Valens Semiconductor tops Q1 estimates as gross margins surpass guidance

Valens Semiconductor (NYSE:VLN) posted first-quarter revenue of $16.9 million, edging past its guidance range of $16.3 million to $16.7 million.

The upside was most pronounced in the company’s profitability metrics; GAAP gross margin reached 62.2%, significantly outperforming the 57% to 59% range the company had previously signaled to investigators.

On a non-GAAP basis, gross margins reached 65.2%, reflecting a favorable product mix and efficient supply chain management.

Despite the top-line beat, the company continues to invest in its product roadmap, reporting a GAAP net loss of $8.3 million for the period.

Adjusted EBITDA loss narrowed to $5.5 million, as the company works toward a trajectory of long-term profitability.

The company’s balance sheet remains a point of strength amid broader semiconductor market volatility.

Valens ended the quarter with $86.1 million in cash and cash equivalents and continues to operate with no debt, providing a significant capital cushion for R&D and market expansion.

Looking ahead to the second quarter of 2026, Valens provided guidance that suggests modest sequential growth.

The company expects revenue to fall between $17.2 million and $17.6 million.

Gross margins are projected to remain robust between 60% and 62%, while adjusted EBITDA loss is expected to improve further, landing in a range of $4.9 million to $4.4 million.