Valens Semiconductor Ltd. (NYSE:VLN) reported third-quarter 2026 revenue of $21.9 million, representing a 26.5% increase from $17.3 million in the corresponding period of 2025, as higher automotive sales contributed to the connectivity chipset provider’s financial performance.
The result exceeded analysts’ consensus estimate of $20.8 million and surpassed the company’s own revenue guidance range of $21.3 million to $21.7 million.
Valens shares advanced 8% in premarket trading on Wednesday following the announcement.
The company reported an adjusted loss of $0.02 per share, in line with analyst expectations, while its adjusted EBITDA loss narrowed compared with the previous year.
Valens also reaffirmed its full-year 2026 revenue outlook, indicating that it expects results towards the upper end of its existing guidance range.
Valens Semiconductor generated revenue of $21.9 million during the third quarter, an increase of $4.6 million compared with the corresponding period of 2025.
The 26.5% year-over-year increase was supported by growth in the company’s automotive business and higher revenue from its cross-industry operations.
Quarterly revenue exceeded the upper end of management’s previous guidance by approximately $0.2 million.
The reported figure was also $1.1 million above the analyst consensus estimate of $20.8 million.
Despite the increase in sales, Valens continued to report an adjusted net loss per share, although the result matched market expectations.
The company attributed its quarterly performance to revenue contributions across its operating businesses, with automotive sales recording the largest year-over-year increase.
Valens reported automotive revenue of $7.9 million for the third quarter, compared with $4.1 million in the same period of 2025.
The increase of approximately 93% made automotive the principal contributor to the company’s overall year-over-year revenue growth.
Automotive sales represented approximately 35% of total quarterly revenue.
The company’s automotive business supplies connectivity semiconductor technology for applications within the vehicle industry.
The increase in automotive revenue contributed to the company’s overall sales performance during the period.
Valens’ Cross-Industry Business generated revenue of $14.0 million, compared with $13.2 million in the prior-year quarter.
This represented approximately 65% of total revenue.
The cross-industry segment remained the company’s largest revenue contributor, although automotive accounted for a greater portion of the year-over-year increase.
Valens reported an adjusted EBITDA loss of $2.7 million for the third quarter, compared with a loss of $4.3 million in the corresponding period of 2025.
The reduction of $1.6 million represented an improvement in the company’s adjusted operating performance.
The reported loss was also narrower than the company’s guidance range, which had anticipated an adjusted EBITDA loss of between $2.8 million and $3.4 million.
Valens recorded an adjusted gross margin of 64.4%, compared with 64.3% in the second quarter of 2026.
The sequential increase of 0.1 percentage points occurred alongside higher quarterly revenue.
The company continued to report an adjusted loss per share of $0.02, matching analyst estimates.
The financial results reflected increased revenue and a reduction in adjusted EBITDA losses, although the company had not yet achieved positive adjusted EBITDA.
Chief Executive Officer Yoram Salinger said the company’s third-quarter results exceeded its previously announced financial expectations.
“We are pleased with our performance in the third quarter, where we exceeded our guidance and delivered revenue of $21.9 million,” Salinger said.
The comments followed the company’s reported revenue increase and the improvement in adjusted EBITDA relative to its guidance range.
The automotive business contributed $7.9 million in quarterly revenue, while the Cross-Industry Business generated $14.0 million.
Both operating categories recorded higher revenue compared with the corresponding period of 2025.
The results also showed that the company’s adjusted EBITDA loss narrowed from the prior-year quarter.
Valens maintained its full-year 2026 revenue forecast of between $78 million and $81 million.
Management indicated that it is targeting the upper end of the guidance range following the third-quarter results.
The midpoint of the company’s forecast is $79.5 million, compared with the analyst consensus estimate of $78.53 million.
The company also maintained its expectation for a full-year adjusted EBITDA loss of between $12.9 million and $14.9 million.
The guidance reflects management’s current expectations for revenue and adjusted operating performance during the remainder of the financial year.
Although the third-quarter revenue result exceeded both company guidance and analyst estimates, Valens did not increase its full-year revenue range.
The company instead reiterated its existing outlook while indicating that performance could be towards the higher end of that range.
Valens reported cash, cash equivalents and short-term deposits of $74.7 million as of September 30, 2026.
The figure compared with $92.6 million at December 31, 2025.
The decrease of $17.9 million reflected a reduction in the company’s combined cash and short-term deposit balances during the first nine months of the year.
The company did not provide a detailed explanation of the movements in these balances in the supplied results.
The reported liquidity position provides information about the financial resources available to Valens as it continues operating and developing its semiconductor business.
The company remains focused on its full-year revenue and adjusted EBITDA targets, with its financial performance subject to future sales activity and operating expenditure.
Valens Semiconductor shares increased 8% in premarket trading after the company reported revenue above analyst expectations and its previous guidance range.
Third-quarter revenue increased 26.5% year over year, supported by higher automotive sales and growth in the Cross-Industry Business.
The company’s adjusted EBITDA loss narrowed to $2.7 million, while its adjusted gross margin reached 64.4%.
Management reaffirmed its full-year revenue guidance of $78 million to $81 million and indicated that it expects performance towards the upper end of the range.
The results showed higher revenue and reduced adjusted operating losses, alongside a decline in cash and short-term deposits from the end of 2025.
Investors will continue to assess the company’s automotive revenue growth, cross-industry sales performance and progress towards its full-year financial objectives.
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