0001288469-26-000029
SEC filingRevenue surged 43% YoY to $137.2M, driven by infrastructure strength, while gross margin improved to 58%.
For the three months ended March 31, 2026, MaxLinear reported net revenue of $137.2 million, a 43% increase from $95.9 million in the prior-year period. The growth was broad-based, led by infrastructure (+136% to $62.8 million), industrial and multi-market (+47% to $12.2 million), and broadband (+7% to $43.6 million), partially offset by an 8% decline in connectivity to $18.6 million due to seasonal weakness in MoCA and ethernet products. Price changes were not material.
Gross profit rose 47% to $78.9 million, with gross margin improving 200 basis points to 58% from 56%, aided by lower intangible asset amortization. Operating expenses fell to 70% of revenue from 104%, driven by a 4% decline in R&D spending (to $53.2 million) and a 94% drop in restructuring charges (to $0.5 million). Selling, general and administrative expenses increased 16% to $42.5 million due to higher stock-based compensation, legal fees, and payroll. Loss from operations narrowed to 13% of revenue from 48%.
Net loss improved to $45.0 million (33% of revenue) from $49.9 million (52% of revenue) in the prior year. The income tax provision surged to $26.5 million from $0.7 million, primarily due to a tax on net controlled foreign corporation tested income and the mix of pre-tax income among jurisdictions.
Infrastructure was the standout segment, more than doubling revenue on strong demand for high-performance analog, optical, and wireless backhaul/access products. Broadband grew modestly (+7%) on increased SoC shipments. Industrial and multi-market rose 47% on higher analog product volumes. Connectivity declined 8% due to seasonal softness in MoCA and ethernet. The revenue mix shifted sharply toward infrastructure (46% of total vs. 28% a year ago), while broadband and connectivity shares fell to 32% and 14%, respectively.
Management expects revenue to fluctuate period-to-period consistent with industry cyclicality. R&D spending is expected to increase in future years to support new product development. SG&A is also expected to rise as the company expands its sales and marketing organization. The company believes its $61.1 million cash balance and undrawn $100 million revolving credit facility are sufficient to fund operations for at least the next twelve months. Key risks include geopolitical tensions, tariffs, and the ongoing arbitration with Silicon Motion.
Operating cash flow (CFO) was negative -$8.9M for Q1 2026, an improvement from -$11.4M in Q1 2025, driven by smaller net loss ($45.1M vs. $49.7M) and positive working capital changes? Notably, accounts receivable decreased (provided $5.3M) versus an increase in prior year, while inventory built (used $7.7M) vs. a release in prior year. Stock-based compensation remained significant at $20.0M (vs. $22.9M), a non-cash add-back. Capex of $1.4M (property and equipment) plus intangible asset purchases of $0.9M totaled $2.2M, reflecting continued investment. Free cash flow was not explicitly stated; however, CFO after capex would be approximately -$11.1M. The company financed operations via a $6.0M funding arrangement and minimal equity issuance, offset by tax withholdings. No share repurchases or dividends were made. Overall, cash burn persists but moderated year-over-year.