This article first appeared on GuruFocus .
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Total Revenue:SEK 53.8 million in Q2 2026, down 12% year-over-year (approximately 10% decline adjusted for FX).
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Product Revenue:Increased 13% year-over-year, or 18% at constant FX.
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Adjusted EBITDA:Negative SEK 35.5 million, compared to negative SEK 20.9 million in the prior year.
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Social Security Expense:Recognized a non-cash SEK 42.9 million expense related to employee share-based incentive programs due to share price appreciation.
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Opportunity Pipeline:Expanded to $1.2 billion as of July 2026, a 268% increase from the end of 2025.
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Equity Capital Raised:Raised SEK 825 million in gross equity capital and converted a $12 million convertible loan into equity.
Release Date: August 27, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Opportunity pipeline expanded to $1.2 billion as of July 2026, a 268% increase from end of 2025, with strong momentum in both wireless and photonics.
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Product revenue grew 18% year-over-year at constant FX, reflecting successful transition from NRE to product-led business.
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Received production orders from Allspace and initial program orders from Seminex, with production orders imminent for LiDAR customer, signaling multi-year production cycles.
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Identified $4 billion new serviceable addressable market for semiconductor optical amplifiers in optical circuit switches for AI data centers.
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Strategic shift to hybrid manufacturing model with new foundry partner brings fresh capacity and global supply resilience, addressing indium phosphide shortage.
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Balance sheet significantly strengthened with $825 million SEC gross equity capital raised and conversion of $12 million convertible loan, providing financial flexibility for production ramps.
Negative Points
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Total revenue declined 12% year-over-year to $53.8 million SEC, primarily due to deliberate reduction in NRE activities and government-related delays.
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Adjusted EBITDA was negative $35.5 million SEC, worse than prior year, impacted by revenue timing effects and increased investments in growth.
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Q2 costs significantly impacted by non-cash Social Security expense of $42.9 million SEC due to share price increase, affecting reported operating expenses.
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Revenue inflection delayed to Q4 2026, with near-term revenue affected by conscious resource shift from NRE to product ramps.
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US federal defense budget delays and currency movements continued to negatively impact quarterly results.
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Potential US dual listing readiness work ongoing, with decision and timing not expected until early 2027, adding uncertainty.
Q & A Highlights
Q: Can you elaborate on the production capacity in relation to the opportunity pipeline, and how large a share of this pipeline could you realistically capture before production constraints become a limiting factor? A: Vickram Vathulya (CEO) stated that the current pipeline covers 2026 through 2030. Given the production capacity secured from their partners, they do not see production capacity becoming the limiting factor as they grow toward their revenue targets. He emphasized that capacity is not a bottleneck at this point in time.
Q: What additional factors will affect your decision to pursue the potential US NASDAQ listing? A: Heine Thorsgaard (CFO) explained that their current focus is on completing the readiness work, which is expected to be done by early 2027. Once that is complete, the decision to list will become a question of market conditions, investor demand, business momentum, and whether the listing would create long-term value for shareholders at that specific time.
Q: Which partner is currently closest to placing the next major production order? A: Vickram Vathulya (CEO) indicated that the next imminent production orders are expected from their strategic LiDAR customer, which they have been enabling for production ramps starting in Q4 2026. This order is expected to signal the start of a multi-year production cycle and be a strong revenue contributor for future years.
Q: Are you seeing traction with NPO customers, and how are engagements with CPO and pluggables progressing? A: Vickram Vathulya (CEO) confirmed they have engagements across all three areas. They have opened their aperture to work on pluggable opportunities, which are good sources of near-term revenue, and are seeing active engagement in pluggables and NPO. They are also well-equipped for CPO opportunities as they arise through their existing partner and customer engagements.
Q: Can you address the capacity planning and the indium phosphide shortage? A: Vickram Vathulya (CEO) stated they have very good supplier partnerships on the substrate and epitaxy sides. More importantly, their new foundry partner has brought on board tremendous capacity for indium phosphide laser design, allowing them to ramp up quickly on opportunities. The long-term model is for one-third of capacity to come from within Sivers and two-thirds from partners.
Q: As product shipments take over from custom engineering revenues, can you talk about your longer-term blended margins? A: Vickram Vathulya (CEO) reiterated that they are consciously migrating from NRE-based revenue to product-based revenue, which will drive margin expansion. The products business is definitely higher margin than the NRE business. He referenced the future financial model shown in the Q4 2025 earnings webinar as the type of margins they are targeting.
Q: How does customer acquisition work in photonics today? Are most opportunities inbound, and are you engaging directly with hyperscalers? A: Vickram Vathulya (CEO) answered that it is "all of the above." They participate in discussions across the entire ecosystem, including direct interactions with hyperscalers and engagement through optical suppliers and system partners, to understand the needs of the hour and ensure everyone is supported well.
Q: Do you have opportunities to sell lasers right away with the new partner capacity? A: Vickram Vathulya (CEO) confirmed yes. They have had an engagement with the new partner for a while, who is extremely motivated and has allocated tremendous capacity for Sivers. They can ramp new designs into production very quickly, though it is dependent on customer call cycles, which are an essential part of driving design activities into production.
Q: Is the expanded Sivers manufacturing related to the UK fab or a new facility? A: Vickram Vathulya (CEO) clarified that the expansion is related to expanding their Glasgow facility. The other part of the capacity comes from foundry partner capacity, which is outside of Glasgow.
Q: How confident are you in the pipeline execution? A: Vickram Vathulya (CEO) stated that the pipeline is their "lifeblood." The company is making short-term decisions to prioritize the conversion of that pipeline into products, production orders, and multi-year production cycles. Everyone in the company is focused on the horizons that matter, and everything else is considered noise.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
