Valens Semiconductor Reports First Quarter 2026 Results
Rhea-AI Summary
Valens Semiconductor (NYSE:VLN) reported Q1 2026 revenue of $16.9 million, above guidance of $16.3–$16.7 million. GAAP gross margin was 62.2% (65.2% non-GAAP), above the 57%–59% outlook.
GAAP net loss was $8.3 million, adjusted EBITDA loss was $5.5 million, and cash stood at $86.1 million with no debt. Q2 2026 guidance calls for revenue of $17.2–$17.6 million, gross margin of 60%–62%, and adjusted EBITDA loss of $4.9–$4.4 million.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 revenue of $16.9M, above $16.3M–$16.7M guidance range
- Q1 2026 GAAP gross margin 62.2%, exceeding 57%–59% guidance
- Automotive Q1 2026 revenue $5.9M, up from $5.5M in Q4 2025 and $5.1M in Q1 2025
- Q1 2026 adjusted EBITDA loss $5.5M, better than $(7.9)M–$(7.5)M guidance
- Cash, cash equivalents and deposits $86.1M with no debt at March 31, 2026
- Q2 2026 revenue guidance $17.2M–$17.6M, above Q1 2026 actual revenue
Negative
- Q1 2026 revenue $16.9M versus $19.4M in Q4 2025
- Cross-Industry Business Q1 2026 revenue $11.0M vs $13.9M in Q4 2025 and $11.7M in Q1 2025
- Q1 2026 GAAP net loss $8.3M, matching Q1 2025 and near Q4 2025 loss
- Q1 2026 adjusted EBITDA loss $5.5M vs $(4.3)M in both Q4 2025 and Q1 2025
- Cash balance declined to $86.1M from $92.6M at December 31, 2025 and $112.5M a year earlier
News Market Reaction – VLN
On the day this news was published, VLN gained 9.26%, reflecting a notable positive market reaction. Argus tracked a peak move of +6.6% during that session. Argus tracked a trough of -21.9% from its starting point during tracking. Our momentum scanner triggered 30 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $27M to the company's valuation, bringing the market cap to $323.25M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
VLN fell 5.26% while key semiconductor peers in momentum like MRAM (+11.32%) and WOLF (+26.79%) moved higher, indicating a stock-specific reaction rather than a broad sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 25 | Q4 2025 earnings | Positive | +0.7% | Q4 and 2025 revenue beat guidance with strong margins and 2026 growth outlook. |
| Nov 12 | Q3 2025 earnings | Positive | -5.6% | Q3 revenue and margins beat guidance, with positive growth and new CEO appointment. |
| Nov 12 | Q3 2025 earnings | Positive | -5.6% | Repeat Q3 2025 report showing above‑guidance revenue and strong gross margin. |
| Aug 06 | Q2 2025 earnings | Negative | -12.6% | Beat on Q2 revenue and margin but reduced full‑year 2025 guidance amid tariff impacts. |
| May 07 | Q1 2025 earnings | Positive | -14.8% | Q1 revenue beat guidance with strong margins and partnerships plus buyback launch. |
Earnings releases often beat guidance but have historically seen weak to negative next-day moves, with several notable selloffs following positive reports.
Over the past year, Valens Semiconductor has repeatedly reported earnings that exceeded guidance, such as Q2, Q3, and Q4 2025 with revenues above targets and GAAP gross margins above 60%. Cash balances remained strong with no debt, and management introduced cost‑saving measures and share repurchase plans. Despite these positives, earnings‑day reactions have often been negative, with moves of -12.61% and -14.8% after Q2 and Q1 2025, framing today’s Q1 2026 beat within a pattern of cautious market responses.
Historical Comparison
Past earnings headlines for VLN averaged a -7.58% next-day move. Today’s -5.26% reaction to another guidance beat fits the pattern of cautious to negative earnings responses.
Earnings have progressed from Q1 2025 through Q4 2025 with recurring revenue beats, margins above 60%, and sustained cash strength, now extending into Q1 2026 results.
Market Pulse Summary
The stock moved +9.3% in the session following this news. A strong positive reaction aligns with recurring guidance beats and solid gross margins above 60%, as seen again in Q1 2026. However, earnings-day history shows average moves of -7.58%, including sharp selloffs after prior beats. Investors watching sustainability may weigh ongoing GAAP net losses of around $8M and insider net selling when assessing how durable any sharp upside move might have been.
Key Terms
gaap financial
non-gaap financial
adjusted ebitda financial
rule 10b5-1 trading plan regulatory
form 20-f regulatory
form 144 regulatory
AI-generated analysis. Not financial advice.
Key Financial Highlights:
- Q1 2026 revenues:
$16.9 million - Q1 2026 gross margin:
62.2% GAAP;65.2% non-GAAP, exceeding the top end of our guidance - Cash, cash equivalents and short-term deposits as of March 31, 2026:
$86.1 million
HOD HASHARON,
"The first quarter of 2026 exceeded our expectations, as we once again beat the top end of our guidance," said Yoram Salinger, CEO of Valens Semiconductor. "In Audio-Video, we're continuing to see increased adoption of our VS6320 and VS3000 chipsets, as additional products based on these chips hit the market. In Automotive, Valens is focused on pushing the MIPI A-PHY ecosystem forward. In Q1, we publicly demonstrated the first three-company interoperable SerDes link, reinforcing one of the core value propositions of any industry standard by introducing a multi-vendor ecosystem for OEMs."
Q1 2026 Financial Highlights:
- Q1 2026 revenues reached
$16.9 million $16.3 -$16.7 million $19.4 million $16.8 million - Q1 2026 Cross-Industry Business ("CIB") revenues accounted for approximately
65% of total revenues at$11.0 million $13.9 million $11.7 million - Q1 2026 Automotive revenues accounted for approximately
35% of total revenues at$5.9 million $5.5 million $5.1 million
- Q1 2026 Cross-Industry Business ("CIB") revenues accounted for approximately
- Q1 2026 GAAP gross margin was
62.2% (non-GAAP gross margin was65.2% ), above the guidance of57% -59% . This is compared to a GAAP gross margin of60.5% for Q4 2025 and62.9% for Q1 2025 (non-GAAP gross margin of63.9% in Q4 2025 and66.7% in Q1 2025). On a segment basis, Q1 2026 gross margin from the CIB was70.8% and gross margin from Automotive was46.2% . This compares to Q4 2025 gross margins on a segment basis of66.4% and45.9% , respectively, and Q1 2025 gross margins on a segment basis of69.1% and48.4% , respectively. The increase in gross margin of the CIB compared to Q4 2025 was primarily due to product mix. - Q1 2026 GAAP net loss amounted to
$(8.3) million $(8.8) million $(8.3) million - Q1 2026 adjusted EBITDA was a loss of
$(5.5) million $(7.9) -$(7.5) million $(4.3) million $(4.3) million - Cash, cash equivalents and short-term deposits as of March 31, 2026, were
$86.1 million $92.6 million $112.5 million
Financial Outlook for Q2 2026
For Q2 2026, Valens expects revenues to range between
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 13, 2026, at 8:30 a.m. Eastern Time (ET) to discuss its first quarter 2026 financial results and business outlook. To access this call, dial (at least 10 minutes before the scheduled time)-
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 2025 (including its full year 2025 audited financial statements), filed with the
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 anticipated growth projections, our ability to concentrate our resources on our core businesses, our expectations regarding future revenues, gross margin, and adjusted EBITDA loss, 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 or suppliers; 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; risks related to our use of AI technologies; 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
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 | |||
( | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
Revenues | 16,859 | 16,828 | |
Gross Profit | 10,487 | 10,582 | |
Gross Margin | 62.2 % | 62.9 % | |
Net Loss | (8,290) | (8,308) | |
Working Capital1 | 91,279 | 119,820 | |
Cash, Cash Equivalents and Short-Term Deposits2 | 86,117 | 112,540 | |
Net Cash Used in Operating Activities | (5,132) | (7,611) | |
Non-GAAP Financial Data | |||
Non-GAAP Gross Margin3 | 65.2 % | 66.7 % | |
Adjusted EBITDA Loss4 | (5,466) | (4,346) | |
Non-GAAP Loss Per Share5 (in | |||
VALENS SEMICONDUCTOR LTD. | |||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||
( | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
REVENUES | 16,859 | 16,828 | |
COST OF REVENUES | (6,372) | (6,246) | |
GROSS PROFIT | 10,487 | 10,582 | |
OPERATING EXPENSES: | |||
Research and development expenses | (10,294) | (10,590) | |
Sales and marketing expenses | (5,396) | (5,607) | |
General and administrative expenses | (4,017) | (3,667) | |
Change in earnout liability | 282 | (174) | |
TOTAL OPERATING EXPENSES | (19,425) | (20,038) | |
OPERATING LOSS | (8,938) | (9,456) | |
Financial income, net | 673 | 1,238 | |
LOSS BEFORE INCOME TAXES | (8,265) | (8,218) | |
INCOME TAXES | (27) | (93) | |
LOSS AFTER INCOME TAXES | (8,292) | (8,311) | |
Equity in earnings of investee | 2 | 3 | |
NET LOSS | (8,290) | (8,308) | |
EARNINGS PER SHARE DATA: BASIC AND DILUTED NET LOSS PER | |||
WEIGHTED AVERAGE NUMBER OF SHARES IN COMPUTING NET LOSS PER ORDINARY | 105,047,377 | 105,255,959 | |
Change in unrealized losses on cash flow | (364) | (542) | |
TOTAL COMPREHENSIVE LOSS | (8,654) | (8,850) | |
VALENS SEMICONDUCTOR LTD. | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
( | ||||||
ASSETS | March 31, 2026 | December 31, 2025 | ||||
CURRENT ASSETS Cash and cash equivalents | 28,970 | 27,863 | ||||
Short-term deposits | 57,147 | 64,733 | ||||
Restricted Short-term deposit | 1,144 | 1,132 | ||||
Trade accounts receivable | 10,475 | 9,971 | ||||
Inventories | 10,906 | 10,117 | ||||
Prepaid expenses and other current assets | 4,316 | 4,842 | ||||
TOTAL CURRENT ASSETS | 112,958 | 118,658 | ||||
LONG-TERM ASSETS: | ||||||
Property and equipment, net | 2,776 | 2,901 | ||||
Operating lease right-of-use assets | 6,645 | 6,901 | ||||
Intangible assets | 3,526 | 3,762 | ||||
Goodwill | 1,847 | 1,847 | ||||
Other assets | 668 | 632 | ||||
TOTAL LONG-TERM ASSETS | 15,462 | 16,043 | ||||
TOTAL ASSETS | 128,420 | 134,701 | ||||
LIABILITIES AND EQUITY CURRENT LIABILITIES | 21,679 | 22,934 | ||||
LONG-TERM LIABILITIES | ||||||
Non-current operating leases liabilities | 6,390 | 6,717 | ||||
Other long-term liabilities | 111 | 67 | ||||
TOTAL LONG-TERM LIABILITIES | 6,501 | 6,784 | ||||
TOTAL LIABILITIES | 28,180 | 29,718 | ||||
TOTAL SHAREHOLDERS' EQUITY | 100,240 | 104,983 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 128,420 | 134,701 | ||||
VALENS SEMICONDUCTOR LTD. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
( | |||||||
Three Months Ended March 31, | |||||||
2026 | 2025 | ||||||
CASH FLOW FROM OPERATING ACTIVITIES | |||||||
Net loss for the period | (8,290) | (8,308) | |||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Income and expense items not involving cash flows: | |||||||
Depreciation and amortization | 618 | 770 | |||||
Stock-based compensation | 3,136 | 4,166 | |||||
Exchange rate differences | 149 | 140 | |||||
Realized and unrealized Loss (gain) on non-designated derivative instruments | 5 | (204) | |||||
Interest on short-term deposits | (327) | 517 | |||||
Change in earnout liability | (282) | 174 | |||||
Reduction in the carrying amount of ROU assets | 310 | 418 | |||||
Equity in earnings of investee, net of dividend received | (2) | (3) | |||||
Changes in operating assets and liabilities: | |||||||
Trade accounts receivable | (509) | (1,800) | |||||
Prepaid expenses and other current assets | 235 | 825 | |||||
Inventories | (789) | (762) | |||||
Other assets | (24) | (115) | |||||
Current Liabilities | 973 | (3,196) | |||||
Change in operating lease liabilities | (379) | (230) | |||||
Other long-term liabilities | 44 | (3) | |||||
Net cash used in operating activities | (5,132) | (7,611) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Investment in short-term deposits | (5,664) | (30,005) | |||||
Maturities of short-term deposits | 13,565 | 53,278 | |||||
Purchase of property and equipment | (437) | (357) | |||||
Derivative instruments of non-designated hedges | (5) | (265) | |||||
Net cash provided by investing activities | 7,459 | 22,651 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Repurchase of Ordinary Shares | - | (9,585) | |||||
Earnout Payment | (1,962) | - | |||||
Exercise of stock options | 775 | 188 | |||||
Net cash provided by (used in) financing activities | (1,187) | (9,397) | |||||
Effect of exchange rate changes on cash and cash equivalents | (33) | (69) | |||||
INCREASE IN CASH AND CASH EQUIVALENTS | 1,107 | 5,574 | |||||
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 27,863 | 35,423 | |||||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 28,970 | 40,997 | |||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||
Trade accounts payable on account of property and equipment | 180 | 62 | |||||
Operating lease liabilities arising from obtaining operating right-of-use assets | 54 | 213 | |||||
VALENS SEMICONDUCTOR LTD. | |||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | |||||||
( | |||||||
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 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, | |||||||
2026 | 2025 | ||||||
Net Loss | (8,290) | (8,308) | |||||
Adjusted to exclude the following: | |||||||
Change in earnout liability | (282) | 174 | |||||
Financial income, net | (673) | (1,238) | |||||
Income taxes | 27 | 93 | |||||
Equity in earnings of investee | (2) | (3) | |||||
Depreciation and amortization | 618 | 770 | |||||
Stock-based compensation expenses | 3,136 | 4,166 | |||||
Adjusted EBITDA Loss | (5,466) | (4,346) | |||||
VALENS SEMICONDUCTOR LTD. | ||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||
( | ||
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 | 2026 | 2025 |
GAAP Net Loss used for computing Loss per Share | (8,290) | (8,308) |
Earnings Per Share Data: | ||
GAAP Loss per Share (in | ||
Weighted average number of shares and vested RSUs used in computing net loss per ordinary share | 105,047,377 | 105,255,959 |
Three Months Ended March 31, | ||
Non-GAAP Loss per Share7 | 2026 | 2025 |
GAAP Net Loss | (8,290) | (8,308) |
Adjusted to exclude the following: | ||
Stock based compensation | 3,136 | 4,166 |
Depreciation and amortization | 618 | 770 |
Change in earnout liability | (282) | 174 |
Total Non-GAAP Loss used for computing Loss per Share | (4,818) | (3,198) |
Earnings Per Share Data: | ||
Non-GAAP Loss per Share (in | ||
Weighted average number of shares and vested RSUs used in computing net loss per ordinary share | 105,047,377 | 105,255,959 |
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, 2026, and 2025, share-based compensation and depreciation and amortization expenses were
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 earnout liability divided by the weighted average number of shares used in calculation of net loss per share.
Infographic: https://mma.prnewswire.com/media/2979022/Valens_Semiconductor_Infographic.jpg
Logo: https://mma.prnewswire.com/media/2309625/4474760/Valens_Semiconductor_Logo.jpg
For more information, please contact:
Investor Contacts:
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
View original content to download multimedia:https://www.prnewswire.com/news-releases/valens-semiconductor-reports-first-quarter-2026-results-302770764.html
SOURCE Valens Semiconductor