A Wavelet model is a type of basis function model that is useful for data that contain a lot of peaks. This option requires data to be on an evenly spaced grid. If data is not evenly spaced, a grid is automatically created before the wavelet routine. JMP Pro Functional Data Explorer handles and creates reports for Wavelet models.
See how Wavelet models work, and why they work so well for modeling data with sharp peaks, like spectroscopy data. A demonstration is included at timestamp 7:03.
If you are not familiar with basis function models for FDA, consider viewing A Deeper Dive into Basis Function Expansion Models for Functional Data Analysis video.