MAXLINEAR, INCMXL
MAXLINEAR, INC Income Taxes Disclosure
Income Taxes
The domestic and international components of loss before income taxes are presented as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in thousands) | |||||||||||||||||
| Domestic | $ | (121,898) | $ | (74,358) | $ | (85,032) | |||||||||||
| Foreign | (18,996) | (164,359) | 21,222 | ||||||||||||||
| Loss before income taxes | $ | (140,894) | $ | (238,717) | $ | (63,810) | |||||||||||
The income tax provision (benefit) consists of the following:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in thousands) | |||||||||||||||||
| Current: | |||||||||||||||||
| Federal | $ | 4,816 | $ | 893 | $ | 3,827 | |||||||||||
| State | 5 | 16 | 65 | ||||||||||||||
| Foreign | (436) | 4,739 | 9,896 | ||||||||||||||
| Total current | 4,385 | 5,648 | 13,788 | ||||||||||||||
| Deferred: | |||||||||||||||||
| Federal | (13,689) | (10,781) | (371) | ||||||||||||||
| State | (3,113) | (3,536) | (4,942) | ||||||||||||||
| Foreign | 4,274 | (10,889) | (6,910) | ||||||||||||||
| Change in valuation allowance | 3,930 | 26,039 | 7,772 | ||||||||||||||
| Total deferred | (8,598) | 833 | (4,451) | ||||||||||||||
| Total income tax provision (benefit) | $ | (4,213) | $ | 6,481 | $ | 9,337 | |||||||||||
The actual income tax provision (benefit) differs from the amount computed using the federal statutory rate as follows:
| Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | |||||||||||||
| (in thousands) | ||||||||||||||
| Provision (benefit) at statutory rate | $ | (50,135) | $ | (13,288) | ||||||||||
| State income taxes (net of federal benefit) | 10 | 7 | ||||||||||||
| Research and development credits | (7,720) | (10,066) | ||||||||||||
| Foreign rate differential | 28,939 | (375) | ||||||||||||
| Stock compensation | 7,855 | 2,213 | ||||||||||||
| Foreign income inclusion | 558 | 27,678 | ||||||||||||
| Provision to return | 381 | (4,741) | ||||||||||||
| Uncertain tax positions | 300 | 1,272 | ||||||||||||
| Permanent and other | 812 | (377) | ||||||||||||
| Foreign unremitted earnings | (558) | (758) | ||||||||||||
| Valuation allowance | 26,039 | 7,772 | ||||||||||||
| Total income tax provision | $ | 6,481 | $ | 9,337 | ||||||||||
The actual income tax provision (benefit) differs from the amount computed using the federal statutory rate as follows:
| Year Ended December 31, 2025 | ||||||||||||||
| Amount (in thousands) | Percent | |||||||||||||
| U.S. federal statutory tax rate | $ | (29,592) | 21.0 | % | ||||||||||
| State and local income taxes, net of federal income tax effect(1) | 8 | — | % | |||||||||||
| Foreign tax effects | ||||||||||||||
| Singapore | ||||||||||||||
| Statutory tax rate difference between Singapore and United States | 5,773 | (4.1) | % | |||||||||||
| Changes in valuation allowance | (2,861) | 2.0 | % | |||||||||||
| Withholding taxes | 1,279 | (0.9) | % | |||||||||||
| Other | 1,385 | (1.0) | % | |||||||||||
| Spain | ||||||||||||||
| Statutory tax rate difference between Spain and United States | 266 | (0.2) | % | |||||||||||
| Changes in valuation allowance | (2,092) | 1.5 | % | |||||||||||
| Tax credits | 1,971 | (1.4) | % | |||||||||||
| Nontaxable or nondeductible items | (1,904) | 1.4 | % | |||||||||||
| Other foreign jurisdictions | 3,296 | (2.3) | % | |||||||||||
| Tax credits | ||||||||||||||
| Research and development tax credits | (136) | 0.1 | % | |||||||||||
| Changes in valuation allowance | 5,885 | (4.2) | % | |||||||||||
| Nontaxable or nondeductible items | ||||||||||||||
| Equity compensation | 8,475 | (6.0) | % | |||||||||||
| Nondeductible compensation under Section 162(m) | 3,011 | (2.1) | % | |||||||||||
| Other | 743 | (0.5) | % | |||||||||||
| Changes in unrecognized tax benefits | 144 | (0.1) | % | |||||||||||
| Other adjustments | 136 | (0.1) | % | |||||||||||
| Effective tax rate | $ | (4,213) | 3.0 | % | ||||||||||
__________________
(1) State taxes in California made up the majority (greater than 50%) of the tax effect in this category.
The following tables present cash paid for income taxes, net of refunds received, by jurisdiction:
| Year Ended December 31, 2025 | |||||||||||
| Amount (in thousands) | Percent | ||||||||||
| United States | |||||||||||
| Federal | $ | — | — | % | |||||||
| State | 154 | 3 | % | ||||||||
| Foreign | 5,638 | 97 | % | ||||||||
| Total | $ | 5,792 | 100 | % | |||||||
| Year Ended December 31, 2025 | |||||||||||
| Amount (in thousands) | Percent | ||||||||||
| Israel | $ | 1,792 | 31 | % | |||||||
| India | 1,431 | 25 | % | ||||||||
| Singapore | 1,386 | 24 | % | ||||||||
| Germany | 556 | 10 | % | ||||||||
| Rest of the world | 627 | 11 | % | ||||||||
| Total | $ | 5,792 | 100 | % | |||||||
The components of the deferred income tax assets are as follows:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in thousands) | |||||||||||
| Deferred tax assets: | |||||||||||
| Net operating loss carryforwards | $ | 53,689 | $ | 39,258 | |||||||
| Research and development credits | 86,074 | 85,659 | |||||||||
| Foreign tax credit carryforwards | 527 | 1,578 | |||||||||
| Accrued expenses and other | 14,937 | 17,727 | |||||||||
| Lease obligation | 1,718 | 2,446 | |||||||||
| Accrued compensation | 6,898 | 2,991 | |||||||||
| Stock-based compensation | 12,327 | 11,923 | |||||||||
| Intangible assets | 7,740 | 9,698 | |||||||||
| 183,910 | 171,280 | ||||||||||
| Less valuation allowance | (104,525) | (100,131) | |||||||||
| 79,385 | 71,149 | ||||||||||
| Deferred tax liabilities: | |||||||||||
| Fixed assets | (572) | (497) | |||||||||
| Leased right-of-use assets | (1,244) | (1,749) | |||||||||
| Pension liability | (426) | (355) | |||||||||
| Net deferred tax assets | $ | 77,143 | $ | 68,548 | |||||||
At December 31, 2025, the Company had federal, state and foreign tax net operating loss carryforwards of approximately $162.1 million, $88.8 million and $250.9 million, respectively. The federal and state tax loss carryforwards will begin to expire in 2028 and 2030, and foreign tax loss will not expire, unless previously utilized.
At December 31, 2025, the Company had federal, state and foreign tax credit carryforwards of approximately $32.9 million, $113.6 million and $2.0 million, respectively. The federal, state and foreign tax credit carryforwards will begin to expire in 2026, 2030 and 2029, respectively, unless previously utilized. The Company also has foreign incentive deductions of approximately $9.7 million that do not expire.
The Company utilizes the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the temporary differences reverse. The Company records a valuation allowance to reduce its deferred taxes to the amount it believes is more likely than not to be realized. In making such determination, the Company considers all available positive and negative evidence quarterly, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial performance. Forming a conclusion that a valuation allowance is not required is difficult when there is negative evidence such as cumulative losses in recent years. Based upon the Company’s review of all positive and negative evidence, the Company continues to have a valuation allowance on its state deferred tax assets, certain of its federal deferred tax assets, and certain foreign deferred tax assets in jurisdictions where the Company has cumulative losses or otherwise is not expected to utilize certain tax attributes. The Company does not incur expense or benefit in certain tax-free jurisdictions in which it operates.
The Company recorded an income tax benefit of $4.2 million in the year ended December 31, 2025, an income tax provision of $6.5 million in the year ended December 31, 2024, and an income tax provision of $9.3 million in the year ended December 31, 2023.
The difference between the Company’s effective tax rate and the 21.0% United States federal statutory rate for the year ended December 31, 2025 primarily related to the mix of pre-tax income among jurisdictions and impact of the valuation allowance on Singapore deferred tax assets, permanent tax items including tax credits, stock based compensation, tax deficiencies related to stock-based compensation, and the release of uncertain tax positions under ASC 740-10.
The difference between the Company’s effective tax rate and the 21.0% U.S. federal statutory rate for the year ended December 31, 2024 primarily related to the mix of pre-tax income among jurisdictions, permanent tax items including tax credits, stock based compensation, tax deficiencies related to stock-based compensation, release of uncertain tax positions under ASC 740-10 and the recognition of a valuation allowance on the Singapore deferred tax assets.
The difference between the Company’s effective tax rate and the 21.0% U.S. federal statutory rate for the year ended year ended December 31, 2023 primarily related to the mix of pre-tax income among jurisdictions, permanent tax items including a tax on global intangible low-taxed income, stock based compensation, excess tax benefits related to stock-based compensation, release of uncertain tax positions under ASC 740-10, and release of the valuation allowance on certain federal research and development credits. The permanent tax item related to global intangible low-taxed income, or GILTI, also reflects the then recent legislative changes requiring the capitalization of research and experimentation costs, as well as limitations on the creditability of certain foreign income taxes.
Income tax positions must meet a more-likely-than-not threshold to be recognized. Income tax positions that previously failed to meet the more-likely-than-not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold are de-recognized in the first financial reporting period in which that threshold is no longer met. The Company records potential penalties and interest accrued related to unrecognized tax benefits within the consolidated statements of operations as income tax expense.
At December 31, 2025, the Company’s unrecognized tax benefits totaled $69.4 million, $58.7 million of which, if recognized at a time when the valuation allowance no longer exists, would affect the effective tax rate. At December 31, 2025, the Company had accrued approximately $0.1 million of interest and penalties. The total amounts of interest and penalties recognized for the years ended December 31, 2025, 2024 and 2023 were not material.
The following table summarizes the changes to the unrecognized tax benefits during 2025, 2024 and 2023:
| Amount (in thousands) | |||||
| Balance as of December 31, 2022 | $ | 67,134 | |||
| Additions based on tax positions related to the current year | 3,032 | ||||
| Decreases based on tax positions of prior year | (1,528) | ||||
| Balance as of December 31, 2023 | 68,638 | ||||
| Additions based on tax positions related to the current year | 2,277 | ||||
| Decreases based on tax positions of prior year | (2,032) | ||||
| Balance as of December 31, 2024 | 68,883 | ||||
| Additions based on tax positions related to the current year | 2,039 | ||||
| Decreases based on tax positions of prior year | (1,552) | ||||
| Balance as of December 31, 2025 | $ | 69,370 | |||
The Company is subject to federal and state income tax in the United States and is also subject to income tax in certain other foreign tax jurisdictions. At December 31, 2025, the statutes of limitations for the assessment of federal, state, and foreign income taxes are closed for the years before 2022, 2021, and 2018, respectively.
The Company’s subsidiary in Singapore operates under certain tax incentives in Singapore, which are generally effective through March 2027, and are conditional upon meeting certain employment and investment thresholds in Singapore. Under the incentives, qualifying income derived from certain sales of the Company’s integrated circuits is taxed at a concessionary rate over the incentive period, and there are reduced Singapore withholding taxes on certain intercompany royalties during the incentive period. The Company recorded a tax benefit in Singapore in the years ended December 31, 2025, 2024 and 2023 at the incentive rate.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 29, 2026 | Showing above |
| 2024 | Jan 29, 2025 | |
| 2023 | Jan 31, 2024 | |
| 2022 | Feb 1, 2023 | |
| 2021 | Feb 2, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 5, 2020 | |
| 2018 | Feb 5, 2019 | |
| 2017 | Feb 20, 2018 | |
| 2016 | Feb 9, 2017 | |
| 2015 | Feb 17, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.