Loading...
•
Jun 30
Valens Q2 2025 Earnings Report
Valens Semiconductor reported its financial results for the second quarter ended June 30, 2025, exceeding revenue guidance and showing strong performance in the ProAV and Industrial machine vision markets, while adjusting full-year guidance due to tariffs.
Key Takeaways
Valens Semiconductor delivered strong Q2 2025 results, with revenues of $17.1 million, surpassing guidance, driven by robust demand in the ProAV and Industrial machine vision sectors. Despite a GAAP net loss of $(7.2) million, the company's non-GAAP gross margin improved to 67.2%, and adjusted EBITDA loss was better than anticipated. However, full-year 2025 revenue guidance was lowered due to the impact of tariffs.
Q2 2025 revenues reached $17.1 million, exceeding the company's guidance and showing growth compared to both Q1 2025 and Q2 2024.
GAAP gross margin for Q2 2025 was 63.5%, with a non-GAAP gross margin of 67.2%, indicating healthy profitability.
The company reported a GAAP net loss of $(7.2) million and an adjusted EBITDA loss of $(4.0) million, which was better than guidance.
Full-year 2025 revenue guidance was adjusted downwards to $66 million to $71 million due to tariffs, although this still represents a significant increase over 2024.
Valens
Valens
Valens Revenue by Segment
Revenue by Segment
Cross-Industry Business Revenue
CapyFin.comAutomotive Revenue
CapyFin.com Forward Guidance
For Q3 2025, Valens Semiconductor expects revenues to be between $15.1 million and $15.6 million, gross margin between 58.0% and 60.0%, and adjusted EBITDA loss between $(7.4) million and $(6.8) million. The full-year 2025 revenue guidance is updated to be in the range of $66 million to $71 million.
Positive Outlook
- Full-year 2025 revenue guidance still represents a 14% to 23% increase compared to 2024, indicating continued growth.
- Confidence in the company's long-term strategy and market opportunity remains unchanged despite short-term adjustments.
- Strong and growing demand observed in the first half of 2025, particularly within the ProAV market.
- Momentum in Industrial machine vision remained positive, with strategic partnerships leading to new product designs expected to commercialize by late 2026.
- The MIPI A-PHY standard in automotive continues to gain industry traction, providing optimism for long-term potential in this market.
Challenges Ahead
- Full-year 2025 revenue guidance has been lowered primarily due to the impact of tariffs.
- Q3 2025 revenue guidance of $15.1 million to $15.6 million is lower than Q2 2025 actual revenue.
- Q3 2025 gross margin guidance of 58.0% to 60.0% is lower than Q2 2025 GAAP and non-GAAP gross margins.
- Q3 2025 adjusted EBITDA loss is expected to widen to between $(7.4) million and $(6.8) million compared to Q2 2025.
- The unpredictable impact of tariffs is a significant factor influencing the adjusted full-year guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income