Marvell Technology(MRVL) - 2026 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements Presents Marvell Technology's unaudited condensed consolidated financial statements for Q2 fiscal 2026, covering balance sheets, income, equity, and cash flows. Unaudited Condensed Consolidated Balance Sheets Provides a snapshot of the company's financial position as of August 2, 2025, showing increased assets and liabilities, with stable stockholders' equity. | Category | August 2, 2025 (millions) | February 1, 2025 (millions) | | :-------------------------------- | :-------------------------- | :-------------------------- | | ASSETS | | | | Current assets | $4,512.9 | $3,120.3 | | Property and equipment, net | $794.5 | $790.5 | | Goodwill | $11,062.2 | $11,586.9 | | Acquired intangible assets, net | $2,207.2 | $2,710.6 | | Total assets | $20,586.3 | $20,204.5 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Current liabilities | $2,399.3 | $2,026.8 | | Long-term debt | $3,967.9 | $3,934.3 | | Total liabilities | $7,164.6 | $6,777.5 | | Total stockholders' equity | $13,421.7 | $13,427.0 | | Total liabilities and stockholders' equity | $20,586.3 | $20,204.5 | Unaudited Condensed Consolidated Statements of Operations Details the company's financial performance for the three and six months ended August 2, 2025, showing significant revenue growth and a shift to net income. | Metric | Three Months Ended August 2, 2025 (millions) | Three Months Ended August 3, 2024 (millions) | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Net revenue | $2,006.1 | $1,272.9 | $3,901.4 | $2,433.8 | | Gross profit | $1,010.6 | $587.6 | $1,963.0 | $1,115.4 | | Operating income (loss) | $290.1 | $(100.4) | $560.7 | $(252.7) | | Net income (loss) | $194.8 | $(193.3) | $372.7 | $(408.9) | | Net income (loss) per share — basic | $0.23 | $(0.22) | $0.43 | $(0.47) | | Net income (loss) per share — diluted | $0.22 | $(0.22) | $0.43 | $(0.47) | Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) Presents comprehensive income (loss) for the three and six months ended August 2, 2025, indicating a positive shift to income, driven by net income. | Metric | Three Months Ended August 2, 2025 (millions) | Three Months Ended August 3, 2024 (millions) | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Net income (loss) | $194.8 | $(193.3) | $372.7 | $(408.9) | | Other comprehensive income (loss), net of tax | $0.7 | $(0.8) | $0.2 | $(1.5) | | Comprehensive income (loss), net of tax | $195.5 | $(194.1) | $372.9 | $(410.4) | Unaudited Condensed Consolidated Statements of Stockholders' Equity Outlines changes in stockholders' equity for the six months ended August 2, 2025, reflecting impacts from compensation, repurchases, dividends, and net income/loss. | Item | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | | :---------------------------------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Balance at beginning of period | $13,427.0 | $14,831.4 | | Issuance of common stock in connection with equity incentive plans | $51.1 | $51.5 | | Tax withholdings related to net share settlement of restricted stock units | $(100.9) | $(131.7) | | Stock-based compensation | $296.0 | $292.8 | | Repurchase of common stock | $(540.0) | $(325.0) | | Cash dividends declared and paid | $(103.5) | $(103.7) | | Net income (loss) | $372.7 | $(408.9) | | Other comprehensive income (loss) | $0.2 | $(1.5) | | Balance at end of period | $13,421.7 | $14,204.9 | Unaudited Condensed Consolidated Statements of Cash Flows Reports cash flows from operating, investing, and financing activities for the six months ended August 2, 2025, showing a significant increase in cash and equivalents. | Cash Flow Activity | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net cash provided by operating activities | $794.5 | $630.9 | | Net cash used in investing activities | $(171.3) | $(154.9) | | Net cash used in financing activities | $(347.1) | $(618.1) | | Net increase (decrease) in cash and cash equivalents | $276.1 | $(142.1) | | Cash and cash equivalents at end of period | $1,224.4 | $808.7 | Notes to Unaudited Condensed Consolidated Financial Statements Provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements. Note 1. Basis of Presentation Describes the financial statement preparation basis, including U.S. GAAP compliance and the automotive ethernet business divestiture. - Company entered into a definitive agreement on April 7, 2025, to sell its automotive ethernet business to Infineon Technologies AG for $2.5 billion in cash. The sale was completed on August 14, 2025, with an expected gain on sale in Q3 fiscal 2026[17][18] | Asset Type | Amount (millions) | | :-------------------------------- | :---------------- | | Inventories | $33.0 | | Property and equipment | $20.3 | | Goodwill | $524.7 | | Acquired intangible assets | $14.0 | | Total Assets Held for Sale | $595.5 | Note 2. Recent Accounting Pronouncements Discusses recent FASB accounting pronouncements on income tax, expense disaggregation, and share-based consideration, and their potential impact. - FASB issued ASU 2023-09 (Income Taxes) effective for fiscal 2026, requiring enhanced cash tax and effective tax rate disclosures[20] - FASB issued ASU 2024-03 (Expense Disaggregation) effective for fiscal years beginning after December 15, 2026, requiring disaggregated expense disclosures[21] - FASB issued ASU 2025-04 (Share-Based Consideration) effective for fiscal years beginning after December 15, 2026, clarifying guidance for share-based consideration payable to customers[22] Note 3. Revenue Provides detailed net revenue disaggregation by end market, geographical destination, and customer type, highlighting data center contributions. | End Market | Three Months Ended August 2, 2025 | % of Total (2025) | Three Months Ended August 3, 2024 | % of Total (2024) | Six Months Ended August 2, 2025 | % of Total (2025) | Six Months Ended August 3, 2024 | % of Total (2024) | | :------------------ | :-------------------------------- | :------------------ | :-------------------------------- | :------------------ | :-------------------------------- | :------------------ | :-------------------------------- | :------------------ | | Data center | $1,490.5 | 74 % |