This article first appeared on GuruFocus .
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Revenue:$16.9 million, exceeding guidance of $16.3 million to $16.7 million.
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Gross Margin:62.2%, above guidance of 57% to 59%.
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Adjusted EBITDA:Loss of $5.5 million, better than guidance of $7.9 million to $7.5 million loss.
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GAAP Net Loss:$8.3 million.
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GAAP Loss Per Share:$0.08.
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Non-GAAP Loss Per Share:$0.05.
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Cash Equivalents and Short-term Deposits:$86.1 million.
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Operating Expenses:$19.4 million.
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Research and Development Expense:$10.3 million.
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SG&A Expense:$9.4 million.
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Inventory:$10.9 million as of March 31, 2026.
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Q2 2026 Revenue Guidance:$17.2 million to $17.6 million.
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Q2 2026 Gross Margin Guidance:60% to 62%.
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Q2 2026 Adjusted EBITDA Loss Guidance:$4.9 million to $4.4 million loss.
Release Date: May 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Valens Semiconductor Ltd ( NYSE:VLN ) reported Q1 2026 revenues of $16.9 million, exceeding the top end of their guidance.
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The company's GAAP gross margin for Q1 2026 was 62.2%, surpassing their guidance range.
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Strong adoption of the VS3000 chip, which supports uncompressed HDMI 2.0 over category cables, was noted.
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The VA7000 chipset, compliant with the MIPI A-PHY standard, is gaining traction in the automotive industry.
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Valens Semiconductor Ltd ( NYSE:VLN ) demonstrated interoperability of their A-PHY compliant components with other vendors, reinforcing their value proposition.
Negative Points
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Q1 2026 adjusted EBITDA was a loss of $5.5 million, although it was smaller than anticipated.
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The company's GAAP net loss for Q1 2026 was $8.3 million, consistent with the previous year.
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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.
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The cross-industry business (CIB) saw a decline in revenues compared to Q4 2025, attributed to seasonality and strong Q4 performance.
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Valens Semiconductor Ltd ( NYSE:VLN ) anticipates a stronger second half of 2026, implying a need for significant revenue acceleration.
Q & A Highlights
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 .
