Valens Semiconductor Ltd. (NYSE:VLN) shares soared 16.07% in premarket trading on Wednesday after the connectivity chipset company raised its full-year 2026 outlook, overshadowing a marginal second-quarter revenue miss.
The company reported an adjusted loss per share of $0.04, in line with analyst expectations. Revenue reached $18.1 million, slightly below the consensus estimate of $18.13 million but 6.1% higher than the $17.1 million generated in the second quarter of 2025.
Valens raises 2026 revenue forecast
Following its second-quarter performance, Valens increased its full-year 2026 revenue guidance to between $78.0 million and $81.0 million.
The midpoint of $79.5 million represents growth of approximately 13% compared with annual revenue in 2025 and stands above the analyst consensus forecast of $75.6 million.
“We are pleased with our performance in the second quarter, where we exceeded our guidance and delivered revenue of $18.1 million,” said Yoram Salinger, CEO of Valens Semiconductor. “This quarter demonstrates continued customer demand and highlights the strength of our execution across the business.”
Third-quarter revenue expected to accelerate
For the third quarter of 2026, Valens expects revenue of between $21.3 million and $21.7 million, signalling a sequential acceleration from the second quarter.
The company forecasts an adjusted EBITDA loss ranging from $3.4 million to $2.8 million for the period.
In the second quarter, Valens recorded an adjusted EBITDA loss of $4.2 million, outperforming its own guidance range for a loss of between $4.9 million and $4.4 million.
Cross-Industry business generates majority of revenue
Valens’s Cross-Industry Business remained its largest revenue contributor during the quarter, generating $13.1 million and accounting for approximately 70% of total sales.
The Automotive segment contributed the remaining $5.0 million, representing around 30% of quarterly revenue.
Adjusted gross margin stood at 64.3%, compared with 67.2% in the second quarter of 2025.
Cash position reaches $83.4 million
Valens ended the second quarter with $83.4 million in cash, cash equivalents and short-term deposits as of June 30, 2026.
The strong premarket reaction reflected investor optimism around the upgraded full-year revenue outlook, improving adjusted EBITDA performance and expectations for stronger sales during the third quarter, despite the slight revenue miss in the latest reporting period.