Stonegate Capital Partners Updates Coverage on Valens Semiconductor Ltd. (VLN) Q425

Rhea-AI Summary

Valens Semiconductor (NYSE: VLN) reported 4Q25 revenue of $19.4M, above guidance of $18.2M–$18.9M and up from $17.3M in 3Q25 and $16.7M in 4Q24.

GAAP gross margin was 60.5% (non-GAAP 63.9%); adjusted EBITDA loss was $(4.3)M, inside guidance. Management cites near-term pressure from automotive tariffs and FX but expects steady 2026 growth as ProAV normalizes and machine vision, medical, and automotive ramp. Supportive actions include share repurchases and a $5M annual opex savings plan, plus a new automotive design win tied to China.

Positive

• 4Q25 revenue $19.4M, above guidance
• Seventh consecutive quarter of revenue growth
• GAAP gross margin 60.5%
• $5M annual opex savings plan
• New automotive design win tied to China

Negative

• Adjusted EBITDA loss of $(4.3)M
• Near-term headwinds from automotive tariffs
• Foreign exchange pressure weighing on results
• Visibility described as mixed for near term

Key Figures

Q4 2025 revenue: $19.4M Revenue guidance range: $18.2M–$18.9M Sequential revenue: $17.3M +5 more

8 metrics

Q4 2025 revenue $19.4M 4Q25, above guidance of $18.2M–$18.9M

Revenue guidance range $18.2M–$18.9M Company’s original 4Q25 revenue guidance

Sequential revenue $17.3M 3Q25 revenue vs 4Q25’s $19.4M

Prior-year quarter revenue $16.7M 4Q24 revenue vs 4Q25’s $19.4M

GAAP gross margin 60.5% 4Q25, exceeded guidance

Non-GAAP gross margin 63.9% 4Q25, above guidance

Adjusted EBITDA loss $(4.3)M 4Q25, within $(4.6)M–$(4.2)M guidance range

Opex savings plan $5M Planned annual operating expense savings

Market Reality Check

Price: $1.54 Vol: Volume 1,092,901 vs 20-da...

normal vol

$1.54 Last Close

Volume Volume 1,092,901 vs 20-day average 808,791 indicates elevated trading interest ahead of this update. normal

Technical Shares at $1.54 are trading below the $1.97 200-day moving average and remain well under the $3.34 52-week high.

Peers on Argus

VLN is up 0.65% while peers show mixed moves (e.g., SQNS up 10.95%, ALMU down 8....

1 Up

VLN is up 0.65% while peers show mixed moves (e.g., SQNS up 10.95%, ALMU down 8.81%, WOLF down 1.02%), pointing to stock-specific dynamics around this coverage update and recent earnings.

Historical Context

5 past events · Latest: Feb 25 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 25	Q4 2025 earnings	Positive	+0.7%	Beat on Q4 and 2025 revenue with improved margins and growth guidance.
Feb 18	Automotive camera launch	Positive	+2.0%	Launch of MCNEX cameras using VA7000 A-PHY chipsets for automotive ADAS.
Jan 29	Earnings call scheduling	Neutral	-0.6%	Announcement of date and time for Q4 and full-year 2025 results call.
Jan 28	Efficiency plan announcement	Negative	-3.8%	Operational efficiency plan with ~10% workforce reduction and $5M opex cuts.
Jan 12	Investor conferences	Neutral	-6.8%	Participation in upcoming virtual investor conferences and one-on-one meetings.

Pattern Detected

Recent positive product and earnings news for VLN tended to coincide with modest share gains, while operational changes and routine updates sometimes aligned with weakness, suggesting the stock reacts more favorably to clear growth milestones than to efficiency or scheduling announcements.

Recent Company History

Over the last few months, Valens reported Q4 and full-year 2025 results with revenue of $19.4M for the quarter and $70.6M for the year, beating guidance and extending a seven-quarter growth streak. It announced an operational efficiency plan targeting about $5M in annual opex savings and participated in investor conferences. A February MCNEX partnership launch highlighted automotive A-PHY adoption. Today’s Stonegate coverage update reiterates these trends—growth, cost discipline, and automotive traction—against a still-depressed share price versus the $3.34 52-week high.

Market Pulse Summary

This announcement highlights Stonegate’s updated view following Valens’ Q4 2025 revenue of $19.4M, a...

Analysis

This announcement highlights Stonegate’s updated view following Valens’ Q4 2025 revenue of $19.4M, ahead of $18.2M–$18.9M guidance, and solid gross margins of 60.5% GAAP and 63.9% non-GAAP. It underscores seven consecutive quarters of growth, an ongoing $5M annual opex savings plan, and new automotive wins tied to China. Investors may watch execution on automotive A-PHY programs, tariff and FX impacts, and progress in ProAV, machine vision, and medical through 2026.

Key Terms

gaap, nonGAAP, adjusted ebitda, fx, +1 more

5 terms

gaap financial

"GAAP gross margin was 60.5% (nonGAAP 63.9%), exceeding guidance..."

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

nonGAAP financial

"GAAP gross margin was 60.5% (nonGAAP 63.9%), exceeding guidance..."

Nongaap refers to company-reported financial measures that are adjusted from standard accounting rules to exclude certain items like one-time costs, stock-based pay, or restructuring charges. Investors use nongaap figures to see a company’s performance without irregular or non-cash items — like looking at a car’s fuel efficiency under typical driving rather than during a single long trip — but these numbers can vary by company and require comparison with standard GAAP results.

adjusted ebitda financial

"Adjusted EBITDA loss of $(4.3)M was within guidance..."

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.

fx financial

"...being modestly affected by tariffs in automotive and some FX pressure."

fx stands for foreign exchange, the system of buying, selling and converting one currency into another. For investors, fx matters because changes in exchange rates can raise or lower a company’s reported sales, costs and profits when business crosses borders—like how the same amount of money can buy more or less abroad—so movements in fx can affect earnings, valuation and investment returns.

machine vision technical

"...as ProAV normalizes, machine vision and medical ramp, and automotive stabilizes..."

Machine vision is technology that allows computers and machines to see, interpret, and analyze visual information from the world, much like how human eyes and brains work together. It enables automated systems to recognize objects, read signs, or inspect products without human help. For investors, machine vision is important because it drives advancements in automation and artificial intelligence, influencing industries and business efficiency.

AI-generated analysis. Not financial advice.

Dallas, Texas--(Newsfile Corp. - February 26, 2026) - Valens Semiconductor Ltd.(NYSE: VLN): Stonegate Capital Partners Updates Coverage on Valens Semiconductor Ltd. (NYSE: VLN). Valens Semiconductor posted 4Q25 revenue of $19.4M, significantly above guidance of $18.2-$18.9M, marking its seventh consecutive quarter of growth and up from $17.3M in 3Q25 and $16.7M in 4Q24. GAAP gross margin was 60.5% (nonGAAP 63.9%), exceeding guidance while easing slightly from 63.0% in 3Q25. Adjusted EBITDA loss of $(4.3)M was within guidance of $(4.6)-$(4.2)M range. While momentum remains solid, near-term results are being modestly affected by tariffs in automotive and some FX pressure. Visibility remains mixed, but we expect steady growth through 2026 as ProAV normalizes, machine vision and medical ramp, and automotive stabilizes with continued A-PHY progress. Support also comes from share repurchases, a $5M annual opex savings plan, and a new automotive win tied to the Chinese market.

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

Key Takeaways:

• 4Q25 revenue beat guidance, marking seventh straight quarter of growth with solid margin execution.
• Automotive momentum improved with sequential revenue growth, better margins, and a new China-linked design win.
• Strong balance sheet and 2026 growth outlook offset near-term tariff, FX, and seasonal automotive headwinds.

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/285462

FAQ

What did Valens Semiconductor (VLN) report for 4Q25 revenue and margin?

Valens reported 4Q25 revenue of $19.4M and GAAP gross margin of 60.5%. According to the company, revenue beat guidance and marked the seventh straight quarter of growth, while non-GAAP margin was 63.9%.

How did Valens' adjusted EBITDA for 4Q25 compare to guidance (VLN)?

Valens posted an adjusted EBITDA loss of $(4.3)M, within guidance. According to the company, this result matched the $(4.6)M–$(4.2)M guidance range while reflecting near-term tariff and FX pressures.

What actions is Valens (VLN) taking to support 2026 growth and margins?

Valens is pursuing share repurchases and a $5M annual opex savings plan. According to the company, these moves, plus product ramps, aim to support steady growth and margin improvement in 2026.

What did Valens (VLN) report about automotive momentum and the China win?

Valens said automotive momentum improved with sequential revenue growth and better margins. According to the company, there is a new automotive design win tied to the Chinese market expected to aid commercialization.

How are tariffs and FX affecting Valens Semiconductor (VLN) near-term results?

Tariffs in automotive and some foreign exchange pressure are modestly affecting near-term results. According to the company, these headwinds are temporary while longer-term demand in ProAV, machine vision, and medical ramps.