MaxLinear (MXL) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $92.2 million, up 14% sequentially but down 26% year-over-year; full-year revenue was $360.5 million, a 48% decline from FY 2023.

• Non-GAAP gross margin for Q4 was 59.1%, with significant operating expense reduction and improved customer order rates for the third consecutive quarter.

• GAAP diluted loss per share was $(0.68) for Q4 and $(2.93) for the year; non-GAAP diluted loss per share was $(0.09) for Q4 and $(0.90) for the year.

• Over one million high-speed optical interconnect units shipped, with strong product traction in Ethernet, PON, Wi-Fi, and storage markets.

• Management highlighted strategic investments and design wins positioning for growth in 2025.

Financial highlights

• Q4 GAAP gross margin was 55.6%, non-GAAP gross margin was 59.1%; full-year GAAP and non-GAAP gross margins were 54.0% and 59.7%, respectively.

• Q4 GAAP operating expenses were $92.4 million; non-GAAP operating expenses were $61.3 million.

• Q4 GAAP loss from operations was 45% of net revenue, non-GAAP loss from operations was 7% of net revenue.

• Q4 GAAP net loss was $57.8 million, non-GAAP net loss was $7.2 million; full-year GAAP net loss was $245.2 million, non-GAAP net loss was $75.6 million.

• Cash used in operations was $27.8 million for Q4 and $45.3 million for the year; cash and equivalents at Q4 end were $118.6 million.

Outlook and guidance

• Q1 2025 revenue expected between $85 million and $105 million.

• Q1 2025 GAAP gross margin projected at 54.5%–57.5%; non-GAAP at 57.5%–60.5%.

• Q1 2025 GAAP operating expenses forecasted at $93–$99 million; non-GAAP at $56–$62 million.

• Broadband and infrastructure segments projected to grow; connectivity flat; industrial multi-market down.

• Cash flow break-even anticipated by Q3 2025.