Axial-flux permanent magnet (PM) synchronous machines are suitable for direct drive applications. Axial-flux PM synchronous machines with fractional windings provide high power density, low torque ripple, and sinusoidal phase voltages, but suffer from high rotor losses due to stator field harmonics and slotting. This paper formulates an electromagnetic model based on the polar coordinate representation of the air-gap magnetic field. No-load and load tests are carried out on a soft-magnetic composite stator axial-flux machine to validate the model. Rotor losses represent the largest loss figure in this machine. Most rotor losses are due to slotting harmonics.