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1 Valens Semiconductor (NYSE:VLN) February 2026
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2 Forward-Looking Statements Certain statements in this presentation (this "Presentation") are “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding our anticipated future results, including financial results, our anticipated growth projections, our ability to concentrate our resources on our core businesses, our expectations regarding future revenues, gross margin, and adjusted EBITDA loss, and future economic and market conditions. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Valens Semiconductor's ("Valens") management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Valens Semiconductor. These forward-looking statements are subject to a number of risks and uncertainties, including the cyclicality of the semiconductor industry; the effect of inflation and a rising interest rate environment on our customers and industry; the ability of our customers to absorb inventory; competition in the semiconductor industry, and the failure to introduce new technologies and products in a timely manner to compete successfully against competitors; if Valens fails to adjust its supply chain volume due to changing market conditions or fails to estimate its customers' demand; disruptions in relationships with any one of Valens' key customers or suppliers; any difficulty selling Valens' products if customers do not design its products into their product offerings; Valens' dependence on winning selection processes; even if Valens succeeds in winning selection processes for its products, Valens may not generate timely or sufficient net sales or margins from those wins; sustained yield problems or other delays or quality events in the manufacturing process of products; our ability to effectively manage, invest in, grow, and retain our sales force, research and development capabilities, marketing team and other key personnel; our ability to timely adjust product prices to customers following price increase by the supply chain; our ability to adjust our inventory level due to reduction in demand due to inventory buffers accrued by customers; our expectations regarding the outcome of any future litigation in which we are named as a party; our ability to adequately protect and defend our intellectual property and other proprietary rights; risks related to our use of AI technologies; our ability to successfully integrate or otherwise achieve anticipated benefits from acquired businesses; the market price and trading volume of the Valens ordinary shares may be volatile and could decline significantly; further deterioration of macroeconomic conditions due to ongoing global political and economic uncertainty, including with respect to China-Taiwan relations and increasing trade and other tariff-related tensions (as our current guidance assumes the estimated production and/or demand impact on us of current tariff conditions); political, economic, governmental and tax consequences, as well as geopolitical tensions, associated with our incorporation and location in Israel; and those factors discussed in Valens' Form 20- F filed with the SEC on February 25, 2026 under the heading "Risk Factors," and other documents of Valens filed, or to be filed, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Valens does not presently know or that Valens currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Valens' expectations, plans or forecasts of future events and views as of the date of this press release. Valens anticipates that subsequent events and developments may cause Valens' assessments to change. However, while Valens may elect to update these forward-looking statements at some point in the future, Valens specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Valens' assessment as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
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3 GAAP and non-GAAP Measures This presentation includes GAAP and non-GAAP measures. Non-GAAP Gross Margin is defined as GAAP Gross Profit excluding share-based compensation, depreciation and amortization expenses, divided by revenue. Non-GAAP Operating Expenses is defined as GAAP Operating Expenses excluding share-based compensation, depreciation and amortization expenses. Adjusted EBITDA is defined as net profit (loss) before financial income (expense), net, income taxes, equity in earnings of investee, depreciation and amortization, further adjusted to exclude share-based compensation, certain batch production incident expenses and change in the fair value of the Forfeiture Shares and earnout liability, which may vary from period-to-period. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other issuers, because not all issuers calculate Adjusted EBITDA in the same manner. Adjusted EBITDA should not be considered as an alternative to net loss or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity. For reconciliation of GAAP to non-GAAP measures, see Appendix. Although we provide guidance for Adjusted EBITDA, we are not able to provide guidance for projected Net profit (loss), the most directly comparable GAAP measures. Certain elements of Net profit (loss), including share-based compensation expenses and forfeiture share valuations, are not predictable due to the high variability and difficulty of making accurate forecasts. As a result, it is impractical for us to provide guidance on Net profit (loss) or to reconcile our Adjusted EBITDA guidance without unreasonable efforts. Consequently, no disclosure of projected Net profit (loss) is included. For the same reasons, we are unable to address the probable significance of the unavailable information. Industry and Market Data; Trademarks, Service Marks and Copyrights In this Presentation, we rely on and refer to certain information and statistics obtained from third-party sources which we believe to be reliable. We have not independently verified the accuracy or completeness of any such third-party information. You are cautioned not to give undue weight to such industry and market data. This Presentation may include trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this Presentation may be listed without the TM, SM, (c) or (r) symbols, but the Company will assert, to the fullest extent under applicable law, the right of the applicable owners, if any, to these trademarks, service marks, trade names and copyrights.
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4 The High-Performance Connectivity Company The Highest Bandwidth High-speed connectivity for a variety of applications, with no latency. The Lowest Error Rate Reliable, error-free connectivity for Safety-critical systems. The Longest Reach Unprecedented flexibility for system Design over the simplest wiring infrastructure. 230+ Employees 20 Years of innovation NYSE:VLN Listed fabless semiconductor company Revenues in 2025 $70.6M 134 Patents 100s Of customers 50M+ Chipsets sold Global Industry Standards 2 $5B TAM ~$0.5B Cumulative R&D Expenses
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5 Rough environments EMC, EMI, temperature changes, cable aging Distance limitations Extended reach compromises signal integrity High costs Design, development, infrastructure & maintenance costs Too many cables At our homes, offices, plants & vehicles Installation complexity Time consuming, complex architectures, not plug & play Video resolution Handling high-throughput, time-sensitive content transmission The Pain Points of Wired Connectivity
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6 Select Customers & Products Empowered by Valens Video Conferencing Education Entertainment Digital Signage Medical Industrial Machine Vision Automotive 4 Design Wins
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7 The Valens Edge: A DSP-Based Approach to Error Handling Backed by 134 Patents Sticking to our CORE Valens delivers the most optimized connectivity solutions for long-reach, high-resolution video. We provide superior performance wherever others can’t.
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8 The Valens Difference: Best-in-class EMC Performance ▪ Reduce bandwidth ▪ Deploy expensive wiring ▪ Shorten cable length ▪ Rely on sub-optimal architecture Legacy connectivity solutions are RESTRICTED by noise, forcing OEMs to: Valens’ unique approach to noise handling LIBERATES Customers, offering them: ▪ Scalable Bandwidth ▪ Simple Wiring ▪ Long-reach ▪ Flexible Architecture
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9 ▪ Inventor of HDBaseT technology – an audio-video industry standard ▪ Co-Founder of the HDBaseT Alliance, with Samsung, LG and Sony Pictures. Over 200 members developing HDBaseT-enabled products ▪ Market leader with unmatched technology for the distribution of ultra high-resolution video and audio Valens Created the Leading Industry Standard and Largest Interoperable Ecosystem Founding Members Spotlight on Audio-Video Success
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10 Market Drivers ▪ New AI era of intelligent meeting experiences, led by Microsoft Teams and Zoom ▪ Democratization of video conferencing for remote and in-room participants ▪ Growing requirement for bring-your-own-device (BYOD) in huddle and conference rooms ▪ Increased adoption of USB in ProAV installations 1 Future source: Conference Cameras Outlook, Aug 2021; Frost and Sullivan: State of the Global Video Conferencing Devices Market, Dec 2023 2 Frost and Sullivan: State of the Global Video Conferencing Devices Market, Dec 2023 The combination of increased demand for video, proliferation of USB, and the introduction of the Valens VS6320, represents a unique growth opportunity for Valens Video Conferencing: Changing the Way We Work, Learn and Live Growth Engine $- $50 $100 $150 $200 $250 $300 $350 $400 2024 2025 2026 2027 2028 2029 Millions TAM by 2028/29 $350M ~8.5m end devices ~17m chips per year Total Addressable Market (TAM)1 Video conferencing penetration rate to 2x within 5 years2 All these trends result in proliferation of video peripherals in in all types of conference rooms.
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11 Spotlight on Automotive Success Enabling State-of-the-Art Infotainment Systems In Mercedes-Benz Vehicles ▪ On the road with Mercedes since 2020 ▪ The only multi-gig connectivity over unshielded cabling (UTP) ▪ Valens chips will form the connectivity infrastructure for a variety of Mobileye EyeQ 6 High projects ▪ Mobileye testing found Valens superior across a variety of parameters Powering Mobileye’s Next-Generation of ADAS and Autonomous Projects 4 Design Wins with Leading OEMs ▪ Valens is the first A-PHY silicon provider with multiple design wins ▪ Start of Production expected in 2027
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12 ▪ Best-in-class EMC performance ▪ Clear roadmap to ultra-high bandwidth ▪ Simple architecture ▪ End-to-end safety Valens technology was selected as the basis of the A-PHY standard, and the company is the first in the industry to offer A-PHY-compliant chipsets Product Maturity Sensor IntegrationData Rate Noise Immunity/ EMC Security Ecosystem Technological Superiority A-PHY LegacyASA Automotive OEMs have called for a global standard for next-generation sensor connectivity. That standard is MIPI A-PHY.
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13 A-PHY Ecosystem IP & Development Tool Vendors Camera & Radar Module Vendors Silicon & SIP Vendors Platform Vendors A-PHY SiP offering VL77 Series A-PHY SerDes SC5501/2 A-PHY SerDes VA7000 Series A-PHY SerDes YT7917/2 A-PHY SerDes A-PHY SerDes A-PHY SerDes A-PHY SerDes CIS, integrated A-PHY A-PHY SerDes Huashan-2 A1000 L EyeQ platform Ride platform ADAS SoC A-PHY platform SoCs supported by A-PHY Satellite radars with A-PHY 3 A-PHY modules A-PHY module FSC300 A-PHY camera A-PHY e-mirror 4D A-PHY radar A-PHY modules FSM:GO modular platform MARS development platform NCM25-AC module A-PHY module ARDS development platform A-PHY camera ADAS camera eiCAM and thinCAM A-PHY module Verification IP AE2010R SerDes test platform Verification IP Supporting A-PHY tech Marlin A200 protocol analyzer Verification IP CIS and SOC test platform Autera & ESIU Data Simulation A-PHY Compliance software NVS2680 ISP EVB SerDes Interface Board (SVM-06) with A-PHY 6222 Video Dragon - Frame grabbing and generation Receiver test Surround View System SAC8539 & SAC8904 SoCs
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14 Market Drivers ▪ Race towards higher levels of ADAS and Software-Defined Vehicles, leading to: ▪ Increasing number of high-resolution sensors ▪ Complex, centralized architectures ▪ Industry striving for standardized connectivity ▪ Platform lifecycle shortened (due to competition from ‘newer’ companies like Tesla and Chinese OEMs) Automotive: The Foundation for Next-Gen ADAS & Autonomous Systems Cameras, radars, lidars, displays Feet Off Level 2/2+ 4-14 Hands Off Level 3 11-23 Eyes Off Level 4 13-35 Mind Off Level 5 19-36+ 1Source: S&P Autonomy Level (Sales) Data, Jan 2023 Only Valens’ error-free connectivity can guarantee passenger safety and provide the resilient foundation upon which OEMs can build the cars of the future Total Addressable Market (TAM)1 1.4 billion chips per year TAM by 2029 95m cars 12 sensors per vehicle $4.5B $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 2024 2025 2026 2027 2028 2029 Millions Growth Engine
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15 Valens is unlocking new markets by reusing chipsets originally designed for its core businesses Spotlight on New Opportunities Opportunity Spotlight Robotics and Factory Automation Endoscopes, Including Single Use Endoscope Projects Under Development Companies are at various stages of evaluation and development based on Valens technology, including several at FDA approval stages. Rigid Endoscopes Reusable Flexible Endoscopes Single-Use Flexible Endoscopes New Design Wins 3 Global OEMs will launch first VA7000- based endoscopes, signaling strong momentum for Valens semiconductor's medical imaging offering. New Partnerships & Product Launches Established strategic relationships that led to the first VA7000-based platforms on the market for machine and embedded vision, alongside a variety of A-PHY-based products from leading customers and partners.
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16 Financial Outlook
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17 $16.7 $18.4 $19.4 $20.0 $16.4 $15.5 $9.7 $15.8 $7.2 $8.1 $9.4 $11.7 $11.7 $12.8 $13.2 $13.9 $4.9 $4.1 $3.7 $3.5 $7.5 $8.7 $4.5 $6.1 $4.4 $5.5 $6.6 $5.0 $5.1 $4.3 $4.1 $5.5 $16.8 $17.1 $19.4 $17.3 $21.6 $22.5 $23.9 $23.1 $23.5 $24.2 $14.2 $21.9 $11.6 $13.6 $16.0 $16.7 Revenues 1Cross-Industry Business revenues defined as Professional Audio-Video markets (Entertainment, Digital Signage, Education, Video Conferencing) plus Industrial and Medical. Millions 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 $59 $54.8 $62.8 $74.5 $57.4 $36.3 $51.6 $1.0 $2.1 $7.9 $16.2 $26.8 $21.6 $19.0 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 2019 2020 2021 2022 2023 2024 2025 $57.9$56.9 $70.7 $90.7 $84.2 $60.0 Millions Cross-Industry Business1 Automotive Annual Quarterly Cross-Industry Business1 Automotive 2025 Q3 $76.0 2026 Guidance (Mid Point) $16.5 Q2 Guidance (Mid Point) Q4 $70.6 Q1 2026
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18 Key Financial Data (US$ Millions) Q1-2024 Q2-2024 Q3-2024 Q4-2024 Annual 2024 Q1-2025 Q2-2025 Q3-2025 Q4-2025 Annual 2025 Revenue Company $11.6 $13.6 $16.0 $16.7 $57.9 $16.8 $17.1 $17.3 $19.4 $70.6 Cross- Industry Business $7.2 $8.1 $9.4 $11.7 $36.3 $11.7 $12.8 $13.2 $13.9 $51.6 Automotive $4.4 $5.5 $6.6 $5.0 $21.6 $5.1 $4.3 $4.1 $5.5 $19.0 GAAP Gross Margin % Company 59.0% 61.4% 56.4% 60.4% 59.2% 62.9% 63.5% 63.0% 60.5% 62.4% Cross- Industry Business 77.2% 75.4% 70.2% 64.7% 71.0% 69.1% 67.8% 69.1% 66.4% 68.1% Automotive 29.1% 40.9% 37.0% 50.5% 39.5% 48.4% 50.5% 43.2% 45.9% 47.0% Adjusted EBITDA (Loss) Company $(7.1) $(5.2) $(5.1) $(3.7) $(21.1) $(4.3) $(4.0) $(4.3) $(4.3) $(16.9) Loss Per Share $(0.10) $(0.08) $(0.10) $(0.07) $(0.35) $(0.08) $(0.07) $(0.07) $(0.09) $(0.31) 2026 Annual Guidance ▪ Revenue: $75.0-$77.0 MillionFirst Quarter 2026 Guidance ▪ Revenue: $16.3 -$16.7 Million ▪ Gross Margin: 57.0%-59.0% ▪ Adjusted EBITDA (Loss) 1,2 : $(7.9)-$(7.5) Million (1) Guidance provided on February 25, 2026 (2) Although we provide guidance for Adj. EBITDA, we cannot provide guidance for projected net profit (loss), the most directly comparable GAAP measures. See the disclaimer in the Forward -Looking Statements
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19 Recent Announcements Fourth MIPI A-PHY design win with a premium carmaker serving the Chinese market Valens, Imavix Engineering and CIS Corporation partner to offer the first MIPI A-PHY-based platform for machine vision, integrating Valens’ VA7000 chipset Valens and Sakae Riken Kogyo to unveil the automotive market’s first production- ready MIPI A-PHY-enabled e-mirror Implementation of an operational efficiency plan expected to save approximately $5 million annually in operating expenses
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20 investors@valens.com
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21 Appendix - GAAP to Non-GAAP Reconciliation ($ Thousands) Q4/25 Q3/25 Q2/25 Q1/25 Q4/24 Q3/24 Q2/24 Q1/24 Revenues 19,403 17,335 17,059 16,828 16,665 16,038 13,597 11,559 COGS 7,657 6,413 6,224 6,246 6,592 6,993 5,253 4,744 GAAP gross profit 11,746 10,922 10,835 10,582 10,073 9,045 8,344 6,815 GAAP gross margin 60.5% 63.0% 63.5% 62.9% 60.4% 56.4% 61.4% 59.0% Depreciation and amortization 361 382 384 400 433 446 180 116 Share-based compensation 293 255 246 250 247 238 243 231 NON-GAAP gross profit 12,400 11,559 11,465 11,232 10,753 9,729 8,767 7,162 NON-GAAP gross margin 63.9% 66.7% 67.2% 66.7% 64.5% 60.7% 64.5% 62.0% GAAP net loss -8,770 -7,321 -7,184 -8,308 -7,317 -10,355 -8,869 -10,042 Depreciation and amortization 709 743 758 770 788 823 480 456 Share-based compensation 4,870 3,728 3,775 4,166 3,859 3,760 3,735 3,764 Financial income, net -431 -726 -225 -1,238 -1,136 -1,885 -540 -1,234 Income Taxes 30 14 21 93 44 14 21 17 Equity in earnings of investee -2 -3 -1 -3 -2 -4 -12 -5 Change in fair value of Forfeiture Shares - -1 - 0 1 -3 -10 -25 Change in earnout liability -250 744 -837 174 85 264 28 0 Certain batch production incident expenses -412 -1,476 -323 0 -10 2,249 0 0 Adjusted EBITDA -4,256 -4,298 -4,016 -4,346 -3,688 -5,137 -5,167 -7,069
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22 Appendix - Company’s Profit And Loss Year ended December 31 2025 2024 2023 2022 REVENUES 70,625 57,859 84,161 90,715 COST OF REVENUES (26,540) (23,582) (31,569) (27,325) GROSS PROFIT 44,085 34,277 52,592 63,390 OPERATING EXPENSES: Research and development expenses (42,655) (40,475) (48,171) (58,207) Sales and marketing expenses (21,390) (18,302) (17,314) (16,959) General and administrative expenses (14,264) (16,465) (14,024) (16,593) Change in earnout liability 169 (377) - - TOTAL OPERATING EXPENSES (78,140) (75,619) (79,509) (91,759) OPERATING LOSS (34,055) (41,342) (26,917) (28,369) Change in fair value of Forfeiture Shares 1 37 1,713 2,907 Financial income (expenses), net 2,620 4,795 5,637 (1,770) LOSS BEFORE INCOME TAXES (31,434) (36,510) (19,567) (27,232) INCOME TAXES (158) (96) (112) (451) LOSS AFTER INCOME TAXES (31,592) (36,606) (19,679) (27,683) Equity in earnings of investee 9 23 18 16 NET LOSS (31,583) (36,583) (19,661) (27,667) Basic and diluted net loss per Ordinary Share (0.31) (0.35) (0.19) (0.28) Weighted average number of shares and vested RSUs used in computing net loss per Ordinary Share 103,142,173 105,477,191 101,985,939 97,820,782 Other comprehensive income: Change in unrealized gains on cash flow hedges (172) 601 - - TOTAL COMPREHENSIVE LOSS (31,755) (35,982) (19,661) (27,667)
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23 Assets December 31 2025 2024 CURRENT ASSETS: Cash and cash equivalents 27,863 35,423 Short-term deposits 64,733 95,532 Restricted short-term deposit 1,132 1,138 Trade accounts receivable 9,971 7,751 Prepaid expenses and other current assets 4,842 3,904 Inventories 10,117 10,155 TOTAL CURRENT ASSETS 118,658 153,903 LONG-TERM ASSETS: Property and equipment, net 2,901 3,555 Operating lease right-of-use assets 6,901 7,458 Intangible assets 3,762 4,702 Goodwill 1,847 1,847 Other assets 632 687 TOTAL LONG-TERM ASSETS 16,043 18,249 TOTAL ASSETS 134,701 172,152 Appendix - Company’s Consolidated Balance Sheet (U.S. dollars in thousands, except for number of shares and par value)
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24 Liabilities and Shareholders’ Equity December 31 2025 2024 CURRENT LIABILITIES: Trade accounts payable 4,698 6,003 Accrued compensation 7,298 4,964 Earnout liability 282 - Current maturities of operating leases liabilities 1,526 975 Other current liabilities 9,130 8,384 TOTAL CURRENT LIABILITIES 22,934 20,326 LONG-TERM LIABILITIES: Forfeiture Shares, no par value: 0 and 359,375 shares authorized, issued and outstanding as of December 31, 2025 and 2024 - 1 Non-current operating leases liabilities 6,717 6,645 Earnout liability - 2,413 Other long-term liabilities 67 79 TOTAL LONG-TERM LIABILITIES 6,784 9,138 COMMITMENTS AND CONTINGENT LIABILITIES TOTAL LIABILITIES 29,718 29,464 SHAREHOLDERS’ EQUITY: Ordinary shares, no par value: 700,000,000 shares authorized as of December 31, 2025 and 2024; 106,352,460 and 107,614,972 shares issued and 103,050,266 and 106,342,415 shares outstanding as of December 31, 2025 and 2024, respectively (excluding 0 and 359,375 Ordinary shares subject to forfeiture) 49 49 Treasury shares at cost: 3,302,194 and 625,682 shares as of December 31, 2025 and 2024, respectively (10,006) (1,613) Additional paid-in capital 360,013 357,570 Accumulated other comprehensive income 429 601 Accumulated deficit (245,502) (213,919) TOTAL SHAREHOLDERS’ EQUITY 104,983 142,688 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 134,701 172,152 Appendix - Company’s Consolidated Balance Sheet (U.S. dollars in thousands, except for number of shares and par value)
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25 Appendix - Revenue Diversity Across Customers FY-2024FY-2025 Customer A 13% Customer C 10% Customer D 15% Customer F 6% Customer A 13% Customer C 11% Customer D 7% Customer F 3%
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26 Appendix - Revenues Diversity Across Geography Israel 1% China 16% Hong Kong 10% Portugal 12% United States 17% Germany 6% Hungary 24% Other 20% FY-2024 Israel 1% China 15% Hong Kong 13% Portugal 13% United States 13% Germany 4% Hungary 13% Other 28% FY-2025