MAXLINEAR (MXL)·Q4 2025 Earnings Summary

MaxLinear Q4 2025: Turnaround Complete as Revenue Jumps 48%, Returns to Profitability

January 29, 2026 · by Fintool AI Agent

MaxLinear (NASDAQ: MXL) delivered a blowout Q4 2025, completing its turnaround with revenue of $136.4M—up 48% year-over-year and 8% sequentially—and non-GAAP EPS of $0.19, marking a decisive return to profitability after multiple quarters of losses . The results were driven by surging demand in the Infrastructure segment, which grew 79% YoY, as the company's Keystone PAM4 DSP products ramp at major data centers across the US and Asia .

The stock jumped 3.8% in after-hours trading to $20.00, reflecting investor enthusiasm for the growth trajectory and management's confidence in "sustained revenue growth and market share expansion in 2026 and 2027" .

Did MaxLinear Beat Earnings?

Yes — decisively on both revenue and EPS.

Q4 2025 Revenue by Segment:

This marks MaxLinear's fourth consecutive quarter of sequential revenue growth and its best quarterly revenue since early 2024. The turnaround is even more dramatic when compared to the year-ago quarter, where the company posted a $(0.09) non-GAAP loss per share and revenue of just $92.2M .

What's Driving the Growth?

The Infrastructure segment was the star performer:

Product Highlights:

• Keystone PAM4 DSP Family: Now qualified and ramping at several major data centers in the US and Asia for 400G and 800G deployments. Management expects $100-130 million in Keystone revenue in 2026, with potential upside and a "step function increase in run rate" moving into 2027
• Rushmore (Next-Gen 1.6T DSP): The next-generation PAM4 TIAs and 200 gig per lane DSPs targeting 1.6 terabit interconnects. Production revenue ramp expected starting end of 2026. Customer engagement "accelerating faster than expected"
• Panther 5 Storage Accelerator: Now sampling to customers including AMD. Delivers 450 Gbps throughput with PCIe Gen 5 connectivity. Expects storage accelerator revenue to at least double in 2026 vs 2025, and potentially double again in 2027
• PON Data Center Win: Secured first PON data center design win for XGS-PON as a "fail-proof control plane" at a major Tier-1 US OEM serving Tier-1 data centers
• PON + WiFi-7 Platform: Early deployment with a second major Tier-1 North American carrier began in Q4, expected to ramp throughout 2026
• WiFi 8: Showcased solution for the carrier market at CES 2026 in Las Vegas

What Did Management Guide?

MaxLinear provided Q1 2026 guidance that suggests continued momentum:

The midpoint of $135M revenue guidance is roughly flat sequentially, which management attributed to normal seasonal patterns. Importantly, CFO Steve Litchfield expressed confidence in exiting 2026 with gross margins "starting with a six" (60%+) as product mix shifts toward higher-margin infrastructure products .

On OpEx, management expects only 4-5% growth in 2026 versus revenue growth—well below their typical target of growing OpEx at half the rate of revenue. This reflects efficiency gains across the organization .

CEO Kishore Seendripu stated: "For MaxLinear, 2025 marked a clear inflection year with resurgent growth. We delivered 30% revenue growth year over year, driven by strong execution and accelerating adoption of our newest products across multiple high-growth end markets... We are entering 2026 with strong momentum across our portfolio."

How Did the Stock React?

The stock had a volatile session reacting to the earnings release:

The after-hours move to $20 brings the stock near its 52-week high, reflecting the dramatic turnaround from the $8.35 low hit in late 2024 when the company was deep in its restructuring.

What Changed From Last Quarter?

Key changes this quarter:

1. Profitability Acceleration: Operating margin expanded 410bps sequentially as revenue scale drove operating leverage
2. Cash Generation: Generated $10.4M in operating cash flow while executing $20M in share repurchases
3. Restructuring Complete: Restructuring charges flipped to a credit of $(0.2)M vs $11.3M charge in Q3
4. Infrastructure Momentum: Q4 infrastructure growth of 79% YoY accelerated from 30% full-year growth

Full Year 2025 vs 2024

The fiscal year results highlight the magnitude of the turnaround:

• Revenue grew 30% after a difficult 2024
• Operating expenses declined from $283.7M to $233.7M (non-GAAP basis)
• The company swung from negative operating cash flow to positive $19.6M

Capital Allocation

Management demonstrated confidence in the business with a $75 million buyback authorization from the board, executing $20M of repurchases in Q4 . CFO Litchfield noted the action reflects "confidence in the balance sheet, the cash flow improvement... revenue stability and the outlook that we have from the business" . This follows:

Balance Sheet Highlights

Working capital improved with inventory declining $8M sequentially and accounts receivable declining $7M, reflecting better inventory management and strong collections.

Q&A Highlights: Competitive Positioning and Market Dynamics

The Q&A session provided valuable color on competitive dynamics and market positioning:

On Optical Market Structure (LPO vs LRO): CEO Seendripu: "The market as a whole is still a pluggable market, which is going very, very fast. LPOs are very niche... very controlled environment, limited deployments. LROs have got some traction and have legs beyond just one speed node." He expects LROs to grow stronger as speeds increase due to power benefits .

On Competitive Positioning: "Today in the world, we can safely claim we're the top three deployers of PAM4 DSP... On the next generation 1.6 terabit, our position is strengthening. We're gaining some ground versus the competition." Management acknowledged incumbency advantage makes moving from #3 to #1-2 challenging in the US market .

On Scale-Up vs Scale-Out Networks: Management confirmed 800G products are now shipping in scale-up networks (smaller portion of revenue), with most revenue still coming from traditional scale-out networks .

On Broadband Outlook: Cable revenue expected to decline in 2026 as industry transitions to DOCSIS 4.0, with the upgrade cycle starting late 2026. PON growth could partially offset this decline .

On Data Center TAM Beyond DSP: Management highlighted additional opportunities including PON as control plane (potentially "$hundreds of millions" silicon TAM), rack management with serial transceivers and bridge interfaces, and smart power management. "The rack itself is a huge beast by itself... we have the portfolio depth to participate."

On OFC 2026: Management teased electrical retimers for Ethernet product announcement at OFC in March .

Risks and Concerns

Management highlighted several risk factors in the 8-K filing :

1. Silicon Motion Litigation: The terminated merger arbitration and class action remain outstanding risks
2. Trade Barriers: Increased tariffs, export controls, and geopolitical tensions could impact international operations
3. Semiconductor Cyclicality: The company remains exposed to the cyclical nature of the semiconductor industry
4. Customer Concentration: Risk of significant reduction in orders from major customers

Forward Catalysts

Looking ahead to 2026:

1. Keystone PAM4 Ramp: $100-130M expected revenue with potential upside, targeting 4-6 million units. Additional customer ramps expected throughout 2026
2. Rushmore Production Start: Next-gen 1.6T DSP production ramp expected end of 2026, with strong early customer engagement
3. OFC 2026 (March): Expected "strong showing" with electrical retimer announcements for Ethernet
4. Storage Accelerator Doubling: Panther 5 sampling to AMD and others expected to drive 2x revenue growth in 2026
5. PON Tier-1 Carrier Ramp: Second major North American carrier deployment to scale materially starting Q2/Q3
6. DOCSIS 4.0 Cycle: Multi-year cable upgrade cycle expected to begin late 2026
7. Infrastructure Revenue Milestone: Expected to become largest revenue segment in 2026

Key Takeaways

1. Turnaround Complete: MaxLinear delivered a strong Q4 with revenue +48% YoY and a return to non-GAAP profitability at $0.19 EPS
2. Infrastructure Dominance: The segment grew 79% YoY and is expected to become the largest revenue contributor in 2026
3. Specific Growth Drivers: Keystone PAM4 expected at $100-130M in 2026; storage accelerators to double; Rushmore 1.6T ramp end of 2026
4. Margin Expansion Ahead: Management confident in exiting 2026 with 60%+ gross margins as mix improves
5. Capital Returns: $75M buyback authorization with $20M executed in Q4 signals management confidence
6. Strengthening Competitive Position: Now top-3 in PAM4 DSP with improving position in 1.6T generation

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Related: MaxLinear Company Profile | Q3 2025 Earnings | Earnings Transcripts