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Valens (VLN)
NYSE:VLN
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Valens
(NYSE:VLN)
Rating:49Neutral
Price Target:
$2.00
▼(-8.68% Downside)
Positive Factors
Innovative Product Launch
The company showcased its MIPI A-PHY solutions in embedded vision applications, marking an industry first.
Strategic Partnership
Valens is partnered with ESWIN Computing to further advance the MIPI A-PHY ecosystem in China.
Strong Market Demand
Momentum for VS3000 chipsets is strong, as this is reflected by the increase in VS3000-based products to 150 in 2Q25 (from 100 in 4Q24).
Negative Factors
Demand Uncertainty
The shortfall in guidance is largely attributed to demand uncertainty caused by tariffs.
Guidance Reduction
Tariff dynamics have led the company to reduce its FY25 revenue outlook to $66-71MM (from $71-76MM).
Valens (VLN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$219.89M
Dividend YieldN/A
Average Volume (3M)984.57K
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue Growth8.70%
EPS Growth-13.95%
CountryUS
Employees256
SectorTechnology
Sector Strength84
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.04
Shares Outstanding105,718,660
10 Day Avg. Volume664,146
30 Day Avg. Volume984,571
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue2.65
Enterprise Value/Gross Profit4.36
Enterprise Value/Ebitda-5.47
Forecast
1Y Price Target
$3.67Price Target Upside67.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Valens Business Overview & Revenue Model
Company DescriptionValens Semiconductor Ltd. (VLN) is a leading provider of high-speed connectivity solutions for the audio-video and automotive markets. The company specializes in chipsets that enable long-reach, high-performance connectivity between devices, addressing the growing demand for advanced infotainment systems and data transfer in vehicles and professional audio-video settings.
How the Company Makes MoneyValens generates revenue primarily through the sale of its semiconductor products, which are integral to connectivity solutions in both the automotive and audio-video industries. The company partners with automotive manufacturers and technology providers to integrate its chipsets into vehicles, enhancing infotainment and communication systems. Additionally, Valens collaborates with professional audio-video equipment manufacturers to offer high-performance transmission solutions. Key revenue streams include the sale of these chipsets, licensing fees, and potentially royalties from patented technologies. Strategic partnerships and collaborations with industry leaders are significant contributors to Valens' earnings, positioning the company to capitalize on the increasing demand for high-speed connectivity solutions.
Valens Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: -7.98%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
Valens Semiconductor demonstrated strong growth in its core markets, particularly with the success of the VS3000 chip and recognition at industry events. However, the impact of global tariffs has led to a downward revision in revenue forecasts and increased financial losses, indicating challenges moving forward.Q2-2025 Updates
Positive Updates
Fifth Consecutive Quarter of Growth
Valens Semiconductor delivered revenues of $17.1 million in Q2 2025, exceeding their guidance and marking the fifth consecutive quarter of growth.
VS3000 Chip Success
The VS3000 chip saw increased demand, especially in the Pro AV market, with new products based on this chip increasing from around 100 at the end of 2024 to more than 150 by Q2 2025.
Recognition at InfoComm Events
Valens and its customers received awards at InfoComm events in Beijing and Orlando for innovation and technology application, particularly for the VS6320 and VA7000 chips.
Growth in Machine Vision Segment
Valens's A-PHY offering attracted strong interest in the machine vision market, with the VA7000 chipset enabling the market's first comprehensive camera to processor MIPI A-PHY platform.
Automotive Industry Momentum
Valens gained design wins with leading European OEMs for the VA7000 chipset, with demonstrations at Auto Shanghai showcasing A-PHY connectivity with major industry players.
Non-GAAP Gross Margin Improvement
Non-GAAP gross margin in Q2 was strong at 67.2%, compared to 66.7% in Q1 2025 and 64.5% in Q2 2024.
Negative Updates
Impact of Global Tariffs
Global tariffs affected customer forecasts for the second half of the year, leading to a downward revision of full-year revenue guidance to $66 million to $71 million.
Reduced Revenue Forecast for Q3 2025
Due to tariff uncertainty, Q3 2025 revenue is expected to be in the range of $15.1 million to $15.6 million, indicating a decline from Q2.
Adjusted EBITDA Loss
The adjusted EBITDA loss for Q2 was $4 million, with further losses expected in Q3, ranging from $7.4 million to $6.8 million.
Decrease in CIB Gross Margin
The gross margin for the cross-industry business (CIB) decreased compared to Q2 2024 due to a change in product mix.
Cash Position Decline
Cash, cash equivalents, and short-term deposits decreased to $102.7 million at the end of Q2 2025 from $112.5 million at the end of Q1 2025.
Company Guidance
During Valens Semiconductor's Q2 2025 earnings call, the company reported revenues of $17.1 million, surpassing the guidance range of $16.5 million to $16.8 million and marking the fifth consecutive quarter of growth. The GAAP gross margin was 63.5%, within the guidance range of 63% to 64%, while the adjusted EBITDA loss stood at $4.0 million, above expectations. Despite these positive results, global tariffs prompted a reduction in customer forecasts, leading Valens to update its full-year 2025 revenue guidance to between $66 million and $71 million, reflecting a 14% to 23% increase compared to 2024. The company continues to focus on its long-term strategy, targeting integration into high-end products and expanding its presence in markets such as machine vision and automotive.Valens Financial Statement Overview
Summary
Valens faces a challenging financial environment with declining revenues and negative profitability metrics. The balance sheet is strong with low leverage, but declining equity is concerning. Cash flows are negative, indicating operational inefficiencies.Income Statement
Valens' income statement reveals a challenging financial period. The revenue growth is declining significantly, with a drop from $90.7M in 2022 to $63.1M in TTM. Profitability metrics such as the gross profit margin (60.3% TTM) are healthy, but the company faces substantial losses, indicated by a negative net profit margin (-55.2% TTM) and EBIT margin (-62.1% TTM). Negative EBITDA further highlights operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a robust equity position with a high equity ratio of 83.2% TTM. Debt levels are low, resulting in a favorable debt-to-equity ratio of 0.06. However, there is declining stockholders' equity from $167.4M in 2022 to $128.6M in TTM, which points to financial erosion despite a solid asset base.65
Positive
Cash Flow
Valens' cash flow statement highlights stability in operating cash flow, although it remains negative at -$5.2M TTM. Free cash flow is also negative, with a modest improvement compared to prior years. The operating cash flow to net income ratio is negative, suggesting operational inefficiencies.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 66.59M | 57.86M | 84.16M | 90.72M | 70.68M | 56.91M |
| Gross Profit | 40.53M | 34.28M | 52.59M | 63.39M | 50.58M | 43.48M |
| EBITDA | -32.28M | -33.96M | -25.29M | -26.99M | -25.04M | -18.39M |
| Net Income | -33.16M | -36.58M | -19.66M | -27.67M | -26.54M | -19.65M |
Balance Sheet | ||||||
| Total Assets | 144.79M | 172.15M | 180.56M | 195.66M | 202.60M | 79.17M |
| Cash, Cash Equivalents and Short-Term Investments | 103.89M | 130.96M | 142.02M | 148.39M | 174.36M | 61.57M |
| Total Debt | 8.25M | 7.62M | 1.96M | 3.44M | 0.00 | 0.00 |
| Total Liabilities | 28.30M | 29.46M | 16.25M | 28.22M | 20.40M | 161.39M |
| Stockholders Equity | 116.50M | 142.69M | 164.30M | 167.44M | 182.20M | -82.22M |
Cash Flow | ||||||
| Free Cash Flow | -7.27M | -848.00K | -7.54M | -23.20M | -23.05M | -20.47M |
| Operating Cash Flow | -5.13M | 1.02M | -6.36M | -22.09M | -21.61M | -19.61M |
| Investing Cash Flow | 47.15M | 17.78M | 1.35M | -11.73M | -84.16M | 28.31M |
| Financing Cash Flow | -20.17M | -155.00K | 1.50M | 822.00K | 135.43M | 406.00K |
Valens Technical Analysis
Negative
2.19
Price Trends
2.44
Negative
2.38
Negative
2.34
Negative
Market Momentum
-0.12
Positive
44.80
Neutral
50.00
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 2.19 is below the 20-day moving average (MA) of 2.25, below the 50-day MA of 2.44, and below the 200-day MA of 2.34, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 44.80 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $304.79M | 20.97 | 23.09% | 5.98% | -9.22% | -13.57% | |
63 Neutral | €2.33B | 20.87 | 4.56% | 2.67% | 5.30% | -63.21% | |
58 Neutral | $528.30M | 19.55 | -3.34% | ― | -10.95% | -111.40% | |
50 Neutral | $1.32B | ― | -32.05% | ― | -25.65% | -130.95% | |
49 Neutral | $219.89M | ― | -24.56% | ― | 8.70% | -13.95% | |
47 Neutral | $391.53M | ― | -1369.57% | ― | 18.64% | 16.54% | |
40 Underperform | $213.21M | ― | -180.49% | ― | -9.62% | -30.36% |
* Technology Sector Average
Performance Comparison
VLN
Valens
2.19
<0.01
0.46%
AEHR
Aehr Test Systems
18.10
3.19
21.40%
WOLF
Wolfspeed
1.37
-11.97
-89.73%
NVEC
NVE
66.86
-12.15
-15.38%
NVTS
Navitas Semiconductor
6.43
3.31
106.09%
AIP
Arteris
9.97
1.72
20.85%
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.