MaxLinear(MXL) - 2025 Q3 - Quarterly Results

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]