; Operating income +37,2% YoY.

• ▍Revenue kr 64.0M, +83,7% YoY
• ▍Operating income +37,2% YoY
• ▍Net income +50,4% YoY
• ▍Free cash flow +69,3% YoY
• ▍Net margin -28.1%