Stonegate Capital Partners Updates Coverage on Valens Semiconductor Ltd. (VLN) Q2 25

Rhea-AI Summary

Valens Semiconductor (NYSE:VLN) reported strong Q2 2025 financial results, with revenue reaching $17.1M, exceeding guidance of $16.5-$16.8M and marking the fifth consecutive quarter of growth. The company demonstrated year-over-year revenue growth of 26% from $13.6M in Q2 2024.

Key performance metrics include a GAAP gross margin of 63.5% (non-GAAP 67.2%), improving from 62.9% in Q1 2025. The adjusted EBITDA loss narrowed to $(4.0)M, better than the guided range of $(4.9)-$(4.4)M and improved from $(5.2)M in the previous year.

Notable developments include the launch of the first MIPI A-PHY standard platform in industrial machine vision and expansion of VS3000-based products to approximately 150, though tariff impacts continue to affect the automotive segment.

Positive

• Revenue of $17.1M exceeded guidance and grew 26% year-over-year
• Gross margin improved to 63.5% GAAP (67.2% non-GAAP) from 62.9% in Q1
• Adjusted EBITDA loss improved to $(4.0)M from $(5.2)M last year
• Expanded VS3000-based product portfolio to ~150 products
• Successfully launched first MIPI A-PHY standard platform

Negative

• Company continues to operate at a loss with $(4.0)M adjusted EBITDA loss
• Facing headwinds from tariff impacts, particularly in automotive segment
• Uncertain outlook for end of FY25

Dallas, Texas--(Newsfile Corp. - August 12, 2025) - Valens Semiconductor Ltd. (NYSE: VLN): Stonegate Capital Partners updates their coverage on Valens Semiconductor Ltd. (NYSE: VLN). Valens Semiconductor posted 2Q25 revenue of $17.1M, above guidance of $16.5- $16.8M, marking its fifth consecutive quarter of growth and up from $16.8M in 1Q25 and $13.6M in 2Q24. GAAP gross margin was 63.5% (non-GAAP 67.2%), within guidance and up from 62.9% in 1Q25. Adjusted EBITDA loss of $(4.0)M was better than the expected $(4.9)-$(4.4)M range. While momentum remains strong, tariff impacts, most notable in automotives, continue to pose a headwind for the Company. Overall, we are impressed with the quarter, see an uncertain end to FY25, and expect steady growth through 2026 and beyond as ProAV inventories correct, the automotive outlook improves, and machine vision markets come into focus.

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

Key Takeaways:

• Second quarter revenue of $17.1M exceeded guidance, up 26% Y/Y, driven by strong ProAV and industrial demand.
• Adjusted EBITDA loss improved to $(4.0)M, beating guidance and down from $(5.2)M last year.
• Launched first MIPI A-PHY standard platform in industrial machine vision and expanded VS3000-based products to ~150.

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/262181

FAQ

What were Valens Semiconductor's (VLN) Q2 2025 earnings results?

Valens reported Q2 2025 revenue of $17.1M, up 26% year-over-year, with a GAAP gross margin of 63.5% and adjusted EBITDA loss of $(4.0)M.

How did VLN perform compared to its guidance in Q2 2025?

VLN exceeded its revenue guidance of $16.5-$16.8M with actual revenue of $17.1M, and beat adjusted EBITDA loss guidance of $(4.9)-$(4.4)M with actual loss of $(4.0)M.

What are the main challenges facing Valens Semiconductor in 2025?

The main challenges include tariff impacts affecting the automotive segment and uncertainty for the end of FY25, though the company expects steady growth through 2026.

What strategic developments did VLN announce in Q2 2025?

VLN launched its first MIPI A-PHY standard platform in industrial machine vision and expanded its VS3000-based product portfolio to approximately 150 products.

How has Valens Semiconductor's revenue growth trended in recent quarters?

VLN has achieved five consecutive quarters of growth, with Q2 2025 revenue of $17.1M representing an increase from $16.8M in Q1 2025 and $13.6M in Q2 2024.