Key Financial Highlights:

   -- Q1 2026 revenues: $16.9 million, exceeding the top end of our guidance 
 
   -- Q1 2026 gross margin: 62.2% GAAP; 65.2% non-GAAP, exceeding the top end 
      of our guidance 
 
   -- Cash, cash equivalents and short-term deposits as of March 31, 2026: 
      $86.1 million 

HOD HASHARON, Israel, May 13, 2026 /PRNewswire/ -- Valens Semiconductor Ltd. (NYSE: VLN), a leader in high-performance connectivity, today reported financial results for the first quarter ended March 31, 2026.

"The first quarter of 2026 exceeded our expectations, as we once again beat the top end of our guidance," said Yoram Salinger, CEO of Valens Semiconductor. "In Audio-Video, we're continuing to see increased adoption of our VS6320 and VS3000 chipsets, as additional products based on these chips hit the market. In Automotive, Valens is focused on pushing the MIPI A-PHY ecosystem forward. In Q1, we publicly demonstrated the first three-company interoperable SerDes link, reinforcing one of the core value propositions of any industry standard by introducing a multi-vendor ecosystem for OEMs."

Q1 2026 Financial Highlights:

   -- Q1 2026 revenues reached $16.9 million, exceeding our guidance of 
      $16.3-$16.7 million, compared to $19.4 million in Q4 2025 and $16.8 
      million in Q1 2025. 
 
          -- Q1 2026 Cross-Industry Business ("CIB") revenues accounted for 
             approximately 65% of total revenues at $11.0 million compared to 
             $13.9 million in Q4 2025 and $11.7 million in Q1 2025. 
 
          -- Q1 2026 Automotive revenues accounted for approximately 35% of 
             total revenues at $5.9 million, compared to $5.5 million in Q4 
             2025 and $5.1 million in Q1 2025. 
 
   -- Q1 2026 GAAP gross margin was 62.2% (non-GAAP gross margin was 65.2%), 
      above the guidance of 57%-59%. This is compared to a GAAP gross margin of 
      60.5% for Q4 2025 and 62.9% for Q1 2025 (non-GAAP gross margin of 63.9% 
      in Q4 2025 and 66.7% in Q1 2025). On a segment basis, Q1 2026 gross 
      margin from the CIB was 70.8% and gross margin from Automotive was 46.2%. 
      This compares to Q4 2025 gross margins on a segment basis of 66.4% and 
      45.9%, respectively, and Q1 2025 gross margins on a segment basis of 
      69.1% and 48.4%, respectively. The increase in gross margin of the CIB 
      compared to Q4 2025 was primarily due to product mix. 
 
   -- Q1 2026 GAAP net loss amounted to $(8.3) million, compared to a net loss 
      of $(8.8) million in Q4 2025 and a net loss of $(8.3) million in Q1 2025. 
 
   -- Q1 2026 adjusted EBITDA was a loss of $(5.5) million, which was lower 
      than the previous guidance range of a $(7.9)-$(7.5) million adjusted 
      EBITDA loss. This compares to an adjusted EBITDA loss of $(4.3) million 
      in Q4 2025 and an adjusted EBITDA loss of $(4.3) million in Q1 2025. 
 
   -- Cash, cash equivalents and short-term deposits as of March 31, 2026, were 
      $86.1 million and no debt. This compares to a cash balance of $92.6 
      million as of December 31, 2025 and $112.5 million as of March 31, 2025. 

Financial Outlook for Q2 2026

For Q2 2026, Valens expects revenues to range between $17.2 million to $17.6 million, gross margin to range between 60% to 62%, and adjusted EBITDA loss to range between $(4.9) million to $(4.4) million.

Disclaimer: Valens Semiconductor does not provide GAAP net profit (loss) guidance as certain elements of net profit (loss), including share-based compensation expenses and warrant valuations, are not predictable due to the high variability and difficulty of making accurate forecasts. Adjusted EBITDA is a non-GAAP measure. See the tables below for additional information regarding this and other non-GAAP metrics used in this release.

Conference Call Information

Valens Semiconductor will host a conference call today, Wednesday, May 13, 2026, at 8:30 a.m. Eastern Time $(ET)$ to discuss its first quarter 2026 financial results and business outlook. To access this call, dial (at least 10 minutes before the scheduled time)- USA & Canada (Toll-Free): (888) 672-2415; United States (New York): (646) 307-1952; United Kingdom (Toll-Free): +44 800 524 4763; United Kingdom (London): +44 20 8610 3532; Israel (Tel Aviv): +972 3 375 1755; Conference ID: 9028589.

A live webcast of the conference call will be available via the investor relations section of Valens Semiconductor's website at Valens - Financials - Quarterly Results. The live webcast can also be accessed by clicking HERE. A replay of the conference call will be available on Valens Semiconductor's website shortly after the call concludes.

NYSE Rule 203.01 Annual Financial Report Announcement

Pursuant to Rule 203.01 of the New York Stock Exchange Manual, Valens Semiconductor Ltd. hereby announces to holders of its ordinary shares that its Annual Report on Form 20-F for 2025 (including its full year 2025 audited financial statements), filed with the U.S. Securities and Exchange Commission on February 25, 2026, is available in the investor relations section of its website at https://investors.valens.com/financials/secfilings/default.aspx. While the company encourages the sustainable approach of downloading and reading the report online, hard copies of the 2025 Annual Report will be provided free of charge, upon request, as follows: Valens Semiconductor Ltd., 8 Hanagar St. POB 7152, Hod Hasharon 4501309, Israel, or by emailing: investors@valens.com.

Forward-Looking Statements

This press release includes "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

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