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MaxLinear(MXL) - 2025 Q2 - Quarterly Results
MaxLinearMaxLinear(US:MXL)2025-07-23 20:09

Executive Summary Second Quarter 2025 Financial Highlights MaxLinear's Q2 2025 results surpassed guidance, achieving non-GAAP profit and positive free cash flow GAAP Basis Highlights Q2 2025 GAAP Financial Highlights | Metric | Q2 2025 | Q1 2025 | Q2 2024 | Change (QoQ) | Change (YoY) | | :----------------------------------- | :------ | :------ | :------ | :----------- | :----------- | | Net Revenue ($ million) | $108.8M | $95.9M | $91.9M | +13% | +18% | | Gross Margin (%) | 56.5% | 56.1% | 54.6% | +0.4 pp | +1.9 pp | | Operating Expenses ($ million) | $86.1M (79% of revenue) | $99.9M (104% of revenue) | $91.0M (99% of revenue) | -13.8% | -5.4% | | Loss from Operations (% of revenue) | 23% of revenue | 48% of revenue | 44% of revenue | -25 pp | -21 pp | | Net Cash Flow from Operating Activities ($ million) | $10.5M (provided) | $(11.4M) (used) | $(2.7M) (used) | N/A | N/A | | Diluted Loss Per Share ($) | $(0.31) | $(0.58) | $(0.47) | N/A | N/A | Non-GAAP Basis Highlights Q2 2025 Non-GAAP Financial Highlights | Metric | Q2 2025 | Q1 2025 | Q2 2024 | Change (QoQ) | Change (YoY) | | :----------------------------------- | :------ | :------ | :------ | :----------- | :----------- | | Gross Margin (%) | 59.1% | 59.1% | 60.2% | 0 pp | -1.1 pp | | Operating Expenses ($ million) | $56.6M (52% of revenue) | $58.4M (61% of revenue) | $74.8M (81% of revenue) | -3.1% | -24.3% | | Income (Loss) from Operations (% of revenue) | 7% of revenue (income) | 2% of revenue (loss) | 21% of revenue (loss) | +9 pp | +28 pp | | Diluted Earnings (Loss) Per Share ($) | $0.02 (earnings) | $(0.05) (loss) | $(0.25) (loss) | N/A | N/A | Management Commentary CEO highlighted strong Q2 2025, exceeding guidance, achieving non-GAAP profit and positive free cash flow - Exceeded the mid-point of revenue guidance, returned to non-GAAP profitability, and generated positive free cash flow in Q2 20255 - Achieved strong customer and product traction in high-speed interconnects for data centers, multi-gigabit PON access, Wi-Fi connectivity, ethernet, and wireless infrastructure5 - Improved customer order rates and strengthening product backlog provide confidence for growth in 2025 and 20265 Business Outlook Third Quarter 2025 Guidance MaxLinear projects Q3 2025 net revenue of $115-135 million, with GAAP and non-GAAP estimates for margins and expenses Third Quarter 2025 Business Outlook | Metric | Range | | :--------------------------------- | :-------------------- | | Net Revenue ($ million) | $115 million to $135 million | | GAAP Gross Margin (%) | 55.0% to 58.0% | | Non-GAAP Gross Margin (%) | 57.5% to 60.5% | | GAAP Operating Expenses ($ million) | $84 million to $90 million | | Non-GAAP Operating Expenses ($ million) | $55 million to $61 million | | GAAP Interest & Other Expense ($ million) | $3.5 million to $4.5 million | | Non-GAAP Interest & Other Expense ($ million) | $3.5 million to $4.5 million | | GAAP Income Tax Benefit ($ million) | $0.6 million | | Non-GAAP Income Tax Provision ($ million) | $1.3 million | | Basic Share Count (million) | ~87.1 million | | Diluted Share Count (million) | ~87.5 million | Corporate Information Webcast and Conference Call Details MaxLinear held a Q2 results conference call on July 23, 2025; webcast and replay available until August 6, 2025 - Conference call held on July 23, 2025, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time)8 - Live webcast and archived replay available on the investor relations section of MaxLinear's website until August 6, 20258 About MaxLinear, Inc. MaxLinear, Inc. provides RF, analog, digital, and mixed-signal ICs, headquartered in Carlsbad, California - MaxLinear, Inc. (Nasdaq: MXL) is a leading provider of radio frequency (RF), analog, digital and mixed-signal integrated circuits22 - Products are used for access and connectivity, wired and wireless infrastructure, and industrial and multi-market applications22 - Headquartered in Carlsbad, California22 Investor Relations Contact Leslie Green is the investor relations contact for MaxLinear, Inc - Investor Relations Contact: Leslie Green, lgreen@maxlinear.com24 Legal and Financial Disclosures Cautionary Note Concerning Forward-Looking Statements Forward-looking statements are subject to risks and uncertainties, potentially causing actual results to differ materially; MaxLinear disclaims update duty - Forward-looking statements include future financial performance, growth, profitability, cash flows, market share expansion, and market trends10 - Statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different10 - MaxLinear is under no obligation to update or revise any forward-looking statements11 Use of Non-GAAP Financial Measures MaxLinear uses non-GAAP measures to supplement GAAP results, excluding non-cash and one-time expenses for core performance, despite limitations - Non-GAAP measures are used to supplement GAAP financial statements, excluding specific non-cash and one-time expenses1214 - Management uses non-GAAP measures for performance comparison against forecasts, strategic plans, and competitors, and for incentive compensation14 - Non-GAAP measures are not standardized, may not be comparable to other companies, and should not be considered in isolation from GAAP results13 Explanation of Non-GAAP Adjustments - Adjustments include stock-based compensation expense, performance-based equity accruals, amortization of purchased intangible assets, acquisition and integration costs (including Silicon Motion merger termination costs), research and development funded by others, restructuring charges, other non-recurring interest and other expenses, and non-cash income tax benefits/expenses151617181920 Unaudited GAAP Consolidated Financial Statements Statements of Operations GAAP Statements of Operations present financial performance, detailing net revenue, gross profit, operating expenses, and net loss for Q2 and YTD June 30, 2025 Three Months Ended June 30, 2025 GAAP Consolidated Statements of Operations (Three Months Ended, $ thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | Net revenue | $108,813 | $95,933 | $91,990 | | Cost of net revenue | $47,288 | $42,102 | $41,804 | | Gross profit | $61,525 | $53,831 | $50,186 | | Total operating expenses | $86,140 | $99,925 | $91,006 | | Loss from operations | $(24,615) | $(46,094) | $(40,820) | | Net loss | $(26,586) | $(49,713) | $(39,266) | | Diluted loss per share | $(0.31) | $(0.58) | $(0.47) | Six Months Ended June 30, 2025 GAAP Consolidated Statements of Operations (Six Months Ended, $ thousands) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------ | | Net revenue | $204,746 | $187,259 | | Cost of net revenue | $89,390 | $87,805 | | Gross profit | $115,356 | $99,454 | | Total operating expenses | $186,065 | $214,890 | | Loss from operations | $(70,709) | $(115,436) | | Net loss | $(76,299) | $(111,575) | | Diluted loss per share | $(0.89) | $(1.35) | Statements of Cash Flows GAAP Statements of Cash Flows detail cash from operating, investing, and financing activities for Q2 and YTD June 30, 2025 Three Months Ended June 30, 2025 GAAP Consolidated Statements of Cash Flows (Three Months Ended, $ thousands) | Activity | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------- | :------------ | | Net cash provided by (used in) operating activities | $10,489 | $(11,400) | $(2,696) | | Net cash used in investing activities | $(7,379) | $(1,989) | $(5,788) | | Net cash provided by (used in) financing activities | $2,079 | $(2,140) | $2,026 | | Increase (decrease) in cash, cash equivalents and restricted cash | $6,188 | $(15,538) | $(6,793) | | Cash, cash equivalents and restricted cash at end of period | $110,253 | $104,065 | $186,137 | Six Months Ended June 30, 2025 GAAP Consolidated Statements of Cash Flows (Six Months Ended, $ thousands) | Activity | June 30, 2025 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------ | | Net cash provided by (used in) operating activities | $(911) | $13,274 | | Net cash used in investing activities | $(9,368) | $(14,498) | | Net cash used in financing activities | $(61) | $(77) | | Decrease in cash, cash equivalents and restricted cash | $(9,350) | $(2,219) | | Cash, cash equivalents and restricted cash at end of period | $110,253 | $186,137 | Condensed Consolidated Balance Sheets GAAP Condensed Balance Sheets detail MaxLinear's financial position, including assets, liabilities, and stockholders' equity as of June 30, 2025 GAAP Condensed Consolidated Balance Sheets ($ thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | Total current assets | $330,149 | $320,406 | $397,581 | | Total assets | $863,737 | $855,281 | $973,197 | | Current liabilities | $213,492 | $196,893 | $190,277 | | Total liabilities and stockholders' equity | $863,737 | $855,281 | $973,197 | | Stockholders' equity | $488,331 | $493,175 | $617,255 | Unaudited Reconciliation of Non-GAAP Financial Measures Reconciliation of Non-GAAP Adjustments (Absolute Values) This section reconciles GAAP to non-GAAP financial measures in absolute dollar amounts, detailing adjustments for gross profit, operating expenses, and net income/loss Three Months Ended June 30, 2025 Non-GAAP Reconciliation (Three Months Ended, $ thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------- | :------------ | | GAAP gross profit | $61,525 | $53,831 | $50,186 | | Non-GAAP gross profit | $64,336 | $56,732 | $55,411 | | GAAP R&D expenses | $47,199 | $55,457 | $56,541 | | Non-GAAP R&D expenses | $35,429 | $35,622 | $48,242 | | GAAP SG&A expenses | $33,361 | $36,589 | $33,600 | | Non-GAAP SG&A expenses | $21,126 | $22,763 | $26,531 | | GAAP loss from operations | $(24,615) | $(46,094) | $(40,820) | | Non-GAAP income (loss) from operations | $7,781 | $(1,653) | $(19,362) | | GAAP net loss | $(26,586) | $(49,713) | $(39,266) | | Non-GAAP net income (loss) | $1,756 | $(4,371) | $(20,948) | | Non-GAAP diluted net income (loss) per share | $0.02 | $(0.05) | $(0.25) | Six Months Ended June 30, 2025 Non-GAAP Reconciliation (Six Months Ended, $ thousands) | Metric | June 30, 2025 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------ | | GAAP gross profit | $115,356 | $99,454 | | Non-GAAP gross profit | $121,068 | $113,153 | | GAAP R&D expenses | $102,656 | $121,307 | | Non-GAAP R&D expenses | $71,051 | $96,638 | | GAAP SG&A expenses | $69,950 | $70,088 | | Non-GAAP SG&A expenses | $43,889 | $52,898 | | GAAP loss from operations | $(70,709) | $(115,436) | | Non-GAAP income (loss) from operations | $6,128 | $(36,383) | | GAAP net loss | $(76,299) | $(111,575) | | Non-GAAP net loss | $(2,615) | $(38,351) | | Non-GAAP diluted net loss per share | $(0.03) | $(0.46) | Reconciliation of Non-GAAP Financial Measures as a Percentage of Net Revenue This section reconciles GAAP to non-GAAP financial measures as a percentage of net revenue, providing a normalized view of performance for gross margin, operating expenses, and net income/loss Three Months Ended June 30, 2025 Non-GAAP Reconciliation as % of Net Revenue (Three Months Ended, %) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------- | :------------ | | GAAP gross margin | 56.5 % | 56.1 % | 54.6 % | | Non-GAAP gross margin | 59.1 % | 59.1 % | 60.2 % | | GAAP R&D expenses | 43.4 % | 57.8 % | 61.5 % | | Non-GAAP R&D expenses | 32.6 % | 37.1 % | 52.4 % | | GAAP SG&A expenses | 30.7 % | 38.1 % | 36.5 % | | Non-GAAP SG&A expenses | 19.4 % | 23.7 % | 28.8 % | | GAAP loss from operations | (22.6)% | (48.1)% | (44.4)% | | Non-GAAP income (loss) from operations | 7.2 % | (1.7)% | (21.1)% | | GAAP net loss | (24.4)% | (51.8)% | (42.7)% | | Non-GAAP net income (loss) | 1.6 % | (4.6)% | (22.8)% | Six Months Ended June 30, 2025 Non-GAAP Reconciliation as % of Net Revenue (Six Months Ended, %) | Metric | June 30, 2025 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------ | | GAAP gross margin | 56.3 % | 53.1 % | | Non-GAAP gross margin | 59.1 % | 60.4 % | | GAAP R&D expenses | 50.1 % | 64.8 % | | Non-GAAP R&D expenses | 34.7 % | 51.6 % | | GAAP SG&A expenses | 34.2 % | 37.4 % | | Non-GAAP SG&A expenses | 21.4 % | 28.3 % | | GAAP loss from operations | (34.5)% | (61.7)% | | Non-GAAP income (loss) from operations | 3.0 % | (19.4)% | | GAAP net loss | (37.3)% | (59.6)% | | Non-GAAP net loss | (1.3)% | (20.5)% |