Redeye states BeammWave’s report was insignificant, and the customer announced the morning after was the main event. Redeye views the signalling value of the undisclosed mmWave leader (turnover higher than USD10bn) as significant, as it already has an established market share. Thus, BeammWave would scale rapidly with each socket win. Redeye believes financing is decent, with existing warrants being in the money. Redeye raises its estimates and fair value range.

Beammwave

* Pre-revenue status with no consistent sales, generating negative cash flow and profits, which increases investment risk and potential for shareholder dilution.
* Lack of revenue diversification and heavy reliance on a single product line, making the company vulnerable to market fluctuations and competitive pressures.
* Potential for technological disruption from established players like Qualcomm, who may develop competing solutions.
* High dependence on key individuals for success, which could pose risks to long-term stability and growth.
* Operates in an industry with a historically lower median ROIC (around 14%), potentially limiting long-term profitability.

* Strong growth potential in a large addressable market, with the ability to scale operations without significant capital expenditure due to outsourced manufacturing.
* Positioned to capture significant value in the handset market with innovative beamforming technology, protected by a strong patent portfolio.
* Benefits from secular tailwinds in wireless connectivity, with increasing demand for higher frequency data transmission.
* Operates in a market with few dominant players, potentially allowing for easier market penetration and value capture.
* Demonstrates commitment to sustainability and customer-centric innovation, working closely with clients to develop products and solve future wireless connection challenges.

* Lack of profitability metrics, including operating margin, return on equity, and return on assets.
* Absence of consistent revenue and earnings growth, both falling short of industry averages and historical performance.
* Potential financial strain indicated by net debt exceeding operating and free cash flow thresholds.
* High likelihood of raising capital within 12 months, suggesting cash flow challenges.
* No dividend payments, limiting income potential for investors seeking regular payouts.

* Strong gross profit margin over 40%, indicating profitable product mix and pricing power.
* Healthy short-term liquidity with current assets 1.5 times greater than current liabilities.
* Efficient inventory and accounts receivable management, both below 20% of sales and 5-year averages.
* Minimal use of one-time charges, averaging less than 3% of sales over the past five years.
* Excellent operating and free cash flow conversion rates, both above 80% over the past five years.

* Lack of gender diversity in leadership, with only two females on the board and one in management, potentially limiting diverse perspectives and decision-making.
* As a start-up, BeammWave faces challenges in assessing return on investment and capital allocation effectiveness, given its binary nature of success or failure.
* Absence of sustainability-related performance incentives in executive compensation, potentially overlooking long-term environmental and social risks.
* Limited track record of CEO's capital allocation skills, as the primary focus appears to be on technology development rather than strategic capital deployment.
* Potential for dilution of shareholder value through share issuances, as the number of shares has increased without corresponding earnings per share growth.

* Strong visionary leadership with deep industry expertise, demonstrated by CEO Stefan Svedberg's long history in telecom and experience commercializing Bluetooth at Ericsson.
* Lean, self-directed organization with a well-defined strategic plan focused on developing innovative wireless technology and building strategic partnerships with multinational firms.
* Consistent delivery on promises and commitment to long-term value creation, evidenced by management's track record of meeting customer orders and communicating a realistic long-term vision.
* Significant insider ownership, including board members and management, aligning interests with shareholders and demonstrating confidence in the company's future.
* Board of directors with relevant experience in commercializing technologies and producing innovations, enhancing strategic oversight and mentorship capabilities.

SEKm	2023	2024Q4e	2024e	2025e	2025Q1e	2025Q2e	2025Q3e	2025Q4e	2026e
Revenues	14.0	4.8	16.7	22.0	3.2	6.2	3.2	10.2	92.6
Revenue Growth	-1.6%	86.4%	18.9%	32.0%	-39.3%	59.9%	9.6%	114%	321%
EBITDA	-20.9	-7.6	-20.9	-28.7	-9.2	-9.9	-8.6	-10.3	8.7
EBIT	-21.0	-7.6	-21.0	-29.6	-9.4	-10.1	-8.8	-10.5	4.1
EBIT Margin	-	-472%	-787%	-296%	-	-338%	-	-150%	5.1%
Net Income	-20.2	-7.6	-21.0	-29.6	-9.4	-10.1	-8.8	-10.5	4.1
EV/Sales	-	41.1	0.7	5.9	-	23.1	-	9.9	0.7
EV/EBIT	-6.4	-8.7	-0.1	-2.0	-7.3	-6.8	-7.8	-6.6	14.5

Order of USD150k announced — Low order value but significant verification value

Financing remains decent, with outstanding warrants in the money.

Increased confidence underpins estimate and fair value range revision

Key financials