Valens Semiconductor Ltd. (VLN) Earnings
Valens Semiconductor Ltd. is expected to report next earnings on August 12, 2026 (in NaN days), with a consensus EPS estimate of $-0.04. VLN has beaten EPS estimates in 7 of its last 10 reported quarters (average surprise +6.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 13, 2026 | $-0.06 | $-0.05 | +16.7% | $17M | +2.4% |
| Feb 25, 2026 | $-0.03 | $-0.04 | -33.3% | $19M | +13.0% |
| Nov 12, 2025 | $-0.07 | $-0.04 | +42.9% | $17M | -7.7% |
| May 7, 2025 | $-0.03 | $-0.03 | +0.0% | $17M | -6.0% |
| Feb 26, 2025 | $-0.03 | $-0.02 | +33.3% | $17M | +2.9% |
| Feb 28, 2024 | $0.01 | $0.06 | +700.0% | $22M | +0.7% |
| Mar 1, 2023 | $-0.11 | $-0.03 | +72.7% | $23M | +1.4% |
| Aug 10, 2022 | $-0.09 | $-0.08 | +11.1% | $22M | +3.7% |
| Mar 2, 2022 | $-0.07 | $-0.08 | -22.5% | $21M | +3.5% |
| Nov 11, 2021 | $-0.26 | $-0.19 | +26.9% | $19M | -21.2% |
| Sep 1, 2021 | — | $-0.04 | — | $18M | — |
| Dec 31, 2020 | — | $-0.46 | — | $14M | — |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 13, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Overall Financial Performance - Q1 2026 revenue exceeded the top end of management's guidance range, with GAAP gross margin of 62.2% also coming in well above guidance. - Adjusted EBITDA loss was $5.5 million, a smaller loss than the guidance range of $7.5 to $7.9 million loss. - End-of-period cash, cash equivalents, and short-term deposits totaled $86.1 million, with working capital of $91.3 million and inventory of $10.9 million. - CFO Guy Nathanson announced he will leave the company on July 13 to pursue new opportunities; the company has launched a search for his replacement. ### Audio-Video (CIB Segment) Milestones - The new VS3000 video extension chip saw strong continued adoption, with leading AV manufacturer Extron launching a new line of premium collaboration space switches powered by the VS3000, the only chip on the market that can extend uncompressed HDMI 2.0 over common category cables. - The VS6320, the first dedicated high-performance USB 3.2 extension chip, also gained new traction as a second major AV manufacturer launched a product based on the chip in Q1. - Both chips were featured at CES and ISE industry events in Q1, with positive customer and partner reception, and the company will showcase the chips at the upcoming Infocomm International show in Las Vegas. ### Automotive Segment Milestones - Valen demonstrated interoperability of its MIPI AFI-compliant VA7000 ADAS/autonomous driving connectivity chipset with AFI-compliant components from two other vendors at AutoChina. This is the first industry multi-vendor demonstration of interoperable AFI connectivity, validating the company's value proposition of eliminating vendor lock-in and reducing supply chain risk for automotive OEMs. - Multiple AFI evaluation programs with global OEMs are ongoing and progressing on schedule.
Guidance
- For Q2 2026, management projects revenue in the range of $17.2 million to $17.6 million, with a GAAP gross margin range of 60% to 62%, and an adjusted EBITDA loss range of $4.9 million to $4.4 million. - Full year 2026 revenue guidance is unchanged at $75 million to $77 million, with a significant revenue ramp expected in the second half of the year driven by confirmed product launch timelines for existing design wins. - CIB is expected to grow approximately 5% full year 2026, with growth resuming in Q2 and accelerating further in Q3 and Q4.
Segment performance
Total Q1 2026 revenue was $16.9 million, up 0.6% year-over-year from $16.8 million in Q1 2025, and down 12.9% quarter-over-quarter from $19.4 million in Q4 2025. - Cross Industry Business (CIB): Q1 2026 revenue of $11 million, representing 65% of total revenue. This is down from $11.7 million (70% of total) in Q1 2025 and $13.9 million (70% of total) in Q4 2025. CIB gross margin in Q1 2025 was 70.8%, up from 66.4% in Q4 2025 and 69.1% in Q1 2025. The sequential gross margin increase was driven by favorable product mix. - Automotive: Q1 2026 revenue of $5.9 million, representing 35% of total revenue. This is up from $5.1 million (30% of total) in Q1 2025 and $5.5 million (30% of total) in Q4 2025. Automotive gross margin in Q1 2026 was 46.2%, up slightly from 45.9% in Q4 2025 and down from 48.4% in Q1 2025.
Risks & headwinds
- General macroeconomic weakness and slower-than-expected technology adoption could impact business performance in 2026. - Global silicon supply chain constraints persist amid rising demand for AI and memory chips, though management stated Valen does not see any material risks to its ability to meet full-year demand targets. - No additional material risks from current geopolitical conflicts or tariff changes were identified by management.
Analyst Q&A
Q: What drove the QoQ decline in CIB revenue, is the recent automotive revenue strength sustainable vs timing effects, and is it still primarily driven by Mercedes?
A: The QoQ CIB decline was due to expected seasonality after a very strong Q4 2025, and does not reflect weaker full-year demand for CIB. Most Q1 automotive strength still comes from Mercedes demand. AFI ecosystem projects are progressing on schedule but will not contribute to revenue until 2027.
Q: Full-year guidance implies a major second half revenue acceleration — what gives management confidence in this ramp, and where will the growth come from?
A: Confidence in the second half ramp comes from clear visibility into the confirmed launch timelines of existing customer design wins across the year. Growth will come from both CIB and continued automotive strength, in line with the unchanged full-year revenue guide.
Q: CIB revenue declined in Q1 due to post-Q4 demand digestion — has digestion finished, will CIB return to growth in Q2?
A: CIB will return to growth in Q2 per the provided guidance, and will accelerate further in the second half of 2026. Full-year CIB growth is on track to hit ~5% as expected.
Q: Valen is a member of the new MIPI Physical AI Birds of Feather working group — what is Valen's role and goal here?
A: Valen is a long-time proponent of open industry standards to eliminate vendor lock-in, and as an active MIPI member, Valen's EVP of Product is chairing this new committee to align industry players on standards for physical AI applications, expanding Valen's reach beyond its core AV and automotive markets.
Q: Is the Q1 CIB margin increase from product mix durable, and what macro headwinds (tariffs, geopolitics) affect the business today?
A: The margin increase is aligned with Valen's long-term CIB margin targets. No material impacts from current geopolitical conflicts or tariff changes are seen; while broader silicon supply chain constraints exist from AI and memory demand, Valen can meet all its committed demand targets for 2026.