Valens Semiconductor (NYSE:VLN) reported second-quarter 2026 revenue of $18.1 million, exceeding its prior guidance range of $17.2 million to $17.6 million, as growth in its audio/video business offset a sequential decline in automotive revenue. The company raised its full-year revenue outlook, citing increased visibility into demand for its professional AV chipsets.
Chief Executive Officer Yoram Salinger said the quarter’s revenue growth was driven primarily by the company’s legacy VS100 chipset family and its newer VS3000 products. He said Valens is also seeing continued adoption of the VS6320, which supports USB 3.2 extension.
Financial Results and Outlook
Second-quarter revenue rose from $16.9 million in the first quarter and $17.1 million a year earlier. The Cross-Industry Business, or CIB, generated $13.1 million, representing about 70% of revenue, while automotive contributed $5 million, or approximately 30%.
Chief Financial Officer Karine Pinto-Flomenboim, who joined the company during the quarter, said gross profit totaled $11.1 million and GAAP gross margin was 61.5%, within the company’s 60% to 62% guidance range. Gross margin was 62.2% in the first quarter and 63.5% in the second quarter of 2025.
Automotive gross margin was 41.5%, down from 46.2% in the previous quarter. Pinto-Flomenboim attributed the decline primarily to additional testing-facility costs incurred to prioritize and support production requirements. In response to an analyst question, she said the company does not expect those expenses to change significantly in the near term because of capacity constraints.
- GAAP net loss was $8.1 million, compared with a loss of $8.3 million in the first quarter and $7.2 million a year earlier.
- GAAP loss per share was $0.08, unchanged sequentially and compared with a $0.07 loss per share in the prior-year quarter.
- Adjusted EBITDA loss was $4.2 million, better than the company’s projected loss of $4.9 million to $4.4 million.
- Cash equivalents and short-term bank deposits totaled $83.4 million at June 30, with no debt.
For the third quarter, Valens forecast revenue of $21.3 million to $21.7 million, gross margin of 60% to 62%, and an adjusted EBITDA loss of $3.4 million to $2.8 million.
The company raised its full-year 2026 revenue guidance to $78 million to $81 million from a previous range of $75 million to $77 million. At the midpoint, the updated outlook represents 13% year-over-year growth, according to management.
Salinger said the increase was based on demand for the VS3000 and VS6320 chipsets, which are being incorporated into more customer products. He said the higher outlook was not driven by the company’s four automotive design wins, which Valens expects to begin contributing revenue in 2027.
AV Product Adoption and Reference Design Activity
Valens highlighted product activity involving several AV customers during the quarter. Salinger said Crestron and Extron introduced products based on the company’s newer chipsets, while Barco selected Valens HDBaseT chipsets for its ClickShare USB-C extension over CAT kit.
According to Salinger, Barco’s decision to offer a wired product alongside its established wireless ClickShare platform reflects continued demand for high-performance wired connectivity in collaboration systems.
The company also discussed a reference design using its VS6320 chipset. Valens combined the USB 3.2 extension chipset with a companion chip and software to enable USB 3 and 4K video transmission over a single cable. Salinger said the offering has generated millions of dollars in bookings across multiple customers, with several customers having moved through sampling and qualification and beginning volume production.
During the question-and-answer session, Salinger said the companion chip is purchased by the original design manufacturer, rather than sold by Valens as part of the solution. As a result, the current reference design does not affect Valens’ average selling prices or gross margins.
Valens is developing a future single-chip product intended to integrate USB and 4K-video capabilities into one package. Salinger said the planned product could simplify system design, reduce component counts and lower costs for OEMs.
Automotive Programs Progress Toward Production
In automotive, Valens said it has four design wins for its VA7000 chipset family, which supports camera and radar connectivity for advanced driver-assistance systems and autonomous-driving applications. The VA7000 is designed to comply with the MIPI A-PHY standard.
Salinger said all four programs are progressing according to plan and are expected to begin ramping revenue in 2027. He noted that automotive programs typically require several years to move from a design win to volume production.
Responding to an analyst question about remaining milestones, Salinger said Valens has completed and delivered its portion of the programs, including delivery of its chips to Tier 1 suppliers building electronic control units. The company’s confidence in the production timeline is based on its work with those suppliers as they advance toward vehicle assembly-line releases, he said.
Valens also announced that Dean Martin will become head of its automotive business unit effective Sept. 1. Salinger said Martin previously worked with him at Red Bend, later acquired by Harman, and has experience securing design wins and building relationships with global automakers. Adar Segal is stepping down from the role.
About Valens Semiconductor (NYSE:VLN)
Valens Semiconductor Corp. is a provider of high-speed connectivity solutions, specializing in semiconductor chipsets that enable the transmission of uncompressed video, audio and data over common cabling such as twisted-pair and coax. The company’s flagship technology, HDBaseT, supports the simultaneous delivery of multiple signal types—including HDMI, USB, Ethernet and power—over a single cable. This multi-service approach addresses the growing demands of both consumer electronics and automotive infotainment systems, where bandwidth, reliability and low latency are critical.
Founded in 2012 and headquartered in Israel, Valens maintains research and development operations across North America, Europe and Asia.
