revenue
21.3–21.7 $million
Q3 2026
official guidance
VALENS SEMICONDUCTOR LTD.
Last · NYSE$1.71+0.04 (+2.40%)stale · yahoo · 180h ago
Market cap$185.16M108.3M sh
P/E · TTM-5.5fwd -22.3 · eps -0.31 · loss
Beta1.39vs S&P 500
Div yield—annual · TTM
52w range
$1.10$3.71
Volume622.6Ksession
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
BuyHoldSell
Hold rather than buy aggressively.
Q2 revenue beat at $18.1M and FY26 guidance rose to $78M-$81M, but the acceleration is largely dependent on CIB adoption while automotive revenue from four VA7000 wins is not expected to ramp meaningfully until 2027. The $83.4M debt-free cash balance provides runway, yet the company remains loss-making, with a $4.2M adjusted EBITDA loss and automotive gross margin falling to 41.5%.
Themes
- Q2 2026 Earnings
- Fy26 Guidance Raise
- Cross Industry Business
- Vs3000
- Vs6320 Reference Design
- Va7000 Automotive
Near term
Q3 guidance calls for revenue of $21.3M-$21.7M, implying continued sequential growth primarily from VS3000, VS6320 and other CIB programs.
The key near-term execution test is whether the VS6320 USB3/4K reference design converts its reported “millions of dollars” of bookings into sustained volume production; management said several customers are sampling, qualified or beginning production.
Q3 adjusted EBITDA guidance improves to a $2.8M-$3.4M loss, but gross margin is guided only to 60%-62%, offering limited evidence of operating leverage yet.
Automotive testing costs are expected to remain elevated for the time being, keeping pressure on segment and consolidated margins.
Longer term
The investment case depends on converting professional AV design wins and reference designs into recurring volume revenue; CIB was already approximately 70% of Q2 revenue and generated a 69.2% gross margin.
The VA7000 platform has four design wins, but production timing depends on Tier 1 suppliers and automakers' assembly-line readiness rather than Valens's remaining technical work. Meaningful revenue is not expected until 2027.
The planned single-chip USB/4K solution could improve system simplicity and customer economics, but it is still a roadmap product and management did not provide launch timing, ASP, revenue potential or margin impact.
Barco's addition of wired HDBaseT connectivity to ClickShare and adoption by Crestron and Extron support demand validation, but the call did not quantify customer concentration, design-win revenue, or the durability of Valens's competitive advantage.
Stable R&D and SG&A are constructive, but the company still generated a GAAP net loss of $8.1M in Q2; the long-term thesis requires revenue growth to outpace ongoing operating costs.
Red flags
Automotive gross margin declined from 46.2% to 41.5% sequentially and from 50.5% a year earlier; management indicated testing costs may remain stable because of capacity issues, without quantifying duration or normalized margin.
The reported VS6320 bookings were described only as “millions of dollars,” with no backlog, recognized revenue, customer-by-customer detail, ASP, or timing disclosure. Analyst questioning did not establish how much of this opportunity contributes to FY26 guidance.
All four VA7000 projects remain roughly a year or more from expected production ramp, leaving a substantial timing gap between design wins and revenue and exposing the thesis to customer launch delays.
Management attributed the guidance increase to customer-program visibility and CIB adoption, but did not provide a detailed bridge from the first-half results to the implied second-half revenue.
Claims of differentiated technology and leadership were not materially stress-tested in Q&A against competing connectivity solutions, leaving the durability of the moat uncertain.
The company remains unprofitable and cash declined from $86.1M in Q1 and $92.6M at year-end 2025, despite the stronger revenue outlook.
Forward outlook
gross margin
60–62 pct
Q3 2026
official guidance
ebitda
-3.4–-2.8 $million
Q3 2026
official guidance
revenue
78–81 $million
FY 2026
official guidance
revenue growth
13 pct
FY 2026
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
1:30 PM UTC+1
Period
Sep 2026
Est. EPS
−$0.04
Est. revenue
17.4M