MaxLinear delivered fourth-quarter revenue of $136.4 million, an 8% sequential increase and a 48% year-over-year rise. GAAP gross margin expanded to 57.6%, while non-GAAP gross margin reached 59.6%, despite $2.6 million of acquisition-related intangible amortization. Operating expenses under GAAP were $93.5 million, with non-GAAP expenses of $59.2 million after excluding $28.1 million in stock-based compensation and $6 million of acquisition costs. The company reported a non-GAAP operating income margin of 16%, compared to an 11% GAAP loss from operations, reflecting improving cost discipline and operational leverage.

Free cash flow generation accelerated, with $10.4 million of net cash from operating activities in the quarter. Management repurchased $20 million of common stock under a board-authorized $75 million buyback program, signaling confidence in near-term cash flow improvement and revenue stability. The balance sheet remains solid with $101.4 million in cash, cash equivalents and restricted cash. Working capital improved as days sales outstanding fell to 31 days and inventory levels declined by $8 million sequentially, reducing days of inventory to 130.

Infrastructure revenue grew 76% year-over-year in Q4 and 30% for the full year as optical interconnects and data center accelerators gained design-win momentum. Keystone PAM4 DSPs are ramping in major hyperscale data centers for 400G and 800G applications, with management guiding $100 million to $130 million of Keystone revenue in 2026. Next-generation Rushmore DSPs targeting 1.6T interconnects are expected to begin volume ramp late in 2026. Additional wins include a first PON design in a tier-one data center OEM, analog rack-management solutions in AI services, and expanding storage accelerator SoC placements, which the company expects will more than double accelerator revenue in 2026 versus 2025.

For the first quarter of 2026, the company guided revenue of $130 million to $140 million, expecting sequential infrastructure growth offset by seasonal declines in broadband, connectivity and industrial end markets. GAAP gross margin is forecast at 56% to 59%, with non-GAAP margin of 58% to 61%. GAAP operating expenses are projected at $85 million to $90 million, and non-GAAP expenses at $58 million to $64 million. Interest and other expense is expected between $2.1 million and $2.7 million on a GAAP basis, with foreign exchange volatility cited as the primary risk. Longer-term, management anticipates exiting the year with gross margin above 60% as infrastructure becomes a larger revenue contributor and plans to grow operating expenses at roughly half the pace of top-line growth.