Core Viewpoint - MaxLinear has announced new employee inducement equity award grants to attract and retain talent in a competitive market [1] Group 1 - The new equity awards are part of MaxLinear's strategy to incentivize employees and align their interests with the company's long-term performance [1] - This initiative reflects the company's commitment to fostering a motivated workforce amid industry challenges [1] - The equity awards are expected to enhance employee retention and engagement, which are critical for sustaining growth [1]

MaxLinear (NasdaqGS:MXL) FY Conference November 18, 2025 02:00 PM ET Company ParticipantsSteve Litchfield - CFOKishore Seendripu - CEOConference Call ParticipantsJoe Kojaki - Semiconductor and Semi Cap AnalystJoe KojakiPerfect. We'll go ahead and get started. I'm Joe Kojaki, the semiconductor, semi-cap analyst here at Wells. Excited to have the MaxLinear team here, Dr. Kishore Seendripu, the CEO, as well as Steve Litchfield, CFO. Thanks for joining us.Kishore SeendripuThanks, Joe.Joe KojakiYeah. Maybe to ge ...

Group 1 - MaxLinear, Inc. (MXL) experienced a supercycle in its semiconductor products until 2022, followed by a prolonged period of client inventory digestion [1] - The stock performance of MaxLinear has been affected by the transition from the supercycle to the inventory digestion phase [1] Group 2 - The semiconductor industry is characterized by high barriers to entry and oligopolistic market structures, which are favorable for investment [1] - The analyst emphasizes a growth at a reasonable price investment approach, focusing on mid- to long-term horizons within the semiconductor sector [1]

Core Insights - MaxLinear, Inc. (NASDAQ: MXL) is facing challenges in delivering maximum performance due to reported losses, continued dilution, and unresolved litigation with Silicon Motion, despite some sequential sales growth and new developments [1]. Group 1: Company Performance - The company has reported losses and ongoing dilution, which complicates the investment case [1]. - There is some sequential sales growth, indicating potential for improvement, but it is overshadowed by the challenges mentioned [1]. Group 2: Legal and Market Context - The unresolved litigation with Silicon Motion is a significant factor affecting investor confidence and the company's performance [1].

Core Insights - MaxLinear, Inc. (NASDAQ: MXL) is currently facing challenges in delivering maximum performance due to reported losses, ongoing dilution, and unresolved litigation with Silicon Motion, despite some sequential sales growth and new developments [1] Group 1: Company Performance - The company has reported losses and continues to experience dilution, which complicates the investment case [1] - There is some sequential sales growth, indicating potential for improvement, but it is not sufficient to offset the challenges faced [1] Group 2: Legal and Market Context - The unresolved litigation with Silicon Motion remains a significant factor impacting investor confidence and the company's performance [1]

Core Insights - MaxLinear (MXL) reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and a significant improvement from a loss of $0.36 per share a year ago, representing an earnings surprise of +16.67% [1] - The company achieved revenues of $126.46 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.14% and showing a year-over-year increase from $81.1 million [2] - MaxLinear has outperformed consensus revenue estimates four times over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $129.69 million, and for the current fiscal year, it is $0.25 on revenues of $459.44 million [7] - The earnings outlook will be influenced by management's commentary during the earnings call, which is crucial for assessing the sustainability of the stock's price movement [3][4] Industry Context - The Semiconductor - Analog and Mixed industry, to which MaxLinear belongs, is currently ranked in the top 15% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] Stock Performance - MaxLinear shares have declined approximately 15.2% since the beginning of the year, contrasting with the S&P 500's gain of 13.9% [3] - The estimate revisions trend for MaxLinear was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - Q3 2025 revenue reached $126.5 million, representing a 16% sequential increase and a 56% year-over-year growth from $81.1 million in Q3 2024 [6][13] - GAAP gross margin for Q3 was approximately 56.9%, while non-GAAP gross margin was about 59.1% [13] - GAAP operating expenses were $113.2 million, with non-GAAP operating expenses at $59.5 million [13] - Net cash flow from operating activities was approximately $10.1 million, with cash and equivalents totaling around $113 million at the end of Q3 [14] Business Line Data and Key Metrics Changes - Infrastructure revenue for Q3 was approximately $40 million, broadband revenue was about $58 million, connectivity revenue was around $19 million, and industrial multi-market revenue was approximately $9 million [13] - Infrastructure end market revenues increased by 16% sequentially and 75% year-over-year [6] - Broadband connectivity saw an 80% year-over-year growth, while connectivity solutions grew by 50% year-over-year [9] Market Data and Key Metrics Changes - The company anticipates strong revenue acceleration in 2026 due to new design wins across its portfolio, particularly in high-speed data center optical interconnects and wireless infrastructure [6][7] - The wireless infrastructure segment is expected to benefit from increased carrier CapEx spending, with significant design activity noted for the Sierra 5G product line [8][12] Company Strategy and Development Direction - The company is focusing on strategic investments in high-value end markets such as optical interconnects, wireless infrastructure, storage accelerators, and broadband access to drive growth [11][12] - The management expressed optimism about the growth potential in infrastructure markets, projecting revenue in this segment to reach between $300 million and $500 million in the next two to three years [23] Management's Comments on Operating Environment and Future Outlook - Management highlighted a cautious yet optimistic outlook for 2026, with expectations of continued growth driven by design wins and customer traction [20][21] - The company noted that while broadband growth may moderate, it still anticipates market share gains in fiber PON and DOCSIS 4.0 solutions [40][41] Other Important Information - The company is experiencing a significant increase in design activity for its Sierra 5G products, with major telecom providers launching new products based on this technology [8][12] - The management emphasized the importance of maintaining a sustainable execution and value proposition to navigate the current supply chain challenges and pricing pressures from foundries [66] Q&A Session Summary Question: Can you provide context on the exceptional growth expected in 2026? - Management indicated that while 2025 is expected to show significant growth, the design win activities across various product lines suggest even stronger growth potential in 2026 [20][21] Question: What is the outlook for the wireless infrastructure segment? - Management noted that telecom operators are beginning to increase their infrastructure spending, which is expected to drive strong growth in the wireless segment [22][23] Question: How do you see the optical business trending for next year? - Management expressed optimism about the optical segment, noting that growth is expected to continue as new products ramp up, although competition remains a factor [29][30] Question: What are the expectations for broadband connectivity in the upcoming quarters? - Management expects some moderation in broadband growth but does not foresee an overall decline, with strong growth anticipated in fiber PON solutions [40][41] Question: How does the company plan to address supply chain constraints? - Management acknowledged the challenges posed by supply chain issues and emphasized the need for innovative strategies to maintain margins [66][80]

Financial Data and Key Metrics Changes - Q3 2025 revenue was $126.5 million, representing a 16% sequential increase and a 56% year-over-year growth from $81.1 million in Q3 2024 [6][13] - GAAP gross margin for Q3 was approximately 56.9%, while non-GAAP gross margin was about 59.1% [13] - GAAP operating expenses for Q3 were $113.2 million, with non-GAAP operating expenses at $59.5 million [13][14] - Net cash flow from operating activities was approximately $10.1 million, with cash and equivalents totaling around $113 million at the end of Q3 [14] Business Line Data and Key Metrics Changes - Infrastructure revenue for Q3 was approximately $40 million, broadband revenue was about $58 million, connectivity revenue was around $19 million, and industrial multi-market revenue was approximately $9 million [13] - Infrastructure end market revenues increased by 16% sequentially and 75% year-over-year [6] - Broadband connectivity saw an 80% year-over-year growth, while connectivity solutions grew by 50% year-over-year [9][10] Market Data and Key Metrics Changes - The company expects strong revenue acceleration in 2026 as new design wins ramp up across its portfolio [6] - The optical interconnects segment is projected to deliver $60 million-$70 million in revenue in 2025, with significant growth anticipated in 2026 [7] - Wireless infrastructure is expected to see increased demand due to rising carrier CapEx spending [8] Company Strategy and Development Direction - The company is focusing on strategic investments in high-value end markets such as high-speed data center optical interconnects, wireless infrastructure, storage accelerators, and broadband access [12] - Management expressed optimism about the growth potential in infrastructure markets, projecting revenue in this category to reach $300 million-$500 million in the next two to three years [23] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong design win activities and customer traction, particularly in the optical and wireless infrastructure segments [20][23] - The company remains cautious about growth due to customer concentration in large markets but is optimistic about the breadth of acceleration seen in design wins [21] - Management noted that while broadband growth may moderate, they expect continued growth in market share across various segments [40][41] Other Important Information - The company is beginning to ramp its single-chip integrated fiber PON and 10-Gb processor gateway SoC, along with a tri-band Wi-Fi 7 single-chip platform solution [10] - The company is experiencing a recovery in its core markets, which positions it well for exceptional growth in 2026 and beyond [12] Q&A Session Summary Question: Can you provide context on the exceptional growth expected in 2026? - Management indicated that while 2025 is expected to show significant growth, the design win activities across various product portfolios suggest even stronger growth in 2026, potentially exceeding industry expectations [20][21] Question: What is the outlook for the wireless infrastructure segment? - Management noted that telecom operators are beginning to increase their infrastructure spending, which is expected to drive strong growth in the wireless segment, comparable to the optical segment [22][23] Question: How do you see the optical business trending for next year? - Management expressed optimism about the optical segment, indicating that growth could be substantial, particularly with the ramp-up of 800 Gb solutions [29][30] Question: What are the expectations for broadband connectivity in the upcoming quarters? - Management expects some moderation in broadband growth but does not foresee an overall decline, with PON design wins contributing positively [40][41] Question: How does the company view competition in the optical market? - Management acknowledged the competitive landscape but emphasized the differentiated nature of their products and the importance of timing in capturing market share [54][55] Question: What is the potential scale of the industrial multi-market business? - Management indicated that while the industrial market has faced challenges, they are focused on sustainable growth and maintaining healthy margins [86]

Financial Data and Key Metrics Changes - Q3 2025 revenue was $126.5 million, representing a 16% sequential increase and a 56% year-over-year growth from $81.1 million in Q3 2024 [5][12] - GAAP gross margin for Q3 was approximately 56.9%, while non-GAAP gross margin was about 59.1% [12] - GAAP operating expenses for Q3 were $113.2 million, with non-GAAP operating expenses at $59.5 million [12] - The company exited Q3 2025 with approximately $113 million in cash and cash equivalents, ahead of its 2025 plan [12] Business Line Data and Key Metrics Changes - Infrastructure revenue for Q3 was approximately $40 million, up 16% sequentially and 75% year-over-year [12] - Broadband revenue was approximately $58 million, with an 80% year-over-year increase [9][12] - Connectivity revenue was approximately $19 million, and industrial multi-market revenue was about $9 million [12] Market Data and Key Metrics Changes - The infrastructure end market showed strong growth, with expectations for continued revenue acceleration in 2026 due to new design wins [5][6] - The broadband segment experienced significant growth driven by early increases in service provider CapEx spending [9][10] Company Strategy and Development Direction - The company is focusing on strategic investments in high-value end markets such as high-speed data center optical interconnects, wireless infrastructure, and storage accelerators [11] - MaxLinear aims to broaden customer traction and increase content opportunities, positioning itself for exceptional growth in 2026 and beyond [11][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, particularly in infrastructure and wireless segments, despite some expected moderation in broadband growth [19][20] - The company anticipates strong demand in 5G wireless access and backhaul as cloud and edge AI functionalities continue to grow [8][11] Other Important Information - The company expects Q4 2025 revenue to be between $130 million and $140 million, with a projected GAAP gross margin of approximately 56% to 59% [14][15] - Management highlighted the importance of design win activities and customer traction as key drivers for future growth [19][20] Q&A Session Summary Question: Can you provide context on the exceptional growth expected in 2026? - Management noted that while 2025 is expected to show 30% year-over-year growth, they are optimistic about design win activities and customer traction leading to significant growth in 2026 [18][19] Question: What is the outlook for the wireless infrastructure segment? - Management indicated that telecom operators are beginning to spend on infrastructure, with strong traction for their Sierra product line, expecting growth similar to optical infrastructure [21][22] Question: How will the optical side of the business trend next year? - Management expressed confidence in the optical segment, noting that 800-gigabit solutions are beginning to grow, and they expect solid growth driven by design wins [27][28] Question: What are the expectations for broadband connectivity? - Management expects moderation in broadband growth but does not foresee an overall decline, citing strong growth in fiber PON and the potential for DOCSIS 4.0 to drive future growth [71][72] Question: How does the company view competition in the optical market? - Management acknowledged competition but emphasized their differentiated products and the importance of timing in translating design wins into revenue [50][51] Question: What is the potential scale of the industrial multi-market business? - Management indicated that while the industrial multi-market has faced challenges, they are focusing investments on edge and cloud data center opportunities [81]

Financial Data and Key Metrics Changes - The company reported Q3 2025 revenue of $126.5 million, representing a 16% sequential increase and a 56% year-over-year growth [5][13] - GAAP gross margin for Q3 was approximately 56%, while non-GAAP gross margin was around 59.1% [13] - Non-GAAP income from operations in Q3 was 12% of net revenue, with GAAP losses from operations at 33% [14] Business Line Data and Key Metrics Changes - Infrastructure revenue for Q3 was approximately $40 million, broadband revenue was about $58 million, connectivity revenue was around $19 million, and industrial multimarket revenue was approximately $9 million [13] - Broadband connectivity saw an 80% year-over-year growth, while connectivity solutions grew by 50% year-over-year [10] Market Data and Key Metrics Changes - The infrastructure end market experienced a 75% year-over-year revenue increase in Q3 [5] - The company anticipates strong revenue acceleration in 2026, particularly in high-speed data center optical interconnects, with projected revenues of $60 million to $70 million [6][7] Company Strategy and Development Direction - The company is focusing on strategic investments in high-value end markets such as high-speed data center optical interconnects, wireless infrastructure, and storage accelerators to drive growth [11][12] - The management expressed optimism about the design win activities across their product portfolio, particularly in infrastructure and wireless sectors [21][25] Management's Comments on Operating Environment and Future Outlook - Management noted that while broadband growth may moderate, they expect continued growth in infrastructure and industrial multimarket segments [16][22] - The company is cautious yet optimistic about the growth potential in 2026, driven by design wins and customer activity [21][22] Other Important Information - The company exited 2025 with approximately $113 million in cash and cash equivalents, ahead of their 2025 plan [15] - The day sales outstanding improved to approximately 39 days, with inventory turns increasing to 1.8 times [15] Q&A Session Summary Question: Can you provide context on the expected growth in 2026 compared to 2025? - Management indicated that while 2025 is expected to show 30% year-over-year growth, they are optimistic about exceeding that in 2026 due to strong design win activities [19][20] Question: What is the outlook for the wireless infrastructure segment? - Management noted that telecom operators are beginning to spend on infrastructure again, leading to strong traction for their Sierra product line [24][25] Question: How do you see the optical side of the business trending for next year? - Management expressed that while they are seeing strong traction, competition remains a factor, and growth will depend on the timing of customer ramp-ups [31][32] Question: What are the expectations for broadband connectivity in the upcoming quarters? - Management expects moderation in broadband growth but does not foresee an overall decline, with PON expected to grow strongly [42][88] Question: How does the company view the potential for the industrial multimarket business? - Management stated that they are investing in sustainable growth within the industrial multimarket, focusing on edge and cloud data center opportunities [102][104]