MaxLinear (NASDAQ:MXL) Posts Earnings Results, Beats Estimates By $0.02 EPS

MaxLinear (NASDAQ:MXL) released its quarterly earnings data on Thursday. The semiconductor company reported $0.35 EPS for the quarter, topping analysts’ consensus estimates of $0.33 by $0.02, FiscalAI reports. MaxLinear had a negative net margin of 25.96% and a negative return on equity of 2.33%. The firm had revenue of $168.85 million for the quarter, compared to the consensus estimate of $164.64 million. During the same quarter in the previous year, the firm earned $0.02 earnings per share. The firm’s revenue was up 55.2% on a year-over-year basis.

Here are the key takeaways from MaxLinear’s conference call:

• MaxLinear said Q2 revenue rose 55% year over year to $168.8 million, and GAAP EPS returned to profitability at $0.02 per share, which management framed as an inflection point for the business.
• Infrastructure revenue surged 145% year over year and became the company’s largest segment, driven by optical data center ramps. Management raised its full-year 2026 optical data center revenue outlook to $210 million-$230 million.
• The company said Keystone is ramping strongly at hyperscale customers for 400G and 800G deployments, with most of the current growth coming from 800G PAM4. MaxLinear also highlighted a power advantage versus competitors and said the product is supporting broader customer wins.
• Management outlined multiple follow-on growth drivers, including Rushmore for 1.6T optics, plus Washington TIAs and Annapurna retimers, with initial revenue expected in 2027 and more meaningful ramps in 2028.
• For Q3, MaxLinear guided revenue to $210 million-$220 million and non-GAAP gross margin to 58.5%-61.5%, citing favorable mix but also continued wafer, packaging, and supply-chain cost pressure. Management reiterated a long-term goal of 30%-35% operating margins.

MaxLinear Trading Up 5.1%

Shares of NASDAQ MXL traded up $4.44 during midday trading on Thursday, reaching $91.24. 7,044,757 shares of the stock were exchanged, compared to its average volume of 3,173,196. The stock has a 50 day moving average price of $90.53 and a 200-day moving average price of $49.22. The company has a current ratio of 1.70, a quick ratio of 1.12 and a debt-to-equity ratio of 0.27. The company has a market capitalization of $8.17 billion, a P/E ratio of -60.03 and a beta of 3.91. MaxLinear has a 52-week low of $12.77 and a 52-week high of $128.30.

Analysts Set New Price Targets

MXL has been the subject of a number of research analyst reports. Deutsche Bank Aktiengesellschaft restated a “hold” rating and issued a $40.00 price target on shares of MaxLinear in a research report on Friday, April 24th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of MaxLinear in a report on Friday, July 17th. Northland Securities set a $110.00 price target on shares of MaxLinear in a research report on Wednesday, June 3rd. Roth Capital raised shares of MaxLinear from a “neutral” rating to a “buy” rating and set a $60.00 price objective for the company in a research note on Friday, April 24th. Finally, Loop Capital raised MaxLinear from a “hold” rating to a “buy” rating and upped their target price for the company from $17.00 to $75.00 in a research note on Wednesday, April 29th. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $71.00.

Insider Activity at MaxLinear

In related news, Director Thomas E. Pardun sold 11,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $105.00, for a total transaction of $1,155,000.00. Following the sale, the director owned 55,252 shares in the company, valued at approximately $5,801,460. This trade represents a 16.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Connie H. Kwong sold 35,000 shares of the business’s stock in a transaction on Friday, May 8th. The shares were sold at an average price of $96.96, for a total value of $3,393,600.00. Following the completion of the transaction, the insider owned 13,947 shares of the company’s stock, valued at $1,352,301.12. This trade represents a 71.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 65,168 shares of company stock worth $5,559,358 in the last three months. Insiders own 7.70% of the company’s stock.

Institutional Trading of MaxLinear

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. acquired a new position in MaxLinear during the fourth quarter worth approximately $25,000. Smartleaf Asset Management LLC grew its stake in shares of MaxLinear by 103.0% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,431 shares of the semiconductor company’s stock valued at $25,000 after buying an additional 726 shares during the period. Quarry LP increased its holdings in shares of MaxLinear by 1,293.0% during the 3rd quarter. Quarry LP now owns 2,187 shares of the semiconductor company’s stock worth $35,000 after buying an additional 2,030 shares during the last quarter. Raymond James Financial Inc. purchased a new position in shares of MaxLinear in the 2nd quarter worth $51,000. Finally, iSAM Funds UK Ltd acquired a new stake in MaxLinear during the third quarter worth about $58,000. Hedge funds and other institutional investors own 90.79% of the company’s stock.

About MaxLinear

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.