v3.26.1
Segment and Revenue by Geography and By Major Customer
 6 Months Ended
Jun. 30, 2026
Segment and Revenue by Geography and by Major Customer [Abstract]  
SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER

NOTE 12 - SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER:

 

a. The chief operating decision maker (the “CODM”) is the Company’s Chief Executive Officer, who makes resource allocation decisions and assesses performance based on financial information prepared on a consolidated basis, accompanied by disaggregated information about revenues, gross profit and operating loss by the two identified reportable segments. The Company’s business includes two operating segments based on the two markets the Company serves:

 

Cross Industry Business: The Company’s solutions for the non-automotive verticals, including audio-video, industrial, machine vision and medical markets, that deliver superior, plug-and-play convergence and distribution of different interfaces, through a single long-distance category cable.

 

Automotive: Valens Automotive delivers safe & resilient high-speed in-vehicle connectivity for advanced car architectures, realizing the vision of connected and autonomous cars.

 

For the purpose of evaluating financial performance and allocating resources, the CODM reviews financial information presented on a consolidated basis accompanied by disaggregated information about revenues, gross profit and operating loss by the two identified reportable segments, to make decisions about resources to be allocated to the segments and assess their performance. Assets information is not provided to the CODM and is not reviewed. Revenues and cost of goods sold are directly associated with the activities of a specific segment. Direct operating expenses, including general and administrative expenses, associated with the activities of a specific segment are charged to that segment. General and administrative expenses which cannot be attributed directly, are allocated evenly between segments. Other operating expenses are allocated to segments based on headcount ratio.

 

The CODM monitors the gross profit of each segment to analyze fluctuations relative to prior periods (cost reductions, change in product mix etc.).

 

The CODM uses segment operating profit (loss) to evaluate income (loss) in deciding whether to reinvest profits into the segment. Segment operating profit (loss) is used to monitor budget versus actual results, in order to assess the performance of the segment.

 

    Six months ended on June 30, 2026  
    CIB     Automotive     Consolidated  
    U.S. dollars in thousands  
Revenues     24,080       10,884       34,964  
Cost of revenues     7,246       6,092       13,338  
Gross profit     16,834       4,792       21,626  
Research and development expenses     13,798       6,572       20,370  
Sales and marketing expenses     5,825       4,582       10,407  
General and administrative expenses     4,291       3,724       8,015  
Change in earnout liability     (282 )     -       (282 )
Segment operating loss     (6,798 )     (10,086 )     (16,884 )
                         
Financial income (expenses), net                     594  
Loss before taxes on income                     (16,290 )
                         
Depreciation and amortization expenses     866       361       1,227  
Stock-based compensation     3,387       2,859       6,246  

 

    Six months ended on June 30, 2025  
    CIB     Automotive     Consolidated  
    U.S. dollars in thousands  
Revenues     24,576       9,311       33,887  
Cost of revenues     7,755       4,715       12,470  
Gross profit     16,821       4,596       21,417  
Research and development expenses     13,159       7,629       20,788  
Sales and marketing expenses     5,543       5,230       10,773  
General and administrative expenses     4,232       3,132       7,364  
Change in earnout liability     (663 )     -       (663 )
Segment operating loss     (5,450 )     (11,395 )     (16,845 )
                         
Financial income (expenses), net                     1,463  
Loss before taxes on income                     (15,382 )
                         
Depreciation and amortization expenses     1,070       458       1,528  
Stock-based compensation     3,633       4,308       7,941  

 

    Three months ended on June 30, 2026  
    CIB     Automotive     Consolidated  
    U.S. dollars in thousands  
Revenues     13,097       5,008       18,105  
Cost of revenues     4,037       2,929       6,966  
Gross profit     9,060       2,079       11,139  
Research and development expenses     6,731       3,345       10,076  
Sales and marketing expenses     2,712       2,299       5,011  
General and administrative expenses     2,130       1,868       3,998  
Segment operating loss     (2,513 )     (5,433 )     (7,946 )
                         
Financial income (expenses), net                     (79 )
Loss before taxes on income                     (8,025 )
                         
Depreciation and amortization expenses     430       179       609  
Stock-based compensation     1,681       1,429       3,110  

 

    Three months ended on June 30, 2025  
    CIB     Automotive     Consolidated  
    U.S. dollars in thousands  
Revenues     12,823       4,236       17,059  
Cost of revenues     4,126       2,098       6,224  
Gross profit     8,697       2,138       10,835  
Research and development expenses     6,506       3,692       10,198  
Sales and marketing expenses     2,753       2,413       5,166  
General and administrative expenses     2,203       1,494       3,697  
Change in earnout liability     (837 )     -       (837 )
Segment operating loss     (1,928 )     (5,461 )     (7,389 )
                         
Financial income (expenses), net                     225  
Loss before taxes on income                     (7,164 )
                         
Depreciation and amortization expenses     532       226       758  
Stock-based compensation     1,757       2,018       3,775  

 

b. Geographic Revenues

 

The following table shows revenue by geography, based on the customers’ “bill to” location:

 

    Six months ended
June 30		     Three months ended
June 30		  
    2026     2025     2026     2025  
    U.S. dollars in thousands  
Domestic (Israel)     244       193       169       129  
Hong Kong     3,112       5,094       2,050       3,279  
China     2,252       4,574       1,218       2,353  
United States     5,231       4,329       2,789       1,652  
Portugal     4,929       4,556       2,051       2,318  
Hungary     5,368       4,710       2,493       1,830  
Japan     2,623       3,011       1,503       1,682  
Other     11,205       7,420       5,832       3,816  
      34,964       33,887       18,105       17,059  

 

c. Supplemental data - Major Customers:

 

The following tables summarize the significant customers’ (including distributors) accounts receivable and revenues as a percentage of total accounts receivable and total revenues, respectively:

 

    June 30,
2026		     December 31,
2025		  
Accounts Receivable   % of Account Receivable  
Customer A     33 %     16 %
Customer B     14 %     15 %
Customer C     4 %     15 %
Customer D     13 %     10 %
Customer E     0 %     10 %

 

    Six months ended
June 30,		     Three months ended
June 30,		  
    2026     2025     2026     2025  
Revenues   % of Revenues     % of Revenues  
Customer A     13 %     13 %     11 %     13 %
Customer C     5 %     9 %     5 %     10 %
Customer D     11 %     8 %     10 %     5 %

 

d. Long-lived assets by Geography:

 

    June 30,
2026		     December 31,
2025		  
    U.S. dollars in thousands  
Domestic (Israel)     7,718       8,657  
China     89       138  
USA     866       871  
Other     92       136  
      8,765       9,802