MaxLinear shares soar 20% after revenue beat and strong guidance

Published 23/07/2025, 21:38
MaxLinear shares soar 20% after revenue beat and strong guidance

Investing.com -- MaxLinear, Inc. (NASDAQ:MXL) shares surged 20.1% after the RF and mixed-signal integrated circuits provider reported second quarter revenue that exceeded analyst expectations and issued an optimistic outlook for the third quarter.

The company posted revenue of $108.8 million for the second quarter ended June 30, 2025, beating the analyst consensus of $104.89 million. Revenue increased 18% YoY and 13% sequentially. MaxLinear reported adjusted earnings per share of $0.02, meeting analyst estimates, and marking a return to profitability after posting losses in previous quarters.

MaxLinear’s stock jumped following its third quarter revenue guidance of $115 million to $135 million, with the midpoint of $125 million significantly above analyst expectations of $115.9 million. The company also returned to positive free cash flow during the quarter.

"Our second quarter results reflect strong sequential and year-over-year growth in our business," said Kishore Seendripu, PhD, Chairman and CEO. "With solid execution, we exceeded the mid-point of our revenue guidance, returned to profitability on a non-GAAP basis, and generated positive free cash flow in Q2."

The company reported a non-GAAP gross margin of 59.1% for the quarter, flat compared to the previous quarter but down from 60.2% in the year-ago period. Non-GAAP operating expenses decreased to $56.6 million, or 52% of revenue, compared to $74.8 million, or 81% of revenue, in the same quarter last year.

MaxLinear’s management cited strong customer traction in high-speed interconnects for data centers, multi-gigabit PON access, Wi-Fi connectivity, ethernet, and wireless infrastructure as key drivers for growth. The company expressed confidence in continued growth through 2025 and 2026 based on improved customer order rates and strengthening product backlog.

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