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Valens
(NYSE:VLN)
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Rating:48Neutral
Price Target:
$2.00
▲(31.58% Upside)
Action:Reiterated
Date:06/23/26
The score is held down mainly by persistent operating losses and negative free cash flow, despite a relatively strong balance sheet. Technicals also lean bearish with price below key moving averages and negative MACD. Offsetting these, the earnings call was moderately supportive due to guidance beats and product/automotive progress, but execution risk remains high given reliance on a second-half ramp and leadership transition.
Positive Factors
High Gross Margins
Sustained high gross margins across product lines are a durable competitive advantage for a fabless semiconductor. Margins near 60%+ provide structural pricing power, support ongoing R&D and product development, and improve unit economics as volumes scale, helping absorption of fixed costs over time.
Negative Factors
Persistent Losses and Cash Burn
The company remains structurally unprofitable with negative operating and free cash flow, which erodes shareholder value over time. Continued cash consumption increases reliance on existing liquidity or external funding, constraining strategic optionality and raising dilution or financing risk if trends persist.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins
Sustained high gross margins across product lines are a durable competitive advantage for a fabless semiconductor. Margins near 60%+ provide structural pricing power, support ongoing R&D and product development, and improve unit economics as volumes scale, helping absorption of fixed costs over time.
Read all positive factors
Valens (VLN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$228.45M
Dividend YieldN/A
Average Volume (3M)3.10M
Price to Earnings (P/E)―
Beta (1Y)2.31
Revenue Growth11.92%
EPS Growth7.07%
CountryUS
Employees256
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.31
Shares Outstanding108,272,510
10 Day Avg. Volume2,282,828
30 Day Avg. Volume3,099,266
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)1.40
Price to Sales (P/S)2.07
P/FCF Ratio-10.62
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue3.07
Enterprise Value/Gross Profit4.93
Enterprise Value/Ebitda-7.38
Forecast
1Y Price Target
$4.00Price Target Upside163.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.15
Revenue Forecast (FY)$75.70M
Valens Business Overview & Revenue Model
Company Description
Valens Semiconductor Ltd. (VLN) specializes in creating semiconductor products that enable swift video and data transmission for both audio-visual and automotive applications. A key innovation from the company is its HDBaseT technology, which faci...
How the Company Makes Money
Valens makes money primarily by selling semiconductor products (chipsets) and related connectivity solutions to equipment manufacturers and solution providers. Revenue is generated from (1) product sales of its connectivity ICs incorporated into e...
Valens Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented a mixed but generally constructive picture: management reported a quarter that beat revenue and gross-margin guidance and showcased meaningful product and industry milestones (notably VS3000/VS6320 adoption and a first-of-its-kind A-PHY interoperability demo). At the same time, there are near-term financial and execution headwinds — a notable QoQ revenue decline driven by CIB digestion, a wider adjusted EBITDA loss versus the prior quarter, reduced cash versus last year, and dependency on a significant second-half ramp. Management highlighted design-win visibility that supports confidence in H2 acceleration, but timing and customer concentration (notably Mercedes in automotive) remain risks. Overall, positives around product momentum and margin outperformance were balanced by financial declines and execution/timing risks, with management expressing confidence in future growth.Positive Updates
Revenue Beat and Stable Year-over-Year
Q1 revenue of $16.9M exceeded the company's guidance range of $16.3M–$16.7M and was slightly higher than Q1 2025 ($16.8M), representing a ~+0.6% YoY increase. (Note: revenue was down QoQ from $19.4M, -12.9%.)
Negative Updates
Sequential Revenue Decline
Total revenue declined QoQ from $19.4M in Q4 2025 to $16.9M in Q1 2026, a decrease of ~$2.5M or -12.9%, attributed to seasonality and demand pulled into Q4.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Beat and Stable Year-over-Year
Q1 revenue of $16.9M exceeded the company's guidance range of $16.3M–$16.7M and was slightly higher than Q1 2025 ($16.8M), representing a ~+0.6% YoY increase. (Note: revenue was down QoQ from $19.4M, -12.9%.)
Read all positive updates
Company Guidance
The company guided Q2 2026 revenue to $17.2–$17.6M (midpoint $17.4M), GAAP gross margin to 60%–62%, and adjusted EBITDA to a loss of $4.9M–$4.4M, while keeping full‑year 2026 revenue guidance unchanged at $75–$77M (midpoint $76M) — which, given the Q2 midpoint, implies H1 midpoint revenue of $34.3M and a meaningful step‑up to roughly $41.7M in H2 to hit the full‑year midpoint; for context, Q1 results were $16.9M revenue (exceeding prior guidance of $16.3–$16.7M), 62.2% gross margin, adjusted EBITDA loss of $5.5M, segment mix of CIB $11.0M (≈65%) and automotive $5.9M (≈35%), cash and short‑term deposits of $86.1M, working capital $91.3M, inventory $10.9M, and no debt.Valens Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
72
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 70.66M | 70.63M | 57.86M | 84.16M | 90.72M | 70.68M |
| Gross Profit | 43.99M | 44.09M | 34.28M | 52.59M | 63.39M | 50.58M |
| EBITDA | -29.40M | -28.45M | -33.91M | -17.93M | -25.86M | -25.01M |
| Net Income | -31.56M | -31.58M | -36.58M | -19.66M | -27.67M | -26.53M |
Balance Sheet | ||||||
| Total Assets | 128.42M | 134.70M | 172.15M | 180.56M | 195.66M | 202.60M |
| Cash, Cash Equivalents and Short-Term Investments | 87.26M | 93.73M | 130.96M | 142.02M | 148.39M | 174.36M |
| Total Debt | 7.98M | 13.43M | 7.62M | 1.96M | 3.44M | 0.00 |
| Total Liabilities | 28.18M | 29.72M | 29.46M | 16.25M | 28.22M | 20.40M |
| Stockholders Equity | 100.24M | 104.98M | 142.69M | 164.30M | 167.44M | 182.20M |
Cash Flow | ||||||
| Free Cash Flow | -11.39M | -13.79M | -848.00K | -7.54M | -23.20M | -23.05M |
| Operating Cash Flow | -10.30M | -12.72M | 1.02M | -6.36M | -22.09M | -21.61M |
| Investing Cash Flow | 12.90M | 28.03M | 17.78M | 1.35M | -11.73M | -84.16M |
| Financing Cash Flow | -14.88M | -23.09M | -155.00K | 1.50M | 822.00K | 135.43M |
Valens Technical Analysis
Negative
1.52
Price Trends
2.51
Negative
1.94
Positive
1.83
Positive
Market Momentum
-0.13
Positive
41.62
Neutral
27.58
Neutral
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 1.52 is below the 20-day moving average (MA) of 2.19, below the 50-day MA of 2.51, and below the 200-day MA of 1.83, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 41.62 is Neutral, neither overbought nor oversold. The STOCH value of 27.58 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $328.88M | 104.81 | 3.70% | ― | -13.20% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $284.76M | -10.43 | -84.79% | ― | -40.50% | 1.62% | |
56 Neutral | $460.04M | 1,473.33 | 0.42% | ― | 15.94% | ― | |
54 Neutral | $4.16B | -184.43 | -6.21% | ― | -0.14% | 25.60% | |
48 Neutral | $228.45M | -6.63 | -29.33% | ― | 11.92% | 7.07% | |
46 Neutral | $150.74M | ― | -10.13% | ― | -20.64% | 44.67% |
* Technology Sector Average
VLN
Valens
2.03
-0.67
-24.81%
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Valens Corporate Events
Valens Semiconductor Names Karine Pinto‑Flomenboim as New CFO
Jun 22, 2026
On June 22, 2026, Valens Semiconductor announced that Karine Pinto‑Flomenboim will become Chief Financial Officer effective August 9, 2026, succeeding outgoing CFO Guy Nathanzon, who steps down on July 13. During the interim period, VP Finan...
Valens Chipsets Chosen to Power Barco’s New ClickShare USB-C Extension Kit
Jun 16, 2026
On June 16, 2026, Valens Semiconductor announced that its HDBaseT chipsets will provide the connectivity backbone for Barco’s new ClickShare USB-C Extension over CAT kit, which adds a wired extension option to the ClickShare Hub for demandin...
Valens Semiconductor Posts Q1 2026 Results With Stable Revenue and Ongoing Operating Loss
May 13, 2026
Valens Semiconductor reported unaudited condensed consolidated financial statements for the quarter ended March 31, 2026, showing revenue essentially flat year over year at $16.9 million and gross profit of $10.5 million. Operating loss narrowed s...
Valens Semiconductor Tops Q1 2026 Guidance and Lifts Outlook on Connectivity Demand
May 13, 2026
On May 13, 2026, Valens Semiconductor reported first‑quarter 2026 revenue of $16.9 million, slightly above both guidance and the prior‑year period, with gross margins of 62.2% on a GAAP basis and 65.2% on a non‑GAAP basis, also t...
Valens Semiconductor Plans CFO Transition After Guy Nathanzon Resignation Notice
Apr 14, 2026
Valens Semiconductor announced a planned leadership transition in its finance organization, following notice from Chief Financial Officer Guy Nathanzon on April 13, 2026, that he intends to step down no later than July 13, 2026. The company stated...
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.