Valens Semiconductor Ltd. (VLN) Earnings
Valens Semiconductor Ltd. is expected to report next earnings on November 11, 2026 (in NaN days), with a consensus EPS estimate of $-0.03. VLN has beaten EPS estimates in 7 of its last 11 reported quarters (average surprise +6.5% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 12, 2026 | $-0.04 | $-0.04 | +0.0% | $18M | +4.1% |
| May 13, 2026 | $-0.06 | $-0.05 | +16.7% | $17M | +2.4% |
| Feb 25, 2026 | $-0.03 | $-0.04 | -33.3% | $19M | +13.0% |
| Nov 12, 2025 | $-0.07 | $-0.04 | +42.9% | $17M | -7.7% |
| May 7, 2025 | $-0.03 | $-0.03 | +0.0% | $17M | -6.0% |
| Feb 26, 2025 | $-0.03 | $-0.02 | +33.3% | $17M | +2.9% |
| Feb 28, 2024 | $0.01 | $0.06 | +700.0% | $22M | +0.7% |
| Mar 1, 2023 | $-0.11 | $-0.03 | +72.7% | $23M | +1.4% |
| Aug 10, 2022 | $-0.09 | $-0.08 | +11.1% | $22M | +3.7% |
| Mar 2, 2022 | $-0.07 | $-0.08 | -22.5% | $21M | +3.5% |
| Nov 11, 2021 | $-0.26 | $-0.19 | +26.9% | $19M | -21.2% |
| Sep 1, 2021 | — | $-0.04 | — | $18M | — |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 12, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Executive Changes: Valens appointed a new CFO, Corinne Pinto-Florenboim, with extensive experience in public and private technology companies. Dean Martin will join as the new head of the Automotive Business Unit effective September 1 2026, bringing a track record of securing major automotive design wins and building customer relationships; Adar Segal stepped down from his position after making significant contributions to the firm. - Audio Video (Core CAB Segment) Performance: The segment delivered steady growth, with revenue driven by the legacy VS100 chipset family and next-generation VS3000 chipset. The VS6320 USB 3.2 extension chip also saw growing momentum, as OEMs increasingly integrate higher-resolution video and advanced USB protocols into their designs. New end products powered by Valens chips from top-tier manufacturers Crestron and Extron launched in Q2, and Barco selected Valens HDBaseT chipsets to power wired connectivity for its flagship ClickShare collaboration product, validating market demand for Valens' high-performance wired connectivity solutions. - New Product Initiative: An internal task force identified new low-incremental R&D opportunities: a new joint reference design combining the VS6320 with a third-party companion chip, with custom firmware, to support simultaneous USB 3.0 and 4K video extension, has already generated millions of dollars in customer bookings, with multiple customers progressing to sampling, qualification and volume production. Valens is developing a future single-chip integrated version of this solution to simplify OEM design, reduce component costs, and streamline integration. - Automotive Segment Progress: Valens' VA7000 chipset, the first to comply with the BPA5 standard for ADAS and autonomous driving sensor connectivity, has four active design wins, all progressing according to plan towards production launch. Following long automotive development cycles, revenue from these projects will begin ramping in 2027, with larger revenue growth expected as programs move to volume production over time. Valens continues to participate in additional customer evaluation processes to expand its design win pipeline. - Overall Financial Results: Q2 2026 GAAP gross margin came in at 61.5% (within guidance), with an adjusted EBITDA loss of $4.2 million, which was narrower than guidance expectations. The company ended the quarter with $83.4 million in cash, cash equivalents and short-term deposits, and no debt on its balance sheet.
Guidance
- Full-year 2026 revenue guidance was raised to a range of $78 million to $81 million, up from the prior guidance range of $75 million to $77 million. This revised guidance represents 13% year-over-year revenue growth at the midpoint, reflecting stronger than expected first-half performance, improved revenue visibility, and management confidence in second-half execution driven by growing adoption of Valens core AV chipsets. - Q3 2026 revenue is guided to a range of $21.3 million to $21.7 million, with Q3 2026 GAAP gross margin expected in the 60% range, and an adjusted EBITDA loss guided to between $2.8 million and $3.4 million.
Segment performance
Valens Semiconductor recorded total Q2 2026 revenue of $18.1 million. The Cross-Industry Business (CAB, which includes the core Audio Video segment) generated revenue of $13.1 million, accounting for approximately 72% of total Q2 2026 revenue, with a segment gross margin of 69.2%. The Automotive segment generated revenue of $5 million, accounting for approximately 28% of total Q2 2026 revenue, with a segment gross margin of 41.5%. Compared to prior periods: in Q1 2026, CAB revenue was $11 million (65% of total) with 70.8% gross margin, and automotive revenue was $5.9 million (35% of total) with 46.2% gross margin; in Q2 2025, CAB revenue was $12.8 million (75% of total) with 67.8% gross margin, and automotive revenue was $4.3 million (25% of total) with 50.5% gross margin. The Q2 2026 automotive gross margin decline was driven by one-off additional testing facility expenses to support production requirements.
Risks & headwinds
Management did not disclose new material operational risks or unplanned operational failures during the call. The only near-term variable noted is the potential for ongoing elevated testing costs for the automotive segment related to current production support capacity requirements, though no material negative impact to full year guidance was highlighted. The standard forward-looking statement warning that actual results may differ from projected performance was included in opening remarks.
Analyst Q&A
Q: What additional details can you share on the new VS6320 reference design, and will the future integrated solution be developed and sold by Valens? /
A: The reference design combines the VS6320 Valens chip with a third-party companion chip to enable simultaneous transmission of 4K video and USB 3.2 over a single cable, tailored with custom firmware for ODM customers. The offering has already generated millions of dollars in bookings, and Valens does not expect it to impact gross margins or average selling prices because Valens only sells the core chip to customers, not the finished end product. The future integrated solution that combines all functionality into a single Valens chip is in development to simplify OEM design and reduce costs.
Q: For the four VA7000 automotive design wins on track for 2027 production, what key milestones remain to reach volume production? /
A: Valens' portion of development work for all four programs is essentially completed. The remaining milestones depend on Tier 1 suppliers and automakers integrating the components into vehicle assembly lines, which is progressing on schedule. Management's confidence in the 2027 ramp timeline is based on close collaboration with customers and visibility into their advancement toward production.
Q: Will the elevated testing costs that reduced Q2 automotive gross margin continue in future quarters? /
A: Management noted that due to current capacity constraints supporting production requirements, these elevated testing costs are expected to remain relatively stable for the foreseeable future, with no expected large additional increases.
Q: Does the 2026 full-year guidance increase come from CAB growth or early automotive ramps, and what gave management the confidence to raise guidance? /
A: All of the acceleration implied by the guidance increase comes from the core CAB (Audio Video) segment, as automotive revenue from the new VA7000 design wins is still expected to start ramping in 2027. The guidance increase reflects growing adoption of Valens' flagship VS3000 and VS6320 chips by top-tier AV OEMs, with more end products shipping to market that use Valens chips, giving management improved visibility into second-half demand.