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Jun 30
MaxLinear Q2 2025 Earnings Report
MaxLinear announced its second quarter 2025 financial results, reporting significant sequential and year-over-year revenue growth, a return to non-GAAP profitability, and positive free cash flow.
Key Takeaways
MaxLinear, Inc. reported strong financial performance in the second quarter of 2025, with net revenue reaching $108.8 million, an 18% increase year-over-year. The company successfully returned to non-GAAP profitability with a diluted EPS of $0.02 and generated positive free cash flow, highlighting solid execution and improved market conditions.
Net revenue for Q2 2025 was $108.8 million, marking a 13% sequential increase and an 18% year-over-year growth.
The company achieved non-GAAP profitability with a diluted earnings per share of $0.02, a significant improvement from a loss of $0.25 in the year-ago quarter.
MaxLinear generated positive net cash flow from operating activities of $10.5 million, indicating a return to positive free cash flow.
GAAP gross margin improved to 56.5%, while non-GAAP gross margin remained strong at 59.1%.
MaxLinear
MaxLinear
Forward Guidance
For the third quarter of 2025, MaxLinear anticipates net revenue to be between $115 million and $135 million, with GAAP gross margin ranging from 55.0% to 58.0% and non-GAAP gross margin from 57.5% to 60.5%.
Positive Outlook
- Expected net revenue growth to $115 million to $135 million in Q3 2025.
- Anticipated GAAP gross margin of 55.0% to 58.0% for Q3 2025.
- Projected non-GAAP gross margin of 57.5% to 60.5% for Q3 2025.
- Confidence in growth for 2025 and 2026 due to strong customer and product traction.
- Improved customer order rates and strengthening product backlog.
Challenges Ahead
- GAAP operating expenses are expected to be high, ranging from $84 million to $90 million.
- GAAP and non-GAAP interest and other expense are projected to be $3.5 million to $4.5 million.
- The company expects a non-GAAP income tax provision of $1.3 million.
- Potential risks related to the terminated merger with Silicon Motion and related arbitration.
- Uncertainties regarding global economic conditions and the cyclical nature of the semiconductor industry.