The company exhibits significant revenue volatility, evidenced by a 51.6% contraction in 2024Q1 followed by a 45.6% expansion in 2025Q1, while operating margins remain deeply negative at -54.7% as of 2026Q1.
| Sales/Revenue | 70.66M | 70.63M | 57.86M | 84.16M | 90.72M | 70.68M | 56.91M | 60.04M |
| Revenue Growth % | 11.92% | 22.06% | -31.25% | -7.22% | 28.34% | 24.2% | -5.21% | - |
| Cost of Goods Sold | 26.67M | 26.54M | 23.58M | 31.57M | 27.32M | 20.11M | 13.43M | 12.59M |
| COGS % of Revenue | - | 37.58% | 40.76% | 37.51% | 30.12% | 28.44% | 23.6% | 20.96% |
| Gross Profit | 43.99M | 44.09M | 34.28M | 52.59M | 63.39M | 50.58M | 43.48M | 47.46M |
| Gross Margin % | 62.26% | 62.42% | 59.24% | 62.49% | 69.88% | 71.56% | 76.4% | 79.04% |
| Gross Profit Growth % | - | 28.61% | -34.82% | -17.03% | 25.33% | 16.33% | -8.38% | - |
| Operating Expenses | 78.06M | 78.31M | 75.62M | 79.51M | 91.76M | 77.64M | 66.27M | 75.44M |
| OpEx % of Revenue | - | 110.88% | 130.7% | 94.47% | 101.15% | 109.85% | 116.44% | 125.65% |
| Selling, General & Admin | 35.79M | 35.65M | 34.77M | 31.34M | 33.55M | 30.77M | 21.54M | 22.74M |
| SG&A % of Revenue | - | 50.48% | 60.09% | 37.24% | 36.99% | 43.53% | 37.85% | 37.87% |
| Research & Development | 42.36M | 42.66M | 40.48M | 48.17M | 58.21M | 46.88M | 44.73M | 52.7M |
| R&D % of Revenue | - | 60.4% | 69.95% | 57.24% | 64.16% | 66.32% | 78.59% | 87.78% |
| Other Operating Expenses | -93K | 0 | 377K | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -34.07M | -34.22M | -41.34M | -26.92M | -28.37M | -27.07M | -22.79M | -27.98M |
| Operating Margin % | -48.22% | -48.46% | -71.45% | -31.98% | -31.27% | -38.29% | -40.04% | -46.61% |
| Operating Income Growth % | - | 17.22% | -53.59% | 5.12% | -4.81% | -18.77% | 18.57% | - |
| EBITDA | -30.93M | -31.24M | -38.8M | -25.29M | -26.99M | -25.97M | -21.7M | -26.95M |
| EBITDA Margin % | -43.78% | -44.24% | -67.05% | -30.04% | -29.75% | -36.74% | -38.12% | -44.88% |
| EBITDA Growth % | 14.99% | 19.47% | -53.43% | 6.32% | -3.95% | -19.69% | 19.49% | - |
| D&A (Non-Cash Add-back) | 3.14M | 2.98M | 2.55M | 1.63M | 1.38M | 1.1M | 1.09M | 1.04M |
| EBIT | -33.49M | -31.43M | -36.45M | -19.57M | -27.23M | -26.11M | -19.46M | -25.43M |
| Net Interest Income | 2.22M | 2.62M | 6.06M | 6.67M | 2.3M | 311K | 817K | 2.06M |
| Interest Income | 2.22M | 2.62M | 6.12M | 6.67M | 2.3M | 311K | 849K | 2.17M |
| Interest Expense | 0 | 0 | 57K | 0 | 0 | 0 | 32K | 109K |
| Other Income/Expense | 2.6M | 2.8M | 4.86M | 7.35M | 1.14M | 939K | 3.32M | 2.44M |
| Pretax Income | -31.47M | -31.43M | -36.49M | -19.57M | -27.23M | -26.13M | -19.47M | -25.54M |
| Pretax Margin % | -44.54% | -44.5% | -63.06% | -23.25% | -30.02% | -36.96% | -34.21% | -42.54% |
| Income Tax | 92K | 158K | 96K | 112K | 451K | 407K | 164K | 414K |
| Effective Tax Rate % | -0.29% | -0.5% | -0.26% | -0.57% | -1.66% | -1.56% | -0.84% | -1.62% |
| Net Income | -31.56M | -31.58M | -36.58M | -19.66M | -27.67M | -26.53M | -19.64M | -25.93M |
| Net Margin % | -44.67% | -44.72% | -63.23% | -23.36% | -30.5% | -37.54% | -34.5% | -43.19% |
| Net Income Growth % | 9.42% | 13.67% | -86.07% | 28.94% | -4.27% | -35.14% | 24.29% | - |
| Net Income (Continuing) | -31.57M | -31.58M | -36.58M | -19.68M | -27.68M | -26.53M | -19.64M | -25.93M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.30 | -0.31 | -0.34 | -0.19 | -0.28 | -0.80 | -1.37 | -2.22 |
| EPS Growth % | 7.38% | 8.82% | -78.95% | 32.14% | 65% | 41.61% | 38.29% | - |
| EPS (Basic) | - | -0.31 | -0.34 | -0.19 | -0.28 | -0.80 | -1.37 | -2.22 |
| Diluted Shares Outstanding | 105.05M | 103.14M | 105.48M | 101.99M | 97.82M | 33.03M | 14.38M | 11.67M |
| Basic Shares Outstanding | 105.05M | 103.14M | 105.48M | 101.99M | 97.82M | 33.03M | 14.38M | 11.67M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
High cash burn rate
According to the provided quarterly income statements, Valens Semiconductor has experienced significant revenue volatility, with growth rates fluctuating from a 51.6% contraction in 2024Q1 to a 45.6% expansion in 2025Q1, suggesting that the company's top-line trajectory remains highly sensitive to lumpy design wins and cyclical demand.
The lack of a consistent growth trend indicates that the company is still in a transitional phase where revenue is heavily dependent on specific project milestones rather than a steady, recurring base. Investors should monitor whether the recent stabilization around $16M-$19M per quarter represents a new floor or merely a pause before further volatility.
As reported in financial filings, Valens Semiconductor maintains a structurally high gross margin profile, consistently hovering around the 62% level, which suggests that the company's specialized IP and high-performance silicon offerings retain significant pricing power despite the broader semiconductor industry's cyclical pressures and competitive automotive landscape.
This margin stability is a critical indicator of the company's value proposition, as it demonstrates that customers are willing to pay a premium for the HDBaseT and MIPI A-PHY standards. However, maintaining these levels will likely become more challenging as the company scales into high-volume automotive production, where OEM pricing pressure typically intensifies.
Based on the reported income statement data, Valens Semiconductor exhibits a persistent lack of operating leverage, with operating margins remaining deeply negative at -54.7% in 2026Q1, reflecting a cost structure that is currently dominated by heavy R&D investment rather than scalable operational efficiency.
The company's inability to scale operating income alongside gross profit suggests that the current business model is heavily front-loaded with engineering expenses. Until the automotive segment reaches a critical mass of production, the company will likely continue to struggle with significant operating losses that weigh on overall financial performance.
Data from recent financial statements indicates that Research and Development remains the primary cost driver for Valens Semiconductor, consistently consuming over $10 million per quarter, which effectively offsets the gross profit generated by the professional AV segment and prevents the company from achieving sustained bottom-line profitability.
This high level of R&D spending is a strategic necessity for a fabless firm attempting to establish new industry standards, but it creates a precarious financial position. The company's expense discipline appears focused on long-term technical dominance, yet this approach leaves little room for error in the event of a prolonged market downturn.
As indicated by the company's reported financial figures, the persistent net losses and significant cash burn raise concerns regarding the sustainability of the current capital structure, particularly given the $28.9 million cash balance which may prove insufficient if the automotive ramp-up faces further delays.
Short-sellers would likely focus on the potential for future equity dilution as a primary risk, especially if the company fails to reach cash-flow break-even in the near term. The reliance on non-recurring engineering fees and the potential for channel stuffing in the AV segment warrant further investigation by cautious investors.
Quick answers to the most common questions about buying VLN stock.
For fiscal year 2025, Valens Semiconductor Ltd. (VLN) reported total revenue of $70.6M. This represents a 17.6% increase compared to $60.0M in 2019.
Valens Semiconductor Ltd. (VLN) reported a net loss of $31.6M for the fiscal year ending 2025.
Valens Semiconductor Ltd. (VLN) reported an operating income of $-34.2M, resulting in an operating profit margin of -48.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Valens Semiconductor Ltd. (VLN) generated $44.1M in gross profit for the year, representing a gross profit margin of 62.4%. This demonstrates the company's core pricing power and production efficiency.