Israel's Valens Semiconductor Q4 beats on recovery in Audio-Video market

Valens Semiconductor

25/02/2026 11:43

Overview

Israel connectivity leader's Q4 revenue rose 22% yr/yr, beating analyst expectations

Adjusted EPS for Q4 met analyst expectations

Company announced operational efficiency plan to save $5 mln annually

Outlook

Valens expects Q1 2026 revenue between $16.3 mln and $16.7 mln

Company anticipates full-year 2026 revenue between $75 mln and $77 mln

Operational efficiency plan expected to save $5 mln annually

Result Drivers

CIB REVENUE GROWTH - Driven by recovery in the Audio-Video market, CIB revenues increased to $13.9 mln in Q4 2025

AUTOMOTIVE SEGMENT - Automotive revenues rose to $5.5 mln in Q4 2025, with improved gross margin due to cost optimization

GROSS MARGIN EXCEEDS GUIDANCE - Q4 2025 GAAP gross margin was 60.5%, surpassing guidance of 58%-60%

Company press release: ID:nPn42nNjTa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$19.40 mln
$18.78 mln (4 Analysts)
Q4 Adjusted EPS
Meet
-$0.04
-$0.04 (4 Analysts)
Q4 Net Income
-$8.77 mln
Q4 Adjusted EBITDA
Beat
-$4.26 mln
-$4.40 mln (2 Analysts)
Q4 Pretax Profit
Miss
-$8.74 mln
-$5 mln (4 Analysts)
Q4 Adjusted Gross Margin
63.90%
Q4 Operating Expenses
-$20.92 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the semiconductors peer group is "buy"

Wall Street's median 12-month price target for Valens Semiconductor Ltd is $3.50, about 128.8% above its February 24 closing price of $1.53

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)