Valens Semiconductor (NYSE:VLN) reported first-quarter results on Wednesday that beat analyst expectations on earnings but fell short on revenue, while the company also issued softer-than-expected guidance for the current quarter.
Shares edged up 0.37% in premarket trading following the earnings release.
Earnings outperform despite revenue miss
The connectivity chipmaker posted an adjusted loss of $0.05 per share for the first quarter, ahead of analyst forecasts for a loss of $0.07 per share.
Revenue totaled $16.9 million, below Wall Street expectations of $18.75 million. However, the figure exceeded the company’s own guidance range of $16.3 million to $16.7 million.
Quarterly revenue increased 0.6% from $16.8 million in the same period last year.
“The first quarter of 2026 exceeded our expectations, as we once again beat the top end of our guidance,” said Yoram Salinger, chief executive officer of Valens Semiconductor.
“In Audio-Video, we’re continuing to see increased adoption of our VS6320 and VS3000 chipsets, as additional products based on these chips hit the market.”
Second-quarter guidance disappoints
For the second quarter, Valens forecast revenue between $17.2 million and $17.6 million.
The midpoint of $17.4 million came in below analyst consensus expectations of $18.13 million.
The company also projected an adjusted EBITDA loss of between $4.4 million and $4.9 million, alongside a gross margin range of 60% to 62%.
Gross margin exceeds company targets
First-quarter adjusted gross margin reached 65.2%, above the company’s previous guidance range of 57% to 59%.
Revenue from Valens’ Cross-Industry Business segment represented 65% of total quarterly revenue at $11.0 million.
Automotive revenue accounted for the remaining 35%, totaling $5.9 million, compared with $5.1 million in the prior-year period.
Company maintains strong balance sheet
Valens ended the quarter with $86.1 million in cash, cash equivalents and short-term deposits, down from $92.6 million at the end of 2025.
The company reported no debt on its balance sheet.