Valens Semiconductor Ltd. reported third‑quarter 2025 results on November 12, 2025, posting revenue of $17.3 million—$1.9 million above the consensus estimate of $15.4 million and a 12.3% year‑over‑year increase from $16.0 million in Q3 2024. The revenue lift was driven by a 15% rise in the Cross‑Industry Business (CIB) segment, which contributed 75% of total sales, and a 9% gain in the automotive segment, offsetting a modest decline in the Pro‑AV line.
Gross margin expanded to 63% from 56.4% in Q3 2024, reflecting a favorable product mix shift toward higher‑margin CIB offerings and improved pricing power. The automotive margin contracted to 43.2% from 50.5% in Q2 2025, largely due to increased manufacturing line transition costs and a heavier mix of lower‑margin components. Adjusted EBITDA remained a loss of $4.3 million, consistent with the company’s investment‑heavy growth strategy.
Earnings per share came in at $‑0.04, beating the consensus estimate of $‑0.07 by $0.03—a 42.9% improvement. The beat was largely attributable to disciplined cost management and the higher margin mix in CIB, which offset the automotive margin compression. Management noted that the company’s focus on high‑bandwidth connectivity solutions continues to drive demand across automotive, industrial, and medical markets.
For the fourth quarter, Valens projects revenue of $18.2 million to $18.9 million, a 5–6% increase over the current quarter, and a gross margin of 58% to 60%. Full‑year 2025 revenue guidance was raised to $69.4 million to $70.1 million, up 20% from 2024, reflecting confidence in sustained demand for its MIPI A‑PHY platforms and new product launches in medical endoscopy.
The announcement of Yoram Salinger as the new CEO, effective November 13, was also highlighted. Salinger, who previously led the company’s high‑performance connectivity division, emphasized a strategy to accelerate growth in automotive, industrial, and medical markets. Analysts and investors reacted positively, with the stock rising 3.71% in pre‑market trading, driven by the revenue and EPS beats and the strong gross margin outlook.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.