Stonegate Capital Partners has updated its coverage on Valens Semiconductor Ltd. (NYSE:VLN) following the company's first quarter 2026 financial results. For the quarter ended March 31, 2026, Valens reported revenue of $16.9 million, compared to $19.4 million in the fourth quarter of 2025 and $16.8 million in the first quarter of 2025. While revenue declined sequentially from a stronger Q4 2025, it modestly exceeded expectations. The company's GAAP gross margin came in at 62.2%, significantly above the guided 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.
Despite a slower first half, management reiterated its full-year 2026 revenue guidance of $75.0 million to $77.0 million, signaling confidence in a meaningful acceleration in the second half of the year. According to the company, this growth is expected to be driven by sequential growth in the CIB (Commercial, Industrial, and Broadcast) segment, momentum in ProAV, and the conversion of design wins and design-ins into customer launches in the third and fourth quarters. Automotive revenue grew to $5.9 million, while the VA7000 platform is gaining traction in adjacent markets such as industrial machine vision and medical endoscopy, expanding the addressable opportunity beyond core A-PHY automotive applications, though revenue contribution from these areas is likely still several quarters away.
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. Stonegate Capital Partners views 2026 as a year of measured recovery and product-cycle execution for Valens, with near-term growth expected to build through the year. For more details, the full announcement can be accessed here.
