Stonegate Capital Partners Updates Coverage on Valens Semiconductor Ltd. (VLN) Q3 25

Rhea-AI Summary

Valens Semiconductor (NYSE: VLN) reported 3Q25 results that beat guidance and show continued momentum. Revenue was $17.3M, above guidance of $15.1–$15.6M and up from $17.1M in 2Q25 and $16.0M in 3Q24, marking a sixth consecutive quarter of growth. GAAP gross margin was 63.0% (non‑GAAP 66.7%), modestly below last quarter's 63.5% GAAP level but above guidance.

Adjusted EBITDA loss narrowed to $(4.3)M, better than the expected $(7.4)–$(6.8)M range. Management guided 4Q25 revenue of $18.2M–$18.9M, expects full‑year growth near 20% y/y, and ended the quarter with $93.5M cash and no debt. Tariff impacts in automotive remain a headwind and visibility into year‑end is mixed, while ProAV, machine vision, and medical programs are expected to ramp into 2026.

Positive

• Revenue $17.3M, above guidance
• Sixth consecutive quarter of revenue growth
• GAAP gross margin 63.0% (non‑GAAP 66.7%) above guidance
• Adjusted EBITDA loss improved to $(4.3)M
• Ended quarter with $93.5M cash and no debt
• 4Q25 revenue guide $18.2M–$18.9M; FY growth ~20% y/y

Negative

• Tariff impacts in automotive pose ongoing headwind
• Mixed visibility into year‑end outlook
• GAAP gross margin eased from 63.5% to 63.0% QoQ
• Adjusted EBITDA remains a loss of $(4.3)M

Dallas, Texas--(Newsfile Corp. - November 12, 2025) - Valens Semiconductor Ltd. (NYSE: VLN): Stonegate Capital Partners updates their coverage on Valens Semiconductor Ltd. (NYSE: VLN). Valens Semiconductor posted 3Q25 revenue of $17.3M, significantly above guidance of $15.1-$15.6M, marking its sixth consecutive quarter of growth and up from $17.1M in 2Q25 and $16.0M in 3Q24. GAAP gross margin was 63.0% (non- GAAP 66.7%), exceeding guidance while easing slightly from 63.5% in 2Q25. Adjusted EBITDA loss of $(4.3)M was better than the expected $(7.4)-$(6.8)M range. While momentum remains strong, tariff impacts, most notable in automotives, continue to pose a headwind for the Company. Overall, we see mixed visibility into year-end but expect steady growth through 2026 as ProAV normalizes and as machine vision and medical programs ramp, with automotive stabilizing alongside ongoing A-PHY ecosystem progress.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• In 3Q25, VLN reported revenue of $17.3M, topping guidance and marking a sixth straight quarter of growth.
• Gross margin landed at 63.0% GAAP and 66.7% non GAAP, above guidance.
• Management guided 4Q25 revenue to $18.2M to $18.9M and expects full year growth near 20% y/y while ending the quarter with $93.5M in cash and no debt.

Click image above to view full announcement.

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About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/274216

FAQ

What were Valens Semiconductor (VLN) 3Q25 revenue and guidance comparisons?

VLN reported $17.3M revenue in 3Q25, above guidance of $15.1M–$15.6M.

How did Valens (VLN) report margins and EBITDA in 3Q25?

GAAP gross margin was 63.0% (non‑GAAP 66.7%) and adjusted EBITDA loss was $(4.3)M.

What guidance did Valens (VLN) give for 4Q25 and full year growth?

Management guided 4Q25 revenue of $18.2M–$18.9M and expects full‑year growth near 20% y/y.

What is Valens (VLN) balance sheet position at the end of 3Q25?

The company ended the quarter with $93.5M cash and reported no debt.

What are the main near‑term risks for Valens (VLN) noted in the update?

Tariff impacts in the automotive end market and mixed year‑end visibility were cited as headwinds.

Which end markets does Valens (VLN) expect to drive growth into 2026?

Management expects normalization in ProAV and ramping of machine vision and medical programs to support growth.