MaxLinear (NASDAQ:MXL) executives highlighted what CEO Kishore Seendripu called an “inflection year” in 2025, citing 30% revenue growth for the full year, profitability, and positive cash flow ahead of plan. On the company’s fourth quarter 2025 earnings call, management emphasized strengthening demand and design-win momentum across infrastructure products—particularly optical interconnects—and pointed to improving bookings visibility entering 2026.
Fourth-quarter results and segment performance
Chief Financial Officer Steve Litchfield reported fourth-quarter revenue of $136.4 million, up 8% sequentially from $126.5 million and up 48% from $92.2 million in the year-ago quarter. By end market in Q4, MaxLinear reported approximately $47 million in infrastructure revenue, about $58 million in broadband, roughly $18 million in connectivity, and approximately $14 million in industrial multi-market.
On expenses, MaxLinear posted fourth-quarter GAAP operating expenses of $93.5 million and non-GAAP operating expenses of $59.2 million. Litchfield attributed most of the difference to $28.1 million in stock-based compensation and performance-based equity accruals, along with $6 million of acquisition-related costs.
For profitability, the company reported a GAAP loss from operations of 11% in Q4 2025, while non-GAAP income from operations was 16% of net revenue. GAAP and non-GAAP interest and other expense were $2.9 million and $2.8 million, respectively.
Cash flow, balance sheet, and buyback activity
MaxLinear generated approximately $10.4 million in net cash flow from operating activities in the quarter. The company repurchased about $20 million of its common stock in Q4 as part of its buyback program, which management said reflected confidence in the company’s outlook and balance sheet. Litchfield said the board authorized $75 million in buybacks and characterized the action as a signal of confidence in “cash flow improvement” and “revenue stability,” noting performance running ahead of plan for three consecutive quarters.
The company ended Q4 2025 with approximately $101.4 million in cash, cash equivalents, and restricted cash. Working capital metrics improved, with days sales outstanding down to about 31 days and inventory down about $8 million sequentially, bringing days of inventory to approximately 130.
Infrastructure growth narrative: optical DSP, storage accelerators, and wireless
Seendripu said MaxLinear’s infrastructure business “is scaling rapidly,” with infrastructure revenue growing 30% for the full year and 76% year-over-year in Q4. He added that multiple new design wins were entering production, positioning the company to grow faster in 2026 than it did in 2025, and said MaxLinear expects infrastructure to become its largest revenue category in 2026.
In high-speed optical interconnects, Seendripu said the Keystone PAM4 DSP family is ramping at major hyperscale data centers in the U.S. and Asia for 400G and 800G deployments. Based on improved visibility, management expects Keystone to generate about $100 million to $130 million in revenue in 2026, with potential upside and a “step function increase” into 2027.
Seendripu also discussed Rushmore, MaxLinear’s next-generation PAM4 TIAs and 200G-per-lane DSPs targeting 1.6T interconnects. He said customer engagement is accelerating and indicated production revenue ramp is expected to begin at the end of 2026. In Q&A, Seendripu said the company’s competitive positioning is “strengthening” into 1.6T, while noting incumbency remains a factor in share shifts.
Beyond optical DSPs, management described additional data center opportunities:
- PON in data centers: Seendripu said cloud data centers are deploying 10G XGS-PON as a dedicated control plane conduit. He noted a first PON data center design win in Q4 with a tier-one U.S. OEM serving tier-one data centers.
- Rack management and analog connectivity: He said MaxLinear won analog serial transceiver and bridge interface designs for rack management in AI services at two major U.S. data centers.
- Storage accelerators: The Panther hardware storage accelerator SoC family continues to gain design wins, with Panther 5 sampled in Q3 and Q4 to customers and partners, including AMD. Seendripu said the company expects accelerator revenue to at least double in 2026 versus 2025, with the potential to double again in 2027.
In wireless infrastructure, Seendripu cited expectations for sustained demand through 2026 due to carrier spending tied to cloud and edge AI needs. He said MaxLinear is seeing “robust OEM customer design-in activity” for its Sierra 5G wireless access single-chip radio SoC and its millimeter wave and microwave backhaul products, with deployments proceeding as planned at multiple tier-one carriers.
Broadband, connectivity, and industrial commentary
Management said broadband and connectivity posted another strong quarter, driven by fiber PON, cable DOCSIS, and Wi-Fi. Seendripu highlighted the start of large-scale deployments in Q4 for a single-chip fiber PON and 10G processor gateway SoC plus a tri-band Wi-Fi 7 solution with a second major tier-one North American carrier, calling it a competitive win that should expand content per box and market share in 2026.
At the same time, management cautioned on cable. Seendripu said the company expects a seasonally soft first half and cable revenue to be down in 2026, with the industry transitioning ahead of a multi-year DOCSIS 4 upgrade cycle that the company expects to begin at the end of 2026. In Q&A, Litchfield said broadband would likely decline in the first half before “start[ing] to build in the second half,” while Seendripu argued the PON ramp creates potential to avoid a steep downturn, depending on ramp timing.
For connectivity, management said it expects growth in 2026 driven by Wi-Fi 7 ramps and Ethernet portfolio expansion. Seendripu and Litchfield also pointed to strength in standalone Ethernet, with expectations for a strong 2026 as 2.5G switch and PHY products expand into commercial, enterprise, and industrial applications. Seendripu added that industrial multi-market is expected to recover in 2026.
First-quarter 2026 guidance and margin outlook
For Q1 2026, MaxLinear guided revenue of $130 million to $140 million. Litchfield said infrastructure is expected to grow sequentially, while broadband, connectivity, and industrial multi-market are expected to see seasonal declines.
The company guided Q1 GAAP gross margin of approximately 56% to 59% and non-GAAP gross margin of 58% to 61%. GAAP operating expenses are expected at $85 million to $90 million and non-GAAP operating expenses at $58 million to $64 million. Interest and other expense guidance was $2.1 million to $2.7 million on a GAAP basis and $2.0 million to $2.6 million non-GAAP, with foreign exchange volatility cited as the primary risk.
Litchfield also guided to a $4 million GAAP tax provision and approximately $0.8 million non-GAAP tax provision, with basic and diluted share counts expected to be about 88 million and 91 million, respectively.
On margins longer term, Litchfield said product mix is trending favorably as infrastructure becomes a larger portion of revenue, adding he expects the company can exit the year with a gross margin “starting with a six,” while acknowledging cost headwinds. He also reiterated an operating expense philosophy of growing OpEx at about half the rate of the top line, and said the company’s efficiency initiatives could keep growth even lower.
About MaxLinear (NASDAQ:MXL)
MaxLinear, Inc is a provider of radio-frequency (RF), analog, and mixed-signal integrated circuits for broadband communications, data center connectivity, and video infrastructure applications. The company’s product portfolio includes high-performance RF front-end modules, broadband power amplifiers, optical and Ethernet transceivers, and network processors designed to support demanding signal processing requirements.
MaxLinear’s semiconductor solutions are used by cable and satellite television operators, fiber-to-the-home service providers, network equipment manufacturers, and data center operators.
