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    VLN
    Earnings call· Jun 2026(Q2 FY26)

    Valens Semiconductor Q2 FY26 earnings call VLN

    Aug 12, 2026 Source

    Executive summary

    Valens Semiconductor Q2 FY26 — Strong AV Performance and Raised Full-Year Guidance

    Valens Semiconductor delivered a strong Q2 FY26, exceeding revenue guidance driven by continued adoption of its Audio-Video chipsets, particularly the VS3000 and VS6320. The company raised its full-year revenue outlook, reflecting increased visibility and commercial momentum in both its established AV and high-growth Automotive segments. Management is focused on translating technology leadership into recurring revenue and advancing Automotive design wins towards 2027 production.

    Highlights

    5

    • Exceeded top end of revenue guidance at $18.1 million.

    • GAAP gross margin at 61.5%, well within guidance.

    • Adjusted EBITDA loss of $4.2 million, better than anticipated.

    • Raised full-year revenue guidance to $78 million - $81 million, up from $75 million - $77 million, marking 13% YoY growth at midpoint.

    • Secured millions of dollars in bookings for new USB3 and 4K video reference design.

    Concerns

    3

    • Automotive gross margin decreased to 41.5% from 46.2% QoQ due to additional testing facility expenses.

    • GAAP net loss of $8.1 million.

    • Adjusted EBITDA loss of $4.2 million.

    Guidance & targets

    4
    CategoryTargetConfidence
    Full-year revenue
    $78 million to $81 million
    high materiality
    High
    Q3 revenue
    $21.3 million to $21.7 million
    medium materiality
    High
    Q3 gross margin
    60% to 62%
    medium materiality
    High
    Q3 Adjusted EBITDA loss
    $3.4 million to $2.8 million loss
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Cross-Industry Business (CIB)
    Accounted for approximately 70% of total revenue in Q2 FY26. Revenue growth driven by VS100 and VS3000 chipsets. Gross margin decreased QoQ.
    Q1 FY26 Revenue: $11 millionQ2 FY25 Revenue: $12.8 millionQ1 FY26 Gross Margin: 70.8%Q2 FY25 Gross Margin: 67.8%
    		$13.1 million2.3%19.1%69.2%
    Automotive
    Contributed approximately 30% of total revenue in Q2 FY26. Gross margin decreased compared to Q1 FY26 mainly due to additional testing facility expenses incurred to support production requirements.
    Q1 FY26 Revenue: $5.9 millionQ2 FY25 Revenue: $4.3 millionQ1 FY26 Gross Margin: 46.2%Q2 FY25 Gross Margin: 50.5%
    		$5 million16.3%-15.3%41.5%

    Operational metrics

    10
    Non-GAAP gross margin
    64.3%vs 65.2% in Q1 FY26, vs 67.2% in Q2 FY25
    Q2 FY26
    Adjusted EBITDA
    loss of $4.2 millionvs loss of $5.5 million in Q1 FY26, vs loss of $4 million in Q2 FY25
    Q2 FY26

    Better than the guidance range of a loss between $4.9 million and $4.4 million.

    Cash and investments balance
    $83.4 millionvs $86.1 million at Q1 FY26, vs $92.6 million at Q4 FY25
    Q2 FY26

    Ended the quarter with no debt.

    Working capital
    $88.9 millionvs $91.3 million at Q1 FY26, vs $95.7 million at Q4 FY25
    Q2 FY26
    Inventory
    $12.5 millionincrease from $10.9 million at Q1 FY26, and $10.1 million at Q4 FY25
    Q2 FY26
    Operating expenses
    $19.1 millionvs $19.4 million in Q1 FY26, vs $18.2 million in Q2 FY25
    Q2 FY26
    Research and development expenses
    $10.1 millionvs $10.3 million in Q1 FY26, vs $10.2 million in Q2 FY25
    Q2 FY26
    SG&A expenses
    $9 millionvs $9.4 million in Q1 FY26, vs $8.9 million in Q2 FY25
    Q2 FY26
    Non-GAAP loss per share
    $0.04vs loss of $0.05 in Q1 FY26, vs loss of $0.04 in Q2 FY25
    Q2 FY26
    Stock-based compensation
    —
    Q2 FY26

    Main difference between GAAP and non-GAAP loss per share, along with depreciation and amortization expenses.

    Industry KPIs

    5
    MetricValueDetails
    Bookings net order intakemillions of dollarsUSD
    Design wins socket pipeline4design wins
    Inventory channel inventory$12.5 millionUSD
    Node platform ramp scheduleMIPI A-PHY standard
    End market segment revenue mixCIB: $13.1 million (70% of total), Automotive: $5 million (30% of total)USD, %

    Orderbook & backlog

    1
    Bookings for USB3 and 4K video reference designmillions of dollarsQ2 FY26

    across multiple customers, several of which have already progressed to sampling, completed qualification and are now beginning volume production

    Product announcements

    1
    ProductTypeDetails
    Single-chip solution for USB3 and 4K videoroadmap

    Deals & partnerships

    1
    BarcoSelection of HDBaseT chipset to power its new ClickShare USB-C Extension over CAT kit

    Barco, a recognized name in collaboration technology, selected Valens's HDBaseT chipset to power a wired version of its ClickShare product, which is known for its wireless connectivity. This decision signals strong market demand for high-performance wired connectivity.

    Risks & headwinds

    2
    Automotive gross margin pressure from testing expensesfor the time being

    Automotive gross margin decreased to 41.5% in Q2 FY26 from 46.2% in Q1 FY26

    Mitigation: additional testing facility expenses incurred to prioritize and support production requirements

    Long development and production cycles for Automotive programsrevenues from these projects ramping up during 2027

    several years from design wins to volume production

    Mitigation: teams are working closely with customers to support their development towards production

    What to watch in Q3 FY26

    4

    Automotive revenue ramp

    2027
    Currentexpected to ramp up during 2027
    Targetinitial revenue recognition

    Why it matters

    This represents the long-term growth opportunity for Valens and conversion of design wins into revenue.

    Automotive programs follow long development and production cycles, often several years from design wins to volume production, but we expect to see revenues from these projects ramping up during 2027.

    Q&A highlights

    5

    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

    2 min read5 chapters

    Detailed Narrative

    01

    Leadership Changes

    Valens welcomed Karine Pinto-Flomenboim as the new CFO, bringing extensive financial and operational leadership experience. Additionally, Dean Martin was appointed as the new Head of Automotive business unit, effective September 1. Martin is recognized for his ability to translate innovative technologies into commercial success and secure major design wins, which is expected to bolster Valens's Automotive segment.

    02

    Audio-Video Segment Momentum

    The Audio-Video segment continues to be a core foundation, with revenue growth driven by the legacy VS100 family and the cutting-edge VS3000. The VS6320 chip for USB 3.2 extension also saw continued momentum, with new products from leading AV manufacturers like Crestron and Extron hitting the market. This reflects continued customer adoption and commercial traction across the chipset portfolio.

    03

    Innovative USB3 and 4K Video Offering

    Valens developed a joint reference design for USB3 and 4K video by combining the VS6320 with a companion chip, generating millions of dollars in bookings across multiple customers. This production-ready solution addresses a clear market need and reinforces the company's conviction for a future single-chip integrated solution. This integrated chip would simplify system design, reduce component count, and streamline integration for OEMs.

    04

    Automotive Program Advancement

    The Automotive segment, a key long-term growth opportunity, saw all four design wins for the VA7000 chipset progressing according to plan. The VA7000 is the first chipset to comply with the MIPI A-PHY standard. While Automotive programs have long development cycles, revenues from these projects are expected to ramp up during 2027, with Valens having completed its part in delivering chips to Tier 1s.

    05

    InfoComm Trade Show Success

    Valens's presence at the InfoComm trade show in June generated strong interest in the VS3000 and VS6320 from OEMs, ODMs, and ecosystem partners. The event resulted in new business opportunities, expanded engagements, and a robust pipeline of follow-up activities, further strengthening confidence in the Audio-Video strategy and growing demand for Valens's technology.

    AI-generated summary of the company’s earnings call. Not investment advice.