Stonegate Capital Partners Updates Coverage on Valens Semiconductor Ltd. (VLN) 1Q26

Rhea-AI Summary

Valens Semiconductor (NYSE: VLN) reported 1Q26 revenue of $16.9M, versus $19.4M in 4Q25 and $16.8M in 1Q25. GAAP gross margin was 62.2%, above 57.0%-59.0% guidance, and adjusted EBITDA loss was $(5.5)M, better than the guided $(7.9)M-$(7.5)M.

Management reiterated FY26 revenue guidance of $75.0M-$77.0M and highlighted expected 2H26 acceleration driven by CIB and ProAV growth, plus automotive and VA7000 opportunities.

AI-generated analysis. Not financial advice.

Positive

• 1Q26 gross margin 62.2%, above 57.0%-59.0% guidance
• Adjusted EBITDA loss $(5.5)M, better than $(7.9)M-$(7.5)M guidance
• FY26 revenue guidance reiterated at $75.0M-$77.0M
• Automotive revenue increased to $5.9M in 1Q26

Negative

• Revenue declined to $16.9M from $19.4M in 4Q25
• Company reported an adjusted EBITDA loss of $(5.5)M
• Broader supply-chain conditions remain an area to monitor
• VA7000 revenue contribution expected to remain several quarters out
• 2H26 acceleration is key to the thesis, increasing execution dependence

Key Figures

1Q26 revenue: $16.9M 4Q25 revenue: $19.4M GAAP gross margin: 62.2% +5 more

8 metrics

1Q26 revenue $16.9M 1Q26 results vs $19.4M in 4Q25 and $16.8M in 1Q25

4Q25 revenue $19.4M 4Q25 results referenced for sequential comparison

GAAP gross margin 62.2% 1Q26, above 57.0%–59.0% guidance range

Adjusted EBITDA loss $(5.5)M 1Q26, better than $(7.9)M–$(7.5)M guided loss

FY26 revenue guidance $75.0M–$77.0M Management reiterated full-year 2026 revenue guidance

Automotive revenue $5.9M 1Q26 automotive segment revenue noted as having grown

GM guidance range 57.0%–59.0% 1Q26 GAAP gross margin guidance range

EBITDA loss guidance $(7.9)M–$(7.5)M Prior 1Q26 adjusted EBITDA loss guidance range

Market Reality Check

Price: $2.70 Vol: Volume 3,650,905 is at 0....

normal vol

$2.70 Last Close

Volume Volume 3,650,905 is at 0.86x the 20-day average of 4,269,843, indicating no unusual trading activity. normal

Technical Shares at 2.70 are trading above the 200-day MA of 1.74 but are 19.16% below the 52-week high and well above the 52-week low.

Peers on Argus

VLN fell 5.26% while peers showed mixed moves: MRAM (-17.43%), SQNS (-0.78%), NA...

1 Up 3 Down

VLN fell 5.26% while peers showed mixed moves: MRAM (-17.43%), SQNS (-0.78%), NA (+18.89%), and WOLF (+9.10%). Momentum data show several semis down (e.g., MRAM -4.73%, NA -5.00%, GSIT -1.96%) but WOLF up 2.25%, suggesting VLN’s decline diverges from a uniform sector trend.

Historical Context

5 past events · Latest: Apr 20 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Apr 20	Earnings date notice	Neutral	-3.3%	Announced timing and webcast details for 1Q26 results release.
Feb 26	Analyst coverage update	Positive	+3.9%	Stonegate note on Q4 beat, 2026 growth outlook, and cost-saving actions.
Feb 25	Earnings release	Positive	+0.7%	Reported Q4 and 2025 revenue beats and issued 2026 revenue guidance.
Feb 18	Product launch	Positive	+2.0%	MCNEX launched cameras using Valens’ VA7000 A‑PHY chipsets.
Jan 29	Earnings date notice	Neutral	-0.6%	Set date and call details for Q4 and full-year 2025 results.

Pattern Detected

Recent fundamentally positive news (coverage updates, product launches, earnings beats) generally coincided with modest positive price reactions, while neutral scheduling announcements saw small, mixed moves.

Recent Company History

Over the last few months, Valens reported Q4 2025 revenue of $19.4M and full-year 2025 revenue of $70.6M, beating guidance and setting 2026 revenue expectations at $75.0M–$77.0M. A follow-up Stonegate coverage note highlighted that Q4 revenue topped guidance. The company also announced MCNEX camera products using its VA7000 A‑PHY chipsets, indicating automotive traction. Today’s Stonegate update on 1Q26 results, reiterating the same FY26 revenue guidance, fits this ongoing narrative of measured growth and product-cycle execution.

Market Pulse Summary

This announcement underscores that Valens delivered 1Q26 revenue of $16.9M, with GAAP gross margin o...

Analysis

This announcement underscores that Valens delivered 1Q26 revenue of $16.9M, with GAAP gross margin of 62.2% above the guided 57.0%–59.0% and an adjusted EBITDA loss of $(5.5)M, better than expectations. Management reiterated FY26 revenue guidance of $75.0M–$77.0M and emphasized a stronger 2H26 driven by CIB, ProAV, and automotive momentum. Against recent earnings beats and new automotive design wins, investors may watch execution on the expected back‑half acceleration and segment-level growth trends.

Key Terms

GAAP gross margin, adjusted EBITDA

2 terms

GAAP gross margin financial

"GAAP gross margin was 62.2%, above guidance of 57.0%-59.0%."

GAAP gross margin is a financial measure that shows the percentage of revenue remaining after subtracting the costs directly associated with producing goods or services, calculated according to standard accounting rules. It indicates how efficiently a company is turning sales into profit before accounting for other expenses, and higher gross margins generally suggest better profitability potential. This metric helps investors assess a company's pricing power and cost management.

adjusted EBITDA financial

"Adjusted EBITDA loss was $(5.5)M, better than the guided range..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

AI-generated analysis. Not financial advice.

Dallas, Texas--(Newsfile Corp. - May 13, 2026) - Valens Semiconductor Ltd. (NYSE: VLN): Stonegate Capital Partners Updates Coverage on Valens Semiconductor Ltd. (NYSE: VLN). Valens Semiconductor reported 1Q26 revenue of $16.9M, compared with $19.4M in 4Q25 and $16.8M in 1Q25. GAAP gross margin was 62.2%, above guidance of 57.0%-59.0%. Adjusted EBITDA loss was $(5.5)M, better than the guided range of $(7.9)M to $(7.5)M. While revenue stepped down sequentially following a stronger 4Q25, results were modestly ahead of expectations and management reiterated FY26 revenue guidance of $75.0M-$77.0M. We continue to view 2026 as a year of measured recovery and product-cycle execution, with near-term growth expected to build through the year as CIB returns to sequential growth, automotive remains steady, and A-PHY ecosystem development continues. Management noted that the broader supply-chain conditions remain an area to monitor; importantly, management also stated that it does not see risk to meeting its full-year targets.

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

Key Takeaways:

• Execution remains ahead of plan despite a slower 1H setup. VLN delivered 1Q26 revenue of $16.9M, gross margin of 62.2% above guidance, and adjusted EBITDA loss of $(5.5)M, better than guided, while reiterating FY26 revenue guidance of $75.0M-$77.0M.
• 2H26 acceleration is the key thesis variable. Management expects a meaningfully stronger back half, driven by CIB sequential growth, ProAV momentum, and design wins/design-ins converting into customer launches in 3Q26 and 4Q26.
• Automotive and adjacent VA7000 markets support longer-duration optionality. Automotive revenue grew to $5.9M, while VA7000 traction in industrial machine vision and medical endoscopy expands the addressable opportunity beyond core A-PHY auto applications, though revenue contribution likely remains several quarters out.

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/297373

FAQ

What were Valens Semiconductor (VLN) 1Q26 earnings highlights?

Valens Semiconductor reported 1Q26 revenue of $16.9M and a GAAP gross margin of 62.2%. According to Valens, adjusted EBITDA loss was $(5.5)M, better than guidance, and full-year 2026 revenue guidance of $75.0M-$77.0M was reiterated.

How did Valens Semiconductor (VLN) 1Q26 revenue compare to previous quarters?

Valens Semiconductor posted 1Q26 revenue of $16.9M, down from $19.4M in 4Q25 and slightly above $16.8M in 1Q25. According to Valens, revenue stepped down sequentially following a stronger 4Q25 but was modestly ahead of expectations.

What FY26 revenue guidance did Valens Semiconductor (VLN) reaffirm on May 13, 2026?

Valens Semiconductor reaffirmed FY26 revenue guidance of $75.0M-$77.0M. According to Valens, management expects near-term growth to build through 2026, with a meaningfully stronger second half driven by CIB and ProAV momentum and design wins converting to launches.

What is driving the 2H26 growth outlook for Valens Semiconductor (VLN)?

Valens Semiconductor’s 2H26 outlook is driven by expected CIB sequential growth and ProAV momentum. According to Valens, additional support comes from design wins and design-ins that are anticipated to convert into customer launches in 3Q26 and 4Q26.

How did Valens Semiconductor’s (VLN) automotive segment perform in 1Q26?

Valens Semiconductor’s automotive revenue grew to $5.9M in 1Q26. According to Valens, VA7000 traction in industrial machine vision and medical endoscopy broadens its opportunity beyond core A-PHY auto applications, though meaningful revenue contribution is expected several quarters away.

What risks and dependencies did Valens Semiconductor (VLN) highlight for 2026 performance?

Valens Semiconductor noted broader supply-chain conditions as an area to monitor. According to Valens, the key thesis variable is 2H26 acceleration, though management stated it does not see risk to meeting full-year 2026 revenue targets.