MaxLinear (MXL) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $81.1 million, down 12% sequentially and 40% year-over-year, with non-GAAP gross margin at 58.7%.

• GAAP net loss for Q3 2024 was $75.8 million, or $0.90 per share; non-GAAP net loss was $30.0 million, or $0.36 per share.

• Management noted early signs of recovery in customer orders and new product traction, especially in high-speed optical interconnects and Wi-Fi7.

• Awarded Cisco 2024 Emerging Supplier of the Year and launched MaxAI, an AI/ML framework for Wi-Fi optimization.

• Significant restructuring actions and merger termination with Silicon Motion led to ongoing legal proceedings and related costs.

Financial highlights

• Q3 2024 revenue was $81.1 million, down from $92 million in Q2 and $135.5 million in Q3 2023.

• GAAP and non-GAAP gross margins were 54.4% and 58.7%, respectively.

• GAAP operating expenses were $110.8 million; non-GAAP: $72.8 million.

• Cash and cash equivalents at quarter end were $148.5 million.

• Net cash used in operating activities was $30.7 million in Q3 2024.

Outlook and guidance

• Q4 2024 revenue expected between $80 million and $100 million.

• Q4 GAAP gross margin expected at 54%-57%; non-GAAP at 57.5%-60.5%.

• Q4 GAAP operating expenses: $88M-$94M; non-GAAP: $58M-$64M.

• Interest and other expense expected at $1M-$2.5M; diluted share count: ~84.5M.

• Management expects double-digit growth in broadband and connectivity in 2025, with infrastructure up 30%+.