Valens Semiconductor Ltd.

Q2 2026 revenue was $18.1 million, up from $16.9 million in Q1 2026 and $17.1 million in Q2 2025. GAAP gross margin was 61.5%, versus 62.2% in Q1 2026 and 63.5% in Q2 2025; non-GAAP gross margin was 64.3%. GAAP net loss was $8.1 million, or $0.08 per share, versus a $7.2 million loss, or $0.07 per share, in Q2 2025. Adjusted EBITDA was a loss of $4.2 million, better than guidance and versus a $4.0 million loss in Q2 2025. For the quarter, CIB revenue was $13.1 million and Automotive revenue was $5.0 million. The company ended with $83.4 million in cash, cash equivalents and short-term bank deposits, and no debt. Q3 2026 guidance is revenue of $21.3 million-$21.7 million, gross margin of 60%-62%, and adjusted EBITDA loss of $3.4 million to $2.8 million. Full-year 2026 revenue guidance was raised to $78 million-$81 million from $75 million-$77 million.

Yoram Salinger framed the quarter as evidence that Valens’ technology is turning into commercial traction, especially in pro AV. He emphasized that the company is seeing strong adoption of VS3000, VS6320, and a new VS6320-based reference design that already generated millions of dollars in bookings, while also citing new product launches from Crestron and Extron and the Barco win as validation. On automotive, he stressed that the company’s part in the VA7000 programs is largely complete and that the bigger revenue contribution should come in 2027 as customer programs move toward production.

Karine Pinto-Flomenboim said Q2 revenue of $18.1 million exceeded guidance and broke down the mix as $13.1 million from CIB and $5.0 million from Automotive. She noted GAAP gross margin of 61.5%, non-GAAP gross margin of 64.3%, operating expenses of $19.1 million, and an adjusted EBITDA loss of $4.2 million, with GAAP EPS of $0.08 loss and non-GAAP EPS of $0.04 loss. On the balance sheet, she highlighted $83.4 million in cash, cash equivalents and short-term bank deposits, no debt, working capital of $88.9 million, and inventory of $12.5 million; for Q3 she guided to $21.3 million-$21.7 million revenue, 60%-62% gross margin, and a $3.4 million to $2.8 million adjusted EBITDA loss.

Analysts pressed on the new VS6320 reference design, asking about the companion chip, ASP and margin impact, and management said Valens is providing the 6320 plus software while ODMs buy the companion chip and build the system; management said the current setup should not affect Valens gross margin or ASP because Valens is not selling the end product. On automotive, analysts asked what remains before start of production on the four VA7000 wins, and Yoram said Valens’ part has already been delivered to Tier 1s, with the remaining steps dependent on customer and OEM launch timing. Questions on auto gross margin and testing costs drew a response from Karine that those costs are likely to remain for the time being due to capacity issues, though she did not expect major expense changes overall.