Shares of Sivers Semiconductors cratered 15.6% to SEK 29.88 on August 28 after the Swedish chipmaker's Q2 report delivered a cocktail of falling revenue, deeper losses, and a bottom line weighed down by a large non-cash charge. The sell-off raises a pointed question: how long can investors subsidize a transition story before demanding proof?
Shrinking Sales Expose the Cost of Pivoting Away From Development Contracts
Net sales fell 12% year over year to SEK 53.8 million (10% in constant-currency terms). The culprit: Sivers is deliberately shifting from one-off development-services revenue toward scalable product sales, and the wind-down of those engineering contracts dragged down the top line. Adjusted EBITDA — operating profit before depreciation and one-time items — worsened to negative SEK 35.5 million. Headline EBITDA hit negative SEK 98.3 million, bloated by a SEK 42.9 million non-cash social-security expense. For shareholders, the math is simple: costs are rising while revenue shrinks.
Product Revenue Is Growing, But Not Fast Enough to Fill the Gap
Product and hardware revenue rose 13% year over year — or 18% adjusted for currency swings — a bright spot management leaned on heavily. Yet the quarter was still weaker on both revenue and adjusted EBITDA than a year earlier, and the most important trend was the widening gap between total revenue and product revenue. Until product sales replace the development income being shed, losses will keep compounding.
A Record Pipeline Doesn't Pay the Bills Today
The company's opportunity pipeline ballooned to USD 1.2 billion by July, up 268% from year-end 2025.
Sivers also identified a new USD 4 billion addressable market for optical amplifiers used in AI data-center switches. Those are impressive numbers on paper, but pipelines are projections, not purchase orders. CEO Vickram Vathulya said the company is "consciously reallocating resources to support several customer programs that are advancing toward production."
Debt-to-Equity Conversion Buys Time — At a Price
Lender Bootstrap Europe converted its USD 12 million loan into equity , and also exercised all its warrants. That cleans up the balance sheet but dilutes existing shareholders. Management says their "North Star remains delivering to our long-term financial model from 2028 onwards" — meaning investors face at least 18 more months of cash burn before the payoff, if it comes at all. The stock hit SEK 110 as recently as June 3 ; at today's price, roughly 73% of that peak value has evaporated.