Valens Semiconductor Ltd. (NYSE:VLN) reported first-quarter 2026 revenue of $16.9 million, compared with $19.4 million in the fourth quarter of 2025 and $16.8 million in the first quarter of 2025, according to an update from Stonegate Capital Partners. The company's GAAP gross margin came in at 62.2%, above the company's guidance range of 57.0% to 59.0%. Adjusted EBITDA loss was $(5.5) million, better than the guided range of $(7.9) million to $(7.5) million.
While revenue stepped down sequentially following a stronger fourth quarter, results were modestly ahead of expectations. Management reiterated full-year 2026 revenue guidance of $75.0 million to $77.0 million, indicating confidence in a second-half acceleration. Stonegate Capital Partners noted that they continue to view 2026 as a year of measured recovery and product-cycle execution, with near-term growth expected to build through the year as the company's CIB segment returns to sequential growth, automotive remains steady, and the A-PHY ecosystem develops.
Key takeaways from the update include that execution remains ahead of plan despite a slower first-half setup, and the second-half acceleration is the key thesis variable. Management expects a meaningfully stronger back half, driven by CIB sequential growth, ProAV momentum, and design wins converting into customer launches in the third and fourth quarters of 2026.
Automotive revenue grew to $5.9 million, and the VA7000 traction in industrial machine vision and medical endoscopy expands the addressable opportunity beyond core A-PHY auto applications, though revenue contribution likely remains several quarters out. Management noted that broader supply-chain conditions remain an area to monitor but stated that it does not see risk to meeting its full-year targets.
For more details, the full announcement is available here.
