VLN Valens Semiconductor Ltd.

Overview and Growth

Valens Semiconductor Ltd. generated $70.62M of revenue in fiscal 2025, with net loss of $31.58M and an operating cash outflow of $12.72M. The $70.62M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line expanded 22.1% from $57.86M in fiscal 2024, increasing the company’s operating scale. Diluted earnings per share were -$0.31, translating the period’s attributable earnings into the amount reported for each diluted share. The company employed $134.70M of total assets, the balance-sheet base supporting its current operating and cash-flow results. The revenue-to-assets relationship was 0.52x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The first profit layer was $44.09M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross margin was 62.4%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was an operating loss of $34.05M, reflecting costs that exceeded gross profit. The operating loss equaled 48.2% of revenue, showing the scale of the operating deficit relative to sales. The company ended the period with a net loss of $31.58M, extending the operating result through all remaining items. Net margin was -44.7%, reflecting a loss equal to 44.7% of reported revenue. Negative EBITDA totaled $31.07M, confirming that the earnings deficit remained before depreciation and amortization. Before income taxes, the company recorded a loss of $31.43M, bridging the operating result to the final net loss. The pretax loss equaled 44.5% of revenue, measuring the pre-tax deficit against sales. The company recognized $158.00K of income tax for the period, completing the transition from pretax income to net income. Relative to period-end equity, the net loss represented 30.1%. The loss-to-assets relationship was 23.4%, placing the bottom-line deficit against the company’s resource base. The bottom-line deficit decreased from $36.58M in fiscal 2024 to $31.58M.

Liquidity and Capital Structure

Total assets were $134.70M, supported by $29.72M of liabilities and $104.98M of shareholder equity. The near-term balance sheet paired $118.66M of current assets with $22.93M of current liabilities at the reporting date. At 5.17x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $27.86M, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 121.5% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. The equity-to-assets relationship was 77.9%, placing book capital against the total resource base. Relative to total assets, liabilities measured 22.1%, complementing the separate equity-based view of the company’s capital structure. Cash and equivalents equaled 20.7% of total assets, showing the liquid cash component within the company’s broader resource base. The asset base changed 21.8% from $172.15M in fiscal 2024, leaving current total assets lower year over year. Against $142.69M of equity in fiscal 2024, the current book-equity balance moved 26.4% and ended lower. Cash and equivalents were 21.3% lower than fiscal 2024 cash of $35.42M, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

The company reported an operating cash outflow of $12.72M, rather than cash generation from operations. Capital spending of $1.07M added to the period’s operating cash use, reinforcing the overall cash deficit after investment for the year. Negative free cash flow was $13.79M, leaving a cash deficit after capital spending and reducing financial flexibility. Relative to revenue, the post-investment cash deficit represented 19.5%. The free-cash-flow deficit equaled 10.2% of total assets, placing the cash shortfall against the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.