Core Insights - Valens Semiconductor reported strong financial results for Q4 and full year 2025, with revenues of $19.4 million in Q4, exceeding guidance, and total annual revenues of $70.6 million, reflecting a 22% year-over-year growth [1][3] Financial Highlights - Q4 2025 revenues reached $19.4 million, surpassing guidance of $18.2-$18.9 million, compared to $17.3 million in Q3 2025 and $16.7 million in Q4 2024 [1][3] - Q4 2025 gross margin was 60.5% GAAP and 63.9% non-GAAP, exceeding expectations [1][3] - Full year 2025 revenues were $70.6 million, exceeding guidance of $69.4 million to $70.1 million, compared to $57.9 million in 2024 [1][3] - Automotive revenues accounted for 26.9% of total revenues in 2025, down from 37.3% in 2024, attributed to price erosion and reduced unit sales to Mercedes Benz [1][3] - Cross-Industry Business (CIB) revenues increased to 73.1% of total revenues in 2025, up from 62.7% in 2024, driven by recovery in the Audio-Video market [1][3] Operational Developments - The company announced an operational efficiency plan expected to save approximately $5 million annually in operating expenses [1][3] - Valens and Sakae Riken Kogyo are set to unveil the automotive market's first production-ready MIPI A-PHY-enabled e-mirror [1] - A partnership with Imavix Engineering and CIS Corporation aims to offer the first MIPI A-PHY-based platform for machine vision [1] Inventory and Cash Position - Inventory balance as of December 31, 2025, was $10.1 million, down from $11.0 million on September 30, 2025, and $10.2 million on December 31, 2024 [1][3] - Cash, cash equivalents, and short-term deposits totaled $92.6 million as of December 31, 2025 [1][3] Financial Outlook - For Q1 2026, Valens expects revenues between $16.3 million to $16.7 million and gross margin between 57% to 59% [1] - For the full year 2026, revenues are projected to range from $75.0 million to $77.0 million, indicating an approximate 8% increase compared to 2025 [1][3]