Valens Semiconductor Revenue Tops Guidance as Automotive Sales Rise

Valens Semiconductor (VLN ) reported revenue of US$21.9 million for the third quarter ended September 30, 2026, exceeding its $21.3 million to $21.7 million guidance range and rising from $17.3 million a year earlier in results released November 11, 2026. Automotive sales drove the sequential acceleration and the GAAP net loss narrowed to $5.5 million from $7.3 million a year earlier, although cash used in operations increased.

Automotive Leads the Sequential Growth

Automotive revenue rose to $7.9 million from $5.0 million in the second quarter of 2026 and $4.1 million in the same quarter of 2025. Cross-Industry Business revenue increased to $14.0 million from $13.1 million sequentially, making Automotive the larger contributor to the quarter-on-quarter improvement.

Segment gross margins moved in opposite directions. Automotive gross margin improved to 53.9% from 41.5% in the second quarter, while Cross-Industry Business gross margin declined to 66.8% from 69.2%. Valens attributed the Automotive improvement to lower testing-facility expenses incurred to prioritize and support production requirements, as well as product mix, and the Cross-Industry Business decline mainly to product mix.

Across the company, GAAP gross margin was 62.2%, up from 61.5% sequentially but below 63.0% a year earlier. Stronger Automotive profitability therefore helped the sequential comparison without lifting the overall margin above its prior-year level.

Cash Use Tempers the Earnings Improvement

Cash, cash equivalents and short-term deposits declined to $74.7 million at September 30, 2026, from $83.4 million at June 30, 2026. Net cash used in operating activities was $8.5 million for the quarter, compared with $4.7 million a year earlier.

Valens attributed the decrease in cash primarily to collection timing: more revenue was recognized near the end of the third quarter and was expected to be collected in the following quarter under standard payment terms. Trade accounts receivable rose to $14.8 million at quarter-end from $10.0 million at December 31, 2025.

Guidance and Mainstream Expansion Plans

Valens reaffirmed full-year 2026 revenue guidance of $78 million to $81 million and said it expected results toward the upper end of that range.

CEO Yoram Salinger described a new growth plan that builds on Valens’ premium solutions while addressing larger mainstream markets. He identified the VS6310 chipset in audio-video and the onsemi collaboration in automotive as elements of that strategy.

Valens introduced the VS6310 on November 4, 2026. The low-power USB3 extension chipset is designed for integration directly into e/PTZ cameras, touch controllers, active cables and other small conference-room peripherals. The company said embedding the extension can reduce the need for external extender boxes; samples were scheduled for mid-November 2026 and mass production for January 2027.

The September 22, 2026 collaboration announcement said Valens will work with onsemi on a cost-optimized A-PHY offering for integration into onsemi’s image sensors, targeting high-volume 3-megapixel automotive camera applications.

The results show commercial progress alongside higher cash use: Automotive sales and margins improved and the net loss narrowed, but operations continued to consume cash. Whether the expected collections arrive in the following quarter will show if the lower cash balance was principally a timing issue, as management said.