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    MXL
    Earnings call· Jun 2026(Q2 FY26)

    MAXLINEAR, INC 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

    5

    • 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

    1

    • Rising input costs

    Guidance & targets

    19
    CategoryTargetConfidence
    Q3 2026 Revenue
    $210 million to $220 million
    high materiality
    High
    Q3 2026 GAAP Gross Margin
    57% to 60%
    medium materiality
    High
    Q3 2026 Non-GAAP Gross Margin
    58.5% and 61.5%
    high materiality
    High
    Q3 2026 GAAP Operating Expenses
    $98 million to $104 million
    medium materiality
    High
    Q3 2026 Non-GAAP Operating Expenses
    $66 million to $71 million
    medium materiality
    High
    Q3 2026 GAAP Interest and Other Expense
    $3.8 million to $4.2 million
    low materiality
    High
    Q3 2026 Non-GAAP Interest and Other Expense
    $3.7 million to $4.1 million
    low materiality
    High
    Q3 2026 GAAP Tax Provision
    $1.5 million
    low materiality
    High
    Q3 2026 Non-GAAP Tax Provision
    $1 million
    low materiality
    High
    Q3 2026 GAAP Diluted Share Count
    approximately $99 million
    low materiality
    High
    Q3 2026 Non-GAAP Diluted Share Count
    approximately $99 million
    low materiality
    High
    Full-year 2026 Optical Data Center Revenue
    $210 million to $230 million
    high materiality
    High
    2027 Rushmore/Annapurna/TIA Revenue
    initial revenue
    medium materiality
    Medium
    2028 Rushmore/Annapurna/TIA Volume Ramp
    meaningful volume ramp
    medium materiality
    Medium
    2027 Hyperscale Design Win (Control Plane) Ramp
    2027 ramp and beyond
    medium materiality
    Medium
    2026 Panther Family Revenue Growth
    roughly double this year
    medium materiality
    High
    2027 Panther Family Revenue Growth
    potential to nearly double again
    medium materiality
    Medium
    Broadband Ultra-DOCSIS 3.1 and 4.0 Deployments
    ramps progress throughout '27 and '28
    low materiality
    Medium
    Long-term Operating Margin
    30% and 35%
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Infrastructure
    Now the largest revenue category, driven by robust production ramps and optical data center platforms.
    		$85 million145%——
    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

    16
    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 daysvs 27 days in Q1 FY26
    Q2 FY26

    Slight increase from the previous quarter.

    GAAP Operating Loss
    2%
    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

    8
    MetricValueDetails
    Lead timespretty long
    Backlog order bookincreasing
    Ai data center revenue$210M-$230MUSD
    Fab capacity utilizationtight
    Design wins socket pipelineHyperscale design win for dedicated data center control plane architectures; USB Big controllers design wins at 2 major hyperscalers
    Inventory channel inventory123 daysdays
    Node platform ramp scheduleKeystone (5nm SoC); Rushmore (1.6T PAM-4 DSP); Washington (200G TIA); Annapurna (200G platform)
    End market segment revenue mixInfrastructure: $85M; Broadband: $45M; Connectivity: $24M; Industrial and Multimarket: $15MUSD

    Orderbook & backlog

    4
    Wafer PrepaymentsSubstantialQ2 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 Obligationsup ~$40 millionQ2 FY26

    up ~$40 million

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

    Other Obligation Itemup ~$45 millionQ2 FY26

    up ~$45 million

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

    Order BacklogincreasingQ2 FY26

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

    Product announcements

    9
    ProductTypeDetails
    Keystone (100 gigabit per lane PAM4 DSP)milestone
    Rushmore (1.6 terabit optical PAM-4 DSP)roadmap
    Washington (200 gigabit per lane TIA platform)launch
    Annapurna (200-gigabits per lane platform)launch
    Dedicated Data Center Control Plane Architecturesmilestone
    USB Big controllersmilestone
    Panther family of storage acceleratorsupdate
    Single CR, 5G radio SoC and millimeter and microwave wireless backbone RF solutionsroadmap
    Ultra-DOCSIS 3.1 and 4.0expansion

    Risks & headwinds

    1
    Rising input costscurrent

    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

    5

    Optical Data Center Revenue Growth

    2027
    Current$210M-$230M for FY26 (raised)
    TargetContinued 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

    7

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.