Stonegate Capital Partners Updates Coverage on Valens Semiconductor Ltd. (NYSE:VLN) After 1Q26 Results

Stonegate Capital Partners has updated its coverage on Valens Semiconductor Ltd. (NYSE:VLN) following the company's first quarter 2026 earnings report. Valens Semiconductor reported 1Q26 revenue of $16.9 million, compared with $19.4 million in 4Q25 and $16.8 million in 1Q25. GAAP gross margin came in at 62.2%, above the company's guidance 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. While revenue stepped down sequentially from a stronger 4Q25, results were modestly ahead of expectations, and management reiterated FY26 revenue guidance of $75.0 million to $77.0 million.

According to Stonegate Capital Partners, the key takeaways from the quarter include execution remaining ahead of plan despite a slower first-half setup. The firm views 2026 as a year of measured recovery and product-cycle execution, with near-term growth expected to build through the year as the Company's Core Infrastructure Business (CIB) returns to sequential growth, automotive remains steady, and the A-PHY ecosystem development continues. Management noted that broader supply-chain conditions remain an area to monitor but importantly stated that it does not see risk to meeting its full-year targets.

The second-half acceleration is considered the key thesis variable. Management expects a meaningfully stronger back half, driven by CIB sequential growth, ProAV momentum, and design wins/design-ins converting into customer launches in 3Q26 and 4Q26. Automotive revenue grew to $5.9 million in the quarter, while VA7000 traction in industrial machine vision and medical endoscopy expands the addressable opportunity beyond core A-PHY auto applications, though revenue contribution likely remains several quarters out.

For more details, the full announcement is available 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. This update reflects Stonegate's ongoing coverage of Valens Semiconductor.