Valens Semiconductor Ltd. reported fourth‑quarter 2025 revenue of $19.4 million, a 22% year‑over‑year increase that exceeded consensus estimates of $18.6 million. The company posted a GAAP net loss of $8.8 million for the quarter and a full‑year loss of $31.6 million, with a GAAP loss per share of $0.09 versus an estimated loss of $0.04. The company’s earnings per share fell short of expectations, reflecting higher cost of goods sold and one‑time restructuring charges announced in late January.
Revenue growth was driven primarily by the Cross‑Industry Business (CIB) segment, which generated about 70% of total sales at $13.9 million in Q4, up 16% from the prior year. The automotive segment contributed roughly 30% of revenue at $5.5 million, but its sales declined 12% year‑over‑year due to price erosion and reduced unit shipments to key customers such as Mercedes‑Benz. The professional audio‑video business continued to expand, with the VS3000 chipset sales nearly doubling year‑over‑year, offsetting the automotive slowdown.
Gross margin for the quarter fell to 60.5% from 63.0% in Q3, a decline driven by a product‑mix shift in the CIB segment that increased the proportion of lower‑margin products. The automotive segment’s margin improved to 60.5% from 58.0% in Q3, reflecting cost‑optimization initiatives, but the overall margin compression was dominated by the CIB mix change. The company’s GAAP gross margin for the full year was 62.4%, an improvement from 59.2% in 2024.
The EPS miss was largely attributable to the higher cost of goods sold and the one‑time restructuring charges associated with a workforce reduction that began in January. These charges increased operating expenses and widened the loss per share beyond analyst expectations. The company’s GAAP loss per share of $0.09 was 0.05 points worse than the consensus estimate of $0.04, underscoring the impact of the restructuring on profitability.
Management guided for full‑year 2026 revenue of $75.0 million to $77.0 million, an 8% increase from 2025, and a gross margin range of 57% to 59%. The guidance is presented as a single‑year outlook, reflecting reduced visibility beyond the near term. The company emphasized confidence in its core automotive, industrial machine‑vision, and professional audio‑video businesses while acknowledging macroeconomic headwinds that could affect demand.
CEO Yoram Salinger said the company is “pleased to report a strong fourth quarter, well above our initial expectations, delivering revenues of $19.4 million, which brings us to $70.6 million yearly revenues in 2025.” He added that the company will continue to focus resources on its core businesses, noting that “in these markets, Valens brings unmatched technology leadership and brand recognition.” CFO Guy Nathanzon highlighted the operational efficiency plan, stating that the plan is expected to save approximately $5 million annually in operating expenses.
Analysts noted that while the revenue beat was a positive sign, the EPS miss and margin compression tempered enthusiasm. The automotive segment’s decline and the impact of restructuring charges were cited as key concerns, while the strong performance in the audio‑video segment and the company’s confidence in its guidance were viewed as mitigating factors.
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