Stonegate Capital Partners has updated its coverage on Valens Semiconductor Ltd. (NYSE:VLN) following the company's first quarter 2026 earnings report. Valens reported revenue of $16.9M for the quarter, compared to $19.4M in Q4 2025 and $16.8M in Q1 2025. The 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)M, better than the guided range of $(7.9)M to $(7.5)M.
While revenue experienced a sequential decline after a stronger Q4 2025, the results were modestly ahead of expectations. Management reiterated its full-year 2026 revenue guidance of $75.0M to $77.0M, signaling confidence in the company's trajectory. Stonegate Capital views 2026 as a year of measured recovery and product-cycle execution, with near-term growth expected to build through the year as the Core Infrastructure Business (CIB) returns to sequential growth, automotive remains steady, and the A-PHY ecosystem development continues.
Key takeaways from the update include that execution remains ahead of plan despite a slower first-half setup. The company delivered Q1 2026 revenue of $16.9M, gross margin of 62.2% above guidance, and adjusted EBITDA loss of $(5.5)M, better than guided. The second-half 2026 acceleration is a key thesis variable, with management expecting a meaningfully stronger back half driven by CIB sequential growth, ProAV momentum, and design wins/design-ins converting into customer launches in Q3 and Q4 2026.
Automotive and adjacent VA7000 markets support longer-duration optionality. Automotive revenue grew to $5.9M, while 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 importantly stated that it does not see risk to meeting its full-year targets.
For more details, the full announcement can be viewed here. Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies.
