Vickram Vathulya’s letter to shareholders, Interim Report Q4 2025
Record Q4 and Full Year Revenues, Strong Pipeline Growth, Continued Momentum with Partnerships and Product Revenues, New Sales Leadership, Expansion of Sales Team and R&D Acceleration
Highest to date Q4 revenues came in at 80.7 MSEK. Record Full year revenues at 304.1 MSEK increased by 25% over 2024 (+33% at constant currency). Q4 AEBITDA was +10.8 MSEK while annual AEBITDA improved by 31%.
Sivers product revenues for 2025 came in at 85.7 MSEK, a 13% increase over 2024 in constant currency, as we continue transforming to a products business. We are driving profitability improvements while increasing investment in key areas. Our opportunity pipeline, a key indicator of future revenues, increased by 64% in 2025 to $453M, ratifying the strength of our value proposition to our target customers.
Our Wireless business grew by 35% in 2025 and continues to rack up deals and pipeline momentum across key segments. With an expanding pipeline of US Defense projects at ALL.SPACE and recent US Army TRL6 (Technology Readiness Level 6) approval of their user terminal solution, we expect more shipments from second half of 2026.
Our engagements are accelerating with several European SATCOM terminal vendors. Three of them are proceeding to the RFP stage using Sivers based solutions for the IRIS2 satellite infrastructure program. We added to our SATCOM pipeline with the Antenna Array development partnership ($1.5M) with Doosan Corp. This expands our access to Korea which is a new hot bed of SATCOM activity. To support this growing pipeline, our standard beamformer and antenna panel samples are now available to accelerate customer design-in cycles and time to market. We are leveraging our strategic partnership with Digikey to broaden customer access, and our pipeline consequently.
In Fixed Wireless Access (FWA), our project for the Tier 1 Telecom Vendor remains on track to support product release to market by end of 2026. We also acquired significant production orders ($3M) to support a second customer, Tachyon networks, to deploy FWA with our 28 GHz wireless solution. Our approach supports our strategy of carefully orchestrating revenue momentum in FWA.
After stellar execution in the first year, we are in the final stages of contracting with US Chips Act for second year funding of $6.6M (20% higher funding than Year 1) for the Electronic Warfare (EW) program. We expect to announce the contract award soon. Additionally, our defense pipeline is expanding beyond the US Chips Act, with a new contract for $800K from a Tier 1 US supplier to defense primes.
Our Photonics business grew by 8% in 2025 driven by increased product sales to our foundry customers. In AI datacenters, our technical discussions with hyperscalers and pluggable transceiver makers consolidate our view of strong opportunities for Sivers CW lasers in the networking optical interconnect layer (Scale-out). The ecosystem needs CW lasers to implement higher optical interconnect speeds for Scale-Out and also adequate laser manufacturing capacity as they anticipate a supply crunch in the next 2-3 years as speed of AI datacenter deployments continues at breakneck pace.
We are currently sampling our CW DFB lasers to several pluggable transceiver manufacturers world-wide. As these engagements and evaluations progress, we expect a subset of these customers to commit to production plans with Sivers lasers in 2027. We also see expanded interest for CW DFB laser arrays for computing Scale-Up architectures. We have sampled POET with our CW DFB lasers for their Optical Engine product for lead customers. We continue work on qualifying our lasers to achieve production ready status in 2027.
A significant development is our lead customer in Automotive LIDAR is ramping up production with Sivers Optical Amplifiers and DFB lasers from Q4 2026 onwards. This has the potential to deliver cumulative revenues in the range of $28M to $53M over 2026-2030 timeframe.
We are now expanding our sales team and accelerating our R&D with a disciplined allocation of capital. We have hired Raymond Biagan, a seasoned sales veteran in our industry, to help expand our opportunity pipeline and increase conversion rates. Raymond is already well underway in his efforts to expand our sales presence with key hires in the US and China. Additionally, we are adding R&D talent in Bangalore to supplement our teams in Sweden and US for the Wireless business.
We have strengthened our balance sheet through refinancing with Bootstrap Europe on excellent terms, to replace all existing loans. We are leveraging our strong performance in 2025 into 2026. We have many more exciting deals in the works, a good backlog, strong team to deliver on our long-term strategic plan.
Vickram Vathulya, President and CEO