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This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Unless otherwise indicated, all forward looking statements are based on estimates, projections, and assumptions of MaxLinear as of the date of this presentation. These forward-looking statements include, among others, statements concerning: our expected financial performance for the fourth quarter of 2025; our p ...

Financial Performance - Net revenue for the nine months ended September 30, 2025, was $331.2 million, driven by sales of RF receivers and connectivity solutions [173]. - Net revenue increased by $45.4 million to $126.5 million for the three months ended September 30, 2025, compared to $81.1 million for the same period in 2024, driven by increased demand in broadband, connectivity, and infrastructure markets [197]. - For the nine months ended September 30, 2025, net revenue increased by $62.8 million to $331.2 million, compared to $268.4 million for the same period in 2024, with similar trends in revenue growth across broadband, connectivity, and infrastructure markets [198]. - The company experienced a net loss of 37% of net revenue for the nine months ended September 30, 2025, compared to a 70% loss in 2024 [195]. Customer Concentration - Two customers accounted for 30% of net revenue in the nine months ended September 30, 2025, with the top ten customers collectively accounting for 67% [175]. - Products shipped to Asia accounted for 81% of net revenue during the nine months ended September 30, 2025, up from 72% in 2024 [174]. Cost and Expenses - Restructuring costs incurred in the nine months ended September 30, 2025, totaled $24.7 million, including $17.2 million in CAD software license charges [180]. - Research and development expenses were 47% of net revenue for the nine months ended September 30, 2025, down from 65% in 2024 [195]. - Selling, general and administrative expenses rose by $17.5 million to $47.7 million for the three months ended September 30, 2025, driven by higher professional fees, stock-based compensation, and bonuses [207]. - Research and development expenses increased by $1.6 million to $54.3 million for the three months ended September 30, 2025, primarily due to increases in bonuses and stock-based compensation [203]. Profitability - Gross profit margin improved to 57% for the nine months ended September 30, 2025, compared to 53% in 2024 [195]. - Gross profit for the three months ended September 30, 2025, improved by $27.8 million to $71.9 million, with a gross profit percentage of 57% compared to 54% in the prior year [200]. - The gross profit percentage is anticipated to fluctuate based on changes in product mix, average selling prices, and manufacturing costs [202]. Restructuring and Mergers - The terminated merger with Silicon Motion was due to unmet conditions and a material adverse effect on Silicon Motion [178]. - Restructuring charges decreased by $25.6 million to $24.7 million for the nine months ended September 30, 2025, compared to $50.3 million for the same period in 2024 [213]. - Restructuring charges decreased by $15.6 million to $11.3 million for the three months ended September 30, 2025, compared to $26.8 million in the same period in 2024 [212]. Cash Flow and Liquidity - As of September 30, 2025, cash and cash equivalents totaled $111.9 million, with working capital defined as current assets less current liabilities at $100.6 million [222]. - Cash and cash equivalents totaled $111.9 million as of September 30, 2025, which is expected to be sufficient to fund operating requirements for at least the next twelve months [233]. - Net cash provided by operating activities was $9.2 million for the nine months ended September 30, 2025, compared to a net cash used of $17.5 million for the same period in 2024, indicating a significant improvement [236]. - The company experienced a decrease in cash used in investing activities to $16.1 million for the nine months ended September 30, 2025, down from $20.4 million in 2024 [237][238]. Debt and Financing - The company had $125.0 million of principal outstanding under a senior secured term B loan facility as of September 30, 2025, with an undrawn revolving credit facility of up to $100.0 million [224]. - Total indebtedness as of September 30, 2025, was $125.0 million, with an undrawn Revolving Facility of up to $100.0 million available [233]. - The company’s credit agreement was amended to replace LIBOR with SOFR, affecting interest rates on loans [233]. - The applicable margin for loans under the Revolving Facility ranges from 0.00% to 0.75% based on the company's secured net leverage ratio [234]. Future Outlook - The company expects revenue to fluctuate in the future, consistent with the cyclical nature of the industry [199]. - Future capital requirements will depend on factors such as revenue changes, market acceptance of products, and potential acquisitions [226]. - Research and development spending has been reduced to align with current project demands, but is expected to increase in future years as new products are developed [205]. Taxation - The income tax provision for Q3 2025 was $2.1 million, a decrease of $8.8 million compared to an income tax benefit of $6.7 million in Q3 2024 [216]. - The company recorded a full valuation allowance against its Singapore deferred tax assets, resulting in no income tax provision recorded in Singapore for the nine months ended September 30, 2025 [221]. - The company continues to maintain a valuation allowance to offset certain deferred tax assets, indicating ongoing challenges in realizing these assets [220]. Inventory and Obligations - Total inventory purchase and other contractual obligations increased from $106.5 million as of December 31, 2024, to $121.0 million as of September 30, 2025, driven by increased sales demand [229]. Currency and Interest Rate Risks - A hypothetical 100 basis point change in foreign currency exchange rates would result in a translation gain or loss of approximately $1.0 million [242]. - The company is monitoring the impact of high interest rates on its ability to service debt obligations and obtain financing [243].

Financial Performance - Q3 2025 net revenue was $126.5 million, representing a 16% sequential increase and a 56% year-over-year growth[2] - Net revenue for Q3 2025 reached $126,459 thousand, a 16.2% increase from $108,813 thousand in Q2 2025 and a 56.0% increase from $81,102 thousand in Q3 2024[24] - For the nine months ended September 30, 2025, net revenue was $331,205 thousand, a 23.4% increase from $268,361 thousand in the same period of 2024[26] Profitability Metrics - GAAP gross margin for Q3 2025 was 56.9%, up from 56.5% in the previous quarter and 54.4% in the same quarter last year[4] - Non-GAAP gross margin for Q3 2025 was 59.1%, consistent with the prior quarter and up from 58.7% year-over-year[4] - Gross profit for Q3 2025 was $71,901 thousand, up 17.5% from $61,525 thousand in Q2 2025 and up 63.5% from $44,080 thousand in Q3 2024[24] - Non-GAAP gross profit for Q3 2025 reached $74,783 thousand, compared to $64,336 thousand in Q2 2025, representing a 16% increase, and $47,640 thousand in Q3 2024, a 57% increase[34] Operating Expenses - GAAP operating expenses were $113.2 million, or 90% of net revenue, compared to $86.1 million (79% of net revenue) in the prior quarter[4] - Non-GAAP operating expenses were $59.5 million, or 47% of net revenue, down from $56.6 million (52% of net revenue) in the previous quarter[4] - Total operating expenses in Q3 2025 were $113,190 thousand, a 31.4% increase from $86,140 thousand in Q2 2025 but a decrease from $110,823 thousand in Q3 2024[24] - Operating expenses for the nine months ended September 30, 2025 totaled $299,255 thousand, a decrease of 8.1% from $325,713 thousand in the same period of 2024[26] Net Income and Loss - GAAP diluted loss per share for Q3 2025 was $0.52, compared to $0.31 in the prior quarter and $0.90 in the year-ago quarter[4] - Net loss for Q3 2025 was $45,485 thousand, compared to a net loss of $26,586 thousand in Q2 2025 and $75,785 thousand in Q3 2024[24] - Non-GAAP net income for Q3 2025 was $12,136 thousand, compared to $1,756 thousand in Q2 2025 and a loss of $30,019 thousand in Q3 2024[34] - Non-GAAP income (loss) from operations for Q3 2025 was $15,237 thousand, significantly improving from $7,781 thousand in Q2 2025 and a loss of $25,178 thousand in Q3 2024[34] Cash Flow and Assets - Net cash provided by operating activities in Q3 2025 was $10,124 thousand, compared to $10,489 thousand in Q2 2025 and a net cash used of $(30,731) thousand in Q3 2024[28] - Cash, cash equivalents, and restricted cash at the end of Q3 2025 were $113,263 thousand, an increase from $110,253 thousand at the end of Q2 2025 but a decrease from $149,492 thousand at the end of Q3 2024[28] - Total assets as of September 30, 2025 were $808,133 thousand, down from $863,737 thousand as of June 30, 2025 and $895,303 thousand as of September 30, 2024[32] Future Outlook - The company expects Q4 2025 net revenue to be approximately $130 million to $140 million[4] - The company anticipates GAAP gross margin for Q4 2025 to be between 56.0% and 59.0%[5] - Management highlighted focused investments in data center optical interconnects, wireless infrastructure, and Wi-Fi7 as key growth areas for 2026[3] Research and Development Expenses - GAAP R&D expenses for Q3 2025 were $54,252 thousand, an increase from $47,199 thousand in Q2 2025 and a decrease from $52,604 thousand in Q3 2024[34] - Non-GAAP R&D expenses for Q3 2025 were $37,141 thousand, slightly up from $35,429 thousand in Q2 2025 and down from $48,956 thousand in Q3 2024[34] Selling, General and Administrative Expenses - GAAP SG&A expenses for Q3 2025 were $47,674 thousand, up from $33,361 thousand in Q2 2025 and $30,154 thousand in Q3 2024[34] - Non-GAAP SG&A expenses for Q3 2025 were $22,405 thousand, compared to $21,126 thousand in Q2 2025 and $23,862 thousand in Q3 2024[34] Year-over-Year Comparisons - GAAP gross margin increased to 56.5% for the nine months ended September 30, 2025, compared to 53.5% for the same period in 2024[40] - Non-GAAP gross margin slightly decreased to 59.1% from 59.9% year-over-year[40] - GAAP net loss decreased to 36.8% from 69.8% year-over-year, indicating a significant reduction in losses[40] - Non-GAAP net income improved to 2.9% from a loss of 25.5% year-over-year, reflecting a positive shift in financial health[40]

Investment Rating - The report suggests to continue focusing on investment opportunities within the communication industry [2] Core Insights - The communication industry showed steady revenue growth and accelerated profitability in H1 2025, with total revenue reaching 1785.003 billion yuan, a year-on-year increase of 10.07%, and net profit attributable to shareholders at 160.432 billion yuan, up 11.26% year-on-year [4][7] - The AI computing industry chain is expected to continue accelerating its development in 2025, benefiting the communication industry [17][19] Summary by Sections H1 2025 Performance Overview - The communication industry achieved a total revenue of 1785.003 billion yuan in H1 2025, with a year-on-year growth of 10.07%, and a net profit of 160.432 billion yuan, reflecting an 11.26% increase [4][7] Segment Performance Changes - In H1 2025, the optical module and device segment reported revenue of 47.988 billion yuan, a year-on-year increase of 64.88%, and net profit of 10.876 billion yuan, up 111.99% [25] - The communication PCB segment achieved revenue of 57.249 billion yuan, a year-on-year increase of 37.66%, and net profit of 8.058 billion yuan, up 80.79% [31] - The network equipment segment generated revenue of 507.111 billion yuan, a year-on-year increase of 28.86%, with net profit of 19.184 billion yuan, up 19.57% [37] AI Industry Chain Investment - Major overseas cloud companies are expected to maintain optimistic growth in capital expenditures, with a total of 95 billion USD in Q2 2025, reflecting an 82.96% year-on-year increase [17] - Companies like Oracle and Nvidia are showing strong growth prospects in their AI-related businesses, with Oracle's unfulfilled revenue reaching 455 billion USD, a year-on-year increase of 359% [22][19]

Core Insights - Pegatron 5G has chosen MaxLinear's Sierra single-chip Radio SoC for its upcoming PR2850 5G Macro Open RAN Radio Unit [1] Company Summary - Pegatron 5G is advancing its technology by integrating MaxLinear's Sierra single-chip Radio SoC into its next generation of 5G Macro Open RAN Radio Units [1] Industry Summary - The selection of MaxLinear's technology indicates a trend towards more efficient and integrated solutions in the 5G infrastructure market, particularly in Open RAN deployments [1]

Core Points - MaxLinear, Inc. will release its financial results for the third quarter of 2025 after market close on October 23, 2025 [1] - A conference call will be held on the same day at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time, hosted by CEO Kishore Seendripu and CFO Steve Litchfield [2] - The company specializes in radio frequency (RF), analog, digital, and mixed-signal integrated circuits for various applications [3] Conference Call Details - Date: October 23, 2025 [2] - Time: 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time [2] - Dial-in numbers: US toll-free 1-877-407-3109, International 1-201-493-6798 [2] - Webcast available at: https://investors.maxlinear.com [2] Company Overview - MaxLinear, Inc. is headquartered in Carlsbad, California [3] - The company provides integrated circuits for access and connectivity, wired and wireless infrastructure, and industrial applications [3]

Core Insights - MaxLinear, Inc. (NASDAQ:MXL) is recognized as one of the 14 small publicly traded semiconductor companies worth investing in now, with a reaffirmed Buy rating and a price target of $21 from Stifel [1] - The company reported strong Q2 2025 results, with net revenue reaching $108.8 million, reflecting a 13% increase quarter-over-quarter and an 18% increase year-over-year [1][2] - Analysts maintain a bullish outlook on MaxLinear, with a median 12-month price target of $19 indicating a potential upside of 17.36% from the current stock price [3] Financial Performance - MaxLinear returned to profitability on a non-GAAP basis and generated positive free cash flow in Q2 2025 [2] - The company exceeded the mid-point of its revenue guidance, showcasing strong customer and product traction in various sectors [2] Market Position and Growth Potential - The company is well-positioned for growth in 2025 and 2026, supported by better customer order rates and a strong product backlog [3] - Key markets for MaxLinear include high-speed interconnects for data centers, multi-gigabit PON access, Wi-Fi connectivity, ethernet, and wireless infrastructure [2][3] Analyst Ratings - Benchmark also reiterated a Buy rating on MaxLinear with a higher price target of $25 [3] - Overall, analysts are optimistic about the company's future performance and market position [3]

Investment Rating - The report maintains an "Overweight" rating for the communication industry [5]. Core Insights - The communication industry experienced steady revenue growth and accelerated profitability in H1 2025, with total revenue reaching 1,785 billion yuan, a year-on-year increase of 10.07%, and net profit attributable to shareholders at 160.43 billion yuan, up 11.26% year-on-year [2][8]. - In Q2 2025, the industry continued to show robust growth, with revenue of 942.48 billion yuan, reflecting a year-on-year increase of 10.91%, and net profit attributable to shareholders of 98.68 billion yuan, up 12.33% year-on-year [11]. - Key sectors such as optical modules, communication PCBs, network equipment manufacturers, and IoT modules demonstrated strong performance, ranking among the top five in revenue and net profit growth rates [14][16]. Summary by Sections 1. H1 2025 Performance Overview - The communication industry achieved total revenue of 1,785 billion yuan in H1 2025, with a year-on-year growth of 10.07%, and net profit attributable to shareholders of 160.43 billion yuan, up 11.26% year-on-year [2][8]. 2. AI Industry Chain Investment - Overseas cloud vendors are expected to maintain optimistic growth in capital expenditures, with a total of 95 billion USD in Q2 2025, marking an increase of 82.96% year-on-year [22]. - Major companies like Apple and Meta are significantly increasing their investments in AI infrastructure, indicating a robust outlook for the AI industry chain [22][24]. 3. Sector Performance Changes - The optical module and device sector reported revenue of 479.88 billion yuan in H1 2025, with a year-on-year increase of 64.88%, and net profit of 108.76 billion yuan, up 111.99% year-on-year [31]. - The communication PCB sector achieved revenue of 572.49 billion yuan in H1 2025, reflecting a year-on-year growth of 37.66%, and net profit of 80.58 billion yuan, up 80.79% year-on-year [36]. - The network equipment sector generated revenue of 5,071.11 billion yuan in H1 2025, with a year-on-year increase of 28.86%, and net profit of 191.84 billion yuan, up 19.57% year-on-year [40]. 4. Telecom Operators' Performance - The basic telecom operators' sector reported revenue of 10,133.93 billion yuan in H1 2025, a slight increase of 0.33% year-on-year, with net profit of 1,136.01 billion yuan, up 5.14% year-on-year [54]. - China Mobile's total connections reached 3.815 billion, with a net increase of 145 million, and its digital transformation revenue grew by 6.6% year-on-year [55].

MaxLinear (MXL) FY Conference Summary Company Overview - **Company**: MaxLinear (MXL) - **Date of Conference**: August 12, 2025 - **Key Speakers**: Steve Litchfield (CEO/CFO), Rick Schafer (Oppenheimer Semiconductor Analyst) Key Industry Insights - **Semiconductor Industry Recovery**: The company indicates a recovery in the semiconductor industry, with improved visibility and bookings over the last two to three quarters [6][7][9] - **CapEx Trends**: While there is some recovery, capital expenditures (CapEx) have not significantly increased across broad-based semiconductors, although specific areas like AI and data centers are seeing growth [8][9] - **Wireless Infrastructure**: The wireless infrastructure market is experiencing a transition year, with improvements expected in CapEx spending, particularly in backhaul and access segments [18][56] Financial Performance - **Revenue Growth**: The company reported a year-over-year revenue growth of over 30% in infrastructure, with specific products like PAM4 DSP expected to generate $60 to $70 million in revenue, doubling last year's figures [12][13][23] - **Product Contributions**: The Panther storage accelerator is projected to grow from $1 million this year to potentially over $40 million next year, indicating strong future demand [16] Product Development and Market Position - **New Product Innovations**: MaxLinear is focusing on new product developments that enhance existing applications and enter new markets, particularly in data centers and wireless infrastructure [7][14][19] - **Competitive Landscape**: The company is competing against major players like Intel and AMD, emphasizing its lower power solutions and technical differentiation as key competitive advantages [17][25][27] - **Optical and Electrical Solutions**: MaxLinear is leveraging its IP blocks to diversify into optical and electrical markets, with a focus on optical transceivers, which represent 80% of the digital signal processing (DSP) market [41][43] Market Opportunities - **Broadband Market**: The broadband segment, particularly PON (Passive Optical Network), is expected to generate $50 to $70 million this year, with significant growth potential as the company has secured wins with major service providers [71][72] - **Wi-Fi and Ethernet Products**: The company is also expanding its offerings in Wi-Fi and Ethernet, capitalizing on the upgrade cycle to Wi-Fi 7, which is expected to increase content per unit [75] Strategic Focus - **Customer Engagement**: MaxLinear is enhancing its relationships with module providers and hyperscalers to optimize product offerings and drive demand [38] - **Future Outlook**: The company anticipates continued growth in 2026 and beyond, driven by new product ramps and market share gains [9][20] Legal and Financial Position - **Arbitration Update**: The company is involved in arbitration regarding its terminated deal with Silicon Motion, with a resolution expected in Q1 of the following year [78][80] - **Cash Flow Improvement**: MaxLinear is ahead of plan in returning to positive operating cash flows, with efforts to cut operating expenses and improve cash generation [81][82] Conclusion MaxLinear is positioned for growth in the semiconductor industry, with a focus on innovative product development, strategic market engagement, and a strong recovery trajectory in key segments. The company is navigating challenges while capitalizing on emerging opportunities in broadband and data center markets.