VLN

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 8:30 a.m. ET Chief Executive Officer - Yoram Salinger Chief Financial Officer - Karine Pinto-Flomenboim Investor Relations Manager - Michal Ben Ari Operator: Ladies and gentlemen, thank you for standing by, and welcome to Valens Semiconductor's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Thank you. I would now like to turn the conference over to Michal Ben Ari, Investor Relations Manager. Please go ahead. Michal Ben Ari: Thank you, and welcome, everyone, to Valens Semiconductor's Second Quarter 2026 Earnings Call. With me today are Yoram Salinger, Chief Executive Officer; and Karine Pinto-Flomenboim, our new Chief Financial Officer. Earlier today, we issued a press release that is available on the Investor Relations section of our website under investors.valens.com. As a reminder, today's earnings call may include forward-looking statements and projections, which do not guarantee future events or performance. These statements are subject to the safe harbor language in today's press release. Please refer to our annual report on Form 20-F filed with the SEC on February 25, 2026, for a discussion of the factors that could cause actual results to differ materially from those expressed or implied. We do not undertake any duty to revise or update such statements to reflect new information, subsequent events or changes in strategy. We will be discussing certain non-GAAP measures on this call, which we believe are relevant in assessing the financial performance of the business, and you can find reconciliations of these metrics within our earnings release. With that, I will now turn the call over to Yoram. Yoram Salinger: Thank you, Mike. Hello, everyone, and thank you for joining us, and welcome to our new CFO, Karine Pinto-Flomenboim, who brings with her extensive financial and operational leadership experience from both public and private technology companies. We are very happy to have you here with us. Since joining Valens, I spent a lot of my time with our teams, our customers and our partners. And what has struck me most is the depth of technology we've built and how directly that translates into customer adoption from audio-video products shipping today to automotive design wins that are advancing towards production. We provide high-performance chipsets that are in demand across industries because they offer OEMs a foundation upon which they can build the innovations of the future. Our technological leadership, combined with our growing commercial momentum, give me confidence in our ability to capitalize on many opportunities that lay ahead. I'll speak more about how this impacts our full year revenue towards the end of my remarks. I'm happy to share that this quarter, we exceeded the top end of our revenue guidance at $18.1 million. GAAP gross margin for the second quarter came in at 61.5%, well within our guidance, and adjusted EBITDA was a loss of $4.2 million, lower than anticipated compared to our guidance. During the remainder of my remarks, I'd like to highlight the key developments across our business, and I'll start with Audio-Video. Audio-Video continues to be the core foundation of our business. Our activities here continue to expand steadily and the momentum we saw this quarter reflects continued customer adoption and commercial traction across our chipset portfolio. The revenue growth this quarter came primarily from 2 chipsets, our legacy VS100 family and our cutting-edge VS3000. We are encouraged that the market continues to find value in our VS100, the first generation of HDBaseT chipsets. For customers looking for next-generation AV platforms, we are happy to see that they are increasingly choosing our VS3000, the only solution for uncompressed HDMI 2 extension over widely deployed category cables. In addition, we saw continued momentum building from our VS6320 chip, which extends USB 3.2. We expect integration of those chipsets to grow as more OEMs adopt higher-resolution video and more advanced USB protocols into their designs. In Q2, we saw additional products hit the market based on our most cutting edge chips, including from leading AV manufacturers, Crestron and Extron. Adoption by 2 top-tier AV manufacturers like these is exactly the kind of commercial traction that turns technology leadership into recurring revenue and give us confidence in continued growth from these products as we move further into 2026. Beyond these newer products, our broader Audio-Video portfolio also continued to perform well. During the quarter, we announced that Barco selected our HDBaseT chipset to power its new ClickShare USB-C Extension over CAT kit. Barco is one of the most recognized names in collaboration technology and the ClickShare product is known for its wireless connectivity. The company's decision is a clear signal of market demand for higher performance wired connectivity and of Valens's position as a leader in this space. We see wins like this as further validation that our technology continues to add value as collaboration systems evolve. At this point, I'd like to mention an important initiative we undertook aimed at converting our technology into new revenue opportunities. When I took the helm at Valens, we quickly established an internal task force focused on identifying new opportunities that could be pursued with minimal incremental R&D investment beyond the chip we are currently selling and with accelerated time to market. The team exceeded my expectations. One of the best examples came from our VS6320 with software enhancement, we created a new offering that addressed a clear market need. Rather than simply selling the chip, Valens developed a joint reference design for USB3 and 4K video by combining the VS6320 with a companion chip and introduced it to leading ODMs customers. We also work with those customers to design firmware tailored to their specific needs. The company has already seen millions of dollars in bookings across multiple customers, several of which have already progressed to sampling, completed qualification and are now beginning volume production. This is an elegant production-ready solution for extending both USB3 and 4K video. It also provides a clear bridge to the next step of our road map. We're currently developing a new single-chip solution that will integrate these capabilities into one package. Instead of pairing the VS6320 with companion chip from other vendors, OEMs will be able to achieve the same functionality with a single device, simplifying system design, reducing component count, lowering cost and streamlining integration. The strong market interest in our USB3 and 4K reference design reinforces our conviction that the chip's integrated feature set will address a real and growing customer need. Before I move to our Automotive business, I'd like to mention our presence at the InfoComm trade show, one of the marquee events in the pro AV industry, which took place in Las Vegas in June. Both the VS3000 and the VS6320 generated strong interest from OEMs, ODMs and ecosystem partners. Throughout the show, we held a large number of strategic meetings that resulted in new business opportunities, expanded engagements and a robust pipeline of follow-up activities. Overall, the event further strengthened our confidence in our Audio-Video strategy and growing demand for our technology and our ability to translate that demand into future design wins and revenue growth. Let's turn now to the automotive industry. I'd like to start this section with the exciting news that we are welcoming Dean Martin as the new Head of Automotive business unit, effective on September 1. I had the pleasure of working with Dean for more than a decade at Redmond later acquired by Harman and saw firsthand his exceptional ability to turn innovative technologies into significant commercial success. Dean has a track record of securing major design wins, leading global automakers and building the customer relationships needed to support the long-term growth. And at that note, I'd like to thank Adar Segal, who is stepping down from his position for his significant contribution to Valens over the recent years. Now turning to our performance in Automotive during Q2. As you know, this industry represents one of the most important long-term growth opportunities for Valens. As vehicles add more cameras, radars and other sensors to support ADAS and autonomous driving, the industry needs a new class of high-performance, reliable, standardized connectivity. We believe Valens is well positioned to become a leading provider of that connectivity for the years to come. At the center of this opportunity is our VA7000 chipset, which offers high-performance connectivity for cameras and radars using ADAS and autonomous driving. The VA7000 is the first chipset on the market to comply with the MIPI A-PHY standard. We now have 4 design wins for our A-PHY chipsets, and one of our primary focus is on executing those programs successfully. I'm pleased to say that all 4 projects are progressing according to plan, and our teams are working closely with customers to support their development towards production. As a reminder, Automotive programs follow long development and production cycles, often several years from design wins to volume production, but we expect to see revenues from these projects ramping up during 2027. While initial revenue represents an important milestone, the larger opportunities will develop as these programs advance into volume production over time. We continue to participate in several evaluation processes at various stages with multiple OEMs, providing additional opportunities to expand our design wins portfolio. To conclude, we delivered a strong execution during the past quarter. Building on the continued strength of the professional AV foundation, we also made meaningful progress across our Automotive programs while our technology leadership continues to translate into growing commercial momentum, positioning us well for future growth. As a result of our strong first half performance and the visibility we now have into the remainder of the year, we are raising our full year revenue guidance to between $78 million and $81 million, up from our previous guidance range of $75 million to $77 million. This would mark 13% year-over-year growth at the midpoint of our guidance. Our updated guidance reflects the strength of our current customer programs, improving revenue visibility and confidence in our ability to execute during the second half of 2026. And on that note, I'll turn the call over to Karine to discuss our financial performance in more detail. Karine Pinto-Flomenboim: Thank you, Yoram. And before I dive into the financials, I'd like to say how excited I am to be joining Valens and to participate in my first earnings call as CFO. As this is my first week in the role, I'll be brief on qualitative observations today, but I look forward to engaging more deeply with all of you in the quarters ahead. Now let's dive into our second quarter 2026 results. We achieved quarterly revenue of $18.1 million, which exceeded our guidance of between $17.2 million to $17.6 million. This compares to revenue of $16.9 million in Q1 2026 and $17.1 million in Q2 2025. The Cross-Industry Business, or CIB, accounted for $13.1 million or approximately 70% of total revenue, while Automotive contributed $5 million or approximately 30% of total revenue this quarter. This compares with Q1 2026 revenue of $11 million from CIB and $5.9 million from Automotive, which represented approximately 65% and 35% of total revenue, respectively. It also compares to Q2 2025 revenue of $12.8 million from the CIB and $4.3 million from Automotive, representing 75% and 25% of total revenue, respectively. Q2 2026 gross profit was $11.1 million compared to $10.5 million in Q1 2026 and compared to $10.8 million in Q2 2025. Q2 2026 gross margin was 61.5% compared to our guidance of between 60% and 62%. This compares to a Q1 2026 gross margin of 62.2% and Q2 2025 of 63.5%. On a segment basis, Q2 2026 gross margin from the 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 to Q2 2025 gross margin of 67.8% and 50.5%, respectively. The decrease in gross margin in Automotive compared to Q1 2026 was mainly due to additional testing facility expenses incurred to prioritize and support production requirements. Non-GAAP gross margin in Q2 2026 was 64.3%, which compares to 65.2% in Q1 2026 and 67.2% in Q2 2025. Operating expenses in Q2 2026 totaled $19.1 million compared to $19.4 million in Q1 2026 and $18.2 million in Q2 2025. Research and development expenses in Q2 2026 totaled $10.1 million compared to $10.3 million in Q1 2026 and $10.2 million in Q2 2025. SG&A expenses in Q2 2026 were $9 million compared to $9.4 million in Q1 2026 and $8.9 million in Q2 2025. GAAP net loss in Q2 2026 was $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. Adjusted EBITDA in Q2 2026 was a loss of $4.2 million, better than the guidance range of a loss between $4.9 million and $4.4 million. This compares to an adjusted EBITDA loss of $5.5 million in Q1 2026 and an adjusted EBITDA loss of $4 million in Q2 2025. GAAP loss per share in Q2 2026 was $0.08, the same as in Q1 2026 and compared to a loss of $0.07 for Q2 2025. Non-GAAP loss per share in Q2 2026 was $0.04 compared to a loss of $0.05 in Q1 2026 and a loss of $0.04 in Q2 2025. The difference between GAAP and non-GAAP loss per share was mainly due to stock-based compensation as well as depreciation and amortization expenses. Now turning to the balance sheet. We ended Q2 2026 with cash, cash equivalents and short-term bank deposits totaling $83.4 million and with no debt. This compares to $86.1 million at the end of Q1 2026 and $92.6 million at the end of Q4 2025. Our working capital at the end of Q2 2026 was $88.9 million compared to $91.3 million at the end of Q1 2026 and $95.7 million at the end of Q4 2025. Our inventory as of June 30, 2026, was $12.5 million, an increase from $10.9 million on March 31, 2026, and $10.1 million on December 31, 2025. Now I would like to discuss our guidance for the third quarter of 2026. We expect Q3 2026 revenue to be in the range of $21.3 million to $21.7 million. We expect gross margin for Q3 2026 to be in the range of 60% to 62%, and we expect an adjusted EBITDA loss for Q3 2026 between $3.4 million and $2.8 million loss. As Yoram said earlier, we are proud to raise our full year guidance between $78 million to $81 million. It's certainly an encouraging start to my time at Valens, a reflection of the team's strong execution. I'll now turn the call back to Yoram for his closing remarks before opening the call for Q&A. Yoram Salinger: Thank you, Karine. I'm happy that we were able to raise our full year guidance. This reflects the progress we are making across our core businesses, both in the established Audio-Video unit and the high-growth potential Automotive offering. With our differentiated technology, strong balance sheet and focus on our core markets, we're well positioned to capitalize on the opportunities ahead and drive meaningful growth, not just in 2026, but beyond as well. With that, I'll now open the call to answer your questions. Operator? Operator: [Operator Instructions] And your first question comes from Quinn Bolton with Needham & Company. Quinn Bolton: Welcome, Karine. I wanted to start on the new reference design, Yoram, that you mentioned in the script. One, can you just give us a little bit more detail on what that solution involves with the VS6320 and what type of companion chip did you integrate into that solution? And then sort of a related question, as you look to bring that companion chip into an integrated solution with the 6320, how does that affect ASP and margin for that new solution? Yoram Salinger: So as you probably know, our part in the reference design is the 6320 and a software implementation that enables a companion chip running 4K video to coexist over a single cable in order to transmit video in parallel to USB. As we said in the script, this is getting a ton of traction from ODMs and it already generated bookings of millions of dollars. And basically, it doesn't affect the gross margin and the ASP because we are not the one selling the end product. Quinn Bolton: I guess when you mentioned you were getting to an integrated solution, would you bring that functionality into a chip designed by Valens? Or would it just be a solution where you buy the companion chip and pass it through as part of a solution, but it's not something that really affect -- you're not designing a new chip? Or are you going to design a new chip with that companion chip functionality integrated into the 6320? Yoram Salinger: So that's a very good question. The companion chip is going to be bought by the ODMs who is eventually going to design and build the system and sell it to the market. You're right about the intent of having a solution to be introduced later in coming years where we would integrate the 2 capabilities, 4K video alongside with the USB kind of 6320 into one chip, and that's kind of a road map plan for us. But for now, it's ODMs that we have built a reference implementation for them. They're buying the companion chip and they build the PCB in order to get it to the market. Quinn Bolton: Understood. Got it. And then, you already mentioned that all 4 of the VA7000 wins are progressing towards initial production in 2027. That's still potentially about a year away. Can you give us a sense what are the key milestones left on the time line to achieving start of production on those programs? Are there major milestones? Or do you feel like most of those milestones have now been met? Just trying to get a sense of what the challenge is or what the next big steps are for those 4 Auto designs. Yoram Salinger: So I'm proud to say that our piece in that very complex puzzle has been completed and delivered. So we have delivered chips to the Tier 1s who are building the ECUs in order to get into the manufacturers or the OEMs, the carmakers to build the car. So our part in that has been completed and done in a very effective manner. Obviously, launching cars is a complex task, and it takes a few other elements of the car industry to get together at the same time in order to -- for the OEM to launch the product. So our part in that is pretty much completed. And the reason we are saying we see that moving on track is because we are working with the Tier 1, and we know that they're advancing towards releasing their piece into the assembly line of the car manufacturers, and this is what gives us the confidence. Quinn Bolton: Excellent. And then just a last quick one for Karine. Karine, you mentioned the Auto gross margin declined in the June quarter due to some testing facility expenses. Will those expenses continue into future quarters? Or were those expenses more onetime in nature? Any thoughts on how you see the Auto gross margin moving in the third quarter would be helpful. Karine Pinto-Flomenboim: Sure. So as we mentioned, the gross margin for this quarter was impacted by additional testing costs. But going through to next quarters, I think overall expenses, we do not expect them to change significantly. We do not know to foresee those testing costs going forward. But due to the capacity issues that we are experiencing, we assume it's pretty stable to say that they're with us for the time being. Operator: Your next question comes from the line of Dave Storms with Stonegate Capital Partners. Maximus Alexander-Nino: This is Maximus. I'll be asking questions for Dave this morning. Just wanted to start on the full year guide. The raise implies a pretty meaningful step-up in the second half with the 4 Automotive programs really expected to ramp in '27, should we think about the second half acceleration of 2026, primarily CIB? Or are there meaningful contributions from existing Auto businesses as well? And if you can give us a little bit more color on overall visibility that gave you the confidence to raise guidance. Yoram Salinger: Sure. So as we stated on the call, the Automotive business is going to be impacting revenue starting 2027. The reason to increase our guidance has to do with the fact that our flagship chips, the VS3000 and the VS6320 are being designed in to [indiscernible] more products of our customers, the likes of the Crestron, the Extron, the large techs and others. So when we see the adoption increasing over time and actually more and more products are being shipped to the market, leveraging the Valens chipsets, we feel confident that our visibility and the adoption is going to stay at the same -- at least at the same level we've seen through the first 2 quarters. And therefore, we raised the guidance to reflect that demand that we see for our products. Maximus Alexander-Nino: Great. I wanted to pivot over with Barco and I want to see if you can walk us through a little bit of how that design came in together and what the remaining rollout looks like? Yoram Salinger: Could you repeat the question? Sorry, I didn't get your question. Maximus Alexander-Nino: With Barco, if you were able to walk us through how that design came in together and what the remaining rollout looks like? Yoram Salinger: So first of all, ClickShare is a flagship product of Barco, leveraging Wi-Fi. Now Wi-Fi connectivity as good as it gets, have its issues. And the idea of Barco kind of splitting the product, which is a flagship product into a wireless implementation as well as wired suggests that the wired connectivity is still there and is still there for [indiscernible]. So this decision is extremely meaningful, and this is why we've decided that if Barco is going, splitting the ClickShare back to wired alongside with wireless, okay? We need to be fair to the situation. It gives us a ton of confidence that they would be shipping this to the market in high volumes in the years to come. Operator: And that concludes our question-and-answer session. I will now turn the conference back over to Yoram for closing comments. Yoram Salinger: Thank you for joining us today and for your continued interest in Valens Semiconductor. We look forward to speaking with you again next quarter. Goodbye. Operator: Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation, and you may now disconnect. Before you buy stock in Valens Semiconductor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Valens Semiconductor wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Valens Semiconductor (VLN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Valens Semiconductor, Ltd.? Here are five stocks we like better. Valens Semiconductor exceeded Q2 expectations with revenue of $18.1 million, up from $16.9 million sequentially, driven by its audio/video business. The company raised full-year 2026 revenue guidance to $78 million–$81 million, representing approximately 13% growth at the midpoint. Audio/video products remain the company’s primary growth engine, with increasing adoption of the VS3000 and VS6320 chipsets and customer activity involving Crestron, Extron and Barco. Valens said its VS6320-based reference design has generated millions of dollars in bookings and is beginning to enter volume production with several customers. Automotive revenue declined sequentially and gross margin fell to 41.5% amid testing-facility costs, but Valens said its four VA7000 design wins remain on schedule to begin generating revenue in 2027. The company ended the quarter with $83.4 million in cash and short-term deposits and no debt. Be Cautious of Valens Semiconductor Analyst Estimates Valens Semiconductor (NYSE:VLN) reported second-quarter 2026 revenue of $18.1 million, exceeding its prior guidance range of $17.2 million to $17.6 million, as growth in its audio/video business offset a sequential decline in automotive revenue. The company raised its full-year revenue outlook, citing increased visibility into demand for its professional AV chipsets. Chief Executive Officer Yoram Salinger said the quarter’s revenue growth was driven primarily by the company’s legacy VS100 chipset family and its newer VS3000 products. He said Valens is also seeing continued adoption of the VS6320, which supports USB 3.2 extension. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Valens Semiconductor Stock is an Under the Radar Chip Play “Audio video continues to be the core foundation of our business,” Salinger said, pointing to customer adoption and commercial activity across the company’s chipset portfolio. Second-quarter revenue rose from $16.9 million in the first quarter and $17.1 million a year earlier. The Cross-Industry Business, or CIB, generated $13.1 million, representing about 70% of revenue, while automotive contributed $5 million, or approximately 30%. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Chief Financial Officer Karine Pinto-Flomenboim, who joined the company during the quarter, said gross profit totaled $11.1 million and GAAP gross margin was 61.5%, within the company’s 60% to 62% guidance range. Gross margin was 62.2% in the first quarter and 63.5% in the second quarter of 2025. Automotive gross margin was 41.5%, down from 46.2% in the previous quarter. Pinto-Flomenboim attributed the decline primarily to additional testing-facility costs incurred to prioritize and support production requirements. In response to an analyst question, she said the company does not expect those expenses to change significantly in the near term because of capacity constraints. GAAP net loss was $8.1 million, compared with a loss of $8.3 million in the first quarter and $7.2 million a year earlier. GAAP loss per share was $0.08, unchanged sequentially and compared with a $0.07 loss per share in the prior-year quarter. Adjusted EBITDA loss was $4.2 million, better than the company’s projected loss of $4.9 million to $4.4 million. Cash equivalents and short-term bank deposits totaled $83.4 million at June 30, with no debt. → First Solar’s Profit Engine Faces a New Policy Test in Washington For the third quarter, Valens forecast revenue of $21.3 million to $21.7 million, gross margin of 60% to 62%, and an adjusted EBITDA loss of $3.4 million to $2.8 million. The company raised its full-year 2026 revenue guidance to $78 million to $81 million from a previous range of $75 million to $77 million. At the midpoint, the updated outlook represents 13% year-over-year growth, according to management. Salinger said the increase was based on demand for the VS3000 and VS6320 chipsets, which are being incorporated into more customer products. He said the higher outlook was not driven by the company’s four automotive design wins, which Valens expects to begin contributing revenue in 2027. Valens highlighted product activity involving several AV customers during the quarter. Salinger said Crestron and Extron introduced products based on the company’s newer chipsets, while Barco selected Valens HDBaseT chipsets for its ClickShare USB-C extension over CAT kit. According to Salinger, Barco’s decision to offer a wired product alongside its established wireless ClickShare platform reflects continued demand for high-performance wired connectivity in collaboration systems. The company also discussed a reference design using its VS6320 chipset. Valens combined the USB 3.2 extension chipset with a companion chip and software to enable USB 3 and 4K video transmission over a single cable. Salinger said the offering has generated millions of dollars in bookings across multiple customers, with several customers having moved through sampling and qualification and beginning volume production. During the question-and-answer session, Salinger said the companion chip is purchased by the original design manufacturer, rather than sold by Valens as part of the solution. As a result, the current reference design does not affect Valens’ average selling prices or gross margins. Valens is developing a future single-chip product intended to integrate USB and 4K-video capabilities into one package. Salinger said the planned product could simplify system design, reduce component counts and lower costs for OEMs. In automotive, Valens said it has four design wins for its VA7000 chipset family, which supports camera and radar connectivity for advanced driver-assistance systems and autonomous-driving applications. The VA7000 is designed to comply with the MIPI A-PHY standard. Salinger said all four programs are progressing according to plan and are expected to begin ramping revenue in 2027. He noted that automotive programs typically require several years to move from a design win to volume production. Responding to an analyst question about remaining milestones, Salinger said Valens has completed and delivered its portion of the programs, including delivery of its chips to Tier 1 suppliers building electronic control units. The company’s confidence in the production timeline is based on its work with those suppliers as they advance toward vehicle assembly-line releases, he said. Valens also announced that Dean Martin will become head of its automotive business unit effective Sept. 1. Salinger said Martin previously worked with him at Red Bend, later acquired by Harman, and has experience securing design wins and building relationships with global automakers. Adar Segal is stepping down from the role. Valens Semiconductor Corp. is a provider of high-speed connectivity solutions, specializing in semiconductor chipsets that enable the transmission of uncompressed video, audio and data over common cabling such as twisted-pair and coax. The company's flagship technology, HDBaseT, supports the simultaneous delivery of multiple signal types—including HDMI, USB, Ethernet and power—over a single cable. This multi-service approach addresses the growing demands of both consumer electronics and automotive infotainment systems, where bandwidth, reliability and low latency are critical. Founded in 2012 and headquartered in Israel, Valens maintains research and development operations across North America, Europe and Asia. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Valens Semiconductor Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth was primarily driven by the Audio-Video segment, specifically the legacy VS100 family and the cutting-edge VS3000 chipset, which remains the only solution for uncompressed HDMI 2 extension over category cables. Management attributed commercial momentum to increased adoption by top-tier manufacturers like Crestron and Extron, signaling a transition from technology leadership to recurring revenue streams. The company established an internal task force to identify 'low-effort, high-impact' opportunities, resulting in a new USB3 and 4K video reference design that has already secured millions of dollars in bookings. Barco's selection of Valens for its ClickShare wired extension kit validates the ongoing market demand for high-performance wired connectivity even within traditionally wireless product ecosystems. Automotive performance is currently focused on execution of four major design wins for the VA7000 A-PHY chipset, which management views as the foundation for long-term growth in ADAS and autonomous driving. Full year 2026 revenue guidance was raised to between $78 million and $81 million, representing 13% year-over-year growth at the midpoint based on improved visibility into customer programs. Automotive revenue from current VA7000 design wins is expected to begin ramping in 2027 as Tier 1 suppliers move toward volume production with OEMs. The company is developing a new single-chip solution to integrate USB3 and 4K video capabilities, aiming to reduce system complexity and component costs for ODMs compared to current multi-chip reference designs. Q3 2026 revenue is projected between $21.3 million and $21.7 million, with adjusted EBITDA loss expected to narrow to between $3.4 million and $2.8 million. Automotive gross margins were pressured in Q2 2026 due to additional testing facility expenses required to prioritize production requirements and address capacity issues. Dean Martin, formerly of Harman, will join as Head of Automotive on September 1, 2026, to lead the commercialization of the VA7000 portfolio. The company maintains a strong liquidity position with $83.4 million in cash and no debt, providing a buffer for ongoing R&D and market expansion. Inventory levels increased to $12.5 million as of June 30, 2026, up from $10.1 million at year-end 2025, reflecting preparations for second-half demand. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the current reference design uses a companion chip bought by ODMs, so it does not currently impact Valens's gross margins or ASP. The long-term strategy is to integrate these functions into a single Valens chip, which will simplify customer designs and capture more value. Valens has completed and delivered its portion of the technical development to Tier 1 suppliers. Confidence in the 2027 timeline stems from Tier 1 partners advancing their Electronic Control Unit (ECU) designs toward the final assembly lines of car manufacturers. Management expects testing costs to remain relatively stable for the time being due to existing capacity constraints. The company does not foresee significant changes in overall operating expenses in the immediate future.

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 9th, 2026, and Dean Martin as the new Head of Automotive Business Unit, effective on September 1st, 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 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: [email protected]. 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 [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: [email protected] Media Contact:Yoni Dayan: [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/valens-semiconductor-reports-strong-second-quarter-2026-results-and-raises-full-year-revenue-guidance-302849518.html

As you might know, Valens Semiconductor Ltd. (NYSE:VLN) just kicked off its latest quarterly results with some very strong numbers. Revenues and losses per share were both better than expected, with revenues of US$17m leading estimates by 2.4%. Statutory losses were smaller than the analystsexpected, coming in at US$0.08 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Following the latest results, Valens Semiconductor's three analysts are now forecasting revenues of US$75.6m in 2026. This would be a modest 7.0% improvement in revenue compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$0.28. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$75.7m and losses of US$0.36 per share in 2026. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a very favorable reduction to losses per share in particular. View our latest analysis for Valens Semiconductor These new estimates led to the consensus price target rising 8.3% to US$4.33, with lower forecast losses suggesting things could be looking up for Valens Semiconductor. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Valens Semiconductor at US$5.00 per share, while the most bearish prices it at US$4.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Valens Semiconductor is an easy business to forecast or the the analysts are all using similar assumptions. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Valens Semiconductor is forecast to grow faster in the future than it has in the past, with revenues expected to display 9.4% annualised growth until the end of 2026. If achieved, this would be a much better result than the 1.4% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 22% per year. So although Valens Semiconductor's revenue growth is expected to improve, it is still expected to grow slower than the industry. The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Valens Semiconductor analysts - going out to 2028, and you can see them free on our platform here. You should always think about risks though. Case in point, we've spotted 2 warning signs for Valens Semiconductor you should be aware of, and 1 of them is significant. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Interested in Valens Semiconductor, Ltd.? Here are five stocks we like better. Valens Semiconductor beat first-quarter guidance, with revenue of $16.9 million and gross margin of 62.2% both coming in above expectations. The company also posted a smaller-than-expected adjusted EBITDA loss and reaffirmed its full-year outlook. Management highlighted momentum in its audio/video chips, especially the VS3000 and VS6320, with new products from customers reaching the market during the quarter. The company said these chips are key to its growth in professional AV and collaboration systems. In automotive, Valens emphasized progress around its VA7000 chipset and the MIPI A-PHY standard, including an interoperability demonstration with other vendors. Executives said A-PHY-related projects are expected to start contributing more meaningfully in 2027. Be Cautious of Valens Semiconductor Analyst Estimates Valens Semiconductor (NYSE:VLN) reported first-quarter 2026 revenue above its guidance range and reaffirmed its full-year outlook, while executives pointed to continued adoption of newer audio/video chips and progress in automotive connectivity standards. Chief Executive Officer Yoram Salinger said the company’s first-quarter results were in line with expectations despite previously discussed macroeconomic conditions and a slower pace of technology adoption. Revenue for the quarter was $16.9 million, above the company’s guidance range of $16.3 million to $16.7 million. GAAP gross margin was 62.2%, also above guidance, and adjusted EBITDA was a loss of $5.5 million, better than the expected loss range. → McDonald's Is the Cheapest It’s Been in Years—Does That Make It a Buy? Valens Semiconductor Stock is an Under the Radar Chip Play “Our first quarter was in line with our expectations,” Salinger said. “Nevertheless, we are pleased to report that our revenues exceeded the top end of our guidance.” Chief Financial Officer Guy Nathanzon said first-quarter revenue of $16.9 million compared with $19.4 million in the fourth quarter of 2025 and $16.8 million in the first quarter of 2025. → How Berkshire’s New York Times Bet Looks Today The company’s Cross-Industry Business, or CIB, generated $11 million, representing about 65% of total revenue. Automotive revenue was $5.9 million, or about 35% of revenue. In the prior quarter, CIB revenue was $13.9 million and automotive revenue was $5.5 million. In the first quarter of 2025, CIB revenue was $11.7 million and automotive revenue was $5.1 million. Nathanzon said gross profit was $10.5 million, compared with $11.7 million in the fourth quarter of 2025 and $10.6 million in the first quarter of 2025. GAAP gross margin was 62.2%, compared with 60.5% in the prior quarter and 62.9% a year earlier. Non-GAAP gross margin was 65.2%. → Oklo Stock Could Be Ready for Another Massive Run By segment, CIB gross margin was 70.8%, while automotive gross margin was 46.2%. Nathanzon attributed the sequential increase in CIB gross margin mainly to product mix. Operating expenses totaled $19.4 million, down from $20.9 million in the fourth quarter and $20 million in the year-earlier quarter. Research and development expense was $10.3 million, while SG&A expense was $9.4 million. GAAP net loss was $8.3 million, compared with a net loss of $8.8 million in the fourth quarter of 2025 and $8.3 million in the first quarter of 2025. GAAP loss per share was $0.08, while non-GAAP loss per share was $0.05. Salinger highlighted adoption of the company’s VS3000 chip in the audio/video market, saying the chip is designed to extend uncompressed HDMI 2.0 over widely used category cables. He said additional products based on the chip reached the market during the quarter, including Extron’s DTP3 CrossPoint 42 series matrix switches for premium collaboration spaces. According to Salinger, Valens’ chip supports uncompressed video, audio and controls up to 330 feet in that product. He called the VS3000 “the most advanced HDBaseT chip we offer” and said it is a pillar of the company’s growth opportunity in its core audio/video market. The company also cited momentum for its VS6320 chip, which Salinger described as the first and only high-performance USB 3.2 extension solution built on a dedicated chip. He said another major AV manufacturer released a product based on the VS6320 during the quarter. Valens showcased both chips at CES in January and ISE in February. Salinger said customers and partners responded positively to demonstrations involving multi-camera extension over a single category cable, uncompressed 4K video extension, USB 3 infrastructure supporting multiple cameras and sources, and USB-C to USB-C extension for room conferencing setups. In automotive, Salinger said the company’s opportunity is centered on the VA7000 chipset, which supports connectivity for cameras and radars used in advanced driver-assistance systems and autonomous driving. He said VA7000 is the first chipset on the market to comply with the MIPI A-PHY standard. Salinger emphasized the importance of interoperability in automotive standards, saying the industry is working to move away from proprietary solutions because of concerns around vendor lock-in and supply chain uncertainty. During the quarter, Valens demonstrated interoperability at Auto China, connecting Valens deserializers to A-PHY serializers from two other SerDes vendors. Salinger described it as “the first three-company demonstration of any interoperable SerDes connectivity solution anywhere in the world for any SerDes standard.” He said the demonstration reinforced a key value proposition of A-PHY: reducing vendor lock-in, lowering supply chain risk and enabling a more flexible multi-vendor ecosystem for automakers. In response to an analyst question, Salinger said automotive strength in the quarter was related to Mercedes demand and vehicle sales. He said A-PHY projects are expected to factor into results in 2027, adding that those projects are advancing in line with timelines. For the second quarter of 2026, Valens expects revenue of $17.2 million to $17.6 million, gross margin of 60% to 62%, and an adjusted EBITDA loss of $4.9 million to $4.4 million. The company reaffirmed its full-year revenue guidance of $75 million to $77 million. Asked about the implied second-half acceleration, Salinger said the second half of 2026 is expected to be “way stronger” than the first half, citing design wins and design-ins into customer products, along with visibility into product launches expected to drive growth in the third and fourth quarters. Salinger said the company expects CIB to grow in the second quarter and accelerate further in the second half. He said Valens sees about 5% growth for CIB across the year. On macro conditions, Salinger said Valens does not currently see any effect from tariffs. He noted that supply chain conditions remain challenging because of increased demand tied to AI, memory and silicon, but said the company does not see a risk to its ability to meet its targets for the year. Nathanzon announced that he will leave Valens on July 13 to pursue new opportunities. He thanked the company’s team and said Valens has “incredible technology” in demand across industries. Salinger thanked Nathanzon for his contributions and said the company has initiated a search for a replacement. Valens ended the quarter with $86.1 million in cash, cash equivalents and short-term deposits, and no debt. That compares with $92.6 million at the end of the fourth quarter of 2025 and $112.5 million at the end of the first quarter of 2025. Working capital was $91.3 million, and inventory was $10.9 million as of March 31, 2026. Valens Semiconductor Corp. is a provider of high-speed connectivity solutions, specializing in semiconductor chipsets that enable the transmission of uncompressed video, audio and data over common cabling such as twisted-pair and coax. The company's flagship technology, HDBaseT, supports the simultaneous delivery of multiple signal types—including HDMI, USB, Ethernet and power—over a single cable. This multi-service approach addresses the growing demands of both consumer electronics and automotive infotainment systems, where bandwidth, reliability and low latency are critical. Founded in 2012 and headquartered in Israel, Valens maintains research and development operations across North America, Europe and Asia. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Valens Semiconductor Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Revenue: $16.9 million, exceeding guidance of $16.3 million to $16.7 million. Gross Margin: 62.2%, above guidance of 57% to 59%. Adjusted EBITDA: Loss of $5.5 million, better than guidance of $7.9 million to $7.5 million loss. GAAP Net Loss: $8.3 million. GAAP Loss Per Share: $0.08. Non-GAAP Loss Per Share: $0.05. Cash Equivalents and Short-term Deposits: $86.1 million. Operating Expenses: $19.4 million. Research and Development Expense: $10.3 million. SG&A Expense: $9.4 million. Inventory: $10.9 million as of March 31, 2026. Q2 2026 Revenue Guidance: $17.2 million to $17.6 million. Q2 2026 Gross Margin Guidance: 60% to 62%. Q2 2026 Adjusted EBITDA Loss Guidance: $4.9 million to $4.4 million loss. Warning! GuruFocus has detected 7 Warning Signs with VLN. Is VLN fairly valued? Test your thesis with our free DCF calculator. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Valens Semiconductor Ltd (NYSE:VLN) reported Q1 2026 revenues of $16.9 million, exceeding the top end of their guidance. The company's GAAP gross margin for Q1 2026 was 62.2%, surpassing their guidance range. Strong adoption of the VS3000 chip, which supports uncompressed HDMI 2.0 over category cables, was noted. The VA7000 chipset, compliant with the MIPI A-PHY standard, is gaining traction in the automotive industry. Valens Semiconductor Ltd (NYSE:VLN) demonstrated interoperability of their A-PHY compliant components with other vendors, reinforcing their value proposition. Q1 2026 adjusted EBITDA was a loss of $5.5 million, although it was smaller than anticipated. The company's GAAP net loss for Q1 2026 was $8.3 million, consistent with the previous year. Cash equivalents and short-term deposits decreased to $86.1 million at the end of Q1 2026 from $92.6 million at the end of Q4 2025. The cross-industry business (CIB) saw a decline in revenues compared to Q4 2025, attributed to seasonality and strong Q4 performance. Valens Semiconductor Ltd (NYSE:VLN) anticipates a stronger second half of 2026, implying a need for significant revenue acceleration. Q: Could you touch on what drove the quarter-over-quarter decline in CIB and within auto, how much of the strength was sustainable and demand versus timing, inventory, or customer ordering patterns? Was the auto upside still largely driven by Mercedes? A: The decline in CIB was anticipated due to seasonality and a strong Q4. The full-year guidance remains strong, indicating expected growth in CIB. The automotive strength was indeed driven by Mercedes, and A-PHY projects are expected to impact revenues in 2027. Q: The full-year guide implies a meaningful step-up in the second half. What gives you confidence in that second-half ramp? A: The confidence in a stronger second half is based on design-ins and design wins, with visibility on product launches throughout the year. This reassures us of growth in Q3 and Q4. Q: How do you feel about the digestion in CIB so far? Do you expect the correction to continue into Q2, or do you see CIB returning to growth in Q2? A: CIB is expected to grow in Q2, aligning with the guidance provided. Growth is anticipated to accelerate further in Q3 and Q4, with an estimated 5% growth across the year. Q: Can you talk about your involvement with MIPI's physical AI Birds of Feather group for humanoids? Are you aiming to establish the same goal of using your connectivity standards for physical AI? A: Valens is actively involved in MIPI's initiatives, promoting standards to enable interoperability and prevent vendor lock-in. Our EVP of products chairs the committee, aiming to explore the right way forward for physical AI. Q: You mentioned that product mix drove the margin higher sequentially. Is this durable given the consolidated sequential step back you're expecting in the guide? A: The higher margin was due to a specific product mix. It aligns with our long-term goals for CIB, and we expect it to remain consistent with our strategic objectives. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue exceeded the top end of guidance at $16.9 million, driven by strong adoption of high-resolution video chips in the audio-video segment. The VS3000 chip is serving as a pillar for core audio-video growth, recently integrated into premium collaboration products by leading manufacturers like Extron. Automotive performance remains anchored by demand from Mercedes-Benz, while the VA7000 chipset is gaining traction through its compliance with the MIPI A-PHY standard. Management successfully demonstrated the first three-company interoperable SerDes connectivity solution, validating the strategic move toward open standards to eliminate vendor lock-in. Gross margin expansion to 62.2% was primarily influenced by a favorable product mix within the Cross-Industry Business (CIB) segment. The company is actively participating in MIPI's new physical AI initiatives, positioning its connectivity standards for future applications in robotics and humanoids. Full-year 2026 revenue guidance remains unchanged at $75 million to $77 million, implying a significant step-up in performance during the second half of the year. Confidence in the second-half ramp is supported by high visibility into customer product launch timelines and specific design-in milestones. The Cross-Industry Business is projected to achieve approximately 5% growth for the full year, with acceleration expected to begin in Q2 and peak in Q4. A-PHY automotive projects are progressing according to schedule, with revenue contributions expected to factor into financial results starting in 2027. Management anticipates no material risk to meeting 2026 targets despite broader semiconductor supply chain challenges related to AI and memory demand. CFO Guy Nathanzon will depart the company on July 13, 2026; a formal search for a successor has been initiated. The company maintains a robust debt-free balance sheet with $86.1 million in cash and short-term deposits to support strategic initiatives. Inventory levels increased slightly to $10.9 million as of March 31, 2026, to align with anticipated demand for upcoming product launches. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management reiterated that the second half of 2026 will be significantly stronger than the first half due to the timing of customer product launches. Confidence is derived from monitoring specific design-ins that are scheduled to hit the market in Q3 and Q4. Current automotive strength is largely tied to Mercedes-Benz vehicle sales and associated demand. Newer A-PHY ecosystem activities and Mobileye-related programs are advancing well but are not expected to impact revenue until 2027. Management noted that while AI and memory demand are tightening silicon supply chains, they do not foresee a risk to Valens' ability to meet 2026 targets. The company dismissed current tariffs as a significant new headwind, noting they have been a known factor for some time.