Valens Semiconductor .(US:VLN)2025-11-12 12:06Financial Performance - Revenues for the nine months ended September 30, 2025, increased to $51,222,000, up 24.8% from $41,194,000 in the same period of 2024[9] - Gross profit for the three months ended September 30, 2025, was $10,922,000, representing a 21% increase compared to $9,045,000 in Q3 2024[9] - The net loss for the nine months ended September 30, 2025, was $22,813,000, compared to a net loss of $29,266,000 for the same period in 2024, reflecting a 22% improvement[9] - Operating loss for the three months ended September 30, 2025, was $8,037,000, a reduction from $12,233,000 in Q3 2024, indicating a 34.5% improvement[9] - For the nine months ended September 30, 2025, the net loss was $22,813 thousand, a decrease of 22.5% compared to a net loss of $29,266 thousand for the same period in 2024[15] - The basic net loss per ordinary share for the nine months ended September 30, 2025, was $(0.22), an improvement from $(0.28) in the prior year[83] - Segment operating loss for the nine months ended September 30, 2025, was $(24,882) thousand, an improvement from $(32,932) thousand in the same period of 2024, indicating a reduction in losses by 24.4%[90][92] Assets and Liabilities - Total current assets decreased to $119,994,000 as of September 30, 2025, down 22% from $153,903,000 at the end of December 2024[4] - Total assets decreased to $136,691,000 as of September 30, 2025, down 20.6% from $172,152,000 at December 31, 2024[4] - Total liabilities decreased to $27,859,000 as of September 30, 2025, down from $29,464,000 at December 31, 2024[6] - Shareholders' equity decreased to $108,832,000 as of September 30, 2025, down from $142,688,000 at December 31, 2024[6] Cash Flow and Investments - Cash flows from operating activities resulted in a net cash used of $12,423 thousand for the nine months ended September 30, 2025, compared to a net cash provided of $1,349 thousand in the same period of 2024[15] - The company reported a net cash provided by investing activities of $32,462 thousand for the nine months ended September 30, 2025, compared to $16,969 thousand in the same period of 2024[15] - The total cash, cash equivalents, and restricted deposits at the end of the period were $32,708 thousand, down from $35,443 thousand at the end of the previous year[18] Acquisition and Related Financials - The company acquired Acroname Inc. for a total cash consideration of $9.1 million, with potential earnout payments of up to $7.2 million based on performance targets[31] - Revenues related to Acroname included in the consolidated financial statements were $4,158 thousand for the nine months ended September 30, 2025[33] - The net loss attributed to Acroname for the same period was $1,619 thousand, including amortization of tangible and intangible assets of $882 thousand[33] - The total purchase price allocation for the acquisition amounted to $12,184 thousand, with net assets acquired valued at $11,196 thousand after assuming liabilities of $988 thousand[35] - The company has an earnout liability related to the Acroname acquisition of up to $7.2 million, with $1.5 million due upon completion of a product development by September 2026[55] - The fair value of the earnout liability as of September 30, 2025, was recorded at $(2,494) thousand, reflecting a change in fair value of $(81) thousand for the nine months ended[59] Stock and Compensation - Stock-based compensation for the nine months ended September 30, 2025, was $11,670 thousand, slightly increasing from $11,259 thousand in the same period of 2024[15] - Total stock-based compensation for the nine months ended September 30, 2025, was $1,019 thousand, down from $2,219 thousand in the same period of 2024[76] - The unrecognized compensation costs related to unvested stock options as of September 30, 2025, were $1,324 thousand, expected to be recognized over a weighted-average period of 1.86 years[70] - The total intrinsic value of options exercised during the nine months ended September 30, 2025, was $978 thousand, compared to $1,939 thousand in the same period of 2024[75] - The company repurchased a total of 6,151,225 shares for $15 million under the second share repurchase program initiated on February 11, 2025[72] - As of September 30, 2025, the outstanding Restricted Stock Units (RSUs) totaled 9,475,900, with unrecognized compensation costs of approximately $20,346 thousand expected to be expensed over 2.38 years[79] Research and Development - Research and development expenses for the nine months ended September 30, 2025, totaled $31,591 thousand, compared to $30,415 thousand in 2024, showing a slight increase of 3.9%[90][92] Geopolitical and Market Considerations - The company continues to monitor geopolitical developments and their potential impact on operations, although no material effects have been observed to date[21] Revenue Sources - Revenues from China for the nine months ended September 30, 2025, were $7,170 thousand, up 27.4% from $5,630 thousand in 2024[97] - Customer A accounted for 14% of total revenues for the nine months ended September 30, 2025, compared to 13% in the same period of 2024[100]