Valens Semiconductor Ltd. (VLN): Financial results for Q2 2026
Valens Semiconductor Ltd. (VLN) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 Valens Semiconductor Reports Strong Second Quarter 2026 Results and Raises Full-Year Revenue Guidance ● 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 s
How this was made
The 30-second read
Why it matters
Q2 earnings beat and raised guidance may attract investors to the micro‑cap semiconductor space.
Market read
The earnings surprise and guidance lift could improve sentiment toward niche connectivity stocks.
What to watch
Execution risk in automotive programs and margin compression in the automotive segment.
Valens Semiconductor Reports Strong Second Quarter 2026 Results and Raises Full-Year Revenue Guidance
Q2 2026 revenue of $18.1 million exceeded the $17.2-$17.6 million guidance range, adjusted EBITDA loss of $(4.2) million was lower than the guided $(4.9)-$(4.4) million loss range, and the company raised full-year 2026 revenue guidance to between $78.0 million and $81.0 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $18.1 million | – | – |
| Gross profitGAAP | 11,139 | – | – |
| Gross marginGAAP | 61.5% | – | – |
| Gross marginnon-GAAP | 64.3% | – | – |
| Research and development expensesGAAP | (10,076) | – | – |
| Sales and marketing expensesGAAP | (5,011) | – | – |
| General and administrative expensesGAAP | (3,998) | – | – |
| Change in earnout liabilityGAAP | - | – | – |
| Total operating expensesGAAP | (19,085) | – | – |
| Operating lossGAAP | (7,946) | – | – |
| Financial income (expenses), netGAAP | (79) | – | – |
| Loss before income taxesGAAP | (8,025) | – | – |
| Income taxesGAAP | (29) | – | – |
| Net lossGAAP | $(8.1) million | – | – |
| Basic and diluted net loss per ordinary shareGAAP | $ (0.08) | – | – |
| Non-GAAP loss per sharenon-GAAP | $ (0.04) | – | – |
| Weighted average number of shares and vested RSUs used in computing net loss per ordinary shareGAAP | 107,236,802 | – | – |
| Total comprehensive lossGAAP | (7,700) | – | – |
| Adjusted EBITDA lossnon-GAAP | $(4.2) million | – | – |
| Six-month revenueGAAP | 34,964 | – | – |
| Six-month gross profitGAAP | 21,626 | – | – |
| Six-month gross marginGAAP | 61.9% | – | – |
| Six-month non-GAAP gross marginnon-GAAP | 64.8% | – | – |
| Six-month net lossGAAP | (16,342) | – | – |
| Six-month basic and diluted net loss per ordinary shareGAAP | $ (0.15) | – | – |
| Six-month non-GAAP loss per sharenon-GAAP | $ (0.09) | – | – |
| Six-month adjusted EBITDA lossnon-GAAP | (9,693) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Cross-Industry Business (CIB)Accounted for approximately 70% of total revenue. Barco selected HDBaseT chipsets for its new ClickShare USB-C Extension over CAT kit, and the company introduced a USB3 and 4K video-extension reference design that it said was driving millions of dollars in bookings. | $13.1 million | – | – |
| AutomotiveAccounted for approximately 30% of total revenue. All four Automotive design-win programs advanced toward production, with revenue expected to ramp up in 2027. | $5.0 million | – | – |
Q3 2026 and full-year 2026 outlook
- RevenueQ3 2026: between $21.3 million and $21.7 million; full-year 2026: between $78.0 million and $81.0 million
- Gross marginQ3 2026: between 60.0% and 62.0%
- NoteQ3 2026 adjusted EBITDA loss: between $(3.4) million and $(2.8) million
- NoteFull-year 2026 revenue guidance is an increase of approximately 13% (midpoint of the guidance) compared to the annual revenue of 2025.
- NoteThe company does not provide GAAP net profit (loss) guidance.
Capital returns
- Repurchase of Ordinary Shares: - for the six months ended June 30, 2026; (19,761) for the six months ended June 30, 2025.
- Exercise of stock options: 2,179 for the six months ended June 30, 2026; 385 for the six months ended June 30, 2025.
What drove it
- Q2 2026 revenue of $18.1 million exceeded guidance of $17.2-$17.6 million.
- CIB revenue was $13.1 million, compared to $11.0 million in Q1 2026 and $12.8 million in Q2 2025.
- Automotive revenue was $5.0 million, compared to $5.9 million in Q1 2026 and $4.3 million in Q2 2025.
- CIB gross margin was 69.2%; Automotive gross margin was 41.5%.
- The company cited strong first-half 2026 performance and improved visibility for the remainder of the year in raising full-year revenue guidance.
- The company said its USB3 and 4K video-extension reference design was driving millions of dollars in bookings.
Concerns
- GAAP gross margin of 61.5% was below 62.2% in Q1 2026 and 63.5% in Q2 2025.
- Automotive gross margin of 41.5% was below 46.2% in Q1 2026 and 50.5% in Q2 2025. The company attributed the sequential decrease to additional testing facility expenses incurred to prioritize and support production requirements.
- GAAP net loss was $(8.1) million, compared to net loss of $(8.3) million in Q1 2026 and net loss of $(7.2) million in Q2 2025.
- Adjusted EBITDA loss of $(4.2) million compared with an adjusted EBITDA loss of $(4.0) million in Q2 2025.
- Net cash used in operating activities was (8,978) for the six months ended June 30, 2026, compared with (7,761) for the six months ended June 30, 2025.
- Automotive design-win program revenue is expected to ramp up in 2027.
What to watch
- Q3 2026 revenue guidance of between $21.3 million and $21.7 million.
- Q3 2026 gross-margin guidance of between 60.0% and 62.0%.
- Q3 2026 adjusted EBITDA loss guidance of between $(3.4) million and $(2.8) million.
- Execution of all four Automotive design-win programs as they advance toward production and their expected revenue ramp in 2027.
- Automotive gross-margin effects from additional testing facility expenses.
- Delivery against raised full-year 2026 revenue guidance of between $78.0 million and $81.0 million.
Balance sheet and cash flow
- Cash, cash equivalents and short-term deposits: $83.4 million as of June 30, 2026, compared to $86.1 million as of March 31, 2026 and $92.6 million as of December 31, 2025.
- Cash and cash equivalents: 42,557 as of June 30, 2026; 27,863 as of December 31, 2025.
- Short-term deposits: 40,874 as of June 30, 2026; 64,733 as of December 31, 2025.
- Restricted short-term deposit: 1,120 as of June 30, 2026; 1,132 as of December 31, 2025.
- Working capital: 88,919 as of June 30, 2026; 105,998 as of June 30, 2025.
- Total current assets: 110,037 as of June 30, 2026; 118,658 as of December 31, 2025.
- Inventories: 12,513 as of June 30, 2026; 10,117 as of December 31, 2025.
- Total assets: 124,626 as of June 30, 2026; 134,701 as of December 31, 2025.
- Total current liabilities: 21,118 as of June 30, 2026; 22,934 as of December 31, 2025.
- Total liabilities: 27,572 as of June 30, 2026; 29,718 as of December 31, 2025.
- Total shareholders’ equity: 97,054 as of June 30, 2026; 104,983 as of December 31, 2025.
- Net cash used in operating activities: (8,978) for the six months ended June 30, 2026; (7,761) for the six months ended June 30, 2025.
- Net cash provided by investing activities: 24,595 for the six months ended June 30, 2026; 38,121 for the six months ended June 30, 2025.
- Net cash provided by financing activities: 217 for the six months ended June 30, 2026; net cash used in financing activities of (19,376) for the six months ended June 30, 2025.
- Cash and cash equivalents and restricted deposit at the end of the period: 43,677 for the six months ended June 30, 2026; 46,589 for the six months ended June 30, 2025.
Analysis
Valens reported Q2 2026 revenue of $18.1 million, above its guidance of $17.2-$17.6 million, versus $16.9 million in Q1 2026 and $17.1 million in Q2 2025. CIB contributed $13.1 million and accounted for approximately 70% of revenue, while Automotive contributed $5.0 million and accounted for approximately 30%. Management described continued customer demand and cited new CIB sales opportunities, including Barco's HDBaseT chipset selection and a new USB3 and 4K video-extension reference design that it said was driving millions of dollars in bookings.
Profitability remained negative, but the adjusted EBITDA loss of $(4.2) million was lower than the guidance range of a $(4.9)-$(4.4) million loss and improved from $(5.5) million in Q1 2026. GAAP net loss was $(8.1) million, compared with $(8.3) million in Q1 2026 and $(7.2) million in Q2 2025. GAAP gross margin was 61.5%, in line with guidance, but below 62.2% in Q1 2026 and 63.5% in Q2 2025. Non-GAAP gross margin was 64.3%, versus 65.2% in Q1 2026 and 67.2% in Q2 2025.
Mix and segment economics warrant attention. CIB gross margin was 69.2%, compared with 70.8% in Q1 2026 and 67.8% in Q2 2025. Automotive gross margin was 41.5%, compared with 46.2% in Q1 2026 and 50.5% in Q2 2025. The company said the sequential decline in Automotive gross margin reflected additional testing facility expenses incurred to prioritize and support production requirements. Automotive revenue fell from $5.9 million in Q1 2026 to $5.0 million, while management said all four Automotive design-win programs advanced toward production and that revenue is expected to ramp up in 2027.
Liquidity included $83.4 million of cash, cash equivalents and short-term deposits as of June 30, 2026, compared with $86.1 million as of March 31, 2026 and $92.6 million as of December 31, 2025. Net cash used in operating activities was (8,978) for the first six months of 2026, compared with (7,761) in the prior-year period. The company raised full-year 2026 revenue guidance to between $78.0 million and $81.0 million, citing strong first-half performance and improved visibility. For Q3 2026, it guided for revenue of between $21.3 million and $21.7 million, gross margin of between 60.0% and 62.0%, and adjusted EBITDA loss of between $(3.4) million and $(2.8) million.
Management, verbatim
We are pleased with our performance in the second quarter, where we exceeded our guidance and delivered revenue of $18.1 million.
Yoram Salinger, CEO of Valens Semiconductor
This quarter demonstrates continued customer demand and highlights the strength of our execution across the business.
Yoram Salinger, CEO of Valens Semiconductor
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.
Yoram Salinger, CEO of Valens Semiconductor
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, no formal comparison with prior guidance is available.
- GAAP operating cash flow for Q2 2026 was not reported.
- Free cash flow was not reported.
- Debt was not reported.
- Dividend activity was not reported.
- GAAP net profit (loss) guidance was not provided.
- Operating-expense guidance was not provided.
- Tax-rate guidance was not provided.
- Percentage year-over-year and quarter-over-quarter changes for revenue, segment revenue, expenses, profit or loss, and cash flow were not reported.
- Q2 2026 GAAP gross profit and operating-expense comparisons with Q1 2026 were not reported.
- Q2 2026 non-GAAP loss per share comparison with Q1 2026 was not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Valens Semiconductor is an Israeli‑based provider of HDBaseT connectivity chipsets serving audio‑video and automotive markets.
Ticker impact
Valens posted Q2 2026 revenue of $18.1 million, beating guidance and raised full‑year revenue guidance to $78‑81 million.
Potential short‑term price appreciation as investors reprice higher revenue outlook.
Guidance increase of ~13% and beat on revenue indicate momentum, but small scale and ongoing losses temper impact.
Market effects
Positive signal for high‑performance connectivity and automotive ADAS semiconductor segment.
May boost Israeli tech sector sentiment and related suppliers.
Limited to niche connectivity market; modest effect on broader tech indices.
Counterpoint
Despite the beat, the company remains loss‑making and cash burn could limit upside.
Key entities
- CompanyValens Semiconductor Ltd.
NYSE‑listed semiconductor maker reporting Q2 2026 results.
