Valens (VLN)
NYSE:VLN
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Valens
(NYSE:VLN)
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Rating:48Neutral
Price Target:
$2.00
▲(31.58% Upside)
Action:Reiterated
Date:06/06/26
The score is held down primarily by weak financial performance—ongoing operating losses and negative free cash flow—despite strong gross margins and low leverage. Technicals also lean cautious with the stock below key short-term moving averages. The earnings call was mixed-to-constructive (beats and product momentum), but reliance on a large second-half ramp and leadership transition risk temper confidence, while valuation offers limited support due to negative earnings and no dividend.
Positive Factors
High gross margins
Sustained gross margins above 60% indicate structural product-level economics and pricing power for Valens’ chipsets. High gross margins provide durability as revenue scales, allowing the company to invest in R&D and absorb fixed operating costs while improving the path to positive operating leverage.
Negative Factors
Persistent operating losses and cash burn
Large, ongoing operating losses and negative free cash flow erode equity and increase reliance on existing liquidity or external funding if revenue growth doesn’t accelerate. Structural unprofitability pressures ROE and could force cost cuts or financing decisions that alter strategic plans.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained gross margins above 60% indicate structural product-level economics and pricing power for Valens’ chipsets. High gross margins provide durability as revenue scales, allowing the company to invest in R&D and absorb fixed operating costs while improving the path to positive operating leverage.
Read all positive factors
Valens (VLN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$340.10M
Dividend YieldN/A
Average Volume (3M)4.44M
Price to Earnings (P/E)―
Beta (1Y)2.25
Revenue Growth11.92%
EPS Growth7.07%
CountryUS
Employees256
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.31
Shares Outstanding105,292,700
10 Day Avg. Volume2,715,620
30 Day Avg. Volume4,437,214
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 Cap1.03
Enterprise Value/Revenue4.95
Enterprise Value/Gross Profit7.95
Enterprise Value/Ebitda-11.52
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. 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) 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 | -30.36M | -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
Positive
1.52
Price Trends
2.15
Positive
1.87
Positive
1.81
Positive
Market Momentum
0.33
Positive
60.98
Neutral
48.03
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 1.52 is below the 20-day moving average (MA) of 3.07, below the 50-day MA of 2.15, and below the 200-day MA of 1.81, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 60.98 is Neutral, neither overbought nor oversold. The STOCH value of 48.03 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 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $318.95M | 133.77 | 3.70% | ― | -13.20% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $6.98B | ― | -6.21% | ― | -0.14% | 25.60% | |
61 Neutral | $666.38M | 1,927.61 | 0.42% | ― | 15.94% | ― | |
58 Neutral | $350.38M | -13.84 | -84.79% | ― | -40.50% | 1.62% | |
57 Neutral | $311.57M | -9.90 | -10.13% | ― | -20.64% | 44.67% | |
48 Neutral | $340.10M | -7.02 | -29.33% | ― | 11.92% | 7.07% |
* Technology Sector Average
VLN
Valens
2.11
-0.08
-3.65%
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Valens Corporate Events
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.