Valens (VLN)
NYSE:VLN
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Valens
(NYSE:VLN)
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Rating:45Neutral
Price Target:
$1.50
▲(11.11% Upside)
Action:ReiteratedDate:03/31/26
The score is held down primarily by weak financial performance (ongoing losses and negative 2025 operating/free cash flow) and bearish technicals (below key moving averages with negative MACD). The latest earnings call provides a partial offset via 2026 growth guidance and a materially improved adjusted EBITDA loss outlook, but valuation support is limited due to negative earnings and no dividend yield provided.
Positive Factors
Product Momentum (VS3000)
Mainstreaming of VS3000 signals durable product-led revenue expansion: a module moving from niche to mainstream reduces customer concentration risk, supports recurring design wins across ProAV customers, and creates a scalable revenue stream that can improve gross profit dollars as volumes rise.
Negative Factors
Negative Operating Cash Flow
Consistent cash burn reduces financial optionality and forces reliance on cash reserves or financing until sustained profitability. Negative operating and free cash flow constrain the company's ability to self-fund R&D, inventory build for automotive ramps, or absorb adverse demand shocks without diluting capital providers.
Read all positive and negative factors
Positive Factors
Negative Factors
Product Momentum (VS3000)
Mainstreaming of VS3000 signals durable product-led revenue expansion: a module moving from niche to mainstream reduces customer concentration risk, supports recurring design wins across ProAV customers, and creates a scalable revenue stream that can improve gross profit dollars as volumes rise.
Read all positive factors
Valens (VLN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$140.04M
Dividend YieldN/A
Average Volume (3M)548.20K
Price to Earnings (P/E)―
Beta (1Y)1.80
Revenue Growth7.53%
EPS Growth-15.00%
CountryUS
Employees256
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.04
Shares Outstanding105,292,700
10 Day Avg. Volume459,177
30 Day Avg. Volume548,202
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)1.40
Price to Sales (P/S)2.07
P/FCF Ratio-10.62
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue1.79
Enterprise Value/Gross Profit2.87
Enterprise Value/Ebitda-4.14
Forecast
1Y Price Target
$3.33Price Target Upside146.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.21
Revenue Forecast (FY)$76.02M
Valens Business Overview & Revenue Model
Company Description
Valens 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 o...
How the Company Makes Money
Valens makes money primarily by selling semiconductor products (chipsets/ICs) that implement its connectivity and high-speed transmission technologies, with revenue recognized from product sales to customers (typically equipment manufacturers and ...
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.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).
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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).
Read all positive updates
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
Income Statement
34
Negative
Balance Sheet
58
Neutral
Cash Flow
29
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 70.63M | 57.86M | 84.16M | 90.72M | 70.68M |
| Gross Profit | 44.09M | 34.28M | 52.59M | 63.39M | 50.58M |
| 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 Assets | 134.70M | 172.15M | 180.56M | 195.66M | 202.60M |
| Cash, Cash Equivalents and Short-Term Investments | 93.73M | 130.96M | 142.02M | 148.39M | 174.36M |
| Total Debt | 13.43M | 7.62M | 1.96M | 3.44M | 0.00 |
| Total Liabilities | 29.72M | 29.46M | 16.25M | 28.22M | 20.40M |
| Stockholders Equity | 104.98M | 142.69M | 164.30M | 167.44M | 182.20M |
Cash Flow | |||||
| Free Cash Flow | -13.79M | -848.00K | -7.54M | -23.20M | -23.05M |
| Operating Cash Flow | -12.72M | 1.02M | -6.36M | -22.09M | -21.61M |
| Investing Cash Flow | 28.03M | 17.78M | 1.35M | -11.73M | -84.16M |
| Financing Cash Flow | -23.09M | -155.00K | 1.50M | 822.00K | 135.43M |
Valens Technical Analysis
Negative
1.35
Price Trends
1.39
Negative
1.53
Negative
1.82
Negative
Market Momentum
-0.03
Negative
55.07
Neutral
80.31
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLN, the sentiment is Negative. The current price of 1.35 is above the 20-day moving average (MA) of 1.24, below the 50-day MA of 1.39, and below the 200-day MA of 1.82, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 80.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VLN.
Valens Risk Analysis
Valens disclosed 61 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $237.21M | -357.39 | -0.80% | ― | -0.41% | -134.49% | |
58 Neutral | $3.57B | ― | -10.41% | ― | -4.54% | -119.39% | |
56 Neutral | $212.50M | 417.23 | -58.96% | ― | -21.59% | -254.69% | |
49 Neutral | $108.96M | -2.86 | -11.40% | ― | -7.79% | 10.04% | |
48 Neutral | $197.10M | -3.38 | -116.86% | ― | -94.26% | 3.20% | |
45 Neutral | $140.04M | -4.64 | -27.53% | ― | 7.53% | -15.00% |
* Technology Sector Average
VLN
Valens
1.35
-0.94
-41.05%
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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 ye...
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...
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...
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.