Valens Semiconductor Reports Strong Second Quarter 2026 Results and Raises Full-Year Revenue Guidance

Rhea-AI Summary

Valens Semiconductor (NYSE: VLN) reported Q2 2026 revenue of $18.1 million, above guidance of $17.2–$17.6 million and up from $16.9 million in Q1 2026 and $17.1 million in Q2 2025. GAAP gross margin was 61.5% (64.3% non-GAAP), with CIB gross margin at 69.2% and Automotive at 41.5%.

Q2 GAAP net loss was $8.1 million, and adjusted EBITDA loss was $4.2 million, better than the guided loss of $4.9–$4.4 million. Cash, cash equivalents and short-term deposits were $83.4 million at June 30, 2026. For Q3 2026, Valens expects revenue of $21.3–$21.7 million and gross margin of 60–62%, and has raised full-year 2026 revenue guidance to $78–$81 million, about 13% growth at the midpoint versus 2025.

Positive

• Q2 2026 revenue beat guidance at $18.1M vs $17.2–$17.6M
• Raised 2026 revenue guidance to $78–$81M, ~13% growth at midpoint vs 2025
• Q3 2026 revenue guidance of $21.3–$21.7M implies strong sequential increase from Q2
• Adjusted EBITDA loss improved to $4.2M vs $5.5M in Q1 2026 and better than guidance
• CIB segment revenue rose to $13.1M, ~70% of total, up from $11.0M in Q1 2026
• Solid liquidity with $83.4M in cash, cash equivalents and short-term deposits at June 30, 2026

Negative

• Ongoing net losses with Q2 2026 GAAP net loss at $8.1M
• Gross margin compression to 61.5% in Q2 2026 from 63.5% in Q2 2025
• Automotive gross margin decline to 41.5% from 50.5% in Q2 2025
• Automotive revenue down sequentially to $5.0M vs $5.9M in Q1 2026
• Cash balance declined to $83.4M from $92.6M at December 31, 2025
• Negative operating cash flow of $9.0M in the first half of 2026

News Explained

Higher 2026 revenue guidance is paired with continued operating cash use and a prospective 2027 automotive revenue ramp.

Valens Semiconductor reported the completed quarter ended June 30, 2026, with revenue of $18.1 million, and raised its full-year 2026 revenue guidance to $78.0 million-$81.0 million.

The release reports $83.4 million in cash, cash equivalents and short-term deposits at quarter-end, down from $92.6 million at December 31, 2025; six-month net cash used in operating activities was $8,978 thousand, so the disclosure combines higher revenue guidance with continued operating cash use.

Adjusted EBITDA is a non-GAAP measure defined by the company using net loss before specified items and excluding, among other items, depreciation, amortization and stock-based compensation; Q3 guidance includes an adjusted EBITDA loss ranging from $(3.4) million to $(2.8) million.

The company says all four Automotive design-win programs advanced toward production, with revenue expected to ramp in 2027; that production and revenue milestone remains prospective rather than part of the completed quarter.

Market Reaction – VLN

+14.88% $1.93 132.6x vol

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$1.93 Last Price

$1.76 $1.97 Day Range

$207.72M Market Cap

132.6x Rel. Volume

Following this news, VLN has gained 14.88%, reflecting a significant positive market reaction. Our momentum scanner has triggered 6 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $1.93. Trading volume is exceptionally heavy at 132.6x the average, suggesting very strong buying interest.

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Market Context

The tag-specific earnings record had an average move of -4.61% across five events. It places this ra...

Analysis

The tag-specific earnings record had an average move of -4.61% across five events. It places this raised outlook in a mixed historical context; recent insider activity was Net Selling, while low short positioning remained a risk datapoint to monitor.

Key Figures

Q2 Revenue: $18.1 million Gross Margin: 61.5% GAAP; 64.3% non-GAAP GAAP Net Loss: $(8.1) million +5 more

8 metrics

Q2 Revenue $18.1 million Q2 2026; exceeded guidance of $17.2-$17.6 million

Gross Margin 61.5% GAAP; 64.3% non-GAAP Q2 2026; in line with guidance

GAAP Net Loss $(8.1) million Q2 2026

Adjusted EBITDA Loss $(4.2) million Q2 2026; lower than guidance range of $(4.9)-$(4.4) million

Cash and Short-Term Deposits $83.4 million As of June 30, 2026

Q3 Revenue Guidance $21.3 million-$21.7 million Q3 2026 outlook

Full-Year Revenue Guidance $78.0 million-$81.0 million Full-year 2026; raised guidance

Guidance Increase 13% Approximate midpoint increase compared to 2025 annual revenue

Previous Earnings Reports

5 past events · Latest: May 13 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 13	Q1 2026 earnings	Positive	+9.3%	Revenue and gross margin exceeded guidance while quarterly losses remained.
Feb 25	Q4 2025 earnings	Positive	+0.7%	Quarterly and annual revenue beat guidance with operating expense savings announced.
Nov 12	Q3 2025 earnings	Positive	-5.6%	Revenue exceeded guidance despite continuing losses and forward revenue guidance.
Aug 06	Q2 2025 earnings	Positive	-12.6%	Revenue exceeded guidance, but full-year guidance was revised amid tariff impacts.
May 07	Q1 2025 earnings	Positive	-14.8%	Revenue exceeded guidance alongside partnerships and a share repurchase program.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Across five tag-matched earnings events, reactions were mixed: 2 aligned gains and 3 divergences, with a -4.61% average move.

Key Terms

gaap, non-gaap, adjusted ebitda, hdbaset, +1 more

5 terms

gaap financial

"Q2 2026 GAAP gross margin was 61.5%"

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.

View in glossary

non-gaap financial

"non-GAAP gross margin was 64.3%"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

adjusted ebitda financial

"Q2 2026 adjusted EBITDA was a loss of $(4.2) million"

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.

hdbaset technical

"Barco selected HDBaseT chipsets to power its new ClickShare"

HDBaseT is a connectivity standard that lets multiple types of signals—high-definition video, audio, network data, control commands and even power—travel together over a single, ordinary network cable for distances up to about 100 meters. For investors, it matters because products and installations that use HDBaseT can be simpler, cheaper and more reliable than those requiring multiple cables or converters, so adoption influences sales, margins and compatibility across audiovisual, smart‑building and professional-installation markets.

adas technical

"Automotive ADAS design win programs continue to advance"

Advanced Driver Assistance Systems (ADAS) are electronic systems in vehicles that assist the driver with safety tasks. Examples include automatic emergency braking, lane keeping assist, and adaptive cruise control. These systems use sensors and cameras to improve vehicle safety.

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• Delivered Q2 2026 revenue of $18.1 million, exceeding the top end of our guidance
• Q2 2026 gross margin: 61.5% GAAP; 64.3% non-GAAP
• Cash, cash equivalents and short-term deposits as of June 30, 2026: $83.4 million
• Increased full-year 2026 revenue guidance to between $78.0 million and $81.0 million

HOD HASHARON, Israel, Aug. 12, 2026 /PRNewswire/ -- Valens Semiconductor Ltd. (NYSE: VLN), a leader in high-performance connectivity chipsets that enable reliable, long-reach video transmission across the world's most demanding applications, today reported financial results for the second quarter ended June 30, 2026.

"We are pleased with our performance in the second quarter, where we exceeded our guidance and delivered revenue of $18.1 million," said Yoram Salinger, CEO of Valens Semiconductor. "This quarter demonstrates continued customer demand and highlights the strength of our execution across the business. Our Audio-Video segment remains the established foundation of the company, while our Automotive ADAS design win programs continue to advance toward production and long-term revenue generation. At the same time, our technology leadership, validated by strong customer adoption, is increasingly translating into tangible commercial opportunities, and positioning us for future growth. Together, these achievements contributed to our confidence in the continuation of this business traction and supported our decision to raise guidance for the year 2026."

Q2 2026 Business Highlights:

• Barco selected HDBaseT chipsets to power its new ClickShare USB-C Extension over CAT kit.
• Participated at the InfoComm trade show, showcasing the VS3000 and the VS6320 chipsets, expanding engagements, and generating new sales opportunities.
• Introduced a new reference design offering for USB3 and 4K video extension tailored to the needs of our leading ODM customers, driving millions of dollars in bookings.
• Advanced all four Automotive design-win programs toward production, with revenue expected to ramp up in 2027.
• Welcoming Karine Pinto-Flomenboim as the new Chief Financial Officer, effective August 9^th, 2026, and Dean Martin as the new Head of Automotive Business Unit, effective on September 1^st, 2026.

Q2 2026 Financial Highlights:

• Q2 2026 revenue reached $18.1 million, exceeding our guidance of $17.2-$17.6 million, compared to $16.9 million in Q1 2026 and $17.1 million in Q2 2025.
  • Q2 2026 Cross-Industry Business ("CIB") revenue accounted for approximately 70% of total revenue at $13.1 million compared to $11.0 million in Q1 2026 and $12.8 million in Q2 2025.
  • Q2 2026 Automotive revenue accounted for approximately 30% of total revenue at $5.0 million, compared to $5.9 million in Q1 2026 and $4.3 million in Q2 2025.
• Q2 2026 GAAP gross margin was 61.5% (non-GAAP gross margin was 64.3%), in line with our guidance. This is compared to a GAAP gross margin of 62.2% for Q1 2026 and 63.5% for Q2 2025 (non-GAAP gross margin of 65.2% in Q1 2026 and 67.2% in Q2 2025). On a segment basis, Q2 gross margin from CIB was 69.2% and gross margin from Automotive was 41.5%. This compares to a Q1 2026 gross margin of 70.8% and 46.2%, respectively, and a Q2 2025 gross margin of 67.8% and 50.5%, respectively. The decrease in Q2 automotive gross margin compared to Q1 2026 was due to additional testing facility expenses incurred to prioritize and support production requirements.
• Q2 2026 GAAP net loss amounted to $(8.1) million, compared to a net loss of $(8.3) million in Q1 2026 and a net loss of $(7.2) million in Q2 2025.
• Q2 2026 adjusted EBITDA was a loss of $(4.2) million, lower than the guidance range of a $(4.9)-$(4.4) million adjusted EBITDA loss. This compares to an adjusted EBITDA loss of $(5.5) million in Q1 2026 and an adjusted EBITDA loss of $(4.0) million in Q2 2025.
• Cash, cash equivalents and short-term deposits as of June 30, 2026, were $83.4 million. This compares to cash, cash equivalents and short-term deposits of $86.1 million as of March 31, 2026 and to cash, cash equivalents and short-term deposits of $92.6 million as of December 31, 2025.

Financial Outlook for Q3 2026 and Raised Full-Year Guidance

For Q3 2026, Valens Semiconductor expects revenue to range between $21.3 million and $21.7 million, gross margin to range between 60.0% and 62.0%, and adjusted EBITDA loss to range between $(3.4) million and $(2.8) million.

Based on its strong first-half 2026 performance and improved visibility for the remainder of the year, Valens has raised its full-year 2026 revenue guidance to between $78.0 million and $81.0 million, an increase of approximately 13% (midpoint of the guidance) compared to the annual revenue of 2025.

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 will host a conference call and webinar at 8:30 a.m. Eastern Time to discuss its operational and financial results followed by a question-and-answer session for the investment community. Investors are invited to attend by registering in advance here. A replay of the webinar will also be available shortly after the call in the Investors section of Valens' website for 90 days. If you wish to dial in, please use the following options: USA & Canada (Toll-Free): (888) 715-9871; United States (New York): (646) 307-1963; United Kingdom (Toll-Free): +44.800.260.6466; United Kingdom (London): +44.20.3481.4247; Israel (Tel Aviv): +972 3 376 1144; Conference ID: 1504681.

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 U.S. Securities and Exchange Commission on February 25, 2026, 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 2025 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 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; 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; political, economic, governmental and tax consequences, as well as geopolitical tensions, associated with our incorporation and location in Israel; and those factors discussed in Valens' Form 20-F filed with the SEC on February 25, 2026 under the heading "Risk Factors," and other documents of Valens filed, or to be filed, with the SEC. Except as required by law, we undertake no obligations to make any revisions to the forward-looking statements contained in this press release or to update them to reflect events or circumstances occurring after the date of this press release, whether as a result of new information, future developments or otherwise.

About Valens Semiconductor

Valens Semiconductor (NYSE: VLN) is a leading provider of high-performance connectivity chipsets that enable reliable, long-reach data transmission across the world's most demanding applications. Valens' chipsets are integrated into countless devices from leading customers, powering state-of-the-art audio-video installations, next-generation videoconferencing, Advanced Driver Assistance Systems and Software Defined Vehicles. Valens is a pioneer in connectivity technologies and a key contributor to leading industry standards, including HDBaseT® and MIPI A-PHY. For more information, visit www.valens.com

 

VALENS SEMICONDUCTOR LTD. SUMMARY OF FINANCIAL RESULTS (U.S. Dollars in thousands, except per share amounts)
	Three Months Ended June 30,			Six Months Ended  June 30,
	2026	2025		2026	2025
Revenues	18,105	17,059		34,964	33,887
Gross Profit	11,139	10,835		21,626	21,417
Gross Margin	61.5 %	63.5 %		61.9 %	63.2 %
Net Loss	(8,052)	(7,184)		(16,342)	(15,492)
Working Capital[1]	88,919	105,998		88,919	105,998
Cash, Cash Equivalents and Short-Term Deposits[2]	83,431	102,721		83,431	102,721
Net Cash Used in Operating Activities	(3,486)	(211)		(8,978)	(7,761)
Non-GAAP Financial Data
Non-GAAP Gross Margin[3]	64.3 %	67.2 %		64.8 %	67.0 %
Adjusted EBITDA Loss[4]	(4,227)	(4,016)		(9,693)	(8,362)
Non-GAAP Earnings Loss Per Share (in U.S. Dollars)[5]	$(0.04)	$(0.04)		$(0.09)	$(0.07)

 

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      June 30,				Six Months Ended   June 30,
	2026		2025		2026		2025
REVENUES	18,105		17,059		34,964		33,887
COST OF REVENUES	(6,966)		(6,224)		(13,338)		(12,470)
GROSS PROFIT	11,139		10,835		21,626		21,417
OPERATING EXPENSES:
Research and development expenses	(10,076)		(10,198)		(20,370)		(20,788)
Sales and marketing expenses	(5,011)		(5,166)		(10,407)		(10,773)
General and administrative expenses	(3,998)		(3,697)		(8,015)		(7,364)
Change in earnout liability	-		837		282		663
TOTAL OPERATING EXPENSES	(19,085)		(18,224)		(38,510)		(38,262)
OPERATING LOSS	(7,946)		(7,389)		(16,884)		(16,845)
Financial income (expenses), net	(79)		225		594		1,463
LOSS BEFORE INCOME TAXES	(8,025)		(7,164)		(16,290)		(15,382)
INCOME TAXES	(29)		(21)		(56)		(114)
LOSS AFTER INCOME TAXES	(8,054)		(7,185)		(16,346)		(15,496)
Equity in earnings of investee	2		1		4		4
NET LOSS	(8,052)		(7,184)		(16,342)		(15,492)
EARNINGS PER SHARE DATA:   BASIC AND DILUTED NET LOSS PER ORDINARY SHARE[6] (in U.S. Dollars)	$(0.08)		$(0.07)		$(0.15)		$(0.15)
WEIGHTED AVERAGE NUMBER OF SHARES AND VESTED RSUS USED IN COMPUTING NET LOSS PER ORDINARY SHARE	107,236,802		103,551,779		106,142,089		104,403,869
Other comprehensive income (loss):
Change in unrealized gain (loss) on cash flow hedges	352		1,276		(12)		734
TOTAL COMPREHENSIVE LOSS	(7,700)		(5,908)		(16,354)		(14,758)

 

VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in thousands)
ASSETS		June 30, 2026		December 31, 2025
CURRENT ASSETS Cash and cash equivalents		42,557			27,863
Short-term deposits		40,874			64,733
Restricted Short-term deposit		1,120			1,132
Trade accounts receivable		8,867			9,971
Prepaid expenses and other current assets		4,106			4,842
Inventories		12,513			10,117
TOTAL CURRENT ASSETS		110,037			118,658
LONG-TERM ASSETS
Property and equipment, net		2,514			2,901
Operating lease right-of-use assets		6,251			6,901
Intangible assets		3,291			3,762
Goodwill		1,847			1,847
Other assets		686			632
TOTAL LONG-TERM ASSETS		14,589			16,043
TOTAL ASSETS		124,626			134,701
LIABILITIES AND SHAREHOLDERS' EQUITY   TOTAL CURRENT LIABILITIES		21,118			22,934
LONG-TERM LIABILITIES
Non-current operating leases liabilities		6,348			6,717
Other long-term liabilities		106			67
TOTAL LONG-TERM LIABILITIES		6,454			6,784
TOTAL LIABILITIES		27,572			29,718
TOTAL SHAREHOLDERS' EQUITY		97,054			104,983
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		124,626			134,701

 

VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. Dollars in thousands)
		Six Months Ended  June 30,
		2026	2025
CASH FLOW FROM OPERATING ACTIVITIES:
Net loss for the period		(16,342)	(15,492)
Adjustments to reconcile net loss to net cash used in operating activities:
Income and expense items not involving cash flows:
Depreciation and amortization		1,227	1,528
Stock-based compensation		6,246	7,941
Exchange rate differences		931	159
Realized and unrealized loss (gain) on non-designated derivative instruments		3	617
Interest on short-term deposits		91	771
Change in earnout liability		(282)	(663)
Reduction in the carrying amount of ROU assets		682	692
Equity in earnings of investee, net of dividend received		(4)	1
Changes in operating assets and liabilities:
Trade accounts receivable		1,092	(382)
Prepaid expenses and other current assets		758	878
Inventories		(2,396)	(1,460)
Other assets		(8)	(96)
Current Liabilities		(234)	(1,864)
Change in operating lease liabilities		(781)	(403)
Other long-term liabilities		39	12
Net cash used in operating activities		(8,978)	(7,761)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in short-term deposits		(19,162)	(52,505)
Maturities of short-term deposits		44,062	91,835
Purchase of property and equipment		(302)	(537)
Derivative instruments of non-designated hedges		(3)	(672)
Net cash provided by investing activities		24,595	38,121
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of Ordinary Shares		-	(19,761)
Earnout payment		(1,962)	-
Exercise of stock options		2,179	385
Net cash provided by (used in) financing activities		217	(19,376)
Effect of exchange rate changes on cash and cash equivalents		(20)	182
INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSIT		15,814	11,166
CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSIT AT THE BEGINNING OF THE PERIOD		27,863	35,423
CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSIT AT THE END OF THE PERIOD		43,677	46,589
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash and cash equivalent		42,557	46,589
Restricted Deposit		1,120	-
Total cash, cash equivalent and restricted deposit		43,677	46,589
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Trade accounts payable on account of property and equipment		67	194
Operating lease liabilities arising from obtaining operating right-of-use assets and lease modifications		32	494

 

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 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 June 30,			Six Months Ended June 30,
		2026		2025	2026	2025
Net Loss		(8,052)		(7,184)	(16,342)	(15,492)
Adjusted to exclude the following:
	Change in earnout liability	-		(837)	(282)	(663)
	Financial expenses (income), net	79		(225)	(594)	(1,463)
	Income taxes	29		21	56	114
	Equity in earnings of investee	(2)		(1)	(4)	(4)
	Certain batch production incident income	-		(323)	-	(323)
	Depreciation and amortization	609		758	1,227	1,528
	Stock-based compensation expenses	3,110		3,775	6,246	7,941
Adjusted EBITDA Loss		(4,227)		(4,016)	(9,693)	(8,362)

 

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 June 30,		Six Months Ended June 30,
GAAP Loss per Share	2026	2025	2026	2025
GAAP Net Loss used for computing Loss per Share	(8,052)	(7,184)	(16,342)	(15,492)
Earnings Per Share Data:
GAAP Loss per Share (in U.S. Dollars)	$(0.08)	$(0.07)	$(0.15)	$(0.15)
Weighted average number of shares and vested RSUs used in computing net loss per ordinary share	107,236,802	103,551,779	106,142,089	104,403,869
	Three Months Ended June 30,		Six Months Ended  June 30,
Non-GAAP Loss per Share[7]	2026	2025	2026	2025
GAAP Net Loss	(8,052)	(7,184)	(16,342)	(15,492)
Adjusted to exclude the following:
Stock based compensation	3,110	3,775	6,246	7,941
Depreciation and amortization	609	758	1,227	1,528
Certain batch production incident income	-	(323)	-	(323)
Change in earnout liability	-	(837)	(282)	(663)
Total Non-GAAP Loss used for computing Loss per Share	(4,333)	(3,811)	(9,151)	(7,009)
Earnings Per Share Data:
Non-GAAP Loss per Share (in U.S. Dollars)	$(0.04)	$(0.04)	$(0.09)	$(0.07)
Weighted average number of shares and vested RSUs used in computing net loss per ordinary share	107,236,802	103,551,779	106,142,089	104,403,869

 

^[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] GAAP Gross Profit excluding share-based compensation and depreciation expenses, divided by revenue. For the three months ended June 30, 2026, and 2025, share-based compensation and depreciation & amortization expenses were $507 thousand and $630 thousand, respectively. For the six months ended June 30, 2026, and 2025, share-based compensation and depreciation expenses were $1,015 thousand and $1,280 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 earnout liability, which may vary from period-to-period, and certain batch production incident income. 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 note 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:

Investor Contact:
Michal Ben Ari: Investors@valens.com

Media Contact:
Yoni Dayan: yoni.dayan@valens.com

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SOURCE Valens Semiconductor

FAQ

How did Valens Semiconductor (VLN) perform in Q2 2026?

Valens Semiconductor delivered Q2 2026 revenue of $18.1 million, exceeding guidance of $17.2–$17.6 million. According to Valens, GAAP gross margin was 61.5%, GAAP net loss was $8.1 million, and adjusted EBITDA loss was $4.2 million, better than its guided loss range.

Did Valens Semiconductor (VLN) raise its full-year 2026 revenue guidance?

Yes. Valens Semiconductor raised its 2026 revenue guidance to $78.0–$81.0 million. According to Valens, this new range represents approximately 13% growth at the midpoint compared to its 2025 annual revenue, reflecting stronger first-half performance and improved visibility for the rest of 2026.

What is Valens Semiconductor’s Q3 2026 outlook for VLN investors?

For Q3 2026, Valens expects revenue of $21.3–$21.7 million. According to Valens, it also anticipates a gross margin of 60–62% and an adjusted EBITDA loss between $3.4 million and $2.8 million, indicating a smaller loss compared with earlier quarters in 2026.

How were Valens Semiconductor’s CIB and Automotive segment revenues in Q2 2026?

In Q2 2026, Cross-Industry Business revenue was $13.1 million, about 70% of total. Automotive revenue was $5.0 million, about 30%. According to Valens, CIB revenue increased from $11.0 million in Q1 2026, while Automotive declined from $5.9 million sequentially.

What was Valens Semiconductor’s cash position as of June 30, 2026?

As of June 30, 2026, Valens Semiconductor held $83.4 million in cash, cash equivalents and short-term deposits. According to Valens, this compared with $86.1 million on March 31, 2026 and $92.6 million on December 31, 2025, reflecting ongoing operating and other cash outflows.

Is Valens Semiconductor (VLN) still loss-making based on Q2 2026 results?

Yes. Valens Semiconductor reported a Q2 2026 GAAP net loss of $8.1 million. According to Valens, adjusted EBITDA was also negative at a $4.2 million loss, though this was an improvement versus Q1 2026 and better than its previously guided adjusted EBITDA loss range.

Where can investors find Valens Semiconductor’s 2025 Form 20-F and annual report?

Valens Semiconductor’s 2025 Annual Report on Form 20-F is available on its investor relations website. According to Valens, shareholders can also request free hard copies by writing to its Hod Hasharon address in Israel or by emailing its dedicated investors contact address.