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1. Company Snapshot

1.a. Company Description

MaxLinear, Inc.provides radiofrequency (RF), high-performance analog, and mixed-signal communications systems-on-chip solutions (SoCs) for the connected home, wired and wireless infrastructure, and industrial and multi-market applications worldwide.Its products integrate various portions of a high-speed communication system, including RF, high-performance analog, mixed-signal, digital signal processing, security engines, data compression, networking layers, and power management.


The company offers broadband radio transceiver front ends, data converters, embedded systems and software architecture, and architecture and system design for highly integrated end-to-end communication platform solutions.Its products are used in various electronic devices, such as cable data over cable service interface specifications (DOCSIS), fiber and DSL broadband modems and gateways; Wi-Fi and wireline routers for home networking; radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; and fiber-optic modules for data center, metro, and long-haul transport networks, as well as power management and interface products.It serves electronics distributors, module makers, original equipment manufacturers (OEMs), and original design manufacturers (ODMs) through a direct sales force, third-party sales representatives, and a network of distributors.


The company was incorporated in 2003 and is headquartered in Carlsbad, California.

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1.b. Last Insights on MXL

MaxLinear's recent performance was negatively impacted by a Q4 loss of $0.09 per share, despite topping revenue estimates. The company's earnings call highlighted concerns over its financials, with investors questioning the board's fiduciary duties. Furthermore, a class action complaint was filed against MaxLinear in August 2023, adding to the company's woes. However, MaxLinear has been actively expanding its product offerings, including the launch of its 5G Repeater platform with Morelink Technology and the unveiling of its Rushmore DSP for AI/ML and data center networks.

1.c. Company Highlights

2. MaxLinear's Q3 2025 Earnings: A Strong Performance

MaxLinear reported a strong financial performance in Q3 2025, with revenue reaching $126.5 million, a 16% sequential and 56% year-over-year increase. Non-GAAP net income also saw substantial growth, both sequentially and year-over-year. The actual EPS came out at $0.14, beating estimates of $0.12. The company's gross margin is expected to be between 56.0% and 59% and 58% and 61% of revenue, respectively, for Q4 2025.

Publication Date: Nov -24

📋 Highlights
  • Revenue Growth:: Q3 2025 revenue reached $126.5 million, reflecting 16% sequential and 56% year-over-year growth.
  • Infrastructure Market Expansion:: Infrastructure revenue surged 75% year-over-year, with CEO Kishore Seendripu projecting $300–500 million in infrastructure revenue by 2026–2027.
  • Keystone PAM4 DSP Adoption:: The product is qualified for 400/800-GbE deployments in 2026 at major U.S. and Asian data centers, driving optical data center market growth.
  • Design Win Momentum:: Panther family SoCs secured wins with Tier 1 network/appliance providers, while Sierra 5G and backhaul solutions gained traction in wireless infrastructure.
  • Q4 2025 Guidance:: Revenue expected between $130–140 million, with GAAP and non-GAAP gross margins projected at 56.0–59.0% and 58.0–61.0%, respectively.

Segment-wise Performance

The infrastructure end market showed a 75% year-over-year revenue increase, with expectations of strong acceleration in 2026 due to new design wins. The company's Keystone PAM4 DSP family is qualified at major data centers in the U.S. and Asia for 400-gig and 800-gig deployment starting 2026. Broadband and connectivity revenue saw exceptional growth, driven by early increases in service provider CapEx spending.

Guidance and Future Outlook

MaxLinear guided for Q4 2025 revenue between $130 million and $140 million. The company's CEO, Kishore Seendripu, expressed optimism about the company's future growth, citing design win activities, customer traction, and booking strength. He expects exceptional growth in 2026, with infrastructure revenue potentially reaching $300 million to $500 million in the next 2-3 years. Analysts estimate next year's revenue growth at 18.2%.

Valuation Metrics

To understand what's priced in, we can look at MaxLinear's valuation metrics. The company's P/S Ratio is 2.81, and the EV/EBITDA is -10.69. The ROE is -36.61%, and the ROIC is -21.67%. These metrics indicate that the market is pricing in significant growth expectations, which is consistent with the company's guidance and future outlook.

Key Drivers of Growth

Kishore Seendripu mentioned that the growth in the optical data center market is expected to be a key driver of MaxLinear's revenue growth in 2026. He noted that the company has seen strong traction in this market, with several major data center operators selecting MaxLinear's products. The wireless infrastructure market is also expected to grow, driven by increases in carrier CapEx spending.

Challenges and Risks

The company faces challenges, including the complexity of deploying DOCSIS 4, which requires significant upgrades to the network infrastructure. The arbitration process is also ongoing, with Steven Litchfield stating that it is on track to commence this quarter and extend into next year.

3. NewsRoom

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Stock Buyback Program Initiated by MaxLinear (NASDAQ:MXL) Board of Directors

Nov -25

Source: defenseworld.net

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MaxLinear Announces $75 Million Share Repurchase Plan

Nov -24

Source: businesswire.com

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MaxLinear, Inc. Announces Fourth Quarter 2025 Financial Conference Participation

Nov -04

Source: businesswire.com

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MaxLinear: Signs Of A Turnaround, But Arbitration Keeps Me On Hold

Oct -29

Source: seekingalpha.com

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MaxLinear: Linear Improvements From A Low Base

Oct -27

Source: seekingalpha.com

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MaxLinear, Inc. (MXL) Q3 2025 Earnings Call Transcript

Oct -24

Source: seekingalpha.com

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MaxLinear (MXL) Q3 Earnings and Revenues Beat Estimates

Oct -23

Source: zacks.com

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MaxLinear, Inc. Announces Third Quarter 2025 Financial Results

Oct -23

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.32%)

6. Segments

Broadband

Expected Growth: 10.3%

Growing demand for high-speed internet, increasing adoption of fiber-to-the-home (FTTH) and hybrid fiber-coaxial (HFC) networks, and rising need for reliable and fast data transmission drive the growth of MaxLinear's broadband segment.

Infrastructure

Expected Growth: 10.3%

Growing demand for high-speed data transmission and processing in broadband, connectivity, and storage applications drives the growth of MaxLinear's infrastructure. Increasing adoption of 5G, IoT, and cloud computing further fuels the demand for analog and mixed-signal ICs.

Industrial and Multi-market

Expected Growth: 10.3%

Growing demand for high-performance analog and mixed-signal ICs in industrial automation, 5G infrastructure, and IoT devices drives the market growth, fueled by increasing adoption of Industry 4.0 and digital transformation.

Connectivity

Expected Growth: 10.4%

Growing demand for high-speed data transfer in data centers, enterprises, and telecom applications drives the growth of MaxLinear's connectivity solutions, fueled by increasing adoption of cloud computing, 5G networks, and IoT devices.

7. Detailed Products

Broadband and Connectivity

MaxLinear's broadband and connectivity products provide high-speed data transmission and connectivity solutions for various applications, including cable modems, set-top boxes, and small cells.

Infrastructure and Access

MaxLinear's infrastructure and access products provide high-performance, low-power solutions for infrastructure and access applications, including fiber-to-the-home (FTTH), 5G, and IoT.

Audio and Voice

MaxLinear's audio and voice products provide high-fidelity audio and voice processing solutions for applications such as smart speakers, soundbars, and voice assistants.

Power Management

MaxLinear's power management products provide high-efficiency, low-power solutions for applications such as data centers, servers, and storage systems.

Optical Interconnect

MaxLinear's optical interconnect products provide high-speed, low-power optical interconnect solutions for data center and high-performance computing applications.

8. MaxLinear, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

MaxLinear, Inc. faces moderate threat from substitutes due to the availability of alternative semiconductor products from competitors.

Bargaining Power Of Customers

MaxLinear, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

MaxLinear, Inc. relies on a few key suppliers for its semiconductor products, giving them some bargaining power, but the company's size and diversification mitigate this risk.

Threat Of New Entrants

The semiconductor industry has high barriers to entry, including significant capital requirements and technological expertise, making it difficult for new entrants to compete with MaxLinear, Inc.

Intensity Of Rivalry

The semiconductor industry is highly competitive, with many established players, leading to intense rivalry and pricing pressure for MaxLinear, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.69%
Debt Cost 5.92%
Equity Weight 81.31%
Equity Cost 13.51%
WACC 12.09%
Leverage 22.99%

11. Quality Control: MaxLinear, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Amtech Systems

A-Score: 4.4/10

Value: 7.1

Growth: 4.7

Quality: 3.8

Yield: 0.0

Momentum: 9.0

Volatility: 1.7

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nLIGHT

A-Score: 4.1/10

Value: 6.4

Growth: 2.6

Quality: 4.3

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

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Aehr Test

A-Score: 4.1/10

Value: 6.2

Growth: 3.3

Quality: 4.5

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

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AXT

A-Score: 3.9/10

Value: 8.0

Growth: 0.8

Quality: 4.2

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

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CEVA

A-Score: 3.6/10

Value: 6.8

Growth: 1.4

Quality: 4.5

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

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MaxLinear

A-Score: 3.5/10

Value: 7.2

Growth: 0.6

Quality: 4.7

Yield: 0.0

Momentum: 6.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.82$

Current Price

18.82$

Potential

-0.00%

Expected Cash-Flows