Earnings call · Jun 2026 (Q2 FY26)

MAXLINEAR Q2 FY26 earnings call MXL

Jul 23, 2026 Source

Executive summary

MaxLinear Q2 FY26 — Optical Data Center Strength Drives Multi-Year Growth

MaxLinear reported a strong Q2 FY26, marking an inflection point driven by accelerating adoption of its data center products and robust infrastructure growth. The company is experiencing increasing visibility and momentum, with new product ramps expected to layer on over the next two years, positioning it for sustained multi-year growth and expanding operating leverage. Management highlighted strong execution and strategic positioning in the AI and cloud infrastructure markets.

Highlights

Overall revenue grew 55% year-on-year to $168.8 million.
Infrastructure revenue surged 145% year-on-year to $85 million, becoming the largest revenue category.
Returned to positive GAAP EPS of $0.02 per share.
Raised full-year 2026 optical data center revenue expectations to between $210 million and $230 million.
Q3 FY26 non-GAAP gross margin guided to 60% at the midpoint, ahead of schedule.

Concerns

Rising input costs

Guidance & targets

Category	Target	Timeline	Confidence
Q3 2026 Revenue	$210 million to $220 million high materiality	Q3 · FY26	High
Q3 2026 GAAP Gross Margin	57% to 60% medium materiality	Q3 · FY26	High
Q3 2026 Non-GAAP Gross Margin	58.5% and 61.5% high materiality	Q3 · FY26	High
Q3 2026 GAAP Operating Expenses	$98 million to $104 million medium materiality	Q3 · FY26	High
Q3 2026 Non-GAAP Operating Expenses	$66 million to $71 million medium materiality	Q3 · FY26	High
Q3 2026 GAAP Interest and Other Expense	$3.8 million to $4.2 million low materiality	Q3 · FY26	High
Q3 2026 Non-GAAP Interest and Other Expense	$3.7 million to $4.1 million low materiality	Q3 · FY26	High
Q3 2026 GAAP Tax Provision	$1.5 million low materiality	Q3 · FY26	High
Q3 2026 Non-GAAP Tax Provision	$1 million low materiality	Q3 · FY26	High
Q3 2026 GAAP Diluted Share Count	approximately $99 million low materiality	Q3 · FY26	High
Q3 2026 Non-GAAP Diluted Share Count	approximately $99 million low materiality	Q3 · FY26	High
Full-year 2026 Optical Data Center Revenue	$210 million to $230 million high materiality	FY26	High
2027 Rushmore/Annapurna/TIA Revenue	initial revenue medium materiality	2027 · FY27	Medium
2028 Rushmore/Annapurna/TIA Volume Ramp	meaningful volume ramp medium materiality	2028 · FY28	Medium
2027 Hyperscale Design Win (Control Plane) Ramp	2027 ramp and beyond medium materiality	2027 and beyond · FY27	Medium
2026 Panther Family Revenue Growth	roughly double this year medium materiality	FY26	High
2027 Panther Family Revenue Growth	potential to nearly double again medium materiality	FY27	Medium
Broadband Ultra-DOCSIS 3.1 and 4.0 Deployments	ramps progress throughout '27 and '28 low materiality	2027-2028 · FY27	Medium
Long-term Operating Margin	30% and 35% high materiality	Long-term	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Infrastructure Now the largest revenue category, driven by robust production ramps and optical data center platforms.	$85 million	145%	—	—
Broadband Revenue grew in Q2, driven by large-scale deployments of single-chip fiber and DOCSIS platforms.	$45 million	—	—	—
Connectivity Revenue grew in Q2.	$24 million	—	—	—
Industrial and Multimarket Revenue grew in Q2, recovering from prior weakness and seeing pricing improvements in China.	$15 million	—	—	—

Operational metrics

Non-GAAP Gross Margin

59.5%

Q2 FY26

Compared to GAAP gross margin of 57.8%.

Non-GAAP Operating Expenses

$62.8 million

Q2 FY26

Compared to GAAP operating expenses of $101.8 million.

Non-GAAP EPS

$0.35

Q2 FY26

Diluted earnings per share.

GAAP EPS

$0.02

Q2 FY26

Return to GAAP profitability.

Cash and investments balance

$93.7 million

Q2 FY26 end

Includes cash, cash equivalents, and restricted cash.

Days sales outstanding (DSO)

28 days vs 27 days in Q1 FY26

Q2 FY26

Slight increase from the previous quarter.

GAAP Operating Loss

Q2 FY26

Operating loss as a percentage of net revenue.

Non-GAAP Income from Operations

22%

Q2 FY26

Non-GAAP operating income as a percentage of net revenue.

Non-GAAP Interest and Other Expense

$2.3 million

Q2 FY26

Non-GAAP interest and other expense.

GAAP Interest and Other Expense

$2.4 million

Q2 FY26

GAAP interest and other expense.

Stock-based compensation and performance-based equity accruals

$36.5 million

Q2 FY26

Primary delta between GAAP and non-GAAP operating expenses.

Acquisition-related intangible asset amortization

$2.5 million

Q2 FY26

Primary delta between GAAP and non-GAAP gross margin.

Acquisition-related costs and other costs

$2.2 million

Q2 FY26

Part of the delta between GAAP and non-GAAP operating expenses.

Panther Family Revenue Growth

roughly double

FY26

Expected revenue growth for the Panther family storage accelerators in 2026.

Panther Family Revenue Growth

nearly double again

FY27

Potential for further revenue growth for Panther family in 2027.

Long-term Operating Margin Goal

30%-35%

Long-term

Company's stated long-term operating margin target.

Industry KPIs

Metric	Value	Period
Lead times	pretty long	Current
Backlog order book	increasing	H2 FY26 and into 2027
Ai data center revenue	$210M-$230M USD	FY26
Fab capacity utilization	tight	Q2 FY26
Design wins socket pipeline	Hyperscale design win for dedicated data center control plane architectures; USB Big controllers design wins at 2 major hyperscalers	Q2 FY26
Inventory channel inventory	123 days days	Q2 FY26
Node platform ramp schedule	Keystone (5nm SoC); Rushmore (1.6T PAM-4 DSP); Washington (200G TIA); Annapurna (200G platform)	Current and Future
End market segment revenue mix	Infrastructure: $85M; Broadband: $45M; Connectivity: $24M; Industrial and Multimarket: $15M USD	Q2 FY26

Orderbook & backlog

Wafer Prepayments Substantial Q2 FY26

up in the quarter

Supporting rising demand for data center products, with increasing order backlog in H2 FY26 and into 2027. Expected to continue in Q3 FY26.

Purchase Obligations up ~$40 million Q2 FY26

up ~$40 million

Reflects securing wafers and products for customers, placing orders for Q4 and Q1.

Other Obligation Item up ~$45 million Q2 FY26

up ~$45 million

Includes a portion related to stock-based compensation payroll accruals due to stock price increase, in addition to prepayments.

Order Backlog increasing Q2 FY26

Increasing order backlog in the second half of the year and into 2027, providing good visibility for 6+ months.

Product announcements

Product	Type	Timeline
Keystone (100 gigabit per lane PAM4 DSP)	milestone	—
Rushmore (1.6 terabit optical PAM-4 DSP)	roadmap	Beginning in 2027
Washington (200 gigabit per lane TIA platform)	launch	Initial revenue in 2027, meaningful volume ramp in 2028
Annapurna (200-gigabits per lane platform)	launch	Initial revenue in 2027, meaningful volume ramp in 2028
Dedicated Data Center Control Plane Architectures	milestone	2027 ramp and beyond
USB Big controllers	milestone	—
Panther family of storage accelerators	update	2026 and 2027
Single CR, 5G radio SoC and millimeter and microwave wireless backbone RF solutions	roadmap	Mid- to long term
Ultra-DOCSIS 3.1 and 4.0	expansion	Throughout '27 and '28

Risks & headwinds

Rising input costs current

wafer cost increases, packaging test increases

Mitigation:Doing our best to pass some of those costs along to customers; paying premiums in some cases to meet customer demand.

What to watch in Q3 FY26

Optical Data Center Revenue Growth

2027

Current $210M-$230M for FY26 (raised)

Target Continued growth into 2027

Why it matters

This is a key driver of overall revenue growth and business trajectory, with 800G PAM4 success leading the way.

Based on robust customer orders and rising visibility of program ramps, we are once again raising our expectations for 2026 optical data center revenue to be between $210 million to $230 million, with continued growth as run rates expand into 2027.

Q&A highlights

What is driving the >$50M increase in optical outlook for 2026, including regional and 400G/800G mix?

The increased optical revenue outlook is primarily driven by 800 gigabit PAM4 success, which will become a larger portion of the run rate. Customers are hyperscalers and Tier 1 data centers across both the U.S. and Asia.

“all the revenue growth we are seeing now is driven by 800 gigabit PAM4 success for us, and this will continue in 2027.”

asked by Tore Svanberg · answered by Kishore Seendripu

2 min read 5 chapters

Detailed narrative

Q2 Performance and Business Inflection

MaxLinear delivered strong Q2 FY26 results, with total revenue growing 55% year-on-year to $168.8 million and a return to GAAP profitability with $0.02 EPS. The company highlighted an exciting inflection in its business trajectory, driven by accelerating adoption of its data center products and improving visibility. This performance marks the beginning of a multi-year growth phase, supported by robust execution and gathering momentum in its infrastructure portfolio.

Data Center Optical Interconnects Driving Growth

Infrastructure is now MaxLinear's largest revenue category, growing 145% year-on-year to $85 million. This growth is primarily fueled by robust production ramps and optical data center-oriented platforms. The company raised its 2026 optical data center revenue expectations to $210 million-$230 million, with 800 gigabit PAM4 success now substantially driving the revenue growth, extending into 2027. Keystone, their 100 gigabit per lane PAM4 DSP, is ramping into high-volume production at major hyperscale customers across the U.S. and Asia.

Expanding Next-Generation Data Center Portfolio

MaxLinear is expanding its portfolio beyond current PAM4 SerDes technology to address next-generation 1.6 terabit and 3.2 terabit optical scale-up and scale-out architectures. Rushmore, their 1.6 terabit optical PAM-4 DSP, is expected to be a significant growth driver starting in 2027. Additionally, new products like Washington (200 gigabit per lane TIA) and Annapurna (200 gigabits per lane platform for active electrical cables and onboard retimers) are expected to generate initial revenue in 2027, with meaningful volume ramps in 2028, broadening their presence in AI and cloud infrastructure.

Broadband Connectivity and Other Segments

Both broadband connectivity categories showed revenue growth in Q2, driven by large-scale deployments of single-chip fiber and DOCSIS platforms in North America and Europe. The company is in the early stages of Ultra-DOCSIS 3.1 and 4.0 deployments, which are anticipated to provide additional stability to growth through 2027 and 2028. Other strategic wins include a hyperscale design win for dedicated data center control plane architectures and USB Big controllers for AI rack management, further diversifying their data center engagement.

Operational Efficiency and Long-Term Outlook

The company reported improved profitability, with non-GAAP income from operations at 22% of net revenue. Days of inventory decreased from 128 to 123 days, while days sales outstanding remained stable at 28 days. Management expressed confidence in achieving long-term operating margins of 30% to 35%, driven by the favorable product mix and expanding operating leverage from the growing infrastructure business. Wafer prepayments increased to secure supply for rising demand and backlog into 2027.

AI-generated summary of the company's earnings call. Not investment advice.