MaxLinear (MXL) 28th Annual Needham Growth Conference Virtual summary

Revenue growth and product traction

• Keystone 800G product is gaining significant traction, driving most of the data center revenues this year.

• Focus on optical transceivers and strong relationships with U.S. and Chinese data centers are supporting growth.

• Bookings rates have increased due to tight supply, with strong engagement from top-tier customers.

• DSP revenues are expected to reach $60–70 million in 2025, with potential to double and surpass $100 million in 2026.

• Panther product line is expanding, with new applications and use cases driving revenue above $50–100 million.

Market share, competitive positioning, and technology differentiation

• Achieved major design wins in 5G access with two leading North American telecom providers, boosting credibility.

• O-RAN traction is increasing, with notable wins such as Pegatron and Sierra, and customers are pushing more business their way.

• Differentiation in offload capability is appealing to customers, especially compared to CPU-based solutions.

• Gaining market share in PON and DOCSIS 4.0, with ASPs increasing over 40% compared to previous generations.

• Ethernet business is expanding beyond gateways into enterprise, industrial, and small business applications.

Financial outlook, margins, and capital allocation

• Infrastructure business has higher gross margins than the corporate average, with expectations for margin improvement as mix shifts.

• OpEx is managed to grow at about half the rate of revenue, with no major step-up expected as business recovers.

• Operating margin leverage is anticipated to return as revenue rebounds in 2026 and beyond.

• $75 million share buyback was initiated due to improved revenue visibility, profit outlook, and cash position.

• M&A appetite will return post-arbitration, with a focus on accelerating infrastructure growth as the balance sheet strengthens.