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Valens
(NYSE:VLN)
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Rating:53Neutral
Price Target:
$2.00
▲(10.50% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by improving business momentum from the earnings call (raised revenue guidance and expected EBITDA-loss improvement) but capped by weak financial performance (deep losses and negative free cash flow). Technical indicators are mostly neutral/slightly weak, and valuation remains challenged due to negative earnings and no dividend support.
Positive Factors
Revenue Growth and Guidance
The raised outlook and strong first-half performance indicate improving demand visibility across Valens’ connectivity portfolio. Sustained growth would increase scale, support operating leverage and strengthen the company’s ability to convert customer adoption into recurring semiconductor revenue.
Negative Factors
Persistent Losses and Negative Cash Flow
Valens has not yet demonstrated a profitable or cash-self-funding business model. Continued operating losses and cash burn can erode equity, constrain investment capacity and increase dependence on its existing liquidity or future capital raising.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Guidance
The raised outlook and strong first-half performance indicate improving demand visibility across Valens’ connectivity portfolio. Sustained growth would increase scale, support operating leverage and strengthen the company’s ability to convert customer adoption into recurring semiconductor revenue.
Read all positive factors
Valens (VLN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$195.99M
Dividend YieldN/A
Average Volume (3M)1.58M
Price to Earnings (P/E)―
Beta (1Y)2.52
Revenue Growth7.68%
EPS Growth0.83%
CountryUS
Employees233
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.31
Shares Outstanding108,280,060
10 Day Avg. Volume1,033,102
30 Day Avg. Volume1,580,547
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$4.00Price Target Upside120.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.13
Revenue Forecast (FY)$78.53M
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 primarily makes money by selling semiconductor products (chipsets/ICs) and related connectivity solutions to equipment manufacturers and platform partners that incorporate Valens technology into end products. Key revenue streams include: (1...
Valens Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call contained several clear positives: revenue exceeded guidance, management raised full‑year guidance, product momentum in Audio‑Video with notable design wins (Crestron, Extron, Barco) and a commercialized reference design generating early bookings, plus progress on Automotive A‑PHY design wins and an improving adjusted EBITDA versus prior quarter. Offsetting these positives are persistent GAAP losses, sequential weakness in Automotive revenue, margin pressure in Automotive due to testing/capacity costs, declining cash and rising inventory. On balance the operational wins, stronger revenue visibility and raised guidance outweigh the near‑term margin and profitability headwinds, though execution will need to continue to convert design wins into volume revenue in 2027.Positive Updates
Revenue Beat and Sequential Growth
Q2 2026 revenue of $18.1M, above guidance ($17.2M–$17.6M) and up from $16.9M in Q1 2026 (+7.1% QoQ) and up vs Q2 2025 ($17.1M, +5.9% YoY).
Negative Updates
Sustained GAAP Net Loss
GAAP net loss of $8.1M in Q2 2026, little changed from Q1 2026 ($8.3M) and wider than Q2 2025 ($7.2M); GAAP loss per share $0.08 (unchanged QoQ).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Beat and Sequential Growth
Q2 2026 revenue of $18.1M, above guidance ($17.2M–$17.6M) and up from $16.9M in Q1 2026 (+7.1% QoQ) and up vs Q2 2025 ($17.1M, +5.9% YoY).
Read all positive updates
Company Guidance
Valens raised its full-year 2026 revenue guidance to $78.0–$81.0 million (up from $75.0–$77.0M previously), implying roughly 13% year-over-year growth at the midpoint, and guided Q3 revenue of $21.3–$21.7M with gross margin of 60%–62% and an adjusted EBITDA loss of about $2.8–$3.4M; this follows Q2 results that beat revenue guidance at $18.1M, delivered GAAP gross margin of 61.5% (non‑GAAP 64.3%) and an adjusted EBITDA loss of $4.2M, with Q2 gross profit $11.1M, segment revenue split CIB $13.1M (~70%) and Automotive $5.0M (~30%), GAAP net loss $8.1M (GAAP EPS -$0.08, non‑GAAP EPS -$0.04), and a balance sheet of $83.4M cash and short‑term deposits, no debt, $88.9M working capital and $12.5M inventory.Valens Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
66
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 71.70M | 70.63M | 57.86M | 84.16M | 90.72M | 70.68M |
| Gross Profit | 44.29M | 44.09M | 34.28M | 52.59M | 63.39M | 50.58M |
| EBITDA | -28.89M | -28.45M | -33.91M | -17.93M | -25.86M | -25.01M |
| Net Income | -32.43M | -31.58M | -36.58M | -19.66M | -27.67M | -26.53M |
Balance Sheet | ||||||
| Total Assets | 124.63M | 134.70M | 172.15M | 180.56M | 195.66M | 202.60M |
| Cash, Cash Equivalents and Short-Term Investments | 83.43M | 93.73M | 130.96M | 142.02M | 148.39M | 174.36M |
| Total Debt | 8.02M | 13.43M | 7.62M | 1.96M | 3.44M | 0.00 |
| Total Liabilities | 27.57M | 29.72M | 29.46M | 16.25M | 28.22M | 20.40M |
| Stockholders Equity | 97.05M | 104.98M | 142.69M | 164.30M | 167.44M | 182.20M |
Cash Flow | ||||||
| Free Cash Flow | -14.77M | -13.79M | -848.00K | -7.54M | -23.20M | -23.05M |
| Operating Cash Flow | -13.94M | -12.72M | 1.02M | -6.36M | -22.09M | -21.61M |
| Investing Cash Flow | 14.50M | 28.03M | 17.78M | 1.35M | -11.73M | -84.16M |
| Financing Cash Flow | -3.49M | -23.09M | -155.00K | 1.50M | 822.00K | 135.43M |
Valens Technical Analysis
Negative
1.81
Price Trends
1.89
Negative
2.09
Negative
1.82
Negative
Market Momentum
-0.01
Negative
48.36
Neutral
27.79
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 1.81 is above the 20-day moving average (MA) of 1.76, below the 50-day MA of 1.89, and below the 200-day MA of 1.82, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 27.79 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $4.42B | 2,727.20 | 1.00% | ― | 45.81% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $249.49M | 55.55 | 4.95% | ― | -2.35% | ― | |
57 Neutral | $429.29M | -162.75 | -3.79% | ― | 20.89% | -240.91% | |
53 Neutral | $195.99M | -5.74 | -31.56% | ― | 7.68% | 0.83% | |
49 Neutral | $178.34M | -6.82 | -77.91% | ― | 369.39% | 1.34% | |
46 Neutral | $119.39M | -3.88 | -12.72% | ― | -18.29% | 8.69% |
* Technology Sector Average
VLN
Valens
1.79
-0.24
-11.82%
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168.04%
Valens Corporate Events
Valens Semiconductor Tops Q2 2026 Guidance and Raises Full‑Year Revenue Outlook
Aug 12, 2026
Valens Semiconductor reported strong second‑quarter 2026 results on August 12, 2026, with revenue rising to $18.1 million, above guidance and up from both the prior quarter and year‑earlier period, and GAAP gross margin of 61.5%. Despi...
Valens Semiconductor Files Q2 2026 Unaudited Financials
Aug 12, 2026
Valens Semiconductor Ltd. is an Israel-based chipmaker that designs and supplies semiconductor solutions, with its financial reporting presented in U.S. dollars and shares listed in the United States as a foreign private issuer. The company’...
Valens Semiconductor Names Dean Martin to Lead Automotive Unit Amid Growth Push
Jul 31, 2026
On July 30, 2026, Valens Semiconductor announced it has appointed industry veteran Dean Martin as Senior Vice President and Head of its Automotive Business Unit, effective September 1, 2026. Martin succeeds Adar Segal and is expected to leverage h...
Valens Semiconductor Shareholders Approve All Proposals at July 30 Annual Meeting
Jul 30, 2026
Valens Semiconductor reported that shareholders approved all proposals presented at its annual general meeting held on July 30, 2026, in accordance with Israeli Companies Law and the company’s amended and restated articles of association. Or...
Valens Semiconductor Warrants to Be Delisted from NYSE After Abnormally Low Prices
Jul 24, 2026
Valens Semiconductor said that on July 24, 2026, the New York Stock Exchange will begin delisting the company’s VLNW warrants, which give holders the right to purchase one-half of an ordinary share, after the exchange determined the instrume...
Valens Semiconductor Announces Leadership Change in Automotive Division
Jul 20, 2026
Valens Semiconductor announced a management transition, reporting that Adar Segal will step down from his role as Head of Automotive, as disclosed in a Form 6-K filed on July 20, 2026. The company has begun searching for a successor, and Segal is ...
Valens Semiconductor Sets July 30, 2026 Annual Shareholder Meeting and Governance Votes
Jun 23, 2026
Valens Semiconductor has called its 2026 annual general meeting of shareholders for July 30, 2026, at its Hod Hasharon headquarters in Israel, and began distributing its notice, proxy statement and proxy card on July 2. Shareholders of record as o...
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...
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.