MaxLinear, Inc.
MXL · Nasdaq
Next quarter
Reports Oct 22, 2026.
Consensus is $0.32 EPS for Sep 2026 across 3 estimates, ranging $0.32 to $0.33.
MXL Jun 2026
- 0.00%
- -21.54%
- $0.13
- $0.13
- —
- $168.85M
Reported results
- $168.85M
- 57.84%
- -$4.18M
- -2.48%
- $1.76M
- $0.02
Highlights
- Revenue inflection: Q2 net revenue was $168.8 million, up 23% sequentially and 55% year over year, compared with $137.2 million in Q1 and $108.8 million a year ago.
- Infrastructure acceleration: Infrastructure revenue reached $85.0 million, up 145% year over year and representing 50% of total revenue, driven by optical AI data-center products and the Keystone PAM4 DSP ramp.
- Profitability recovery: GAAP diluted EPS was $0.02, in line with the $0.13 consensus expectation? No, reported EPS was $0.13 and matched the $0.13 consensus; GAAP net income was $1.8 million versus a $45.1 million loss in Q1 and a $26.6 million loss a year ago.
- Non-GAAP earnings: Non-GAAP diluted EPS was $0.35, up from $0.22 in Q1 and $0.02 a year ago, while non-GAAP operating margin expanded to 22.3% from 15.9% and 7.2%, respectively.
- Gross margin: GAAP gross margin improved to 57.8% from 57.5% sequentially and 56.5% year over year; non-GAAP gross margin was 59.5%, up 40 basis points year over year.
- Third-quarter outlook: MaxLinear expects Q3 revenue of $210 million-$220 million, implying 24%-30% sequential growth from Q2, with non-GAAP gross margin of 58.5%-61.5% and operating expenses of $66 million-$71 million.
- Cash conversion remains limited: Operating cash flow was $4.8 million in Q2 and negative $4.1 million for the first half, as inventory increased to $105.5 million from $78.1 million at December 2025 to support demand.
- Balance-sheet flexibility: MaxLinear ended June with $93.7 million of cash, cash equivalents and restricted cash, $125.0 million of term debt due in June 2028, and an undrawn $130.0 million revolving facility.
Analysis
MaxLinear’s second quarter was a sharp revenue and earnings inflection led by optical data-center demand. Revenue of $168.8 million rose 23% sequentially from $137.2 million and 55% year over year from $108.8 million. Reported diluted EPS of $0.13 matched the $0.13 consensus, while non-GAAP diluted EPS was $0.35 versus $0.22 in Q1 and $0.02 a year ago. GAAP net income was $1.8 million, a substantial improvement from a $45.1 million loss in Q1 and a $26.6 million loss in Q2 2025, although an $8.3 million tax benefit contributed to the GAAP result.
The central feature of the print was infrastructure, which grew 145% year over year to $85.0 million and rose to half of company revenue, reflecting adoption of the Keystone PAM4 DSP for 800G optical applications. The mix shift supported 57.8% GAAP gross margin and 22.3% non-GAAP operating margin, despite higher R&D and SG&A spending. Management then pointed to another step-up in Q3, guiding to $210 million-$220 million of revenue and a non-GAAP operating profile consistent with further earnings growth. The main counterpoint is cash conversion: first-half operating cash flow was negative $4.1 million as inventory and purchase commitments expanded to support the ramp.
Optical infrastructure ramp
Infrastructure was the defining growth engine. Revenue increased to $85.0 million from $34.7 million a year ago, with management attributing the acceleration to optical AI data-center products, the Keystone PAM4 DSP platform for 800G applications, and broader high-performance analog and wireless backhaul shipments. Management also highlighted a roadmap toward 1.6T-capable products and multiple growth drivers expected to converge over the next two years.
- Market mix: Infrastructure represented 50% of Q2 revenue versus 32% a year ago; broadband declined 6% year over year to $44.9 million, while connectivity grew 16% to $24.0 million and industrial and multi-market increased 158% to $15.0 million.
- Demand support: Six-month infrastructure revenue was $147.8 million, up 141% year over year, and inventory purchase obligations rose to $221.3 million from $78.1 million of inventory at December 2025, reflecting purchases to support higher demand.
- Concentration: One customer contributed 11% of first-half revenue and the ten largest customers accounted for 55%; 81% of first-half revenue was shipped to Asia.
Margins and operating leverage
The revenue mix translated into a substantial profitability improvement, though GAAP earnings still benefited from tax accounting and remain below the non-GAAP result. GAAP operating loss narrowed to $4.2 million from $17.2 million in Q1 and $24.6 million a year ago, while lower restructuring charges also helped the comparison.
- Gross profit: GAAP gross profit was $97.7 million, up 59% year over year, with gross margin at 57.8% versus 56.5% a year ago; management attributed the improvement to product mix.
- Operating leverage: Non-GAAP operating income rose to $37.6 million from $21.8 million in Q1 and $7.8 million a year ago, taking non-GAAP operating margin to 22.3% from 15.9% and 7.2%.
- Cost investment: GAAP R&D increased 19% year over year to $56.0 million and SG&A increased 37% to $45.8 million, driven in part by higher headcount, stock-based compensation and performance bonuses.
- Tax effect: GAAP net income included an $8.3 million income-tax benefit; non-GAAP net income was $34.3 million, versus $19.4 million in Q1 and $1.8 million a year ago.
Third-quarter acceleration
Management’s Q3 outlook calls for another material sequential increase, reinforcing its view that the optical data-center business is entering a multi-year growth phase. Revenue guidance of $210 million-$220 million compares with $168.8 million in Q2, while the margin range allows for some mix-related variability as the business scales.
- Revenue: Q3 guidance implies 24%-30% sequential growth, with the midpoint of $215 million 27% above Q2.
- Margins: GAAP gross margin is expected at 57.0%-60.0%, versus 57.8% in Q2; non-GAAP gross margin is guided to 58.5%-61.5%, versus 59.5%.
- Expenses: GAAP operating expenses are expected at $98 million-$104 million, while non-GAAP operating expenses are guided to $66 million-$71 million; the expected diluted share count is 99 million.
Cash and execution risks
The growth ramp is requiring substantial working-capital investment. MaxLinear generated $4.8 million of operating cash in Q2, but first-half operating cash flow was negative $4.1 million as the company prepaid for wafers and built inventory. The company said its cash balance and available revolver should fund operating requirements for at least the next twelve months.
- Liquidity: Cash and cash equivalents were $64.8 million and restricted cash was $28.9 million at June 30; working capital was $130.5 million.
- Debt capacity: The company had $125.0 million of term debt outstanding, due June 2028, and no borrowings under its $130.0 million revolving facility.
- Legal overhang: MaxLinear continues to face confidential Silicon Motion arbitration and related shareholder litigation, as well as Comcast, Dish and DIRECTV-related disputes; no material litigation loss contingency was accrued because management does not consider an unfavorable outcome probable or estimable.
