Dallas, TX — Stonegate Capital Partners has updated its coverage on Valens Semiconductor Ltd. (NYSE:VLN) following the company's fourth-quarter 2025 earnings release. Valens posted revenue of $19.4 million, significantly above guidance of $18.2 to $18.9 million, marking its seventh consecutive quarter of growth. This compares to $17.3 million in the third quarter of 2025 and $16.7 million in the fourth quarter of 2024.
GAAP gross margin was 60.5% (non-GAAP 63.9%), exceeding guidance while easing slightly from 63.0% in the third quarter. The adjusted EBITDA loss of $(4.3) million was within the guided range of $(4.6) to $(4.2) million. While momentum remains solid, near-term results are being modestly affected by tariffs in automotive and some foreign exchange pressure. Visibility remains mixed, but Stonegate expects steady growth through 2026 as ProAV normalizes, machine vision and medical ramp, and automotive stabilizes with continued A-PHY progress.
Support also comes from share repurchases, a $5 million annual operating expense savings plan, and a new automotive win tied to the Chinese market. The company's strong balance sheet and 2026 growth outlook are expected to offset near-term tariff, FX, and seasonal automotive headwinds. For more details, view the full announcement here.
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), provides a full spectrum of investment banking services for public and private companies. For inquiries, contact Stonegate Capital Partners at (214) 987-4121 or info@stonegateinc.com.
