Valens Semiconductor (VLN) Q2 FY26 earnings call: guidance and Q&A

Details on the VS6320 solution, the companion chip, and how future integration into a single Valens chip would impact ASP and margin.

The current reference design uses the VS6320 with a third-party companion chip for 4K video, enabling parallel video and USB over a single cable. This has generated millions in bookings. Valens plans a future single-chip solution integrating these capabilities, which is part of their roadmap, but currently, ODMs purchase the companion chip. The current setup does not affect Valens's ASP or gross margin.

“You're right about the intent of having a solution to be introduced later in coming years where we would integrate the 2 capabilities, 4K video alongside with the USB kind of 6320 into one chip, and that's kind of a road map plan for us.”

asked by Quinn Bolton · answered by Yoram Salinger

What key milestones remain for the 4 VA7000 Automotive design wins to reach initial production in 2027, given that Valens's part is completed?

Valens has completed and delivered its chip components to Tier 1s, who are building ECUs for car manufacturers. The remaining milestones are related to the complex process of car manufacturing and OEM assembly lines, but Valens is confident in the progress based on collaboration with Tier 1s.

“I'm proud to say that our piece in that very complex puzzle has been completed and delivered. So we have delivered chips to the Tier 1s who are building the ECUs in order to get into the manufacturers or the OEMs, the carmakers to build the car.”

asked by Quinn Bolton · answered by Yoram Salinger

Will the testing facility expenses that impacted Automotive gross margin in Q2 continue into future quarters, and what is the outlook for Automotive gross margin in Q3?

The Q2 gross margin was impacted by additional testing costs. While specific future costs are hard to foresee, due to current capacity issues, these testing costs are assumed to be stable for the time being.

“But due to the capacity issues that we are experiencing, we assume it's pretty stable to say that they're with us for the time being.”

asked by Quinn Bolton · answered by Karine Pinto-Flomenboim

Given Automotive ramps in 2027, is the H2 2026 acceleration primarily CIB-driven, and what gives confidence for the raised guidance?

The increased guidance is primarily driven by the CIB segment, specifically the flagship VS3000 and VS6320 chips, which are seeing increased design-ins and adoption by customers like Crestron and Extron. This increased visibility and adoption over the first two quarters gives confidence for the raised guidance.

“The reason to increase our guidance has to do with the fact that our flagship chips, the VS3000 and the VS6320 are being designed in to [indiscernible] more products of our customers, the likes of the Crestron, the Extron, the large techs and others.”

asked by Maximus Alexander-Nino · answered by Yoram Salinger

Details on how the Barco ClickShare design win came together and its rollout.

Barco's decision to offer a wired version of its flagship ClickShare product, which traditionally uses Wi-Fi, signals strong market demand for high-performance wired connectivity. This adoption gives Valens confidence in high-volume shipments in the years to come.

“So this decision is extremely meaningful, and this is why we've decided that if Barco is going, splitting the ClickShare back to wired alongside with wireless, okay? We need to be fair to the situation. It gives us a ton of confidence that they would be shipping this to the market in high volumes in the years to come.”

asked by Maximus Alexander-Nino · answered by Yoram Salinger