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Valens Semiconductor Reports First Quarter 2025 Results

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Valens Semiconductor (NYSE: VLN) reported Q1 2025 financial results with revenues of $16.8 million, exceeding guidance of $16.3-$16.6 million. The company achieved a GAAP gross margin of 62.9% and non-GAAP gross margin of 66.7%. Cross-Industry Business revenues accounted for 70% at $11.7 million, while Automotive revenues represented 30% at $5.1 million. The company reported a GAAP net loss of $(8.3) million and adjusted EBITDA loss of $(4.3) million. Cash balance stood at $112.5 million as of March 31, 2025. Notable developments include partnerships with Sennheiser, RGo Robotics, and CHERRY Embedded Solutions, as well as Mobileye integration announcements. The company launched a new $15 million share repurchase program and provided Q2 2025 guidance with revenues expected between $16.5-$16.8 million.
Valens Semiconductor (NYSE: VLN) ha comunicato i risultati finanziari del primo trimestre 2025 con ricavi pari a 16,8 milioni di dollari, superando le previsioni di 16,3-16,6 milioni di dollari. L'azienda ha registrato un margine lordo GAAP del 62,9% e un margine lordo non GAAP del 66,7%. I ricavi del settore cross-industriale hanno rappresentato il 70%, pari a 11,7 milioni di dollari, mentre quelli del settore automotive il 30%, ovvero 5,1 milioni di dollari. È stato riportato un perdita netta GAAP di 8,3 milioni di dollari e una perdita di EBITDA rettificato di 4,3 milioni di dollari. Al 31 marzo 2025, la liquidità disponibile era di 112,5 milioni di dollari. Tra gli sviluppi rilevanti ci sono le partnership con Sennheiser, RGo Robotics e CHERRY Embedded Solutions, oltre agli annunci di integrazione con Mobileye. L’azienda ha inoltre avviato un nuovo programma di riacquisto azionario da 15 milioni di dollari e fornito le previsioni per il secondo trimestre 2025, con ricavi attesi tra 16,5 e 16,8 milioni di dollari.
Valens Semiconductor (NYSE: VLN) informó los resultados financieros del primer trimestre de 2025 con ingresos de 16,8 millones de dólares, superando la guía de 16,3-16,6 millones de dólares. La compañía alcanzó un margen bruto GAAP del 62,9% y un margen bruto no GAAP del 66,7%. Los ingresos del negocio cross-industrial representaron el 70%, con 11,7 millones de dólares, mientras que los ingresos del sector automotriz fueron el 30%, con 5,1 millones de dólares. Se reportó una pérdida neta GAAP de 8,3 millones de dólares y una pérdida de EBITDA ajustado de 4,3 millones de dólares. El saldo de efectivo al 31 de marzo de 2025 fue de 112,5 millones de dólares. Entre los desarrollos destacados se incluyen asociaciones con Sennheiser, RGo Robotics y CHERRY Embedded Solutions, así como anuncios de integración con Mobileye. La compañía lanzó un nuevo programa de recompra de acciones por 15 millones de dólares y proporcionó una guía para el segundo trimestre de 2025 con ingresos esperados entre 16,5 y 16,8 millones de dólares.
Valens Semiconductor (NYSE: VLN)는 2025년 1분기 재무 실적을 발표하며 매출 1,680만 달러를 기록해 가이던스인 1,630만~1,660만 달러를 상회했습니다. 회사는 GAAP 기준 총이익률 62.9%와 비GAAP 기준 총이익률 66.7%를 달성했습니다. 크로스 인더스트리 사업부 매출은 70%인 1,170만 달러였으며, 자동차 부문 매출은 30%인 510만 달러를 차지했습니다. GAAP 기준 순손실은 830만 달러, 조정 EBITDA 손실은 430만 달러로 보고되었습니다. 2025년 3월 31일 기준 현금 잔액은 1억 1,250만 달러였습니다. 주요 발전 사항으로는 Sennheiser, RGo Robotics, CHERRY Embedded Solutions와의 파트너십 및 Mobileye 통합 발표가 포함됩니다. 또한 회사는 1,500만 달러 규모의 신규 자사주 매입 프로그램을 시작했으며, 2025년 2분기 매출은 1,650만~1,680만 달러로 예상된다고 가이던스를 제시했습니다.
Valens Semiconductor (NYSE : VLN) a publié ses résultats financiers du premier trimestre 2025 avec un chiffre d'affaires de 16,8 millions de dollars, dépassant les prévisions situées entre 16,3 et 16,6 millions de dollars. La société a réalisé une marge brute GAAP de 62,9% et une marge brute non GAAP de 66,7%. Les revenus du secteur inter-industries représentaient 70 % soit 11,7 millions de dollars, tandis que les revenus automobiles représentaient 30 % soit 5,1 millions de dollars. La société a enregistré une perte nette GAAP de 8,3 millions de dollars et une perte d'EBITDA ajusté de 4,3 millions de dollars. La trésorerie s'élevait à 112,5 millions de dollars au 31 mars 2025. Parmi les développements notables figurent des partenariats avec Sennheiser, RGo Robotics et CHERRY Embedded Solutions, ainsi que des annonces d'intégration avec Mobileye. La société a lancé un nouveau programme de rachat d'actions de 15 millions de dollars et a fourni des prévisions pour le deuxième trimestre 2025, avec des revenus attendus entre 16,5 et 16,8 millions de dollars.
Valens Semiconductor (NYSE: VLN) meldete die Finanzergebnisse für das erste Quartal 2025 mit Umsätzen von 16,8 Millionen US-Dollar, was die Prognose von 16,3 bis 16,6 Millionen US-Dollar übertraf. Das Unternehmen erreichte eine GAAP-Bruttomarge von 62,9% und eine Non-GAAP-Bruttomarge von 66,7%. Die Umsätze im Bereich Cross-Industry machten 70 % mit 11,7 Millionen US-Dollar aus, während der Automotive-Bereich 30 % mit 5,1 Millionen US-Dollar beitrug. Es wurde ein GAAP-Nettogewinn von -8,3 Millionen US-Dollar und ein bereinigtes EBITDA-Verlust von -4,3 Millionen US-Dollar gemeldet. Der Kassenbestand lag zum 31. März 2025 bei 112,5 Millionen US-Dollar. Zu den bemerkenswerten Entwicklungen zählen Partnerschaften mit Sennheiser, RGo Robotics und CHERRY Embedded Solutions sowie Ankündigungen zur Integration von Mobileye. Das Unternehmen startete ein neues Aktienrückkaufprogramm im Wert von 15 Millionen US-Dollar und gab eine Umsatzprognose für das zweite Quartal 2025 mit erwarteten Einnahmen zwischen 16,5 und 16,8 Millionen US-Dollar heraus.
Positive
  • Revenue of $16.8M exceeded guidance, showing 45.4% YoY growth from Q1 2024
  • Gross margin improved to 62.9% GAAP (66.7% non-GAAP) from 59.0% in Q1 2024
  • Automotive gross margin significantly improved to 48.4% from 29.1% in Q1 2024
  • Strategic partnership with Mobileye for EyeQ™6 High automated programs
  • New $15M share repurchase program launched, showing confidence in growth
Negative
  • Net loss increased to $(8.3M) from $(7.3M) in Q4 2024
  • Adjusted EBITDA loss worsened to $(4.3M) from $(3.7M) in Q4 2024
  • Cash balance decreased to $112.5M from $131.0M in Q4 2024
  • Uncertainty regarding impact of new tariffs on operations and customer demand

Insights

Valens exceeded revenue guidance with improved YoY margins while continuing strategic investments; losses persist but metrics show positive trajectory.

Valens Semiconductor's Q1 2025 results reveal a company making measurable progress against persistent challenges. Revenue of $16.8 million exceeded the top end of guidance and demonstrated 45.4% year-over-year growth from Q1 2024's $11.6 million, though it remained essentially flat compared to Q4 2024's $16.7 million.

The gross margin improvement to 62.9% (GAAP) from 59.0% a year ago reflects enhanced production efficiency. Segmentally, the story becomes more nuanced. The Cross-Industry Business segment generated 70% of revenue at $11.7 million (up from $7.2 million in Q1 2024), while maintaining strong gross margins of 69.1%. The Automotive segment, contributing $5.1 million (up from $4.4 million in Q1 2024), showed dramatic gross margin improvement to 48.4% from just 29.1% a year ago, attributed specifically to product cost optimization.

Despite revenue growth and margin improvements, profitability remains elusive. The $8.3 million net loss, while better than Q1 2024's $10.0 million loss, widened from Q4 2024's $7.3 million. The cash position decreased to $112.5 million from $131.0 million, with $9.6 million used for share repurchases and $7.6 million consumed by operations.

Strategically, Valens is positioning its VA7000 MIPI A-PHY chipsets as connectivity infrastructure for Mobileye EyeQ6 High automated driving programs. The successful interoperability testing with seven MIPI A-PHY silicon vendors expands their ecosystem presence. Management's statement about "beginning to emerge from the bottom of the sales cycle" in ProAV signals a potential inflection point.

Q2 2025 guidance projects revenue of $16.5-$16.8 million with gross margins of 63.0-64.0%, suggesting stable near-term performance. The projected EBITDA loss range of $(4.9)-(4.4) million indicates continued investment in growth initiatives.

The $15 million share repurchase program launched in March 2025 (following completion of a $10 million program from December 2024) demonstrates management's confidence in long-term value despite current losses.

Key Financial Highlights:

  • Q1 revenues: $16.8 million, exceeding the top end of our guidance.
  • Q1 gross margin: 62.9% GAAP; 66.7% non-GAAP.
  • Cash, cash equivalents and short-term deposits: $112.5 million.

HOD HASHARON, Israel, May 7, 2025 /PRNewswire/ -- Valens Semiconductor Ltd. (NYSE: VLN), a leader in high-performance connectivity, today reported financial results for the first quarter ended March 31, 2025.

"Valens had a positive start to 2025," said Gideon Ben-Zvi, CEO of Valens Semiconductor. "In ProAV, we're beginning to emerge from the bottom of the sales cycle, and we're seeing increasing interest in our solutions from our customers. In the high-growth-potential machine vision market, we showcased our chips at major trade conferences while announcing partnerships with a variety of leading companies in this space. In automotive, the interest in the MIPI A-PHY standard continued to build; after announcing our partnership with Mobileye on our three design wins, we held successful interoperability testing with seven A-PHY silicon vendors. We're eager to use this momentum to spur us to greater heights in Q2."

"We've rounded out the first quarter of 2025 having, once again, exceeded the top end of our revenue guidance," said Guy Nathanzon, CFO of Valens Semiconductor. "We believe we are now well positioned to capitalize on the significant business opportunities that lie ahead, across the variety of industries we serve. We have also recently announced another share repurchase program of up to $15 million, reflecting the confidence we have in the company's long-term growth. Regarding the new tariffs – while it looks like semiconductors are currently exempt, it is still too early to estimate the direct impact on our operations and the impact on our customers' end-market demand. We are monitoring developments closely and will communicate once we have better visibility."

Q1 2025 Financial Highlights:

  • Q1 revenues reached $16.8 million, exceeding our guidance of $16.3-$16.6 million, compared to $16.7 million in Q4 2024 and $11.6 million in Q1 2024.
    - Q1 Cross-Industry Business ("CIB") revenues, accounted for approximately 70% of total revenues at $11.7 million compared to $11.7 million dollars in Q4 2024 and $7.2 million in Q1 2024.
    - Q1 Automotive revenues accounted for approximately 30% of total revenues at $5.1 million, compared to $5.0 million dollars in Q4 2024 and $4.4 million in Q1 2024.
  • Q1 GAAP gross margin was 62.9% (non-GAAP gross margin was 66.7%), above the guidance. This is compared to a GAAP gross margin of 60.4% for Q4 2024 and 59.0% for Q1 2024 (non-GAAP gross margin of 64.5% in Q4 2024 and 62.0% in Q1 2024). On a segment basis, Q1 gross margin from the CIB was 69.1% and gross margin from Automotive was 48.4%. This compares to a Q4 2024 gross margin of 64.7% and 50.5%, respectively, and a Q1 2024 gross margin of 77.2% and 29.1%, respectively. The increase in Q1 automotive gross margin compared to Q1 2024 was due to an optimization of our product cost. The increase in gross margin of the CIB compared to Q4 2024 was due to an inventory adjustment in Q4 2024.
  • Q1 GAAP net loss amounted to $(8.3) million, compared to a net loss of $(7.3) million dollars in Q4 2024 and a net loss of $(10.0) million dollars in Q1 2024.
  • Q1 adjusted EBITDA was a loss of $(4.3) million, within the guidance range of $(4.5)-$(4.2) million EBITDA loss. This compares to an adjusted EBITDA loss of $(3.7) million dollars in Q4 2024 and an adjusted EBITDA loss of $(7.1) million dollars in Q1 2024.
  • Cash balance as of March 31, 2025, was $112.5 million. This compares to a cash balance of $131.0 million as of December 31, 2024. During the first quarter of 2025 the company used $9.6 million for the share repurchase programs, announced in December 2024 and in February 2025.

Q1 2025 Business Highlights:

  • Received endorsement from Sennheiser for our extension technology to use with the company's TeamConnect Bar solutions
  • Partnered with RGo Robotics and CHERRY Embedded Solutions to design optimized AI robotic systems
  • In April, announced that Valens' VA7000 MIPI A-PHY-compliant chipsets will form the in-car, sensor to compute connectivity infrastructure for Mobileye EyeQ6 High automated and autonomous production programs underway with a group of global automotive brands
  • Successfully completed product interoperability testing with seven MIPI A-PHY silicon vendors to advance the standard ecosystem in China and globally
  • Announced a new share repurchase program of $15 million, which was launched on March 17, 2025. During the first quarter of 2025 the company completed the first repurchase program of $10 million announced in December 2024

Financial Outlook for Q2 2025

For Q2 2025, Valens Semiconductor expects revenues to range between $16.5 million and $16.8 million, gross margin to range between 63.0% and 64.0%, and adjusted EBITDA loss to range between $(4.9) million and $(4.4) million.

Disclaimer: Valens Semiconductor does not provide GAAP net profit (loss) guidance as certain elements of net profit (loss), including share-based compensation expenses and warrant valuations, are not predictable due to the high variability and difficulty of making accurate forecasts. Adjusted EBITDA is a non-GAAP measure. See the tables below for additional information regarding this and other non-GAAP metrics used in this release.

Conference Call Information

Valens Semiconductor will host a conference call today, Wednesday, May 7, 2025, at 8:30 a.m. Eastern Time (ET) to discuss its first quarter 2025 financial results and business outlook. To access this call, dial (at least 10 minutes before the scheduled time) +1 (888) 281-1167 (U.S.), 0 (808) 101-2717 (UK), 03 918 0610 (Israel) or +972 3 918 0610 (all other locations). A live webcast of the conference call will be available via the investor relations section of Valens Semiconductor's website at Valens - Financials - Quarterly Results. The live webcast can also be accessed by clicking here. A replay of the conference call will be available on Valens Semiconductor's website shortly after the call concludes.

NYSE Rule 203.01 Annual Financial Report Announcement

Pursuant to Rule 203.01 of the New York Stock Exchange Manual, Valens Semiconductor Ltd. hereby announces to holders of its ordinary shares that its Annual Report on Form 20-F for 2024 (including its full year 2024 audited financial statements), filed with the U.S. Securities and Exchange Commission on February 26, 2025, is available in the investor relations section of its website at https://investors.valens.com/financials/secfilings/default.aspx. While the company encourages the sustainable approach of downloading and reading the report online, hard copies of the 2024 Annual Report will be provided free of charge, upon request, as follows: Valens Semiconductor Ltd., 8 Hanagar St. POB 7152, Hod Hasharon 4501309, Israel, or by emailing: investors@valens.com.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding our anticipated future results, including financial results, our five-year plan, currency exchange rates, and contract wins, and future economic and market conditions. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Valens Semiconductor's ("Valens") management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Valens Semiconductor. These forward-looking statements are subject to a number of risks and uncertainties, including the cyclicality of the semiconductor industry; the effect of inflation and a rising interest rate environment on our customers and industry; the ability of our customers to absorb inventory; competition in the semiconductor industry, and the failure to introduce new technologies and products in a timely manner to compete successfully against competitors; if Valens fails to adjust its supply chain volume due to changing market conditions or fails to estimate its customers' demand; disruptions in relationships with any one of Valens' key customers; any difficulty selling Valens' products if customers do not design its products into their product offerings; Valens' dependence on winning selection processes; even if Valens succeeds in winning selection processes for its products, Valens may not generate timely or sufficient net sales or margins from those wins; sustained yield problems or other delays or quality events in the manufacturing process of products; our ability to effectively manage, invest in, grow, and retain our sales force, research and development capabilities, marketing team and other key personnel; our ability to timely adjust product prices to customers following price increase by the supply chain; our ability to adjust our inventory level due to reduction in demand due to inventory buffers accrued by customers; our expectations regarding the outcome of any future litigation in which we are named as a party; our ability to adequately protect and defend our intellectual property and other proprietary rights; our ability to successfully integrate or otherwise achieve anticipated benefits from acquired businesses; the market price and trading volume of the Valens ordinary shares may be volatile and could decline significantly; further deterioration of macroeconomic conditions due to ongoing global political and economic uncertainty, including with respect to China-Taiwan relations and increasing trade and other tariff-related tensions (as our current guidance assumes the estimated production and/or demand impact on us of current tariff conditions); political, economic, governmental and tax consequences associated with our incorporation and location in Israel; and those factors discussed in Valens' Form 20-F filed with the SEC on February 26, 2025 under the heading "Risk Factors," and other documents of Valens filed, or to be filed, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Valens does not presently know or that Valens currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Valens' expectations, plans or forecasts of future events and views as of the date of this press release. Valens anticipates that subsequent events and developments may cause Valens' assessments to change. However, while Valens may elect to update these forward-looking statements at some point in the future, Valens specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Valens' assessment as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

About Valens Semiconductor

Valens Semiconductor is a leader in high-performance connectivity, enabling customers to transform the digital experiences of people worldwide. Valens' chipsets are integrated into countless devices from leading customers, powering state-of-the-art audio-video installations, next-generation videoconferencing, and enabling the evolution of ADAS and autonomous driving. Pushing the boundaries of connectivity, Valens sets the standard everywhere it operates, and its technology forms the basis for the leading industry standards such as HDBaseT® and MIPI A-PHY. For more information, visit https://www.valens.com/

VALENS SEMICONDUCTOR LTD.
SUMMARY OF FINANCIAL RESULTS
(U.S. Dollars in thousands, except per share amounts)

 


Three Months Ended

March 31,


2025

2024

Revenues

16,828

11,559

Gross Profit

10,582

6,815

Gross Margin

62.9 %

59.0 %

Net Loss

(8,308)

(10,042)

Working Capital[1]

119,820

153,272

Cash, Cash Equivalents and Short-Term Deposits[2]

112,540

139,787

Net Cash Used in Operating Activities

(7,611)

(1,390)

Non-GAAP Financial Data



Non-GAAP Gross Margin[3]

66.7 %

62.0 %

Adjusted EBITDA Loss[4]

(4,346)

(7,069)

 

Non-GAAP Loss Per Share[5] (in U.S. Dollars)

$(0.03)

$(0.06)

 

 

VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(U.S. Dollars in thousands, except share and per share amounts)

 


Three Months Ended

March 31,


2025


2024





REVENUES

16,828


11,559

COST OF REVENUES

(6,246)


(4,744)

GROSS PROFIT

10,582


 

6,815

OPERATING EXPENSES:




  Research and development expenses

(10,590)


(10,145)

  Sales and marketing expenses 

(5,607)


(4,388)

General and administrative expenses

(3,667)


(3,571)

 

Change in earnout liability

(174)


-

TOTAL OPERATING EXPENSES

 

(20,038)


 

(18,104)

OPERATING LOSS

 

(9,456)


 

(11,289)

Change in fair value of Forfeiture Shares

 

-


 

25

Financial income, net

 

1,238


 

1,234

LOSS BEFORE INCOME TAXES

(8,218)


(10,030)

INCOME TAXES

(93)


(17)

LOSS AFTER INCOME TAXES

(8,311)


(10,047)

Equity in earnings of investee

3


5

NET LOSS

(8,308)


(10,042)

 

EARNINGS PER SHARE DATA:

 

BASIC AND DILUTED NET LOSS PER ORDINARY SHARE[6] (in U.S. Dollars)

$(0.08)


$(0.10)

WEIGHTED AVERAGE NUMBER OF SHARES USED

IN CALCULATION OF NET LOSS PER ORDINARY SHARE

105,255,959


104,047,426

Change in unrealized losses on cash flow hedges

(542)


-

TOTAL COMPREHENSIVE LOSS

(8,850)


-

 

VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in thousands)

 

 

ASSETS


March 31, 2025


December 31, 2024

 

CURRENT ASSETS 

Cash and cash equivalents



40,997



35,423

 Short-term deposits



71,543



95,532

Restricted Short-term deposit



1,153



1,138

 Trade accounts receivable



9,551



7,751

 Inventories



10,858



10,155

 Prepaid expenses and other current assets



2,597



3,904

TOTAL CURRENT ASSETS



136,699



153,903

 

LONG-TERM ASSETS:







 Property and equipment, net



3,498



3,555

 Operating lease right-of-use assets



7,253



7,458

Intangible assets



4,467



4,702

Goodwill



1,847



1,847

 Other assets



798



687

TOTAL LONG-TERM ASSETS



17,863



18,249

 

TOTAL ASSETS



154,562



172,152








 

LIABILITIES AND EQUITY

 

CURRENT LIABILITIES



16,879



20,326

 

LONG-TERM LIABILITIES







  Forfeiture Shares



1



1

  Non-current operating leases liabilities



6,412



6,645

 Earnout liability



2,587



2,413

  Other long-term liabilities



76



79

TOTAL LONG-TERM LIABILITIES



9,076



9,138

 

TOTAL LIABILITIES



25,955



29,464








TOTAL SHAREHOLDERS' EQUITY



128,607



142,688

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 



154,562



172,152








 

VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. Dollars in thousands)

 



Three Months Ended

March 31,




2025

2024


CASH FLOW FROM OPERATING ACTIVITIES





  Net loss for the period


(8,308)

(10,042)


  Adjustments to reconcile net loss to net cash used in operating activities:





 Income and expense items not involving cash flows:





Depreciation and amortization


770

456


Stock-based compensation 


4,166

3,764


Exchange rate differences


140

525


             Realized and unrealized losses on non-designated derivative instruments


(204)

-


Interest on short-term deposits


517

275


Change in fair value of forfeiture shares


-

(25)


             Change in earnout liability


174

-


Reduction in the carrying amount of ROU assets


418

484


Equity in earnings of investee, net of dividend received


(3)

5


  Changes in operating assets and liabilities, net of effects of business acquired: 





Trade accounts receivable 


(1,800)

4,735


Prepaid expenses and other current assets


825

207


Inventories


(762)

1,347


Other assets 


(115)

74


Current Liabilities


(3,196)

(2,761)


Change in operating lease liabilities


(230)

(418)


Other long-term liabilities


(3)

(16)


  Net cash used in operating activities 


(7,611)

(1,390)


 

CASH FLOWS FROM INVESTING ACTIVITIES:





  Investment in short-term deposits


(30,005)

(37,840)


  Maturities of short-term deposits 


53,278

56,979


  Purchase of property and equipment


(357)

(30)


     Derivative instruments of non-designated hedges


(265)

-


  Net cash provided by investing activities


22,651

19,109


 

CASH FLOWS FROM FINANCING ACTIVITIES:





Repurchase of Ordinary Shares


(9,585)

-


  Exercise of stock options


188

126


  Net cash provided by (used in) financing activities


(9,397)

126







  Effect of exchange rate changes on cash and cash equivalents


(69)

(5)


INCREASE IN CASH AND CASH EQUIVALENTS


5,574

17,839


CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD


35,423

17,261


CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD


40,997

35,100







SUPPLEMENT DISCLOSURE OF CASH FLOW INFORMATION





  Cash paid for taxes


19

35







SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES





Trade accounts payable on account of property and equipment


62

212


Operating lease liabilities arising from obtaining operating right-of-use assets


213

31


 

 

 VALENS SEMICONDUCTOR LTD.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(U.S. Dollars in thousands)

The following table provides a reconciliation of Net loss to Adjusted EBITDA, a non-GAAP measure. Adjusted EBITDA is defined as Net profit (loss) before financial income (expense), net, income taxes, equity in earnings of investee and depreciation and amortization, further adjusted to exclude share-based compensation and change in fair value of Forfeiture Shares and change in earnout liability, which may vary from period-to-period. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other issuers, because not all issuers calculate Adjusted EBITDA in the same manner. Adjusted EBITDA should not be considered as an alternative to Net loss or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity.

Although we provide guidance for Adjusted EBITDA, we are not able to provide guidance for projected Net profit (loss), the most directly comparable GAAP measures. Certain elements of Net profit (loss), including share-based compensation expenses and warrant valuations, are not predictable due to the high variability and difficulty of making accurate forecasts. As a result, it is impractical for us to provide guidance on Net profit (loss) or to reconcile our Adjusted EBITDA guidance without unreasonable efforts. Consequently, no disclosure of projected Net profit (loss) is included. For the same reasons, we are unable to address the probable significance of the unavailable information.

 


Three Months Ended

March 31,


2025


2024





Net Loss

(8,308)


(10,042)

Adjusted to exclude the following:





Change in fair value of Forfeiture Shares

-


(25)


Change in earnout liability

174


-


Financial income, net

(1,238)


(1,234)


Income taxes

93


17


Equity in earnings of investee

(3)


(5)


Depreciation

770


456


Stock-based compensation expenses

4,166


3,764

Adjusted EBITDA Loss

(4,346)


(7,069)

 

 

VALENS SEMICONDUCTOR LTD.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(U.S. Dollars in thousands, except per share amounts)

The following tables provide a calculation of the GAAP Loss per share and reconciliation to Non-GAAP Loss per share.

 


Three Months Ended

March 31,

 GAAP Loss per Share

2025

2024




GAAP Net Loss used for computing Loss per Share

(8,308)

(10,042)

 

Earnings Per Share Data:



GAAP Loss per Share (in U.S. Dollars)

$(0.08)

$(0.10)

 

Weighted average number of shares used in
calculation of net loss per share

105,255,959

104,047,426


 

 

 

Three Months Ended

March 31,

Non-GAAP Loss per Share[7]

2025

2024




GAAP Net Loss

(8,308)

(10,042)

Adjusted to exclude the following:



 

Stock based compensation

4,166

3,764

Depreciation

770

456

Change in fair value of Forfeiture Shares

-

(25)

Change in earnout liability

174

-

Total Non-GAAP Loss used for computing Loss per Share

(3,198)

(5,847)

 

Earnings Per Share Data:



Non-GAAP Loss per Share (in U.S. Dollars)

$(0.03)

$(0.06)

 

Weighted average number of shares used in
calculation of net loss per share

105,255,959

104,047,426

 

 

1. Working Capital is calculated as Total Current Assets, less Total Current Liabilities, as of the last day of the period.
2. As of the last day of the period.
3. Non-GAAP Gross Margin is defined as: GAAP Gross Profit excluding share-based compensation and depreciation and amortization expenses, divided by revenue. For the three months ended March 31, 2025, and 2024, share-based compensation and depreciation and amortization expenses were $650 thousand and $347 thousand, respectively.
4. Adjusted EBITDA is defined as Net profit (loss) before financial income (expense), net, income taxes, equity in earnings of investee, and depreciation and amortization, further adjusted to exclude share-based compensation and change in fair value of Forfeiture Shares and in earnout liability, which may vary from period-to-period. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other issuers, because not all issuers calculate Adjusted EBITDA in the same manner. Adjusted EBITDA should not be considered as an alternative to Net loss or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity. Please refer to the appendix at the end of this press release for a reconciliation to the most directly comparable measure in accordance with GAAP.
5. See reconciliation of GAAP to non-GAAP financial measures.
6. See footnote 5.
7. The company calculates its non-GAAP Loss per Share as GAAP Net Loss adjusted to exclude the following: Stock based compensation, depreciation and amortization, and the change in fair value of Forfeiture Share and earnout liability divided by the weighted average number of shares used in calculation of net loss per share.

For more information, please contact:

Michal Ben Ari
Investor Relations Manager
Valens Semiconductor Ltd.
michal.benari@valens.com

Miri Segal
MS-IR IR for Valens
msegal@ms-ir.com

Media Contact:

Yoni Dayan
Head of Communications
Valens Semiconductor Ltd.
yoni.dayan@valens.com

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SOURCE Valens Semiconductor

FAQ

What were Valens Semiconductor's (VLN) Q1 2025 revenue and earnings?

Valens reported Q1 2025 revenue of $16.8M, exceeding guidance, with a GAAP net loss of $(8.3M) and adjusted EBITDA loss of $(4.3M).

How much cash does Valens Semiconductor (VLN) have as of Q1 2025?

Valens had $112.5M in cash, cash equivalents and short-term deposits as of March 31, 2025.

What is Valens Semiconductor's (VLN) revenue guidance for Q2 2025?

Valens expects Q2 2025 revenues to range between $16.5M and $16.8M with gross margin between 63.0% and 64.0%.

What are the key partnerships announced by Valens Semiconductor (VLN) in Q1 2025?

Valens announced partnerships with Sennheiser, RGo Robotics, CHERRY Embedded Solutions, and Mobileye for EyeQ™6 High automated programs.

What is Valens Semiconductor's (VLN) share repurchase program?

Valens announced a new $15M share repurchase program launched on March 17, 2025, after completing a previous $10M program from December 2024.
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