Valens Semiconductor Ltd. · NYSE:VLN

Valens Semiconductor — Q2 2025 Earnings Presentation

28 slides from Valens Semiconductor's earnings presentation, Aug 6, 2025

  1. Slide 1: Valens Semiconductor

    Valens Semiconductor (NYSE:VLN) August 2025 1

  2. Slide 2: Forward-Looking Statements

    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

  3. Slide 3: GAAP and non-GAAP Measures

    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 ex

  4. Slide 4: The High-Performance Connectivity Company

    The Highest Bandwidth High-speed connectivity for a variety of applications, with no latency. The High-Performance Connectivity The Longest Reach Unprecedented flexibility for system Company Design over the simplest wiring infrastructure. The Lowest Error Rate Reliable, error-free connectivity for S

  5. Slide 5: The Pain Points of Wired Connectivity

    The Pain Points of Wired Connectivity Too many cables Distance limitations Video resolution At our homes, offices, Extended reach Handling high-throughput, plants & vehicles compromises signal time-sensitive content integrity transmission Rough environments High costs Installation complexity EMC, EM

  6. Slide 6: Select Customers & Products Empowered by Valens

    Select Customers & Products Empowered by Valens Digital Video Entertainment Education Industrial Medical Automotive Signage Conferencing 6

  7. Slide 7: Sticking to our CORE

    Sticking to our CORE The Valens Edge: A DSP-Based Approach to Error Handling Backed by 125 Patents Valens delivers the most optimized connectivity solutions for long-reach, high-resolution video. We provide superior performance wherever others can’t. 7

  8. Slide 8: The Valens Difference: Best-in-class EMC Performance

    The Valens Difference: Best-in-class EMC Performance Legacy connectivity solutions are Valens’ unique approach to noise handling RESTRICTED by noise, forcing OEMs to: LIBERATES Customers, offering them: ▪ Reduce bandwidth ▪ Scalable Bandwidth ▪ Deploy expensive wiring ▪ Simple Wiring ▪ Shorten cable

  9. Slide 9: Video Conferencing: Changing the Way We Work, Learn and Live

    Opportunity Video Conferencing: Changing the Way We Spotlight Work, Learn and Live Total Addressable Market (TAM)1 Market Drivers $400 ▪ New AI era of intelligent meeting experiences, led by $350 Microsoft Teams and Zoom $300 ▪ Democratization of video conferencing for remote and in-room participant

  10. Slide 10: Spotlight on Pro-AV Success

    Spotlight on Pro-AV Success Valens Created the Leading Industry Standard and Largest Interoperable Ecosystem Founding Members ▪ 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 HDBa

  11. Slide 11: Automotive: The Foundation for Next-Gen ADAS & Autonomous Systems

    Opportunity Automotive: The Foundation for Next-Gen Spotlight ADAS & Autonomous Systems Total Addressable Market (TAM)1 Market Drivers $5,000 ▪ Race towards higher levels of ADAS and Software-Defined $4,500 Vehicles, leading to: $4,000 ▪ Increasing number of high-resolution sensors $3,500 ▪ Complex,

  12. Slide 12: Spotlight on Automotive Success

    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) Providing Unprecedented Visibility to Truck Drivers Around the World ▪ Exceptional combinati

  13. Slide 13: Automotive OEMs have called for a global standard for sensor connectivity

    Technological Superiority Automotive OEMs have called for Data Rate Sensor Integration a global standard for next- generation sensor connectivity. That standard is MIPI A-PHY. Noise Product Immunity/ Maturity EMC ▪ Best-in-class EMC performance ▪ Clear roadmap to ultra-high bandwidth Security Ecosys

  14. Slide 14: A-PHY Ecosystem

    A-PHY Ecosystem Platform Vendors Camera & Radar Module Vendors eiCAM and NCM25-AC A-PHY FSC300 Surround View System thinCAM module e-mirror A-PHY camera Huashan-2 A1000 L ADAS SoC SAC8539 & SAC8904 SoCs A-PHY FSM:GO 4D A-PHY A-PHY camera modular radar modules Ride platform A-PHY platform platform A-

  15. Slide 15: Industrial Machine Vision: Advancing Vision-Driven Automation

    Opportunity Industrial Machine Vision: Advancing Spotlight Vision-Driven Automation Total Addressable Market (TAM)1 Market Drivers $500 $450 ▪ Rise of machine vision due to: ▪ Increased factory automation addressing workforce $400 shortage and increased cost of labor $350 ▪ Tighter inspection regula

  16. Slide 16: Spotlight on Industrial Machine Vision Success

    Opportunity Spotlight on Industrial Machine Vision Spotlight Success Legacy: Industrial PCs and Panels Chipset Enablers Emerging: Factory Automation and Robotics Leveraging Automotive and ProAV chipsets With a strong foothold in the industrial machine vision market, Valens is leveraging its newest c

  17. Slide 17: Single-Use Endoscopy: An Industry on the Verge of Transformation

    Opportunity Single-Use Endoscopy: An Industry on Spotlight the Verge of Transformation Total Addressable Market (TAM)1 Market Drivers ▪ Disposable endoscopes eliminate risk of infection (#2 health hazard, 2024, ECRI) ▪ Sterilization is timely, expensive and generates toxic waste (ESG) 50% 125 millio

  18. Slide 18: Spotlight on Medical Success

    Opportunity Spotlight Spotlight on Medical Success Legacy: Medical Imaging Endoscope Requirements Error-free links alongside electrosurgical instruments Superior video, 4K, 60fps or higher 4K Single cable for both the distal Emerging: Endoscopes, Including Single Use camera and LEDs Endoscope Projec

  19. Slide 19: One Technology. Infinite Possibilities.

    One Technology. Infinite Possibilities. VS100 Series VS2000 Series VA6000 Series VS3000 Series VA7000 Series VS6320 Chip Breakthrough chipset for Addition of USB opens First automotive-grade The only uncompressed The first MIPI A-PHY The market’s only ProAV, offering the first new appliccations for

  20. Slide 20: Revenues

    Revenues Annual Quarterly $24.2 $23.5 $23.9 $23.1 $100 $22.5 $21.6 $21.9 $90.7 $3.7 $3.5 $90 $4.1 $84.2 $7.5 $8.7 $16.2 $4.9 $6.1 $80 $16.7 $16.8 $17.1 $70.7 $70 $26.8 $16.0 $7.9 $4.3 $60.0 $14.2 $5.1 $60 $56.9 $57.9 $13.6 $5.0 $1.0 Millions Millions $6.6 $2.1 $4.5 $11.6 $50 $21.6 $5.5 $19.4 $20.0 $

  21. Slide 21: Key Financial Data

    Key Financial Data Annual US$ Millions Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025 2024 Company $11.6 $13.6 $16.0 $16.7 $57.9 $16.8 $17.1 Cross-Industry Revenue $7.2 $8.1 $9.4 $11.7 $36.3 $11.7 $12.8 Business Automotive $4.4 $5.5 $6.6 $5.0 $21.6 $5.1 $4.3 Company 59.0% 61.4% 56.4% 60.4% 59.2% 62

  22. Slide 22: Cash Balance, Inventory Level, Working Capital

    Cash Balance1,3 Inventory Level Working Capital2 200 180 174.4 30 200.0 160 148.4 183.3 142.0 180.0 131.0 163.7158.8 140 25 23.8 160.0 120 112.5 140.0 133.6 102.7 20 119.8 100 120.0 106.0 Millions Millions Millions 80 15 13.8 100.0 11.5 10.2 10.9 80.0 60 10 9.3 60.0 40 40.0 5 20 20.0 - - - 1 Cash Ba

  23. Slide 23: Long Term Growth Drivers

    ADAS Deployment Long Term Growth Drivers & Single Use Endoscopy CAGR ~30% - ~40% Automotive Potential Non-Organic ▪ Commercializatio Upside n of ADAS based Growth models ▪ Adoption of the Industrial ▪ Potential A-PHY standard $220-$300 Machine synergetic Million1 acquisitions Vision ▪ Adoption of th

  24. Slide 24: 2025 Guidance and Goals

    2025 Guidance and Goals Revenue Guidance ProAV Industrial Machine $66-$71 Million Partial recovery from the Vision ~14%-23% YoY growth inventory digestion cycle; New design win adoption and announcements based commercialization of on the VS6320 and VS6320-based products VA7000 for the video conferen

  25. Slide 25: Summary

    Summary Revenue Growth Diversification Design Wins Cycles Target of X 4-6 Among different Long sales and within 5 years verticals and products life cycle industries provides long term customer engagement and good visibility Profitable Business Strong Cash Balance Model Allows executing Goals: both t

  26. Slide 26: investors@valens.com

    wa investorsQ@valens.com

  27. Slide 27: Appendix - GAAP to Non-GAAP Reconciliation

    Appendix - GAAP to Non-GAAP Reconciliation ($ Thousands) Q2/25 Q1/25 Q4/24 Q3/24 Q2/24 Q1/24 Revenues 17,059 16,828 16,665 16,038 13,597 11,559 COGS 6,224 6,246 6,592 6,993 5,253 4,744 GAAP gross profit 10,835 10,582 10,073 9,045 8,344 6,815 GAAP gross margin 63.5% 62.9% 60.4% 56.4% 61.4% 59.0% Depr

  28. Slide 28: Appendix - Company's Profit And Loss

    Appendix - Company’s Profit And Loss Year ended December 31 Q2-2025 Q1-2025 2024 2023 2022 REVENUES 17,059 16,828 57,859 84,161 90,715 COST OF REVENUES 6,224 6,246 (23,582) (31,569) (27,325) GROSS PROFIT 10,835 10,582 34,277 52,592 63,390 OPERATING EXPENSES: Research and development expenses 10,198

Valens Semiconductor — Q2 2025 Earnings Presentation on 6ix