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Valens (VLN)
NYSE:VLN
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Valens (VLN) AI Stock Analysis

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VLN

Valens

(NYSE:VLN)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
$1.50
▼(-6.25% Downside)
Action:ReiteratedDate:02/26/26
The score is primarily held back by weak financial performance (ongoing losses and renewed cash burn) and bearish technicals (below key moving averages with negative MACD). Earnings-call guidance and product momentum provide a partial offset via improving EBITDA trajectory and expected 2026 growth, while valuation remains constrained by unprofitability and no indicated dividend yield.
Positive Factors
Product Momentum — VS3000 & VS6320
Mainstreaming of the VS3000 and initial traction for VS6320 indicate durable product-led growth. Broadening adoption across ProAV OEMs creates recurring chipset demand, improves production scale, and supports sustainable revenue expansion and stronger gross-dollar contribution over multiple product generations.
Automotive Design Wins & A‑PHY Leadership
Multiple OEM/Tier-1 design wins and ecosystem integrations around MIPI A‑PHY create a structural moat: long qualification cycles, high switching costs and multi-year production ramps can produce sticky, predictable revenue streams and embed Valens as a preferred sensor-connectivity supplier.
Improving Profitability Trajectory & Guidance
A sharply reduced EBITDA loss target and step-up in revenue guidance reflect operating leverage and disciplined cost actions. If realized, these trends improve cash conversion prospects and reduce reliance on external funding, making the business model more self-sustaining over the next 2–3 years.
Negative Factors
Persistent Cash Burn
Consistent negative operating and free cash flow signals ongoing cash consumption despite revenue recovery. Continued burn limits runway for R&D and commercialization, increases dependence on reserves or financing, and raises execution risk if product ramps or design-win monetization slow.
Balance Sheet Erosion
A material decline in shareholders' equity over several years reflects cumulative losses and reduces the capital cushion. With cash also drawn down (and $24M buybacks noted elsewhere), weakened equity limits flexibility to invest, absorb setbacks, or pursue opportunistic growth without external funding.
Margin Pressure & Revenue Volatility
Declining gross margins and a drop in automotive volumes reflect pricing pressure and adverse mix shifts. Structural margin headwinds and end‑market volatility make sustainable operating leverage harder to achieve, complicating the path to durable profitability even as unit adoption grows.

Valens (VLN) vs. SPDR S&P 500 ETF (SPY)

Valens Business Overview & Revenue Model

Company DescriptionValens Semiconductor Ltd. engages in the provision of semiconductor products that enables high-speed video and data transmission for the audio-video and automotive industries. It offers HDBaseT technology, which enables the simultaneous delivery of ultra-high-definition digital video and audio, Ethernet, USB, control signals, and power through a single long-reach cable. The company offers audio-video solutions for the enterprise, education, digital signage, medical and residential, and industrial markets; and automotive solutions, which provide chipsets that support advanced driver-assistance systems, automated driving systems, infotainment, telecommunications, and basic connectivity. It serves customers through distributors and representatives in Israel, China, Hong Kong, the United States, Mexico, Japan, and internationally. The company was incorporated in 2006 and is headquartered in Hod Hasharon, Israel.
How the Company Makes MoneyValens generates revenue primarily through the sale of its semiconductor products, including integrated circuits and chipsets that facilitate high-speed data transmission. Key revenue streams include direct sales to manufacturers in the consumer electronics and automotive sectors, as well as licensing agreements for its proprietary technologies. The company also benefits from strategic partnerships with industry leaders, which enhance its market reach and provide opportunities for co-development of innovative solutions. Additionally, Valens may engage in the provision of technical support and consultancy services, further contributing to its earnings.

Valens Earnings Call Summary

Earnings Call Date:Feb 25, 2026
(Q4-2025)
|
% Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call presents a generally positive operational momentum driven by strong product adoption (VS3000, VS6320), multiple automotive design wins and strategic partnerships, and meaningful year-over-year revenue growth (+21.9%). Profitability trends are improving (adjusted EBITDA loss narrowed and 2026 guidance targets a much smaller loss), and management provided an 8% revenue growth target for 2026. Offsetting these positives are continued net losses, a 12% decline in automotive revenue, margin pressure in the Cross-Industry Business, a reduction in cash year-over-year largely due to share repurchases, and announced workforce reductions. Management emphasized focus on core markets and disciplined execution amid macro uncertainty. On balance, the constructive revenue acceleration, product momentum, and improved EBITDA trajectory outweigh the lowlights.
Q4-2025 Updates
Positive Updates
Quarterly and Full-Year Revenue Beats Guidance
Q4 2025 revenue of $19.4M exceeded guidance ($18.2M–$18.9M). Full-year 2025 revenue of $70.6M exceeded guidance ($69.4M–$70.1M).
Sustained Revenue Growth
Full-year revenue grew from $57.9M in 2024 to $70.6M in 2025, an increase of approximately 21.9% year-over-year.
Product Adoption — VS3000 Ramp
VS3000 transitioned from high-end to mainstream in 2025, driving a nearly 100% increase in VS3000 sales versus 2024 and positioned for continued ramp in 2026.
New Product Momentum — VS6320
VS6320 (USB 3.2 extension chipset) gained adoption, including deployment by one of the world’s top three ProAV manufacturers, expected to be a growth engine in 2026.
Automotive Design Wins & Strategic Partnerships
Secured four VA7000 A5 global design wins, selection by Mobileye for advanced ADAS connectivity, Sony introduced a sensor integrating A5, and MCNEX launched automotive-grade QHD cameras using the chipset — strengthening long-term automotive opportunity.
Material Mercedes-Benz Revenue Contribution
First-generation VA6000 generated $18.4M in 2025 revenue from the Mercedes-Benz contract, demonstrating an established automotive revenue stream.
Improved Profitability Trajectory
Adjusted EBITDA loss improved to $16.9M in 2025 from $21.1M in 2024 (an improvement of ~$4.2M, ~19.9% improvement). GAAP net loss per share improved to $0.31 from $0.35; non-GAAP loss per share improved to $0.14 from $0.15.
2026 Growth Guidance and Sharply Reduced Loss Outlook
Full-year 2026 revenue guidance of $75M–$77M implies ~8% growth at the midpoint vs 2025. Management expects adjusted EBITDA loss of approximately $7.5M for 2026 (substantially reduced from 2025).
Negative Updates
Automotive Revenue Decline
Automotive revenue fell 12% year-over-year to $19.0M in 2025 from $21.6M in 2024, driven by gradual price erosion and fewer units sold to Mercedes‑Benz.
CIB Gross Margin and Non-GAAP Margin Pressure
Cross-Industry Business (CIB) gross margin declined to 68.1% in 2025 from 71.0% in 2024 (down 2.9 percentage points). Q4 non-GAAP gross margin was 63.9% versus 66.7% in Q4 2024 (down 2.8 percentage points) due to product mix shifts.
Ongoing Net Losses and Quarterly EBITDA Loss
Adjusted EBITDA loss remained at $4.3M in Q4 2025 (same as Q3 2025) and full-year adjusted EBITDA loss was $16.9M; the company remains unprofitable at the operating level despite improvement.
Cash and Working Capital Declines
Cash, cash equivalents and short-term deposits fell to $92.6M at 12/31/2025 from $131.0M at end of 2024. Working capital declined to $95.7M from $133.6M; share repurchases totaled $24.0M in 2025 and operational cash consumption was $14.4M.
Higher Operating Expenses and R&D Costs
Operating expenses rose (Q4 OpEx $20.9M vs $18.5M in Q4 2024). R&D increased by $2.2M year-over-year, driven by payroll and FX effects, contributing to higher OpEx.
Workforce Reduction and Cost Cuts
Management announced a workforce reduction and company-wide cost cuts (referenced $5.0M reduction in Q&A). The action indicates near-term restructuring and execution risk.
Reduced Near-Term Visibility and Single-Year Guidance Only
Management limited guidance to single-year (2026) due to macroeconomic uncertainty and adoption timing, noting reduced visibility beyond the near term.
Q1 2026 Softness Expected
Q1 2026 revenue guidance of $16.3M–$16.7M is expected to be slower after a strong Q4; management signaled Q1 may be lower sequentially as customers use prior purchases and inventory dynamics normalize.
Company Guidance
Management guided Q1 2026 revenue of $16.3–$16.7 million with gross margin of 57–59%, and full‑year 2026 revenue of $75–$77 million (midpoint implying ~8% growth versus 2025’s $70.6 million) with an expected full‑year adjusted EBITDA loss of approximately $7.5 million; the Q1 adjusted EBITDA range was not fully specified on the call. For context, Q4 2025 revenue was $19.4 million (above prior guidance of $18.2–$18.9M) with GAAP gross margin of 60.5% and an adjusted EBITDA loss of $4.3 million; full‑year 2025 GAAP gross margin was 62.4% with adjusted EBITDA loss ≈$16.9M, cash and short‑term deposits of $92.6M (no debt), working capital $95.7M, inventory $10.1M, and $24M of share repurchases in 2025.

Valens Financial Statement Overview

Summary
Revenue rebounded in 2025, but profitability remains weak with persistent operating and net losses, and cash flow turned more negative (operating cash flow and free cash flow both negative in 2025). Balance sheet leverage is modest, yet equity has declined over time, reflecting ongoing losses.
Income Statement
34
Negative
Revenue rebounded in 2025 to $70.6M (+4.0% vs. 2024) after a sharp decline in 2024 (-31.3%), showing demand volatility. While gross profit dollars rose ($44.1M in 2025 vs. $34.3M in 2024), the company remains structurally unprofitable with persistent operating losses (EBIT -$34.2M in 2025) and net losses every year shown (net loss -$31.6M in 2025), indicating limited operating leverage and ongoing margin pressure below the gross line.
Balance Sheet
58
Neutral
Leverage is modest with debt of $13.4M against equity of $105.0M in 2025, which provides financial flexibility. However, the balance sheet has weakened over time as equity has declined from $182.2M (2021) to $105.0M (2025), consistent with ongoing losses and reducing the cushion available to absorb future setbacks.
Cash Flow
29
Negative
Cash generation is inconsistent and currently negative: operating cash flow fell to -$12.7M in 2025 from a small positive $1.0M in 2024, and free cash flow was also negative at -$13.8M in 2025 (worse than -$0.8M in 2024). The pattern across the period shows frequent cash burn, suggesting continued reliance on cash reserves and/or financing until profitability improves.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue70.63M57.86M84.16M90.72M70.68M
Gross Profit44.09M34.28M52.59M63.39M50.58M
EBITDA-28.45M-33.91M-17.93M-25.86M-25.01M
Net Income-31.58M-36.58M-19.66M-27.67M-26.53M
Balance Sheet
Total Assets134.70M172.15M180.56M195.66M202.60M
Cash, Cash Equivalents and Short-Term Investments93.73M130.96M142.02M148.39M174.36M
Total Debt13.43M7.62M1.96M3.44M0.00
Total Liabilities29.72M29.46M16.25M28.22M20.40M
Stockholders Equity104.98M142.69M164.30M167.44M182.20M
Cash Flow
Free Cash Flow-13.79M-848.00K-7.54M-23.20M-23.05M
Operating Cash Flow-12.72M1.02M-6.36M-22.09M-21.61M
Investing Cash Flow28.03M17.78M1.35M-11.73M-84.16M
Financing Cash Flow-23.09M-155.00K1.50M822.00K135.43M

Valens Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.60
Price Trends
50DMA
1.66
Negative
100DMA
1.67
Negative
200DMA
1.97
Negative
Market Momentum
MACD
-0.05
Negative
RSI
49.92
Neutral
STOCH
59.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLN, the sentiment is Positive. The current price of 1.6 is above the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.66, and below the 200-day MA of 1.97, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 49.92 is Neutral, neither overbought nor oversold. The STOCH value of 59.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VLN.

Valens Risk Analysis

Valens disclosed 62 risk factors in its most recent earnings report. Valens reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Valens Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
57
Neutral
$253.02M-457.20-0.91%-0.41%-134.49%
56
Neutral
$176.77M-5.97-44.72%-21.59%-254.69%
55
Neutral
$168.07M-9.36-116.86%-94.26%3.20%
52
Neutral
$1.94B-83.92-9.12%-4.54%-119.39%
50
Neutral
$93.91M-2.58-8.46%-7.79%10.04%
48
Neutral
$156.62M-5.03-25.50%7.53%-15.00%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VLN
Valens
1.48
-0.62
-29.52%
ASYS
Amtech Systems
13.05
8.11
164.17%
AXTI
AXT
37.90
36.30
2268.75%
MX
MagnaChip
2.75
-1.79
-39.43%
ATOM
Atomera
5.04
-0.83
-14.14%
MRAM
Everspin Technologies
10.80
5.16
91.49%

Valens Corporate Events

Valens Semiconductor Posts Strong Q4 and 22% 2025 Revenue Growth, Tightens Focus on Core Markets
Feb 25, 2026

Valens Semiconductor reported on February 25, 2026 that its fourth-quarter 2025 revenue rose to $19.4 million, above guidance, marking a seventh consecutive quarter of growth and lifting full-year 2025 revenue to $70.6 million, up 22% year over year. Gross margins improved on both a quarterly and annual basis, losses narrowed with adjusted EBITDA improving to a $16.9 million loss for 2025, and the company ended the year with $92.6 million in cash and no debt after funding share buybacks and operations.

Performance was driven by a rebound in the audio‑video-focused cross‑industry business, which grew to more than 70% of revenue, while automotive sales declined on lower volumes and pricing pressure, even as segment margins improved through cost optimization. Valens highlighted new MIPI A‑PHY design wins with a premium Chinese-focused carmaker and partnerships on machine‑vision and e‑mirror platforms, and it launched an operational efficiency plan expected to cut annual operating expenses by about $5 million, underscoring its strategic focus on core audio‑video and automotive markets amid macroeconomic uncertainty.

The most recent analyst rating on (VLN) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Valens stock, see the VLN Stock Forecast page.

Valens and MCNEX Debut Cost-Cutting QHD and 4K Automotive Cameras Powered by VA7000
Feb 18, 2026

On February 18, 2026, Valens Semiconductor and Korean imaging specialist MCNEX unveiled a jointly developed family of QHD front and rear automotive cameras that run over unshielded twisted pair or low-cost coaxial cables using Valens’ VA7000 MIPI A-PHY chipsets. The design lets automakers cut wiring harness cost and complexity while maintaining high-resolution imaging for interior ADAS and autonomous driving applications.

The partners also introduced a 4K, 60fps rear camera operating over shielded cabling, likewise powered by the VA7000 chipset, which is already in mass production with first vehicle start-of-production targeted for early 2027. The launch deepens Valens’ footprint in automotive vision systems, highlighting how its multi-gigabit, long-reach connectivity over simple cabling can support cost-sensitive, high-volume platforms and strengthen its role in next-generation ADAS architectures.

The most recent analyst rating on (VLN) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Valens stock, see the VLN Stock Forecast page.

Valens Semiconductor Unveils Cost-Cutting Plan With 10% Workforce Reduction
Jan 28, 2026

On January 28, 2026, Valens Semiconductor announced an operational efficiency plan that includes cutting about 10% of its workforce across multiple departments, a move expected to lower annual operating expenses by roughly $5 million and allow the company to concentrate resources on core business segments showing the strongest growth momentum. Despite recent revenue growth, management framed the restructuring as a proactive step to optimize the cost base while preserving a solid financial position, with the plan slated for completion in the second quarter of 2026 and coming ahead of the company’s scheduled release of fourth-quarter and full-year 2025 results and related investor call on February 25, 2026.

The most recent analyst rating on (VLN) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Valens stock, see the VLN Stock Forecast page.

Valens Semiconductor Wins Fourth MIPI A-PHY Design Deal With Premium Carmaker for China-Focused ADAS
Jan 6, 2026

On January 6, 2026, Valens Semiconductor announced its fourth global design win for its VA7000 MIPI A-PHY-compliant chipsets, securing selection by a premium global automaker serving the Chinese market for integration into the carmaker’s ADAS systems. The win, tied to a vehicle start of production in 2027, further entrenches MIPI A-PHY as a leading standard for high-speed sensor connectivity in next-generation ADAS and autonomous architectures and reinforces Valens’ positioning as a preferred A-PHY silicon supplier to global OEMs and Tier 1s, a message the company is also amplifying this week through ecosystem demonstrations at CES 2026 in Las Vegas.

The most recent analyst rating on (VLN) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Valens stock, see the VLN Stock Forecast page.

Valens Semiconductor and Sakae Riken Launch First MIPI A-PHY Production-Ready e-Mirror at CES 2026
Jan 5, 2026

On January 5, 2026, Israel-based Valens Semiconductor and Japanese Tier 1 supplier Sakae Riken Kogyo unveiled what they describe as the automotive market’s first production-ready e-mirror built on the MIPI A-PHY high-speed connectivity standard, integrating Valens’ VA7000 chipset to deliver roughly ten times more imaging data than existing camera monitoring systems. Demonstrated at CES 2026 in Las Vegas, the system leverages a Nippon Chemi-Con A-PHY camera to provide high-resolution (1,920×1,536), 60-frames-per-second video, which the companies say enables sharper, blur-free images and more accurate ADAS and autonomous driving decisions; the launch underscores Valens’ positioning as a leading supplier in the fast-developing Japanese A-PHY ecosystem and highlights growing industry momentum behind A-PHY as the preferred standard for in-vehicle sensor connectivity.

The most recent analyst rating on (VLN) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Valens stock, see the VLN Stock Forecast page.

Valens Semiconductor Shareholders Approve Proposals at Annual Meeting
Dec 16, 2025

On December 16, 2025, Valens Semiconductor Ltd. announced that its shareholders approved all proposals presented at the annual general meeting. This approval, achieved by the requisite majority, underscores the company’s compliance with Israeli Companies Law and its commitment to aligning with shareholder interests. Approximately 33.88% of the company’s ordinary shares were represented at the meeting, highlighting significant shareholder engagement.

The most recent analyst rating on (VLN) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Valens stock, see the VLN Stock Forecast page.

Valens Semiconductor Unveils MIPI A-PHY Platform for Machine Vision
Dec 2, 2025

On December 2, 2025, Valens Semiconductor and Imavix Engineering announced the first production-ready MIPI A-PHY-based platform for machine vision, which will be showcased at the ITE show in Yokohama, Japan. This platform allows for the development of smaller, more robust, and cost-effective machine vision cameras, with CIS Corporation introducing the first A-PHY-compliant camera module. The platform, leveraging Valens’ VA7000 chipset, addresses the evolving needs of Industry 4.0, offering improved EMC performance and connectivity solutions, thus marking a significant shift away from legacy standards.

The most recent analyst rating on (VLN) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Valens stock, see the VLN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 26, 2026